Reading list: Best books about making investments (July 2022)

In today’s article, we’ll be discussing the best books about making investments.

If you want to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or use WhatsApp (+44-7393-450-837).

Introduction

The most versatile and easy way for any beginner to start learning the basics of investing is from books. With a book, you are not tied to a specific time, you can always put it aside for a while or read at a pace that is convenient for you. But this is both a plus and a minus. But if you are able to put yourself down (or put down?) for regular reading, then even with a turtle step you will overcome this difficult topic.

The main thing here is to choose the right books for novice investors. Well, we have compiled a selection for you – there is something for beginners to choose here. It’s just that you won’t be able to read lying down – these are not detectives and not thrillers. Something you want to review or, along the way, write down the question that has arisen.

Let’s move on to the list of books. You will not find books by Kiyosaki, Schäfer or Covey in ​​it – these authors are good as motivators, but they do not reveal the details of the kitchen of investing in securities. And if you are interested in the kitchen, then you need other books and other authors. It is they who will give you food for thought and analysis.

“The Investor’s Manifesto: Preparing for Prosperity, Armageddon, and Everything in Between” by William Bernstein

Against the backdrop of the current market maelstrom, this timely guide describes how to plan for investing for life, in good times and bad, discussing stocks and bonds, and the relationship between risk and return.

Filled with detailed ideas and practical advice, the Investor Manifesto will help you understand the basic principles of executing an investment plan for life, including how to survive in the investment industry, the practical implications of market efficiency, how much to save, how to maintain discipline in the face of panic and mania, and what means to use to achieve financial security and freedom.

Written by bestselling author William J. Bernstein, well known for his views on how individual investors can manage their personal wealth and pension funds wisely. Analyzes how the financial landscape has changed radically over the past two years and what investors should do about it. Contains practical advice. ideas understandable to the average investor. Focused on the concept of Pascal’s wager – identifying and preventing worst-case scenarios and planning investment decisions based on this. you are in a better position to thrive over time. Available here.

“A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing” by Burton Malkiel

What should the average investor do during a scary volatility? You can take Burton G. Malkiel’s advice in his reassuring, authoritative, no-nonsense, and consistently best-selling guide to investing. Long established as the first book to buy before building a portfolio or a 401(k), A Random Walk Down Wall Street now features new material on Tax Loss Collection, the crown jewel of the IRS; the current bitcoin bubble; and automated investment advisors; and a brand-new chapter on factor investing and risk parity.

And, as always, Malkiel’s core insights – about stocks and bonds, as well as real estate investment funds, home ownership, and tangible assets like gold and collectibles – along with a classic lifecycle guide, investing in a book will help restore confidence and composure to anyone looking for a calm route in today’s financial markets. Available here.

“The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns” by John Bogle

Investing is based on common sense. Owning a diversified stock portfolio and holding onto it for the long haul is a winner’s game. Trying to win in the stock market is theoretically a zero-sum game (for every winner there must be a loser), but after deducting the substantial cost of investing, it becomes a loser’s game. Common sense tells us—and history confirms—that the simplest and most effective investment strategy is to buy and hold all of the nation’s state-owned enterprises at a very low cost. The classic index fund holding this market portfolio is the only investment that guarantees you a fair share of the stock market’s returns. To learn how to make index investing work for you, there is no better mentor than legendary mutual fund industry veteran John S. Bogle. Throughout his long career, Bogle—founder of the Vanguard Group and creator of the world’s first index mutual fund—relied primarily on index investing to help Vanguard clients amass significant wealth. Now, with ‘The Little Book of Common Sense Investing’, he wants to help you do the same.

Filled with deep insights and practical advice, ‘The Little Book of Common Sense Investing’ will show you how to implement this proven investment strategy into your portfolio. It will also change the way you think about investing. Successful investing is not easy. (It takes discipline and patience.) But it’s easy. Because it’s all about common sense.

