Mar 23rd, 2009
I thought I would branch out and give the readers some of my favorite investing books – ones that I have read that you probably havent heard of recently. These are especially important now that the market is so low….its the time to invest.
Many books and their authors claim to have all the answers but rarely do they meet your expectations. These authors are sure to provide the insight necessary to be successful. The list is in no specific order except for the first book. It should be read upfront to give novice investors an excellent overview although its content is helpful to all levels. After that you’re on your own to pick and choose the order in which you read them. Just make sure that you finish them all before getting too far into the investment process. It will make a difference.
1. The first book is The Neatest Little Guide To Stock Market Investing. It’s extremely focused and written by a guy who used to work in the technology industry and now spends his time living in Japan investing in the markets. Amazon readers give it five stars. Check out his web site and you’ll see why his book is listed first. It’s very readable, easy to understand and available at your local public library.
2. In 1994 Peter Lynch, the legendary portfolio manager, wrote Beating The Street, a book about his investment style and how the average person could do the same to beat the markets. It is extremely well written and well received. To date no other money manager has written something nearly as compelling.
3. Four years later, another money manager by the name of David Dreman wrote the book on value investing entitled Contrarian Investment Strategies: The Next Generation. While not nearly as readable as Peter Lynch’s book, it is an excellent examination of value investing and everything it entails. Light on brevity and heavy on statistics but informative nonetheless.
4. The last two are investment classics. The first was originally published in 1958 by Phil Fisher, one of the pioneers of growth investing, and it is still a bestselling book. Common Stocks and Uncommon Profits was a reference to his belief that you bought growth stocks and held them for the long term. One example of this was Motorola. Fisher bought it in 1955 and still owned it when he died in 2004. How many people do you know that have held a stock nonstop for 49 years.
5. The final choice is the ultimate book about investing: The Intelligent Investor. None other than Warren Buffett has declared it the finest book ever written on the subject. It just so happens that its author, Benjamin Graham, was Buffett’s teacher and mentor at Columbia Business School. I think Buffett turned out pretty well, don’t you? Originally published in 1949, it is the bible for serious investors. You must read this book if you can only read one. It’s that good.