Most of us have a stereotype that an investor must certainly be an incredibly wealthy person, established and already middle-aged. In fact, absolutely anyone can become an investor. To do this, you just need not to store the savings under your pillow or on the deposit with scanty percentages, but to make the money really work.
For your money to work effectively, you need to stock up on knowledge. This will help the selection of the best books on investing. Really interesting and useful literature written by ordinary people who have traveled an outstanding path in investing.
“Rich Dad Poor Dad” - Robert Kiyosaki
It is not entirely correct to call this book an investment guide. But this, of course, is a thing from which you should begin your journey into the world of prosperity and prosperity. The book clearly and realistically explains what the difference between poor and rich people is in their habits and opinions. It has long been known that rich people have a special mindset that allows them not to lose their temper during risky money transactions, approach any deal with a cold mind and find advantages for themselves in seemingly hopeless situations. While poverty, or rather the habit of poverty, is inherited. And this is not surprising. Parents teach children in words and by example how they think they should make money and how to spend money. Children grow up and become part of the same vicious circle of "salary-bills-expenses-debts."
Robert Kiyosaki’s book “Rich Papa Papa Papa” tells how to break this leadless sequence and break out of the vicious circle of the so-called “rat race”. This term in the book refers to the need to work for a private campaign or the state, spending everything earned on paying loans and maintaining your life. After all, it is precisely this scenario that most of us live in, remaining at the sunset of life only with a beggarly pension.
Reasonable Investor - Benjamin Graham
Benjamin Graham in the middle of the last century developed the method of "value investment", which remains relevant to this day. For more than half a century, “Intelligent Investor” has rightfully been considered one of the best books on investing for beginners. This work has long since fairly earned fame as a handbook for a successful investor and even a stock market bible
In the book “A Reasonable Investor”, Benjamin Graham consistently sets out everything that is important for an investor to know: what is “Mr. Market” and what laws it applies to, what is the difference between long-term investments and active speculation in the stock market, what is passive or active investor and how to make an investment portfolio in such a way that the money works according to the scenario that is most convenient for you. The content, among other things, contains very revealing real examples.
Warren Buffett, one of the world's largest investors, praised this book so highly that he even wrote a preface to the fourth edition. It says that the book “The Intelligent Investor” by Benjamin Graham, read by him at the age of 19, turned Buffett's whole life upside down. The fact that the largest investor, considers her the best investment book ever written, serves as the best review and reading recommendation.
"The path to financial freedom." Author B. Schaefer
Bodo Schaefer is one of the world's most famous financial advisors, an expert in achieving financial independence, a business coach and author of the most popular motivational books. The key word “motivational” - this book belongs to this category. “The path to financial freedom” by Bodo Schaefer abounds with inviting slogans and wise quotes, as well as examples from the author’s own experience. Examples, by the way, are very revealing. Bodo at one time managed to gain financial independence himself, but this did not happen right away. Like most successful investors and consultants, he tried himself more than once in private business and suffered failures and bankruptcy. The ability in any situation not to give up, but to seek the opportunity to move on to success is the key to success in any business. This is especially true for investments, because in the stock market at any time because of a rash decision, you can lose everything.
Summarizing, we can say that the book "The Path to Financial Freedom" by Bodo Schaefer is perfect for those who want to improve their financial situation, but for some reason are not confident in their abilities or are afraid to take the wrong step. This author is able to find the right words for such people and push them to action.
Warren Buffett Investment Rules - Jeremy Miller
Already mentioned in this article, Warren Buffett is the most famous and largest investor in the world. Today he is 87 years old, and by this venerable age, he has reached a fortune of approximately $ 84 billion. Here is a man who has a lot to learn from. But, unfortunately, Buffett himself does not write books. There is no doubt: if I wrote, these would be the best books on investing.