With ‘The Little Book of Common Sense Investing’ as a guide, you’ll learn how to make investing profitable:

Why business reality—dividend yields and earnings growth—is more important than market expectations How to overcome the powerful influence of investment costs, taxes, and inflation How the magic of compounding is defeated by the tyranny of compounding What are seasoned investors and brilliant scientists—from Warren Buffett and Benjamin Graham to Paul Samuelson and Burton Malkiel – have to say about investing in indices and much more. trick indexing. The real formula for investment success is to own the entire market while significantly minimizing the cost of financial intermediation. That’s what index investing is. And that’s what this book is about. Available here.

“The Random Walk Guide to Investing: Ten Rules for Financial Success” by Burton Malkiel

Based on the million-selling book ‘A Random Walk Down Wall Street’, this concise new guide from influential and audacious author Burton J. Malkiel unravels the secret of personal finance by laying out Malkiel’s own ten-point plan for success. Designed for beginners in the field of investing, this practical book is easy to read and digest. It spares readers the jargon to give the reader the confidence and knowledge they need to make wise investment decisions that generate consistent returns. Available here.

“The Behavior Gap: Simple Ways to Stop Doing Dumb Things with Money” by Carl Richards

Why are we losing money? It’s easy to blame the economy or the financial markets, but the real problem lies in the decisions that we are making.

As a financial planner, Carl Richards found it frustrating to watch the people continually make the same mistakes. They let their emotions get in the way of making serious financial decisions. He called this phenomenon—the distance between what we should be doing and what we actually do—the “behavior gap.” Using simple drawings to explain the gap, he found that once people understood this, they performed much better.

Richards’s handling of words and images has won a loyal following for his blog posts for The New York Times, National Public Radio appearances, and his columns and lectures. His book will teach you to rethink all sorts of situations where your perfectly natural instincts (safety or success) can cost you money and peace of mind.

It will help you:

   • Avoid the tendency to buy high and sell low;

   • Avoid the pitfalls of general financial advice;

   • Invest all your assets—time and energy, and savings—more wisely;

   • Stop wasting money and time on things that don’t matter;

   • Determine your realistic financial goals;

   • Start meaningful conversations about money;

   • Simplify your financial life.

It’s never too late to start a new financial life. As Richards writes, “We have all made mistakes, but now is the time to give yourself permission to analyze those mistakes, identify gaps in your personal behavior, and make a plan to avoid them in the future. the “perfect” money decision every time, but we have to do our best and move forward. In most cases, this is sufficient.” Available here.

“Common Stocks and Uncommon Profits and Other Writings” by Philip Fisher

Multibillionaire Warren Buffett, US stock market guru, counts Philip Fisher as one of his teachers in the investment world. Philip Fischer founded his own money management company and subsequently made a fortune investing in stocks.

The thesis of the book gives the investor warnings against extremes. In almost every book listed, the reader will be able to see over and over again the recommendation to diversify your portfolio, and only Fisher says – do not overestimate diversification. Don’t aim for too many stocks in your portfolio; such a portfolio is difficult to evaluate, it is not easy to manage; It is extremely difficult to keep information about a hundred papers in your head. The general level of diversification should allow the investor to avoid the too serious consequences of a fatal mistake that happens to everyone, and, at the same time, should not speak of the uncertainty of its owner.

Philip Fischer warns the investor, seeking a stable increase in his capital, from the IPO craze (“Insidious IPO trap”), justifying the recommendation with a high level of risk. Such a degree of risk does not correspond to the basic goals of the investor – to preserve capital and receive a stable increase.

A separate chapter is devoted to the sale of shares during periods of crises and price declines. The author writes that selling securities in such a situation is the worst thing an investor can do, and calls, on the contrary, to buy depreciating shares, replenishing the portfolio with good securities based on a study of the financial condition of the issuing companies. Available here.

Pained by financial indecision? Want to invest with Adam?

Adam is an internationally recognised author on financial matters, with over 548.6 million answers views on Quora.com and a widely sold book on Amazon and a contributor on Forbes.

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