Books You Must Read Now to Become a Better Investor

August 27, 2019

Most novice investors believe that they know the price of everything; however, they rarely recognize true value. This is a great investing quote that sums up the problems most novice investors encounter when they begin investing. To put it quite plainly, most novice investors just don’t know what they are doing.

Like a lot of things in life you must learn to do something before doing it well. We all take driving lessons and a test before driving a car. You have to take lessons and gain various certifications to be a pilot, EMT, or a physical therapist, for example. However, anyone with money to burn can be an investor.

So, what does it takes to be an investor or to at least learn to invest well? It helps to understand that it can take years to make a return on an investment. The average return on an investment can be anywhere from 7% to 10% over multiple years. Additionally, it helps to understand that you don’t need a whole lot of money to invest if you do your own research and appreciate value.

You can begin investing with as little as $5 with spare change investing platforms like Acorns. However, before you begin investing, you should be realistic and try to learn about the art of investing. There are many books that can help you learn about investing and investing-centric philosophies.

The Intelligent Investor by Benjamin Graham

After losing all of his money in the 1929 global financial market crash Graham decided to become a finance expert. He would invest thereafter on his own terms. Published in 1949, The Intelligent Investor, is full of investing lessons and stratagems that Graham developed by researching stock market data going all the way back to 1871.

Before you get the idea that this book is too old to be of any use to you, keep in mind that the stock market itself is a continuum of investors constantly analyzing patterns and transactions of the past. Also, you can hardly go a day without hearing Warren Buffett’s name in the news. Graham was the mentor of a young Warren Buffet.

Making the Most of Your Money by Jane Bryant Quinn

Jane Bryant Quinn is a finance writer and reporter. Quinn wrote this book to offer professional advice on various personal finance topics like insurance premiums, savings accounts, pensions, and investment strategies.

How to Buy Stocks by Louis Engel

Louis Engel is another storied figure in the history of the American stock market. Engel started his finance career working for Merrill Lynch in 1946 until 1969. He would go on to become a vice president and partner of the company. Engel developed an investing philosophy advocating the idea that the continued participation of novice investors is more integral to the success of the stock market than a small demographic of rich people.

How to Buy Stocks was originally published in 1954. However, this book is full of investing strategies that will be beneficial to you today

No Need to Rush

Investing should always be a long-term strategy. If you invest based on pop culture fads or following the stock picks of others, then you are investing for the wrong reasons. Take the time to learn some tried and true investing strategies before you start investing.

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