Great Books For Beginner Investors?
Some people believe that there are some activities that beginners should approach simply by taking the plunge; to this effect, dancing often comes to mind. Such is not the case with investing, which is more than just an activity; it is actually a discipline that requires constant learning, research and practice.
Those who are new to the world of investing should take the time to read at least one of the books listed below. Ideally, beginner investors should take the time to read two of these books before moving on to research and practice, and they should later come back and pick up the remaining titles as bedtime reading.
The Intelligent Investor by Benjamin Graham
Beginners who seek to educate themselves as investors should first learn about the true concept of value. Day traders do not usually seek value when they analyze stocks; they are grinders looking to make a quick buck; investors, on the other hand, search for opportunities such as small companies that file excellent financial statements. Mr. Graham is the father of value investing, a strategy that utilizes research to mitigate risk and preaches patience to foster long-term thinking. The best recommendation for this book comes from none other than Warren Buffett, who once called it the best title ever written about investing.
Beating the Street by Peter Lynch
At some point during the 21st century, Wall Street became a dark world of complexity and obfuscation, until hedge fund manager Peter Lynch set out to write the ultimate, plain-English guide to navigating the murky waters of stock analysis. The book is presented as a series of vignettes that trace the professional career of Mr. Lynch, and it is a must-read for those who wish to understand Wall Street.
A Random Walk Down Wall Street by Burton Malkiel
This book is perfect for beginners who feel intimidated by the world that revolves around Wall Street, a world that relies too heavily on forecasting and predicting an entity that is fueled by unpredictable human behavior and sentiment. Mr. Malkiel explains in plain-spoken detail the intricacies of Wall Street, which actually revolves around the theory of efficient markets, thereby negating the practice of constant predictions.
The Art of Asset Allocation by David Darst
Investing is not only about trading stocks. At its most fundamental level, investing should be seen as a constant exercise of building portfolios through asset allocation. This book is not about picking a few stocks that are bound to provide a healthy return and enrich someone’s life; this book is about financial planning, which looks at a very human aspect of investing: the undeniable fact thatt individual lifestyles and age-related situations should dictate how investors should allocate their assets and whether they should be taking positions in the market.