Why books on investing and why mindset? Nothing hurts more than losing in the field even after you know the moves because of an unpolished mindset. Books are there for everything and every part of life to solve anything. People lack time to explore the best one according to their needs. I have these three book suggestions on investing. Investing is now a trend in India where you find every 3rd person holding stocks in the market. As per one of the articles of Business Today, 4.2 million demat accounts were opened in December 2023. All you need is to stand out of the crowd by being profitable.
Is it the Right time to spend time on these three books on investing?
Well, It’s never too late to start anything. Rather than doubting and questioning you need to be confident about yourself and your timing. To be honest, there’s no time specified for gaining knowledge. Although there are several factors to consider before reading these three books on Investing.
Understand how the market behaves
You must spend a good amount of time understanding the fundamentals of any stocks. A proper analysis of company news, board of directors, notices, reconstruction, and IPOs. This learning curve is essential for your basic at boarding and commencing the journey.
Following the risk you must formulate some strategies. However, after all those analyses and hard work if you still fail to make an outcome then it is time to give a chance on these books on investing.
Arrange Investible Funds before reading any books on investing
While Investment is the best way to meet your financial goal, retire at an early age and better secure your financial future. However, keeping in mind with all investments you also have to consider your current costs. Hence you need a monthly budget for initiating investment.
Your monthly budget should ensure your essentials and also make sure to create an emergency fund for unexpected costs. After every distribution allocate the leftover funds for investment.
1st Book: The one of best books on investing “The Intelligent Investor by Benjamin Graham”
This is one of the best books for investing with sales of more than 1 million copies. Why? Well, I’m not saying but Warren Buffet himself once said all you need is to read this book to get rich in the world. The author of the book Benjamin Graham known as the father of value investment. A British-born author and professor at Columbia University. The same university where Warren Buffet used to go and Benjamin Graham was his teacher.
Over the years the timeless insight and wisdom of Benjamin so contained in the book have never been wrong. At the core book commends a conservative and disciplined approach to investing. It compares two types of investors “the defensive” or “the intelligent” investor and the “speculative” investors. For instance, the intelligent investor is a long-term investor who believes in the preservation of capital only focusing on safety and good value above everything else. On the other hand, Benjamin Graham refers to the term speculative to investors driven by emotions and do short-term investments. Moreover, the book also mentions the psychological effect on the human mind and the impact of market trends and decision-making
2nd Book: “Security Analysis by Benjamin Graham and David Dodd”
Security analysis is also a good book to prefer. Only those who have completed the “The Intelligent Investor”. You might get overwhelmed by the size of the book. Speaking of its mathematical and analysis part one cannot read this like some novel. It requires you to keep a notebook and pencil to note down things like watching mind-bending time travel series like “Dark”. Take it as a tip by the size of the book you may try to read it fast. Please don’t but take it slow once get bored keep a bookmark and leave.
Both books cover the important terms and aspects of investments like preferred stocks, warrants, and bonds. In summary “The Intelligent Investor” is totally over the stock selections and has specific rules for investors
3rd Book: A Random Walk Down Wall Street” by Burton G. Malkiel.
For the Statistic mind. In this book, the author Burton G. Malkiel explains the efficiency of the stock market and its unpredictable ups and downs. The versatility of this book is so good that you can offer it to any level of investors. Especially those active and speculative investors.
The book begins with a boring pace and eventually shows trends in the short term like the market always recovering and correcting itself. Apart from pacing book contains some interesting theories. For Example The “castle in the air” theory, modern portfolio theory, and efficient market theory. Last but not least Malkiel provides proper allocation and diversification of assets. Different portfolio strategies according to specific age groups.
Source and References
Business Today, 4.2 million demat accounts were opened in December 2023. Source.