Top 5 books for Investment to Read for Beginners

rhe top 5 books for investment to read

One of the most crucial things that most of us neglect is reading and it is worst when we talk about reading “how to manage money”.

We usually think “no am doing alright”.

But the truth is most of us aren’t really aware of how to deal with money, investing, management, and all the rest.

It comes with experience and learning and that learning can be done with books.

Books are the greatest source of knowledge in the world and that’s why you are called upon to read them.

And in these top 5 best books you will learn what you need to understand and get started with investment.

Why are these top 5 books for investment?

why these top 5 investment books

These top 5 books for investment I will recommend to you are the books with the basics and some of them go up to some advanced stuff in investment.

These are the 5 best books for investment that will help you get started.

Some of them will completely change your vision of money, work, finance, and management.

The books I will recommend to you are, as always books I have read myself and acknowledged and that are helping me a lot 

  1. The everything investing in your 20s and 30s book by Joe Duarte
  2. Learn to Earn by Peter Lynch and John Rothchild
  3. The Psychology of Money: Timeless lesson on wealth, greed, and happiness.
  4. The Intelligent Investor by Benjamin Graham
  5. The little book of common sense investing by John C. Bogle
  6. Rich Dad, Poor Dad by Robert Kiyosaki ( Bonus)

What are investment books?

best books for investment

Before we dive into the specificities of these books I will like to answer this common question.

So just like any activity, investing have a set of rules that investors should follow to be successful

These rules are the rules that have been derived and stated by experienced investors. 

Any type of investment has its set of rules be it in mutual funds, stock market, real estate, bonds, and any other investment type.

So these books are guides to increase your knowledge of the investment world

It learns you the terminologies, the basics, tips, and tricks.

With these resources, you will realize that investing is not that intimidating or complicated. 

Let’s dive into the specificity of each of these books

Top 5 books for Investment to Read

1. The everything investing in your 20s and 30s book by Joe Duarte

image from Amazon
image from Amazon

Joe Duarte is a market analyst, trader, investor, and money manager. He has written a lot of books on trading, investment, and financial markets. 

Most of his books are best sellers such as the “Trading Option for Dummies”.

But the book that marked me the most was this book The everything investing in your 20s and 30s.

just like I recommended in the top 5 best books you should read in your 20s!

In this book, he will elaborate on and explain everything about investing from the

Top 10 Tips that will keep you in the money” to “Retirement and planning”

Everything in this book is low-level finance and appropriate for beginners. 

He also elaborates on how to become an investor and some of his advice are:

  • Know your risk profile
  • Setting realistic goals and timetables
  • Know before you invest 
  • Evaluate and adjust your approach

So if you want to learn the steps to become a successful investor from beginner to advanced make sure to read this book

2. Learn to Earn by Peter Lynch and John Rothchild

best book for investment

 

Peter Lynch is an American investor and a former fund manager. He has also written some best-selling books.

This book is one of the top 5 books for investment because it serves as a complete guide in your stock investing journey

It basically explains the principles of investing in a simple manner that’s easy for beginners to understand. 

For peter Lynch “investing is fun” so this book gives you the right start. It covers the investment fundamentals and principles.

From choosing stocks to picking a broker, to reading an annual report.

This book is written for anyone who wants to start investing.

Those who want to get familiar with the basic concept and understand why it is important to invest

What I liked about this book is that

  • It is fun to read 
  • It gives real live examples
  • It is easy to understand 
  • It explains how to think like an investor

3. The Psychology of Money: Timeless lesson on wealth, greed, and happiness.

the psychology of money

 

Morgan Housel is a partner at a collaborative fund and a former columnist at The Motley Fool

This book isn’t just about investment and money management but it teaches

you how to have a better relationship with money and make smarter financial decisions.

He shows how your psychology can work for or against you when money is involved.

So this book highlights the behavior money can impose upon you.

Because most of the time when investing we take into account the maths

And we usually forget the most important part which is how you behave with finance and money.

Each of the chapters is based on a real-life history that teaches us a lesson.

The author doesn’t try to learn special concepts or anything but focuses on the reality aspect of money

This book teaches us how getting wealthy has nothing to do with the figures on the paycheck. 

Since there are people who earn a million dollars per year and still finish bankrupt.

4. The Intelligent Investor by Benjamin Graham

the intelligent investor

 

Graham Benjamin is an American economist, professor, and investor.

Although this book might be a little old it still has all the primary and basic ideas needed for investing.

It teaches the idea of market fluctuation and discusses the idea of deciding whether you are a defensive investor or an enterprising investor.

The book is long on investing ideas and concepts, short on technical details. 

There are finance terms such as earnings per share that you will need to learn, but if you are going to be a stock picker, you will have to learn them anyway.

This book actually teaches more in-depth how to invest, the sciences involved in investing

It teaches the market history, inflation, investment, speculation, and other more serious topics around investment

If you are willing how to make choices of investment, and how to become an intelligent investor then make sure to read this book.

Like he says 

“Intelligent investment is more a matter of mental approach than it is of technique”

5. The little book of common sense investing by John C. Bogle

the little book of common sense investing top book for investment

John C. Bogle was an American investor, business magnate. He was the founder and chief executive of The Vanguard Group

This book focuses on mutual funds and reveals that the key to getting more out of investing is a low-cost investment fund.

Bogle shows you how to make index investing work for you and help you achieve your financial goals

And finds support from some of the world’s best financial minds.

not only Warren Buffett, but Benjamin Graham, Paul Samuelson, Burton Malkiel, Yale’s David Swensen, Cliff Asness of AQR, and many others.

The Little Book of Common Sense Investing offers you the same solid strategy for building your financial future.

  • Build a broadly diversified, low-cost portfolio without the risks of individual stocks, manager selection, or sector rotation.
  • Forget the fads and marketing hype, and focus on what works in the real world.
  • Understand that stock returns are generated by three sources (dividend yield, earnings growth, and change in market valuation) to establish rational expectations for stock returns over the coming decade.
  • Recognize that in the long run, business reality trumps market expectations.
  • Learn how to harness the magic of compounding returns while avoiding the tyranny of compounding costs.

While index investing allows you to sit back and let the market do the work for you, too many investors trade frantically, turning a winner’s game into a loser’s game.

The Little Book of Common Sense Investing is a solid guidebook to your financial future.

BONUS

6. Rich Dad, Poor Dad by Robert Kiyosaki

rich dad poor dad

I can’t talk about investment for beginners without mentioning my best book.

This book is the one that basically changed my perception of all that I had ever believed about money, salary, job, financial independence, and business

Just as I mentioned in this article on the top 5 best books to read in your 20s

This book is different from all that you have read up till today because it will change your vision of money. You will never see money the same way again

Also, this book will speak to you more if you intend of:

  • Being an entrepreneur
  • Becoming an investor
  • Becoming rich
  • Being financially free
  • Make money work for you
  • Teach yourself financial literacy 
  • Mind your own business
  • Your mind is your biggest asset
  • Get brave and think big 

[sc_fs_multi_faq headline-0=”h3″ question-0=”What are the top 5 investment books for beginners?” answer-0=” The books I will recommend to you are as always books I have read myself and acknowledge and that are helping me a lot

1. The everything investing in your 20s and 30s book by Joe Duarte

2. Learn to Earn by Peter Lynch and John Rothchild

3. The Psychology of Money: Timeless lesson on wealth, greed, and happiness.

4. The Intelligent Investor by Benjamin Graham

5. The little book of common sense investing by John C. Bogle

6. Rich Dad, Poor Dad by Robert Kiyosaki(bonus) 

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