Successful investing is difficult. If it were easy everyone who ever invested their money would be millionaires. Even investors who have been in the game for decades and have seen success still need assistance every now and then. Below is a list of three of the best books on investing. While new investors will greatly benefit from reading each book, experienced investors will also benefit from reviewing them from time to time.
The Intelligent Investor – Benjamin Graham
The Intelligent Investor is one of those books that you will see on nearly every list of “must-read” books for investors. Graham’s book focuses on value investing. Warren Buffett, another proponent of value investing, is a big fan of this book. While Graham never used the term value investing, later commentators coined the term to help describe Graham’s investment paradigm. To learn more about The Intelligent Investor and Benjamin Graham, take a look at this article.
The Little Book that Still Beats the Market – Joel Greenblatt
The Little Book that Beats the Market outlines an investing technique called magic formula investing. Greenblatt’s formula uses some of the principles of value investing, and he claims that his formula beats the S&P 500 over 90% of the time. The formula is more common sense than magic, yet experts seem to disagree over whether it really works. Still, since the book is written in simple language and explains the formula with simple math, you can pick up a copy and determine for yourself whether the formula is worth pursuing.
Common Sense on Mutual Funds – John C. Bogle
John C. Bogle is the founder of The Vanguard Group. Since Common Sense on Mutual Funds was published in 1999, it has been considered a classic. The book focuses on mutual funds, index funds, and long-term investment strategy. Investors who embrace passive fund management will enjoy this book and find a lot of useful information in its pages. However, if you’re one of those investors who want to “beat the market,” you might find some of the book’s details boring. This article does a good job of breaking down the book’s main points.
Successful investing isn’t an exact science. Neither is it something that can be mastered overnight. If you’re new to investing, it’s not a bad idea to speak with a financial advisor. Talking with a financial advisor can save you from making a lot of unnecessary mistakes. Before you invest your money, read the above books; do your research, and consult with a financial advisor. Your wallet will thank you.