5 Must-Read Books On Investing

By BankBazaar | March 7, 2019

Whether you are a seasoned investor or an anxious rookie, you will find something new to discover every time you stumble across these 5 timeless classics. Read on.   

5 Must-Read Books On Investing

When it comes to investing, knowledge is your best friend. And the best way to acquire all that knowledge is by reading books.

Warren Buffett, the master investor, advises young and seasoned investors alike to read as many as 500 pages a day. And, it’s not just him. Bill Gates, currently the second richest man in the world, reads about 50 books a year. Barack Obama had once said in an interview that he reads because it gives him the ability to ‘slow down and get perspective’.

If you look at the likes of Elon Musk, Mark Zuckerberg, and Oprah Winfrey, you will find that they have at least three things in common. They are successful, they are rich, and all of them are voracious readers.

Charles Munger sums it up well when he says, ‘In my whole life, I have known no wise people who didn’t read all the time – none, zero.’

From an investor’s perspective, reading makes real economic sense. Compare the vastness of knowledge at your disposal against the price that you are paying – it’s practically priceless.

Consider this: over 20 million people in India invest in the securities market and less than a handful of them are winners. The reason? Most of them are either impatient or indolent.

If you are really serious about investing, pull your socks up and start reading right away. Because as far as investing is concerned, your knowledge is your greatest asset and your strongest hedge.

Need a helping hand? Here is a list of 5 must-read books that you should dig into right away.

Additional Reading: 7 Questions That Matter While Investing

  1. The Intelligent Investor

Published by Benjamin Graham way back in 1949, the ideas presented in this book stand true even today. For those who don’t know this guy, well, he was the one who introduced Warren Buffet (the most celebrated investor alive) to value investing. At the heart of his theory, lies a simple formula. Graham asks investors to stay away from speculations and whims and instead, look at the intrinsic value of the company to arrive at a decision. He explains this idea further in the book Security Analysis, which he co-wrote with David Dodd.

If you are already a seasoned investor, you may want to give this book a quick read. You will be surprised at the number of things you will discover for the first time. For those of you just starting out, read this book from cover to cover. It will keep you ahead of the rest, whether you are buying stocks or investing in high-yield funds.

Additional Reading: Follow These Rules For Successful Investing

  1. The Wealth Of Nations

This book written by Adam Smith introduced the concept of a ‘market’ the way we know it today. He wrote this book back when the mercantilist system was the rage. Mercantilist system? Well, in the ancient days (we are talking about 1776, ahem) it was believed that wealth was finite and the only way one could prosper was by hoarding gold and silver from other countries. The concept of free trade was non-existent because the governments were busy drawing daggers at each other’s throats, trying to grab a piece of the elusive treasure chests.

The Wealth Of Nations is single-handedly responsible for bringing a breakthrough change in the way foreign trade is perceived. It is hailed as a modern economics marvel. Read this book to understand how ‘demand’ and ‘supply’ in a market work in tandem to influence price fluctuation.

  1. The Big Short

Chances are you have watched this Oscar-winning movie but couldn’t relate much to it (heck, you couldn’t even figure what Steve Carell was doing in the film). Well, for starters, the movie was based on a book called The Big Short: Inside the Doomsday Machine. Written by Michael Lewis, it gives you a first-hand account of the housing bubble in the U.S. that snowballed into a major economic crisis in 2008. Right from the fall of Citibank and Bear Stearns to the rushed sale of Merrill Lynch & Co., this book is a lifetime’s worth of insight into the events that led to one of the biggest market crashes in history.

Additional Reading: What Celebrities Can Teach Us About Investing

  1. The Richest Man In Babylon

More than an investment guide, this book by George Samuel Clason gives you a handful of financial advice that you can incorporate in your everyday life. Clason approaches the subject of wealth not as an investment goal but as a philosophical expression of life. Keep this book in your library to remind yourself that investing is not a get-rich-quick scheme. It takes a lot of patience, perseverance, and discipline to reach the top.

  1. Common Sense On Mutual Funds

If you were honest with yourself, you would confess that it was Mutual Funds that really brought you here. You have heard so much about it and yet there is so little that you know. On top of that, the internet search results bring up a skeleton of jargons and phrases that you have never heard before. Put your worries to rest and get your hands on this classic by John C. Bogle. If you read this book carefully and draw your conclusions well, rest assured you would master the art and science of Mutual Funds in no time.

All set?

Here is a bonus tip for you: Start reading one page at a time. Grasp one idea. Take it slow but row it steady.

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Category: Investments Mutual Funds UCN

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