Curl up on the couch with a book (and maybe some coffee) and get ready to invest like a pro!
There’s no question that the more you know, the better investor you’ll be. Knowledge is power, and when it comes to your money, you want to have all the power you can harness. To make you a smarter investor, we’ve put together a list of four books to help you make more informed investment decisions. From beginners’ guides to advanced strategies, there’s something for everyone here.
1. The Little Book of Common Sense Investing by John Bogle
John Bogle (also referred to as “Jack”), the founder of The Vanguard Group, creator of index investing and inventor of the first index mutual fund, passed away on January 16, 2019. While he may be gone, his legacy as an investing icon lives on. His most famous book, “The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns”, has become a bible for many investors.
In the book, he emphasizes on how important it is to keep fees low in order to maximize returns. The key to achieve that is by investing in low-cost index funds instead of funds actively managed by a fund manager, which is often risky and expensive—consider all the commissions, manager’s fees and so on. He also addresses other topics, like mean-reversion and tax costs. By reading this book, investors will be able to make informed decisions about how to get the most out of investing their hard-earned money. For anyone looking to get started in investing or to brush up on their knowledge, this is a must-read book.
Price: US$13.99 (hardcover)
2. A Random Walk Down Wall Street by Burton Malkiel
A Random Walk Down Wall Street is a must-read for anyone trying to make the best investment decisions. First published in 1973 advocating for index-style investment, this classic book has been updated for 21st-century investors. Burton G. Malkiel, Professor of Economics at Princeton University, shares his insights on everything in investment, from stocks and bonds to cryptocurrency, which is well-known for its volatility. He also offers guidance on “tax-loss harvesting”, a technique that can help investors minimize their tax liability. Whether you’re a novice or a seasoned pro, A Random Walk Down Wall Street is the best investing book money can buy.
Price: US$17.99 (hardcover)
3. The Bogleheads’ Guide to Investing by Taylor Larimore, Mel Lindauer and Michael LeBoeuf
The Bogleheads’ Guide to Investing contains topics ranging from how to choose the right financial living to how to better manage your thoughts and feelings when it comes to investing. It is divided into 23 short, easy-to-read chapters. This guide also includes external resources and other information for readers who want to delve deeper into any of the topics covered by the authors, who have been Bogleheads Forum members (“Bogleheads” refers to investing enthusiasts in the forum dedicated to honor John Bogle) for a long time.
First released in 2006, the book was republished in 2014 with updated sections on tax law changes, retirement plans and backdoor Roth IRAs. If you’ve been managing your own portfolio for years, The Bogleheads’ Guide to Investing is a great resource to have on hand.
Price: US$42.72 (paperback)
4. The Women’s Guide to Successful Investing by Nancy Tengler
The Women’s Guide to Successful Investing by Nancy Tengler is an investing book that every woman investor should read. This book is packed with great information on how to be a successful investor, covering a wide range of investment topics, such as risk tolerance, portfolio construction and asset allocation. Tengler also includes a number of case studies and real-world examples to illustrate her points. She stresses the importance of having a well-defined investment plan and staying disciplined by following it. This book is an excellent resource for any woman who wants to become a successful investor, and it is well worth the time and effort to read it.
Price: US$35.12 (hardcover)
So, if you’re looking for a way to become a smarter investor, look no further than the books on this list. They’ll teach you everything from how to spot financial scams to how to make sound investment decisions. Read them and put their advice into practice, and soon you’ll be on your way to becoming a successful investor!
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