Do you know what Warren Buffet credits his success to? The Oracle of Omaha devotes five to six hours a day to reading, and he says that is the key to his success. If you want to be a successful investor, it may be time to get your hands on the best investment books.
We can't promise that adopting a similar habit will make you as wealthy as Warren Buffet. But we can assure you that reading the best investment books will get you up to speed on all things concerning smart investments.
And there's no better time to start than now.
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Investing In Stocks 101
A lot of people shy away from investing in stocks because they worry about not getting it right or not being able to do it. Some people don't even consider it as an option because they don't understand how the stock market works.
But here's the thing. If you're proactive in bridging the knowledge gap, nothing will stand in your way of building a fortune.
So let's take a closer look at stocks and how they work as an investment.
Before we get into how stocks work, it's essential for you to know what stocks are.
Stocks are a type of investment that deals with equity. When you invest in stocks, it is a representation of your part ownership of a company.
That type of investment allows you to have a diversified portfolio because there are different types of stocks.
Common stock is what most people buy. It gives you voting rights and tends to have higher returns than bonds. The only downside to this type of stock is the fact that you won't be given priority when the company gets liquidated.
Preferred stocks don't give you voting rights. However, you'll earn dividends as long as you hold the shares. And in the event of liquidation, you'll be given priority over common stockholders.
Growth stocks are a type of stock that grows faster than the average in the market. Most investors prefer this stock because they get better returns from it.
The Reason Behind Stock Price Fluctuations
There is no doubt that investing in stocks is a risky venture, primarily due to price fluctuations.
So what causes these fluctuations?
A lot of factors cause the rise and fall in stock prices. Some of these include social and political unrest, natural disasters, the opinion of famous investors, supply and demand, the media.
These factors make stocks very unpredictable. However, you can make a sound decision by analyzing stocks before you invest.
The two most common methods of analyzing stocks are fundamental and technical analyses.
Fundamental analysis is a comprehensive approach that examines internal and external factors that may affect the shares in the market. On the other hand, technical analysis involves assessing metrics and statistical trends.
For instance, you can go through the company's income statements, balance sheets, and market capitalization to get an idea of how the company is fairing.
Predicting The Stock Market
Everyone wants to get a good return on their money. Therefore, it's no surprise that the majority of people want to know how to predict the stock market before putting in their cash.
But we have some bad news. It's impossible to predict the future of stocks. In fact, things could change in a matter of minutes. The best you can do is to take a calculated risk. How do you do that?
You can only take calculated risks by understanding stock valuation. This way, you'll know when to get in and when to get out.
And remember, it's not an investment if there is no risk involved.
Do You Have To Be Super Rich To Invest In Stocks?
Another reason why a lot of people don't invest in the stock market is that they believe they need a lot of money to start. This could not be further from the truth.
The best thing about investing in stocks is that everyone can do it. Stock prices range from a couple of dollars to six digits. Therefore, it's possible to start with a small amount of money.
Just remember to take calculated risks and set realistic expectations.
How We Reviewed
There's obviously so much more you need to know about the stock market than we've included in our mini crash course. Fortunately, there's a wealth of knowledge in the best investment books.
To help you find the best investment books on the market, we scoured the internet in search of expert and user reviews. Furthermore, we considered the books' content to ensure they provide the information you're looking for. To narrow down our list, we included only the top rated books.
We have no doubt you'll enjoy these reads.
Let's get straight to business:
The Best Investment Books On The Market
If you've been toying with the idea of investing in the stock market but never really been proactive about it, these books will go a long way in helping you begin your journey to financial freedom.
Whether you're a beginner or a seasoned investor, these are the best investment books you'll ever read.
1. The Essays of Warren Buffett: Lessons For Corporate America
Imagine having the opportunity to sit next to Warren Buffet soaking up all the knowledge he has in investing? We'd all love that. And thanks to "The Essays of Warren Buffett: Lessons for Corporate America," you get a chance to learn from the expert himself.
This book is one of the best investment books released back in 2015. Although the title addresses "corporate America," this is a book for shareholders and beginners who'd like to venture into the world of stocks.
It explains the relationship between companies and their shareholders in a simple way, which makes it perfect for newbies.
The author of the book is Lawrence A.Cunningham.
Amazon buyers can't stop raving about this book. They rated it 4.7 out of 5 stars.
2. The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns
John C. Bogle is no stranger to investing. He is credited with inventing the first ever index fund. He's also the founder of Vanguard Group and is believed to be a very close friend of Warren Buffet.
