The best investment books for beginners to read
Learn, learn and learn! – as bequeathed to us by the leader of the proletariat. In investments, there is no secret knowledge available to the elite. There is knowledge that is available to anyone who can read.
If you have just started your journey, then in order to learn how to invest correctly, you will have to read more than one correct book.
Actually, today I will tell you which books can influence your worldview, which ones will teach you how to cope with your fears, and which ones, of course, will correctly evaluate companies for investment.
First, let’s look at books on financial literacy, it is necessary to start investing with the pumping of this skill. Otherwise, there simply will not be an understanding of why this is all necessary.
And perhaps I’ll start with Robert Kiyosaki’s book "Rich Dad Poor Dad". This is a rather old book, I started reading it at school, then, of course, I did not understand anything, but after rereading it 10 years later, I can say with confidence that it changed my idea of money in general. Actually, my investment journey began with this book.
There are a lot of rumors, criticisms, revelations about the author of the book on the net. I will not touch on this topic, I will only say that the ideas voiced in the book are more than correct, and Kiyosaki himself is not in vain considered one of the most famous speakers and motivators in the financial environment. After reading “Rich Dad Poor Dad" you will be able to take a different look at the money that you have now in the first place.
Another book similar in meaning is The Richest Man in Babylon by George Clason. It is written in the style of parables, it is very easy to read and tells about the nature of savings and the ability of a person to increase his capital. It also provides excellent ground for “thinking” and reassessing your values.
The third book I recommend reading is The Path to Financial Freedom by Bodo Schaefer. The book is rightfully considered a bestseller, and the author himself not only teaches correct financial thinking, but also gives practical ways to get rid of debts, loans, as well as ways to increase your capital. In one of the previous videos about just the same loans and debts, I already talked about the Bodo Schaefer method. In this book you will be able to learn about everything first hand.
The next book is by the current writer, who is also an active lecturer at the Plekhanov Institute, where he teaches a course on the topic “International Financial Markets”. His name is Alexei Markov, and the book is called "Hooligan Economics" or "Hulinomics" for short. The title fully reflects the content of the book, it is written in the most simple language, obscene language slips in places. But after reading, there is a pleasant aftertaste and, of course, general knowledge about how the economy works. Personally, I really liked the book.
The latest book in the financial literacy series by Cambridge scholar Ha Joon Chang is How the Economy Works. As in “Hulinomics”, the author tries to explain complex things in simple terms, considers various areas in the economy and gives his comments on this matter. The book is very broadens the horizon and allows you to look at some things more globally.
Now let’s talk about investments.
I recommend starting your acquaintance with investments with another world bestseller, which even Warren Buffett himself approved and this is the book “The Intelligent Investor” by Benjamin Graham. Graham, by the way, was Warren Buffett’s teacher. The book is not entirely about what you really need to pay attention to when investing and compiling your portfolio, but it very competently tells about all the processes that take place in the stock market.
Another book I would recommend starting with is The Investor Manifesto by William Bernstein. It can be difficult to read in places, but there is still little mathematics there, but there are really interesting thoughts and tips on the psychology of the market and how to react to certain shocks in the markets yourself. I believe that before you start investing, you need to be mentally prepared for a variety of market situations. And this book will help you a little.
But specifically about how our brain reacts and how this or that information can be distorted, you will learn after reading Daniel Kahneman’s book “Think Slowly Decide Fast”. Quite a lot of information about the psychology of traders and investors, about what can happen if your brain starts to panic. Get ready for slow and thoughtful reading.
And now, finally, we turn to the really serious literature. Aswat Damodaran and his “Investment Appraisal” is a full-fledged Talmud, which describes in great detail what fundamental analysis is, how it is applied and what to do with it. She will teach you how to evaluate any asset before buying. Really worthwhile, but very voluminous thing.
If you are more or less versed in fundamental analysis and want something more, then I also recommend reading the book by Nick Antil and Kenneth Lee "Company Valuation". In my opinion, a real handbook for investors. Everything is here, both industry specifics, and forecasting the development of the company, etc. Get ready, there will be a lot of numbers and tables.
And of course, I cannot ignore the book by Warren Buffett himself, Essays on Investments, Corporate Finance and Company Management. The book is rather for general development, where the specific rules and principles of investing this greatest investor are written. Of course, his methods are not suitable for everyone, but it will be very interesting to find out how the legendary investor thinks and what guides him when choosing this or that asset.
I recommend reading all the voiced literature in the order in which I voiced it. Otherwise, it may be difficult to understand what is written if you immediately take up something more serious.
And of course, don’t stop reading. The more information you learn, the broader your horizons will be, and your understanding of the markets will make you a more successful investor.
But don’t get hung up on books either. If you are not sure yet, put the mower into a brokerage account, buy a couple of shares, and after that you will start to have the right questions, the answers to which you are more likely to find in one of the books voiced.