Only thought of investing let’s suppose in mutual funds gives a feeling of scepticism to us. Best Investment Books for Beginners, This scepticism converts in the sense of denial for the investment proposal which was made in your mind when you were seeing that advertisement and heard hastened voice saying “…. investments are subject to market risks, read all scheme related documents carefully….”.
It must be said that investment word always come with the word risk and mercuriality or you can say that in investment and risk go hand in hand for those who have little or no knowledge of the investment world. Along with this, it is also true that the manoeuvre of investment is full of complications. One has to get acquainted with all the terms labelled with the investment.
What is Investment?
The term investment refers to the act of putting money in a bank, business, property, etc. The asset that we put in is usually the money or funds. It can be rephrased as the allocation of money in bank, business, property with the expectation of high returns/profit in the future. This definition looks pretty straightforward but the tactics lie in how, where and when you invest.
Many people relate the investment to the notion of stock markets but that is not true. There are multiple investment options available in the market besides stocks such as direct equity, balanced mutual funds, index funds, bonds, debentures, government saving schemes, etc. These investment options are categorised in high, medium and low risk degree. Stocks and direct equity have high-risk potential while the balanced mutual funds, index funds have medium-risk and bonds, debentures, government saving schemes come under low-risk investment.
Here is a list of the best investment books for beginners
Five Best Investment Books for Beginners:
1. The Intelligent Investor
“The Intelligent Investor: The Definitive Book on Value Investing” a book by Benjamin Graham. It was first published by Harpers and Brothers Press in The United States of America in 1949. Also known as the father of value investing, Benjamin Graham was a significant American economist and investor.
If this is to be divided in three parts, the very first part teaches about the safe play through analysing long term strategies and not going for crazy profits. The second comes to Mr. Market that is share market and according to Graham, Mr. Market acts like the love interest of your life who is wholly unpredictable and suffers from serious mood swings.
So, buckle up if you invest your time and energy (money) in your love interest or the other way around you can realise the pattern of her mood swings and make your strategy accordingly to regale her. The third deals with your tactics on operating. Just don’t act like the share market which uses the different paths every time, be firm and sure in your plans. This book analyses not only stock market but also the real estate, equity funds and much more.
2. A Random Walk Down Wall Street
“A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Savings” has been written by Burton G. Malkiel. It was first published by W.W. Norton & Company in New York in 1973. Burton Malkiel is an American economist.
He is significantly known for this book across the world. This book guides specifically on the behaviour of stock markets. Random Walk theory states that price movement of specific stocks are random and totally incalculable in short-term and mid-term. Even the past price movements are capricious for computing the future prices. This book guides for investment strategy according to this specific stock behaviour.
3. Little Book of Common Sense Investing
“Little Book of Common Sense Investing: The Only Way to Guarantee your Fair Share of Stock Market Returns” is penned by John C. Bogle. Published by Wiley in 2007, this book guides exclusively on mutual funds like index funds and proved as a life changer for novices.
As earlier mentioned, index funds come under the medium risk degree. Vanguard founder Bogle explains the investment in index funds as a safest and hassle free method of investing in stock. He emphasises to invest the majority of money in passively managed index funds because the actively managed funds are notorious for changing their direction frequently. And as a beginner, one will not be able to bear the risks of actively managed funds.
4. Rich Dad Poor Dad
“Rich Dad Poor Dad” has been authored by Robert T. Kiyosaki and Sharon Lechter and published by Warner Books Ed in 1997. This is a highly acclaimed book on investment in real estates for the beginners.
In this book the author presents the mindset of his two fathers, one who is poor and another who is rich. How the rich dad makes money unlike the poor dad who does hard work, this book dives you deep in the unconventional methods which the rich dad uses. In other words, this book teaches you not to work for money but have the money work for you.
It also contradicts the belief that your home is an asset but the asset creates income and your home does not, in fact it creates expenses, that’s not something which is made up that is something which Robert Kiyosaki proves in this book.
5. The Warren Buffet Way
“The Warren Buffet Way” is authored by Robert G. Hagstrom, published by John Wiley and Sons Inc. In 2004. Warren Buffet is immensely influenced by Benjamin Graham’s methods of investing.
In this book, Robert Hagstrom has put forward the nine tenets of investing which is used by the greatest investor of all time. His investing strategies can be used in wide variety of options (not only in stock market). Hagstrom has examined his ways in depth and presented the ideas in a much elaborated way that any beginners can try her hands on.
I will not sugar coat the truth. Investment is indeed risky, time consuming, tricky or whatever you say. But with the right and cleverly planned moves you can ace this uncertain and unpredictable field. We have got you covered by our recommended five best investment books for beginners which tell you strategies ranging from the personal experience to the hard and fast market principles. These books are the bestsellers and their authors are the greatest investors of all time.
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