As said by Jim Rohn “Reading is essential for those who seek to rise above the ordinary.”
Warren Buffett says, “Knowledge builds up like compound interest.” The employees most of his day just to read all current news prevailing in the market.
It’s obvious for young adults and professionals to start investing early. One of the main reasons for doing so is to reap the benefits of the power of compounding. By holding long-term investment options, one can easily allow his or her assets to generate more returns within a stipulated time. But this understanding will not be possible unless and until you go through certain investing books which may give you proper insight relating to practical exposure.
As it is important to invest early, it is also necessary to invest wisely to avoid any future issues. These classic investing books can provide immense business and finance insights for young investors. Best Investment Books are follows
“The Essays of Warren Buffett: Lessons for Corporate America” (1997) by
Warren Buffett—widely considered to be the most successful investor king provides his knowledge and view on a variety of topics relevant to corporate America and shareholders in this beautiful masterpiece. one of the best investment books Young investors can get a glimpse of the interface between a company’s management and its stakeholders with their thought processes involved in enhancing a company’s enterprise value and goodwill.
This book includes discussions on corporate governance, finance, investing, alternatives to stock, mergers, and acquisitions, accounting and valuation, accounting policy, etc. New investors, as well as experienced readers, will gain an invaluable informal education by this classic arrangement of Warren’s best writings.
Common Stocks and Uncommon Profits by Philip Fisher
An investment books on choosing the right kind of investments by evaluating a company’s management team. Fisher is one of the few people whom Buffett considers to be an influence on his investing strategy. Fisher’s approach is deeply related to the idea that intangible factors can produce impacts on the long-term value of common stock picks of an investor. If the economy is good, the outstanding stock would outperform bonds, and even in the event the economy goes south, this could still work in the favor of the bondholder and is only a temporary effect in any case.
“Rich Dad Poor Dad” (1997) by Robert T. Kiyosaki
It combines autobiography with personal advice to outline the steps to become financially independent and wealthy with just some teachings. This book revolves around the lessons rich folks teach their kids about money, which, according to Robert Kiyosaki, poor and middle-class parents too often neglect. Kiyosaki’s simple-but-effective message explains the importance of investing early, to make your assets work for you–a concept all children should know in this era of money-minded thoughts.
“The Intelligent Investor” by Benjamin Graham
Warren Buffett praised “The Intelligent Investor” as “the best book on investing ever written.” He’s certainly not the only person to hail it as such. Though Benjamin Graham – also known as the “godfather of value investing” – wrote this investing book way back in 1949, it remains as relevant as ever. Graham’s widely embraced philosophy of value investing, a strategy focused on making long-term wealth gains while limiting risk, is front and center.
The Confidence Booster: “One Up on Wall Street” by Peter Lynch
In “One Up on Wall Street,” renowned investor Peter Lynch argues that average investors can rival professionals. What the everyman needs to do, Lynch explains, is pay close attention to the products and services they encounter daily. Those observations made at work or at the grocery store can translate into valuable, on-the-ground knowledge that can inform investments. One point he does emphasis, however, is that most people should purchase a house before they invest in stocks since they tend to do more research.
The Money Masters by John Train
John Train is an internationally known investment counselor and financial writer, also he has interviewed nine of the most successful investment managers. He has carefully examined their methods of selecting companies, evaluating risks, and determining when to make purchases and sales. The key point lies in the parts of assessing their various business careers that show their investment techniques and decisions to buy and sell any stock. But the question arises that how do they get the reason? Where do they get their information etc? What are their criteria in selecting a stock? The book avoids technical jargon and can be read profitably by the non-professional investor.
The Little Book That Beats the Market by Joel Greenblatt
This is probably the shortest investment books that I’ve ever read on investing which can be completed in a short period. In this book, the author -Joel Greenblatt explains the concept of value investing and his approach to pick winning stocks for longer sustenance in the market. He also shares his strategy and USP of ‘Magic Formula’ (that consists of evaluating two financial ratios- Return on capital and Earnings Yield) which helped him to pick fundamentally strong companies year-after-year and generating returns on yearly basis.
Value Investing and Behavioral Finance by Parag Parikh
This is one of the best books written by an Indian author that I ever came across. The book educates and aware the readers about the much-needed topics that are usually ignored by most financial websites and books. The Value Investing and behavioral finance book is well structured and thoughtfully written and contains 12 important chapters. Few of the best ones are- Understanding behavioral traits, Behavioral obstacles to value investing, Public sector units, Sector investing, Initial public offerings & Bubble trap.