In his book, "The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns," John C. Bogle uses a surprising approach. He tells the reader that the stock market is a lose-lose proposition.
However, he gets your attention by sharing some of the tricks and tips he uses in turning the odds in his favor.
The book has a rating of 4.6 out of 5 stars on Amazon.
3. A Beginner's Guide to Investing
If you're looking for the best investment books for beginners, you've got to get your hands on "A Beginner's Guide to Investing" by Alex H. Frey.
This is a book anyone who's confused about investment options can benefit from. It will teach you how to double your investments in seven to 10 years and how to avoid the different investment traps that a lot of people fall into.
You'll also learn how to set realistic expectations when you begin investing.
Amazon customers also believe that this is one of the best investment books of all time. They gave it a rating of 4.3 out of 5 stars.
4. The Smartest Investment Book You'll Ever Read: The Proven Way to Beat the "Pros" and Take Control of Your Financial Future
"The Smartest Investment Book You'll Ever Read: The Proven Way to Beat the 'Pros' and Take Control of Your Financial Future" by Daniel R. Solin is another book you should include in your list of best investment books 2019.
One of the things we love about this book is that it gives you the step-by-step guide you need to start investing in the stock market. We also love that it doesn't include complex investment terminology, which makes it easy for everyone to understand.
This book will teach you the techniques you need to create a robust portfolio that yields attractive returns.
Amazon buyers have attested to the effectiveness of this book. They rated it 4.3 out of 5 stars.
5. One Up On Wall Street: How To Use What You Already Know To Make Money In The Market
We bet the title already has you ready to purchase the book. In his book "One Up On Wall Street: How To Use What You Already Know To Make Money In The Market," Peter Lynch not only says it's possible for newbies to get better than the pros but maintains that they have everything it takes to do it.
Peter believes that investment opportunities are everywhere, but we miss it because we go through life too fast. He believes we can all identify these opportunities if we take the time to look closer and identify them. By doing so, we get a chance to tap into tap into the opportunities no one else sees.
The book has a rating of 4.5 out of 5 stars on Amazon.
6. Stock Market Investing for Beginners: Essentials to Start Investing Successfully
"Stock Market Investing for Beginners" is also among the best stock market investment books. And if you're new to investing, this is one of the best investment books you should have on your list.
In this book, Tycho Press teaches you the techniques of building a strategic financial portfolio that minimizes your risk and maximizes your returns.
What's more, the author gives guidance on diversification, buying and selling of stocks, and ownership.
You'll also learn the stock market investment basics to begin your investment journey.
Amazon buyers love this book. They rated it 4.2 out of 5 stars.
7. A Random Walk Down Wall Street: The Time-tested Strategy for Successful Investing
Get rich quick schemes won't get you far in the world of investments and Burton Malkiel knows that. In his book, "A Random Walk Down Wall Street: The Time-tested Strategy for Successful Investing," he emphasizes the need for long-term investments in building a strong investment portfolio.
The author also teaches you some of the common investment terms and applies them to different investment strategies to enable you to understand everything investments involve.
This book also teaches you how to predict prices and avoid the common investment mistakes people make.
It has a rating of 4.6 out of 5 stars on Amazon.
8. The Intelligent Investor: The Definitive Book on Value Investing
Warren Buffet referred to Benjamin Graham's book, "The Intelligent Investor," as " the best book on investing" which means you should expect a wealth of knowledge from it.
"The Intelligent Investor: The Definitive Book on Value Investing" isn't your typical inspirational investing book. There's little focus on positive encouragement and more focus on imparting must-read basics that will set you up for success when you begin investing.
The authors provide investments strategies, tips on how to analyze the stock market, and a history lesson about the stock market to give you an even deeper understanding.
Whether your a seasoned investor or a beginner, you'll learn a thing or two from this book.
Amazon buyers rated it 4.5 out of 5 stars.
Borrow A Leaf Out Of Warren Buffet's Book
If you dream of making a fortune from the stock market, it's time to borrow a leaf from Warren Buffet's book and start reading the best investment books. From these books, you'll not only learn what the stock market involves, but also how to get in an start enjoying the piece of the pie.
As they say, there's no elevator to success; you have to take the stairs. And the first step could be getting your hands on the best investment books.
Have you read any of the investment books on this list? Were they helpful? Please share your views and thoughts in the comments section below.