Books have always been an inestimable resource for personal development in general. From building self esteem to business culture books, they are great ways of keeping up to date with the latest information. Today we are going to look at the best books for beginner investors that you totally have to read if you’re interested in the field.
Best Books for Beginner Investors to Start Reading Now
1.The Millionaire Next Door: The Surprising Secrets of America’s Wealthy
Written by William Danko and Thomas Stanley, The Millionaire Next Door: The Surprising Secrets of America’s Wealthy is one of the best books for beginner investors. Why? Because it represents a useful insight into the patterns of the wealthy. Briefly, it shows you how in this country, becoming wealthy is the result of diligent savings, hard work and living below the means.
2. Thinking, Fast and Slow
Thinking, Fast and Slow is written by Daniel Kahneman. He won the Nobel Prize for economics and is a professor of cognitive & behavioral psychology at Princeton. The book focuses on the natural biases that appear in our everyday lives, including investing. A good investor should be aware of their own flaws and that’s why it’s good to have this book on your reading list.
3. The Ascent of Money: A Financial History of the World
This book is, in fact, a history textbook about the financial system. It is written by Niall Ferguson and it follows the financial system from its start (in ancient Mesopotamia!) to the current state of things. Consequently, it’s one of the best books for beginner investors that helps them focus on the way things work in this industry. Briefly put, The Ascent of Money: A Financial History of the World should be on your reading list.
4. Competitive Strategy: Techniques for Analyzing Industries and Competitors
Written by Michael Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors is a book that talks about the 5 Forces. These help investors have a better understanding of the industry. Moreover, it describes the 3 forms of a company’s strategy: focus, differentiation, and low cost.
5. One Up on Wall Street: How to Use What You Already Know to Make Money in the Market
First, you need to know that Peter Lynch, the author of this book, is one of the most successful investors. In the book One Up on Wall Street: How to Use What You Already Know to Make Money in the Market, he teaches average investors about how they can beat the pros. An important thing to keep in mind from here is that investment opportunities are everywhere.
The examples above are just a couple of the best books for beginner investors you can find on the market. Their authors have plenty of experience in business, and as such, their advice is useful for everybody. Moreover, you can find the books easily on Amazon, so you don’t need to worry about getting them. Try to retain the best advice these people give and apply it in real life after that. Finally, use your own critical skills to analyze the market and see what fits where.
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