It won’t be wrong to say that the word investing is synonymous with taking a risk. When you invest your money in a project, trade, business, etc. you have just as much chance of losing it as you have of doubling it. For that reason, not everyone dares to start a business or invest money with XTRgate. However, if you think you have it in you to make more money with little money, you should definitely consider reading some investing books to spark your motivation even more. Some inspiration is good, especially when it leads to financial stability and freedom.
So, if you are looking to learn about investing and get some inspiration, here are the top 5 books that you should consider reading today.
The 5 Best Books Investors Should Be Reading
1. Rich Dad Poor Dad by Robert Kiyosaki
As stated earlier, investing books can inspire you to invest; they are not meant solely for helping you learn investing. In fact, everyone learns investing the best way when they invest their money. When you put your money in something, you get serious about it naturally. Over the course of time, you learn everything works and does not work when investing your money. However, the most difficult step for any first time investor is to make the first move. Most people are not able to go past this stage. They keep thinking about investing money but never do because they are too scared to lose it.
That’s where a book like this comes in. Robert Kiyosaki has done nothing but define his life and the influences he had from his surroundings in terms of investments. He was the son of a poor father, and that’s what he is referring to in the name of the book. But who was the rich father? Well, he had a friend who was rich and his father used to talk to Robert a lot about investing. There was a stark difference between what he used to tell Robert about investing and what Robert’s father used to say about it. And that’s the message the author wants to give in the book to the readers.
If you read the book, you will be inspired to invest your money in something big. The most important lesson that you will learn from this amazing investing book is that you do not need to break the bank to invest your money. You can work with whatever amount you have and build an empire with it. You just need courage and the right state of mind. Robert sheds light on this matter by contrasting the opinion of rich fathers with that of poor fathers on investing. If you find yourself questioning the way you make money today, you should definitely consider reading this book.
It will raise a lot of questions, and answer them as well. It inspires you to break the shackles that keep you working for money and pushes you to work to make money. There is a huge difference between the two concepts, and there is no other book that can make that difference clear than this one.
2. Principles: Life and Work by Ray Dalio
This is yet an amazing addition to the collection of investing books for beginner investors. However, the best part about this one is that it works just as wonderfully for experienced investors as well. Again, the main message you get from the book is that your current status or the amount of money you have does not matter in making you a rich person. Ray Dalio was not a rich person at all when he started a firm for investors. He used to live in a small apartment where he laid the foundation of his company. He continued to go through good and hard times. However, it took four decades for his company’s name be called “one of the most important” by Fortune.
What you are going to love about this book is that it is not all a story. In the previous book by Robert, you may find reading a story at times. And for that particular reason, that book mainly serves to inspire individuals to invest. On the other hand, this book serves two purposes. It inspires you to work to invest and also gives you tips to make money investing. These tips are not just any tips. Instead, they are coming from someone who has spent his life investing and helping others invest. You will love the authoritative illustration of the book because the person behind every word is someone who has dedicated his life to investing.
The one thing that sets this book apart from many others like is that it is just as good for businesses and organizations as it is for individuals. You will love the fact that Dalio has not just explained his secret methods of making money but also elaborated on how you can make use of them if you have a business. So, when you start reading this book, you can be sure that it will serve as not just your first but also your second step towards investing. Even if you are an experienced investor, you should definitely consider reading this one. It will cost you a bit more than most other books because of its popularity.
3. Thinking, Fast and Slow by Daniel Kahneman
This one is going to be a completely different one from the bunch. Even if you do not read books, you should definitely consider reading this one. One of the best aspects of this book is that it will sound interesting even to those who are not into investing and are not considering it in near future. So, while other books have been written by avid investors, this one is written by someone who is mult-talented. Daniel is a person with astoundingly great understanding of finances, but he is actually a professor who teaches psychology. You can’t put his book down and not look twice. The person behind this book is a very strong personality.
His services for Economic Sciences have won him a Nobel Prize in 2002. You can already see that the name of the book is quite interesting and unique. So, rather than going into the numbers of finances, this books delves into the more important issues that are common in every investor in the world – the psychological issues. When you start investing, you will have certain inclinations just like every other investor in the world. Unless you get rid of those inclinations, you will not be able to trade and invest successfully. But who could explain this idea better than someone who understands psychology and finances exquisitely?
It does not matter how many years you have been investing for because every investor has psychological issues that make them invest in wrong assets. Emotional trading and investing has caused many people to sink their investment boats. You don’t want to repeat those same mistakes and here is a psychology professor writing a book for you to understand that factor. You will learn about finances and how your inclinations and tendencies cause you to make certain decisions that you should not make. If you are a new investor, you should learn these factors so you can start on the right foot. If you are an experienced investor, you should read the book so you can figure out which tendencies you have and how you can get rid of them.
4. Louis Engel’s How to Buy Stocks
This book is going to prove to be an eye opener for you. It contains more than you may realize. Books are always named after a lot of thought. This one from Louis Engel seems a deliberate attempt to hide the inside information of the book from the readers unless they open it. Of course, if you are trying to judge a book by its cover and name, you are not a true investor. A true investor would want to read the book and understand everything before he/she invests money. Why do we say that? Well, because the book is not just about stocks, it is about any asset that you can think of.
Now, why is this book equally good for new and experienced investors? Well, first of all, you will learn the basics that are associated with investing your money in any financial market. As stated earlier, the information you will get in the book is not limited only to stocks. You will learn about all other assets that are usually available to you through a variety of trading instruments. But that’s not the most important part. The important part is when Louis starts explaining what happens at the core of these markets. Yes, you will not be admiring the beauty of the machine, you will be looking at the components of the machinery to know how it actually works.
This will give you a lot of insight into how every investor should behave in financial markets. Also, you will learn some general rules and standards that apply to just about any asset that you can think of. That’s what makes this book one of the best out there. If you are new to investing, you do not have to learn every asset class separately, you can just read this book and realize how the market is working on the inside. Once you know what happens on the inside, you will be more confident in spending your money on your desired asset.
You have to admire the author for explaining things that most other people avoid explaining. You can call it a great secret that no other investor wants to disclose to you because they think you will know too much.
5. Burton Malkiel’s A Random Walk Down Wall Street
And after all the other books, you can see that this one is the most specific one. It talks about specific information and holds the same level of importance for new investors and those who have been investing for many years. You can consider it an achievement to get your hands on this gem. It is not just any other book on investing. It is one of the best with many aspects that introduced some new concepts into book writing after its publish. The most important thing to know about this book is that more than 1.5 million copies of it have already been published in the world.
You will find the book with some alternate titles as well, but do not worry. For as long as the initial part of the title is the same and the author, you are reading the right book. This book is all about actionable information. You are reading the words of someone who understands investing, has his hands in investing, and can be a thought leader in the subject. You will be reading some great strategies in the book that can help you make a lot of money when you invest your money in stocks.
What you are going to love about the book is that it teaches you a lot about Wall Street as well. The people on Wall Street like to use their own language when referring to things, and you will learn a lot of those words when reading this book. Of course, a book of this stature could not have remained outdated now that the world has entered the era of cryptocurrencies. If you are lucky enough to get your hands on the right edition, you will get to read about cryptocurrencies as well.
There is no shortage of books on the subject of investing. However, you have to know which ones to read first and which ones to leave for later. You can’t start straight away with a book on investment strategies if you have not invested before and do not even know the terminologies of the market. So, you can pick one of the books on this list that specifically targets new investors and then move on to the ones that explain specific and more difficult investing strategies like the last one on our list.