Author Topic: Book for beginning investor?  (Read 5696 times)

Ready For Change

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Book for beginning investor?
« on: December 29, 2014, 01:21:12 PM »
At the advice of someone on the forum, I have calmly taken on the title of Investor.  I am an investor, I am saying to myself with some sense of hope.  The truth is, what I know about investing could fit in a teacup.  Long ago I owned a book, something like, Starting Small, Investing for Life that was written so simply even a child could understand it, and laid out some very basic principles and some explanation of the workings of some relatively low risk, first step investments. 

Unfortunately even if I could find that book again, it would be very out of date for this DIY digital age of investing.  Does anyone have a recommendation for an up to date primer that lays out where to start and explains the mechanics of some simpler investment choices?  I have a significant amount of money that needs to move from ridiculously conservative investments into something more likely to pay well, but I want to take it one step at a time and understand what I'm doing and why before rushing out and buying anything new.

Thank you.

 
« Last Edit: December 29, 2014, 01:22:50 PM by Ready For Change »

Inkedup

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Re: Book for beginning investor?
« Reply #1 on: December 29, 2014, 01:28:20 PM »
William Bernstein, who wrote "If You Can: How Millennials Can Get Rich Slowly," a free pamphlet for millennial investors, has suggested several book titles within the document: http://www.etf.com/docs/IfYouCan.pdf

Some of these are "classic" reads such as the "Millionaire Next Door" and "Your Money and Your Brain." Others are more focused on investing, such as Jack Bogle's "Common Sense on Mutual Funds." 

GGNoob

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Re: Book for beginning investor?
« Reply #2 on: December 29, 2014, 06:36:14 PM »
I've been investing for a couple of years now and learned everything by research and forums. I just started reading The Bogleheads Guide to Investing. I wish I had read it sooner. Great book and a lot of great information for beginner investors.

LordSquidworth

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Re: Book for beginning investor?
« Reply #3 on: December 30, 2014, 10:39:22 AM »
http://www.amazon.com/Little-Book-Value-Investing/dp/0470055898/ref=sr_1_1?s=books&ie=UTF8&qid=1419961126&sr=1-1&keywords=The+Little+Book+of+Value+Investing

I felt that book was relatively easy for someone to understand without a lot of knowledge ahead of time.

Louisville

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Re: Book for beginning investor?
« Reply #4 on: December 30, 2014, 10:45:46 AM »
Berstien's Four PIllars of Investing.

Monark

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Re: Book for beginning investor?
« Reply #5 on: December 30, 2014, 11:00:34 AM »
My top pick for a novice investor would be The Only Investment Guide You'll Ever Need by Andrew Tobias.  I've given many copies to siblings and friends as gifts.  It was first written back in the early 80s I wanna say and Mr. Tobias has updated it ever 5 years or so.  I always buy the most recent version because Mr. Tobias puts in enough new information to really make it worth.  You are right that your old book would be outdated if you could find it.  Buy this book (paperback only) on Amazon and you won't be disappointed I can promise.  Best of luck. 

Dicey

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Re: Book for beginning investor?
« Reply #6 on: December 30, 2014, 11:36:04 AM »
A very influential book for me was "Ordinary People, Extraordinary Wealth". A little dated now, but easy to read and very helpful. The first chapter alone is worth the price of admission, but check with your library before buying a copy.

Koogie

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Re: Book for beginning investor?
« Reply #7 on: December 30, 2014, 12:24:46 PM »

One of the best beginner books I've ever read was Millionaire Teacher by Andrew Hallam.
http://www.amazon.com/Millionaire-Teacher-Wealth-Should-Learned/dp/0470830069

innerscorecard

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Re: Book for beginning investor?
« Reply #8 on: December 30, 2014, 07:09:57 PM »
As a total beginner you absolutely should start with a book that teaches indexing and the efficient market hypothesis. The one that does this in the most even-handed way is A Random Walk Down Wall Street.

NaturallyHappier

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Re: Book for beginning investor?
« Reply #9 on: December 30, 2014, 07:13:19 PM »
Not really a book, but Warren Buffett's letters to shareholders are full of great investment advise.

http://www.berkshirehathaway.com/letters/letters.html


innerscorecard

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Re: Book for beginning investor?
« Reply #10 on: December 30, 2014, 07:46:45 PM »
Not really a book, but Warren Buffett's letters to shareholders are full of great investment advise.

http://www.berkshirehathaway.com/letters/letters.html

They are good advice, and I read and re-read them personally, but I really don't think they are the appropriate starting point for a new investor. They teach you about accounting, corporate governance, and valuing companies. If you are going to be an index investor (which is premised on the efficient market hypothesis), which is what most people should be, there is no need to pore through hundreds of pages teaching you these things.

RapmasterD

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Re: Book for beginning investor?
« Reply #11 on: December 31, 2014, 12:10:56 PM »
--Millionaire Next Door: Not about investing but about living. Cost figures within are dated, and being a millionaire isn't what it used to be, but it's still quite lovely. I highly recommend it. At the end of the day, all you need to know about "investing" is what Pete preached long ago right here -- buy a freakin' index fund, be it total market or S&P 500. But in terms of generating revenue and living frugally, there are many more nuances.

--Random Walk Down Wall Street: A favorite of university professors and if you know any active investors or portfolio managers, just mentioning this book is guaranteed to send them into an angry froth. In fact, I just might update my dog-eared copy from my MBA days of more than 20 years ago.

--The Bogleheads Wiki: freebase this bad boy - start here: https://www.bogleheads.org/wiki/Getting_started . You may not end up following these principles but they are a great place to start, in the realm of keeping it simple.

--Jonathan Clements Money Guide 2015: Wall Street Journal writer who is easy to understand and has a folksy amiable style. I've been following Jonathan for years. Highly recommended.
« Last Edit: January 01, 2015, 06:39:39 PM by RapmasterD »

marketnonsenses

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Re: Book for beginning investor?
« Reply #12 on: January 02, 2015, 02:07:04 PM »
I have not read it but have read good reviews about the new Tony Robbins money book.

domustachesgrowinhouston

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Re: Book for beginning investor?
« Reply #13 on: January 03, 2015, 07:59:06 AM »
The Tobias book above is one of my favorites as well. Also, not a book, but I found jlcollinsnh's stock series http://jlcollinsnh.com/stock-series/ to be really helpful.

chuckaluck

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Re: Book for beginning investor?
« Reply #14 on: January 03, 2015, 09:47:31 AM »
My favorite for an OVERALL financial plan for a novice is "The Wealthy Barber".   It has general information about investing (many of the excellent titles already mentioned by others would be better), but this is a small book that makes you aware of all the things that, well, you should be aware of in putting together a cohesive plan.  It can be read over a weekend.  I have loaned out this book to many folks over the years and all have loved it.   Good book to start with. 

Mr. Captain Cash

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Re: Book for beginning investor?
« Reply #15 on: January 03, 2015, 05:58:56 PM »
I agree with Chuckaluck and recommend "The Wealthy Barber" and "The Weather Barber Returns" By David Chilton. Both are great reads the The Wealthy Barber is a little dated but is definitely easy to read over the course of a weekend. If you want more up to date advice I would read the wealthy barber returns after reading the first one. Hope that helps.

For a more in depth analysis about the benefits of index investing I would check out A Random Walk Down Wall Street By Burton G. Malkiel.

Mr. Captain Cash