The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) (Collins Business Essentials)
The Intelligent Investor , it's pretty dry, but WOW really teaches you about investing and changes your perspective on your finances
The Intelligent Investor
Ok, that's basically what I did when I started out. Let me just say, there is a learning curve- and LOTS to learn. However, if investing turns out to be something you enjoy, and you always continue learning, you open the door to higher returns in general (and a very interesting hobby :D ).
At the start, you don't need to know much more than the general facts. Equity, bonds, the market. What the lingo means, and where the resources are. The original book I got for an overview was the following, and I would recommend it: The
The FT Investing Guide - not a cheap book, but will go over the foundational knowledge you need.
I would then follow with The Intelligent Investor , which is THE great value-investment book. It will tell you about how to logically approach investing in companies, and give you a framework for choosing better companies to invest in, and not overpaying for the equity you invest in.
Knowledge of macro economics is also a plus, imo. I started off by reading Economics for Dummies (yes, really).
The basics of accounting is somewhat essential, but it's covered in the FT guide. If you can get to the point where you can understand a typical income statement, balance sheet or statement of cash flows, it should be enough to be a competent investor. It allows you to understand the underlying financial health of a business, which is very important.
Your aim is to find strong companies, with good future prospects, which are undervalued by the market, and invest for the long-term. This will allow you to maximise your returns.
..I was all set to continue writing this wall of text, but I think I'll leave it here for now. If you have any further questions, or would like more clarification on any points, I'd be happy to help. So just let me know.
If you only ever get 1 book, you can read this in a couple days, and it helps you get started with Vanguard.
Once you have a decent amount of money invested, this book will ensure you don't fuck it all up. A much longer read but full of good information on how to take the emotions out of investing, which are basically going to be your biggest foe.
Calculate out/project your monthly expenses and multiply them by 3-6. Then start saving that amount of money in a savings account. If for some reason you lose your job or something happens (your car breaks down, you have a medical bill) you can use this money to keep yourself from going into debt. When the emergency has passed, replenish the savings account.
Once that's established setup a Roth IRA and start contributing to it and investing.
If you're serious about trading, read these two books in this order before proceeding:
Have you read Warren Buffet's #1 recommended book? https://toptalkedbooks.com/amzn/0060555661
I've read a bunch of books over the last few months, thought I'd share:
The Intelligent Investor : This was the first one I read, which was probably a bad idea. It's very famous, very big, and a bit more technical than what a beginner should be facing. But it does a good job of clearly explaining the futility of trying to beat the market as an amateur, or even pro
Millionaire Teacher : Reading this right now, and it's the best book yet. It has both clear, big-picture explanations, as well as practical explanations of the details of stocks, bonds, even how to use various investing websites.
How to Turn $100 into $1,000,000: Earn! Save! Invest! : Reading through this with my 8 year-old right now. It's a bit advanced for him, but he's enjoying it, and is salivating about making money. I'm going to encourage him to try to start a little business of his own
Check out the book The Intelligent Investor
It's not outdated, it just seems like first editions are collectors items due to them being $1500.
I read this one: https://toptalkedbooks.com/amzn/0060555661