There is one common activity that successful entrepreneurs and billionaires share – the habit of reading.
Elon Musk, Bill Gates, Mark Zuckerberg, and Charlie Munger are a few to name who share their secret to success is the habit of reading.
When it comes to learning the secrets of investment, it is essential to have a good understanding of the market and trends in order to improve financial stability in the future.
Do you want to learn about the investment, but you are confused to decide where to start from?
Today, the digital space filled with countless articles and guides claiming to help you acquire knowledge on any topic or industry, replacing the traditional way of learning by books, has drastically transformed the way of acquiring information. And anyone can write and publish on the internet, not everything you read on the internet is authentic.
On the other hand, books are reviewed by established experts and you can directly get tips and lifelong journeys from the top industry leaders. Financial education with books can come in pretty handy.
If you have decided to invest spare time reading books to improve your financial education, reading a few good investment books compiled below can help you learn the secrets of investment and to keep you up with the ever-changing market trends and rules. Learn directly from the industry leaders to start a new investment journey!
The best Investing Books to Read in 2021
1. The Intelligent Investor by Benjamin Graham, Jason Zweig
Warren buffets’ pick as one of the greatest books of all time by Benjamin Graham is worth reading. The author outlines key points to help you comprehend the fundamentals of investing in the financial market without taking risky steps, focusing on long-term investment.
His concepts of safe investment still influence investors today as they were when Graham wrote this book. First published in 1949, it has been re-published and updated from time to time.
Key Points from Graham’s Intelligent Investor
- Get proper knowledge about the business you are investing in.
- Invest in keeping in mind the margin of safety based on statistical data.
- Do not run for an immediate profit.
- A safe investment is that with a history of positive returns.
- What is value investing?
- Importance of margin of safety
- Being an investor, analyze the company’s operation and report on your own to choose an investment, not by market noise or popularity of the company.
- Guide to buy low-risk stocks.
This is an excellent book for novices who want to learn how the market works. It covers all the salient points you need to know to succeed as an investor.
2. A Random Walk Down Wall Street by Burton G. Malkiel
If you are inquisitive to know how people have put money into the financial market over the last few hundred years and what common set of tactics have worked and are still prevalent, it covers common strategies extensively, providing essential investment plans you should know.
This book also highlights some long-term investment approaches and practical pieces of advice on index mutual fund investing in stocks.
Furthermore, the author emphasizes that the market is highly irregular like a “random walk” and advises you to invest money in index funds. You will get to know more about what index funds are and how they work.
Key points of “A Random Walk Down Wall Street”:
- Making money through the stock market is not rocket science.
- Some prevalent fundamental and technical analysis.
- Handful concepts about which funds to start with the stock market.
- The economy in different time periods to help you understand market investment rules.
- How to put the money in the index funds and what they are?
A great book for novice investors who have no prior knowledge of the financial market, which delves into how the market works. This book emphasizes long-term investment benefits which is a common point among most of the books.
3. Common Stocks and Uncommon Profits and Other Writings by Philip A. Fisher
“I sought out Phil Fisher after reading his Common Stocks and Uncommon Profits…A thorough understanding of the business, obtained by using Phil’s techniques…enables one to make intelligent investment commitments.”: – Warren Buffet
This book beautifully explains qualitative analysis of stocks and exchange views on various stumped situations which a long-term investor might come across when the market is unstable. Moreover, you will get to know Fisher’s off-the-wall approach to determine a company’s growth in the long run.
Key points of the Fisher’s Book:
- The idea of growth investing.
- Quantitative analysis of stocks.
- Investment should be chosen by smart research, not relying on business insiders.
- Common stocks & uncommon profits
- Analyzing a company by its financial reports, company’s management, employee relations, etc. to make an investment decision.
- Long-term investment and avoid the market noise.
4. The essays of Warren Buffett by Lawrence Cunningham
One of the most successful investors of all time, Warren Buffett needs no introduction. If you want to know the approaches and successful strategies, then this book is highly recommended to read which is a compilation of Buffett’s annual letters.
- Common stocks
- Alternatives to Common Stock
- Accounting and Valuation
- Accounting Policy and Tax Matters
- Corporate Governance
- Corporate Finance and Investing
- Mergers and Acquisitions
It is one of the most recommended books by any investor, especially for accounting professionals to read. Warren attempted to impart a lifelong investment journey based on the lessons he learned in his life on readers, and Cunningham brilliantly compiled best from Buffett’s annual letters.
Novice and experienced investors will get invaluable investment education by reading Buffett’s best writings.
Key points from Essays of Warren Buffett Book:
- Corporate Governance
- Investment & taxation knowledge
- Definition of risk by Warren Buffett
- Understanding of stock market
- Economic goodwill and moats
5. One up on Wall Street by Peter lynch
This book is highly recommended for those who want to obtain basic knowledge about the stock market. The author shares his experience and tells us how he dealt with losses and what factors made him find out the secret of finding the best portfolios. Peter Lynch is considered one of the most successful mutual fund investors and his investment style including growth and value investing is still relevant.
Key points from this book:
- Growth and value investing
- Fundamentals of an ever-changing market
- Learn to identify the valuable stocks.
- Psychological aspects of the investment
With simple investment rules and straightforward ideas by Peter Lynch, this book highlights some amazing benefits an average investor can have and provides you with tips to find out the valuable organizations to invest in.
If you are willing to plan a successful investment strategy, while learning the secret of investment from the most successful investors ever, in order to provide yourself financial stability, these popular books are worth reading.
Though the internet is a powerful tool to get information about any topic, if you don’t learn the basics of investing and the stock market, you are on the verge of making big financial mistakes.
And you might end up losing your hard-earned money with spammy articles floating on the internet with quick-rich schemes. Therefore gaining knowledge and education books are the best way to start your investment journey.
Along with these, there are plenty of amazing books out there, though it is hard to mention all of them. Do you think we have missed any book on this list? Please let us know your thoughts in the comment section. So, what are you waiting for? Learn from the journeys and experiences of those who have excelled in the industry.