Don't know if there has been a thread on this before..... But what are the best books on investing. My guess is that there are good "overview" type books that cover all forms of investment and money management issues and that there are really good books that provide tons of detail on one specific aspect of investing. So let's break it down a bit A) Best overview type books on various aspects of investing B) Best books covering a specific area/form of investing I need to learn and be educated and want to buy a couple of books from Amazon so I know what the hell it is I am doing with my money. I can't keep coming in here and asking stupid question after stupid question all day.
For good overview books on the Stock Market, Options, Foreign Currency trading, Financial Risks and etc., type in "Sarkis Khoury" on Amazon. They're pretty good overview books that don't say this strategy is the sure fire best bet. They're just solid books that tell about the principles & beyond of how things work by showing the reader in words and also in formulas.
Kind of a broad question, but I kind of like "How to make Money is Stocks" by O'Neill. It is a good read, b/c it is easy to follow and explains a methodolgy on why stocks move, etc. If you want more of a lighthearted read (no practical advice, but more of good stories) get "Reminiscences of a Stock Operator" by Edwin Lefevre. Its a famous book that everyone seems to like. oh.. and as far as learning from books. NO BOOK is going to give you a system to make money right out of the box, regardless of what is promises. I like to read books and try to piece together tidbits from different ones for investing/trading ideas. Books are excellent however, at introducing concepts (such as volume, price action, volatility, risk management) that you can tailor to your needs to explore further I look at books, as pieces to a puzzle that can sometimes add a little clairty.
By far the Essays of Warren Buffett : Lessons for Corporate America. He shuns the idea of "diversified portfolio is always the greatest" and asks the investors to use their brain instead of just using statistics. Living case of how efficient market theory isnt always true, as he has been averaging over 20% return for the longest time. There are always other smart people who have been know to beat the market over and over again, and its not just luck. But i guess this book is for those people who have some basic knowledge of investing. Not a book that beginners shoudl start out with.
Buffet has also stated on the record that a diversified portfolio of low cost index mutual funds is probably the answer to most people's 'what to buy?' questions. If you have no idea what is meant by 'low cost index mutual funds' or WHY Buffet said that I suggest: Bernstein's Four Pillars of Investing. http://www.amazon.com/Four-Pillars-Investing-Building-Portfolio/dp/0071385290
I have a library of around 100 books on investing -- many of which I have read, but some I confess I have just skimmed -- so herewith are my top 10 books on investing/finance, in no particular order of importance. These are books that in my view are essential reading about the subject -- some are dry and academic, like MacMillan's book on options (which I read in business school), some are great fast reading, like Tobias' book. A Random Walk Down Wall Street, by Burton Malkiel. THE book that popularized the concept of efficient markets. The Only Investment Guide You'll Ever Need, by Andrew Tobias. Covers the waterfront of investing in an engaging amusing style. The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns, by John C. Bogle. The only way, of course, is index funds. But he's probably right. The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel, by Benjamin Graham, Warren Buffet, and Jason Zweig. The classic book on value investing, originally published in the 40s. Reminiscences of a Stock Operator by Edwin Lefevre. The classic "biography" of stock manipulator Jesse Livermore. This is why we have the SEC today. Options As a Strategic Investment, by Lawerence McMillan. Want to know virtually everything about options? This book is it. Pretty academic, but believe me, worth slogging through. Personal Finance: Turning Money into Wealth, Arthur J. Keown. The book I used in a financial planning course. A comprehensive introduction. A Commonsense Guide to Your 401(k), by Mary Rowland. I bought this book about 8 years ago when I was transitioning jobs. I haven't looked at it for a while, so it may be dated, but it was very helpful back then. How Mutual Funds Work, by Albert J. Friedman and Russ Wiler. Not a "how to choose" book but a "how they operate" book. You will learn a lot. New Life Insurance Investment Advisor: Achieving Financial Security for You and your Family Through Today's Insurance Products, by Ben Baldwin. I met and had lunch with Ben in the late 90s when I working in the business. Ben advocates investing in variable life -- a controversial position -- though the small one-time investment I made in a variable life policy after I met him eliminated my need for any additional out-of-pocket purchases of life insurance. That being said, this book does a great job of explaining exactly how life insurance works, something that is impossible to discern if you have ever read your quarterly insurance statement.
Actually, you are quoting him out of context. What he meant by that is for most people who do not have the time to commit to their investment, "low-cost-mutual-funds" are the answer. But the thread starter clearly is asking for books to read and follow for his own investment. And I expressed my opinion that if an investor is committed to do lots of research and learn from graham and buffet, they can outperform the index funds.