9 books that will teach you how to make money on investments
1. “Invest Like a Guru” by Charlie Tian
The basic idea behind value investing is “buy a dollar bill for 40 cents.” But to find such an offer, you need to conduct a thorough market research. Physicist and Ph.D. Charlie Tian studied the approaches of Warren Buffett, Peter Lynch, Donald Yaktman and Howard Marks for many years and came to the conclusion that it is worth investing only in “good” companies.
In Invest Like a Guru, Tian explains which firms are “good”, how to find them, and why they generate stable income without high risks. The author proposes an investment concept that will allow you to avoid large losses and achieve long-term results.
2. The Prudent Investor’s Guide by John Bogle
The book by John Bogle, founder of the large investment company The Vanguard Group, is considered a classic. The paper describes an almost win-win approach to long-term investing – using index funds.
John Bogle gives tips on how to select them and explains the principles of index investing. The new edition is supplemented with chapters on dividends, asset allocation and retirement planning.
3. “The Peter Lynch Method”, Peter Lynch
Peter Lynch is an outstanding investor who has influenced many of today’s experts. At the same time, he believes that the average person can pick up stocks for an investment portfolio as well as a Wall Street professional. To do this, you need to be careful and know how to properly evaluate the company, when it is worth buying shares and when it is better to get rid of them.
4. “Value investment in persons and principles”, Elena Chirkova
The book by Elena Chirkova, Ph.D. in Economics, will allow you to understand the fundamentals of value investing and understand how Benjamin Graham, Peter Lynch, Phil Carrett, John Templeton and other successful market players applied this strategy. The author not only described the approaches of different investors, but also compared their solutions and deduced general principles that should be guided by.
With this book, you can learn how to analyze stocks depending on geography and time, correctly assess the value and quality of securities, and take into account fashion trends in the stock market when planning an investment strategy.
5. “Trading in the foreign exchange market for beginners”, Michael Archer
Forex trading can be an attractive option. However, the risks are as high as the potential rewards, so such an investment requires serious preparation.
Michael Archer has created a comprehensive guide to currency trading . The book contains an overview of the Forex markets, a short vocabulary of traders’ jargon, details of trading platforms, tips on technical analysis, ways to organize the trading process and a description of a special trading method invented by the famous futures trader Charles Goodman.
6. “The Psychology of Investing”, Carl Richardson
Doubt, fear, greed and anger can get in the way of even a professional. Investment consultant Carl Richardson explains how to avoid hasty and erroneous decisions. He explains how to balance your finances, control your emotions, and build a strategy that aligns with your goals and values.
Richardson illustrates the key ideas with simple napkin sketches to make it easier for the reader to figure it out. Although the author does not offer “perfect” financial solutions, he does suggest how to choose the most efficient ones and use the money wisely.
7. “How to make money on promotions”, Artyom Khachatryan
Artyom Khachatryan, a financial consultant with extensive experience in the stock market, tells how to find promising shares and when to sell them. He also offers the algorithms developed by him, gives examples of investment calculations and reveals a unique technique with which you can quickly replenish a portfolio with stocks with good potential.
8. “The Intelligent Investor” by Benjamin Graham
Billionaire Warren Buffett called Benjamin Graham’s “best book on investment.” The author, a renowned economist, described the principles of investor behavior that does not pursue immediate profits.
Graham examined the ways to protect against inflation, proposed methods for building a portfolio , advised passive and active investors on how to choose stocks suitable for their purposes, and gave examples of comparative analysis of companies.
9. “Investment Rules of Warren Buffett”, Jeremy Miller
Warren Buffett did not write books, but wrote letters to the shareholders of Buffett Partnership Limited (BPL). In them, the entrepreneur discussed the state of the economy, corporate governance, accounting, taxation, mergers and acquisitions.
Analyst Jeremy Miller combined letters from the investment guru between 1956 and 1970, when BPL had the highest returns. You will learn Buffett’s views on compound interest, diversification strategies , investing in undervalued, event and controlling stocks, and learn how to discipline and apply a conservative approach that the investor saw as essential to success.
