Investment Books

November 23, 2010Investingby EconomyWatch

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Investment books provide professional advice on wealth creation, with a focus on different investment options.This information helps investors better comprehend the risk-reward trade-off involved in various investment options, including cash and equivalents, stocks, bonds and property.

The suitability of investment books varies from person to person, depending on his/her current needs. No book can be termed “globally applicable.” While some books focus on the basics of investing, others may cover particular strategies (like value investing or growth investing) and still others may focus on the techniques of forecasting price movements (like technical analysis or fundamental analysis). However, these investment books offer only theoretical understanding. One still needs to practice (for instance with a demo account) before foraying into the world of investing.

 

Types of Investment Books

There are two types of investment books: those for beginners and those for people in the advanced stage of investing.

There are several popular investment books, in fact thousands of them, to choose from. Hence, finding the right investment book is a difficult task. A short list of the all-time favorites and popular wealth creation books follows:

  • The Intelligent Investor by Professor Benjamin Graham: Appreciated as the “best investing book ever written,” this book presents practical advice for “defensive” and “enterprising” investors.
  • The Four Pillars of Investing by William Bernstein: This book seeks to guide investors to create high yielding portfolios¬¬. The book also covers market history and behavioral finance and helps an investor build a strong foundation for investing.
  • One Up on Wall Street by Peter Lynch: A must-read that guides readers on how to make money using what he already knows.
  • Security Analysis by Professor Benjamin Graham: Presents instructions on analyzing and valuing every type of investment.
  • How to be a Billionaire by Martin S. Fridson: Discusses the strategies adopted by several American billionaires, including Rockefeller and Bill Gates.
  • Financial Shenanigans: How to Detect Accounting Gimmicks and Fraud by Howard Schilit: Provides a detailed account of how to detect fraud and aggressive accounting in financial statements and annual reports, with real-life examples.

In fact, different investment books follow different approaches to investing. Hence, their suitability also varies from situation to situation. Readers need to carefully discern the relevant information for application in the real world.

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