But Warren Buffett has been actively investing since 1956, at the same time he is organizing a joint investment business with partners - Buffett Partnership Limited. Once every six months, a neat and meticulous Buffett analyzed his actions and sent out to his partners a report on the company's activities with a detailed description of the most successful investment methods and other conclusions about working with securities. Not so long ago, financial analyst Jeremy Miller analyzed the activities of the largest and richest investor. He sorted Buffett's letters to partners by subject, taking as the basis the most successful period of the company’s activity. This book turned out to be familiar with not only novice investors, but also all thinking and inquisitive people.
“Against the gods. Taming Risk ”- P. Bernstein
When it comes to investing, you can’t do without risks. Another thing is that each investor chooses his own behavior strategy. If you want to earn fast and a lot - be prepared and take risks "in the hussar's way". You are afraid to lose a part of your investment and do not like risk - choose more conservative and long-term, but less profitable strategies. Risk, the main component of the stock market game, is the subject of this book by Peter Bernstein. How to relate to the risk factor, what mechanisms of working with it exist, how to make money at risk and how not to be afraid of it - all this is extremely fascinatingly set out on the pages of Peter Bernstein's book “Against the Gods. Taming Risk. ”
Reasonable Asset Allocation - William Bernstein
This book will be good not so much for beginner investors, who may find it a little heavy, but for players already active on the exchange. It describes how to best compose your investment portfolio, in what proportions and in which assets should you invest, depending on what the investor has financial goals. In a word, “Reasonable Asset Allocation” is a collection of effective decisions on how to increase profitability and reduce risks. This approach will be of interest to long-term investors. But it is precisely such investors, if we analyze real examples, and achieve the greatest success.
“The Richest Man in Babylon” - George Samuel Clayson
The fact that history is our best teacher is perfectly confirmed by this book. It turns out that the secret to achieving personal financial freedom and independence was already known in ancient Babylon. The author is based on many years of study of ancient sources and derives the basic untimely laws of financial literacy. These laws were relevant in Babylon long before our era, in Veliky Novgorod at the dawn of our era, they remain valid even now. The book is also unique in that all the necessary investment knowledge is presented in a very interesting manner - like a parable. That is why reading becomes doubly useful and instructive.
“The mechanism of trading. How to build a business on the stock exchange? ” - Timothy Martynov
Unfortunately, the Russian investment market is much younger than the American or European, therefore, in comparison with the Western ones, it is rather scarce with such financial literature. However, even among our authors there are worthy works that fully claim the title of the best book on investing. These include the book of Timofei Martynov , a successful stock exchange player and experienced investor.
The book is intended for existing investors who are familiar with the mechanisms of transactions in the stock market. It will also be useful for beginners to get acquainted with the content, but in order to understand all the nuances set forth in the book, it is better to immediately apply the acquired knowledge in practice. The entire algorithm of actions was set forth by Timofei Martynov with knowledge of the matter: when is the best time to enter into a deal, what kind of market analysis to use in what situation, it tells about common pitfalls in investing on the exchange. In general, the book is very applied and gives a lot of practical advice.
What sets the books on investing by Russian authors favorably is that all the examples are transferred to our realities. The book describes examples of working with Russian stocks and indices. After all, the Russian financial market has its own specifics, which must be taken into account.
Where to begin?
So, the key and most useful books on investing are known to you. If you are still on the verge of financial literacy and independence, start with Kiyosaki and Schaefer. If you have already developed some financial principles for yourself and have some kind of investment portfolio, even if you have a bank account and several dozen bonds, you can already consider yourself an investor. Therefore, it will be more interesting for you to get to know and read the writings of Graham, Buffett and Bernstein. Well, if you are no longer a newbie in stock market operations, give preference to applied literature such as the book "Japanese Candles" by Steve Nison or Martynov's mentioned book "The Trading Mechanism."
If you arm yourself with the necessary knowledge in a timely manner and do not give vent to emotions and momentary impulses - a great future awaits you in the matter of investing. It remains only to wish everyone a successful investment and financial independence.