Reading books can be an important part of an investor’s education and development. There are many books available that provide valuable insights and strategies for investing, and reading these books can help investors to:
- Develop a deeper understanding of the markets and investing concepts: By reading books written by experts in the field, investors can learn about different investment strategies, risk management techniques, and the key factors that influence the performance of different types of investments.
- Expand their knowledge and skills: Reading books can help investors to develop new skills and knowledge that can be applied to their investing activities. This can include learning about different asset classes, risk management techniques, and how to analyze financial statements and other data.
- Learn from the experiences of other investors: Many books feature case studies or stories about successful investors and their experiences in the markets. Reading these accounts can provide valuable lessons and insights that investors can apply to their own investing activities.
- Gain perspective and broaden their horizons: Reading books can also help investors to gain a greater understanding of the world and the factors that shape the global economy. This can help them to make more informed investment decisions.
Rich Dad Poor Dad
This is one of the best books that you can read on money. While reading this one I felt so many times why I didn’t pick this up in my school/college years. Ideally, this should be included as part of the curriculum. You will see money from a whole new angle after reading this book. If you are not so much of a reader, I recommend at least reading this one. I cannot emphasize this enough. This will change your perception and life. A central theme in this is a new perspective on your income and expense flow.
Second, if you don’t make money while you sleep you will always be poor.
Also Read: Book Summary of Rich Dad Poor Dad
Psychology Of Money
This is a must-read book for any investor doesn’t matter if they have years of investing experience or just starting on their investing journey. I say this with convection because this book is not a typical investing book going into details about when to invest, what to invest, etc. rather this is more about giving a very clear message that any common man with no financial background can be a wealthy individual by simply mastering few behavioral skills.
There are so many subtle messages in this book that it deserves its own article.
Think And Grow Rich
There are some books on your bookshelves which you can read many times and every time you will get some new ideas. Think and grow rich is a book like this. Another gem that applies to all generations. Whenever I read this book I find out some new ideas every time. The psychological techniques and dealing with certain situations are dealt with in a pretty good manner. A must-read if you want to see your passion or idea becoming a reality that generates income and makes you wealthy. The central theme of the book is around “Burning desire” to be successful in any field you have to have a burning desire.
I would recommend the audio version of this is preferable. A perfect companion to listen to on a long walk or drive or anything in between.
Also Read: Book Summary – Think and Grow Rich
The Intelligent Investor
Any investing reads are incomplete without a mention of this book. It is a timeless read for generations to come. Although this may feel a little outdated in some area there is some very core investing principles that are called out in this book that applies to this day.
Here are a few of them that I felt are relevant for this century.
- Understand the distinction between investing and speculating. Most so-called investors are in reality speculators.
- Develop a basic knowledge to read the fundamentals of any company
- P/E, Margins, trailing P/E.
- Prefer companies with dividends that have consistently grown their dividends payout
- Blood baths in the market should be seen as a fire sale on the best stocks. Compare it to a black Friday sale but pick your stocks wisely
Honestly, there are many more subtle points in this book that would require an article in itself so I will leave it at that for now.
I Will Teach You To Be Rich
Personal finance must-read category. This one is not so much from an investing perspective, that portion of this book personally felt very basic. However, the reason why I am including it here is, I found this one of the best in terms of an actionable road map that helps point by point to get your finances in order.
If you are someone struggling to get out of debt or get your financial situation in order. This is a must-read book for you.
Overall, reading books can be a valuable part of an investor’s education and development. By reading widely and learning from the experiences of others, investors can gain the knowledge and skills they need to make informed and successful investment decisions.
I would highly recommend any investor to read these books before putting their money on the line in markets or any asset category for that matter.