10 great investment books you must read, if you love investing & finance
I was just going through an interesting article by Ms Bhakti Makwana of CAFEMUTUAL.COM , who presented this smart list of books for readers. Impressed by the content , I simply copied the article as it is and pasted here for the benefit of my blog readers group. Thanks Ms Bhakti ji for suggesting these nice books with such a good snapshot .
Book #1 : Rich dad poor dad
The classic book by Robert Kiyosaki is considered one of the best investment books. It narrates the important life lessons the author learned while growing up with two dads – the poor dad (his real father) and the rich dad (his best friend’s wealthy father).
The book highlights the importance of financial literacy, financial independence and building wealth through investing in different assets.
Book #2 : The psychology of money
The book by Morgan Housel shares 19 short stories exploring the ways people think about money and teaches you how to make better sense of one of life’s most important topics.
He believes doing well with money isn’t necessarily about what you know. It’s about how you behave. And behavior is hard to teach, even to really smart people.
Book #3 : The Warren Buffett Way
In this book, Robert G. Hagstrom helps us dive deep into Warren Buffet’s style of investment. It explains in simple words about Buffett's investment strategy that produced him exceptionally higher returns. The book dwells into his investment philosophy and narrates why he selected a particular stock and how it contributed to his portfolio.
Book #4 : The Intelligent Investor
The book by Benjamin Graham is considered as the bible of investing. Also, Graham was the mentor of Warren Buffet. He introduced the concept of value investing in the book.
Although the book was first published in 1949, it is relevant even today as it speaks volume to the timeless wisdom of value investing.
Book #5 : Beating the street
Peter Lynch, star fund manager of all time has written this book. Peter explains his investment strategies step-by-step and offers advice on how to select the right individual stocks and mutual funds for your portfolio.
He is known for his incredible returns between 1977 and 1990 when he managed an annual average return of over 29.72%. The fund, which originally had just $18 million in managed assets, grew to a whopping $14 billion by the time Lynch retired from his position.
Book #6 : Little Book of Common Sense Investing
John C. Bogle, founder of The Vanguard Group has authored the book. He is best known for creation of Index funds. In this book he provides powerful insights and perspectives on how to get more out of your investment. He highlights how even in a lose-lose situation, you can still turn the odds in your favor (or vice versa if you are not careful).
Book #7 : Think and Grow Rich
Napoleon Hill did extensive study before publishing this book. Over 20 years, he interviewed America’s wealthiest figures from which he drew a list of 13 principles needed for success, which he succinctly details inside the book.
He explains the psychology of success and examines how personal beliefs and perspectives influence one’s success in life.
Book #8 : Thinking, Fast and Slow
In the book, Daniel Kahneman shares how one’s thought process impacts investment success. He explains the two systems that drive the way we think. System one is fast, intuitive, and emotional, system two is slower, more deliberative, and more logical. The book goes on to stress how reliance on system one can lead to suboptimal decision making and what techniques we can employ to guard ourselves against its shortcomings.
Book #9 : Common Stocks and Uncommon Profits
The book by Philip Fisher describes what you should look for when investing in a company. It helps you determine whether you’re a high-risk investor or a conservative one. It will answer investor queries like how to determine if a company stock is overvalued, why stock price doesn’t tell you whether a company is actually any good etc.
Book #10 :The Four Pillars of Investing
Author William J. Bernstein lays down four essential topics that every investor must master in this book. The relationship of risk and reward, the history of the market, the psychology of the investor and the market, and the folly of taking financial advice from investment salespeople.
Trust you will find this information useful and beneficial.