The most intelligent investment anyone can do is to invest in their own education.
Since no one was ever born a natural at investing, every successful investor you’ve came across had first invested in their own financial education of some sorts.
If you would like to be equally successful in your investments, it would be wise of you to start off with these 6 classics on investments.
One of the legendary books in the investment realm, this book was described by Warren Buffett as “by far the best book on investing ever written”. This is high praise coming directly from the world’s richest investor himself.
Written by Warren Buffett’s teacher and mentor, Benjamin Graham, you would be able to find the foundations to Buffett’s brand of value investing all clearly laid out here.
Be warned though, this is a thick book that can double up as a good pillow. (I’ve personally put this to the test.) However, if you’re truly passionate about investing, this is one book that you cannot afford to miss.
While most investment books are typically written in a dry and technical fashion, this cannot be said the same for Peter Lynch’s One Up On Wall Street.
The fund manager of Fidelity Magellan Fund writes with a sense of humor seldom found in the investing scene, making the book a very enjoyable and easy read. In it, he touches on how the typical investor can and should easily outperform the so called professional investors and how they can use the information they already know to find investment success.
This book is perfect for people who have just started out to those who have been investing for a few years without finding success.
The Little Book That Still Beats The Market is the perfect book for people who are just starting to invest.
While The Intelligent Investor is the legendary must-read investment book, I would not recommend that nor Security Analysis (see below) to the aspiring investor unless I want to put them off their investment journey.
Written so simply that even his own children can understand, Joel Greenblatt wrote this book with the intention of providing sophisticated investing advice in a simple and straightforward manner to anyone who is looking to invest.
Given that Greenblatt has managed to achieve an impressive annualized return of 40% over the last 20 years, I would certainly pay attention to whatever advice this man has got to offer.
The famous Warren Buffett once described his investment style as “85 percent Benjamin Graham and 15 percent Philip Fisher”. Besides The Intelligent Investor, Buffett credits this book as one of the two books that were most instrumental in forming his investment philosophy.
Even though it was written a long way back, the advice it gives is timeless and still applicable in everyday investing. In fact, some people noticed that Buffett’s investing style has evolved to be more and more like Fisher’s than Graham’s these days.
Charlie Munger might be better known as the straight talking partner of Buffett’s Berkshire Hathaway. Never one to shy away from controversy, Charlie speaks his mind and his wit and wisdom is evident throughout the book.
This is a book you would love this book if you are a rational investor and a logic machine.
It may be a bit hard for you to get a copy of this book over Amazon as they only sell used copies, but you can order a brand new copy straight from the official PCA publications site here.
You might also be pleased to know that net proceeds from sales of Poor Charlie’s Almanack go to benefit The Munger Research Center of the Huntington Library in San Marino, California.
Since we started the list with a classic, it is only right that we bookend it (pun intended) with another classic.
Credited as the foundering fathers of value investing, Graham and Dodd have carefully laid out their original concepts and methods in this book. The success of Buffett has only gone on to prove the practicality of their advice.
However if you find The Intelligent Investor to be a dull read, be prepared to be seriously challenged by Security Analysis. While it’s not for the faint of heart, it is compulsory reading for any billionaire investor-wannabe.
Well, nobody said it was easy…
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