Investing your money is smart. But only if you’re making smart investments. So before you put any money into the stock market, it’s wise to take some time to do some research. But finding good information can be hard. A quick internet search will turn up so much information on investing, much of it contradictory or confusing, that it’s almost impossible to tell what is reliable and what isn’t.
There are many, many books on the subject of investing. Some of them are garbage, some of them are extremely useful. You should never stop learning how to get the most out of your money, but if you were only going to read five book on investing, these would be the top five investment books to read.
1. A Random Walk Down Wall Street, Burton Malkiel
If you have looked into the stock market before and found it full of confusing terms that you don’t understand, then this is the book for you. Burton Malkiel has a gift for taken complicated financial concepts and explaining them in terms than anyone could understand. Malkiel’s approach to the stock market takes a long term view of investments that generally produces a better return than a more intensive buying and selling approach. For absolute beginners, Malkiel will clearly spell out everything you need to know.
2. The Intelligent Investor by Benjamin Graham
This book was written in 1934, but don’t be put off by its age. Much of Graham’s wisdom is just as true today as it was when he wrote it. The focus on this book is on minimizing your losses in investing. Investing is a gamble, but if you approach it carefully and intelligently, you’ll walk away flush.
3. Beating the Street by Peter Lynch
Peter Lynch is a wildly successful stock market investor. His book allows you to learn his strategies for buying and selling. He strongly encourages everybody to invest in what they know, which is sound advice even if that is all you get from this book. But there’s a lot more wisdom to be found in these pages.
4. The Essays of Warren Buffet by Warren Buffet
If you read Peter Lynch’s book because of his success on the stock market, then you’ll definitely want to pick up Warren Buffet’s essays as well. Like Burton Malkiel, Buffet has a long holding time on his stocks. Buffet also teaches you about the dangers of following investment trends.
5. Rich Dad, Poor Dad by Robert Kiyosaki
Robert Kiyosaki looks at the difference between the rich and the poor to see how investors can gain financial independence. He outlines investments that produce periodic cash flow and how to tell is something is a true asset or actually hurting your wallet.