HaloNoble6 Posted October 4, 2004 Report Share Posted October 4, 2004 I was wondering if you guys could hit me up with some suggested reading for a beginning investor. Anything ranging from long-term to short-term. Thanks in advance! Quote Link to comment Share on other sites More sharing options...
Walker Posted October 4, 2004 Report Share Posted October 4, 2004 My recommendations would really depend upon what level of education you're seeking to acquire and what your goal in investing is. However, for a general level of education, I can recommend Investing for Dummies. It's a comprehensive book which covers a lot and is great for someone just entering the investing world - it covers stocks, bonds, REITs, Index funds, ETF's (I think), Mutual funds, etc... and gives good advice. (However, he takes a shot at Ayn Rand in the version I have by saying that her formulation of capitalism as suitable to a selfish individual is incorrect and that capitalism's wealth can be shared with everyone - yuck). Other books for stock-picking that I've read or plan on reading: Value Investing for Dummies - Sandler The Warren Buffet Way - Hagstrom The Intelligent Investor - Grahm Security Analysis - Grahm Random Walk Down Wall Street - Malkiel But, some of these books may not be applicable to you if you don't plan on being a stock-picker. In addition, read the WSJ. (I just got my free 3 week subscription!). Quote Link to comment Share on other sites More sharing options...
Toolboxnj Posted October 4, 2004 Report Share Posted October 4, 2004 I suggest The Motley Fool's Guide to Investing. I read it when I was 12 and learned about balance sheets, cash flow, etc. It seems basic, and it is for beginners. It's very entertaining as well. http://www.amazon.com/exec/obidos/ASIN/074...1417574-5358454 TB Quote Link to comment Share on other sites More sharing options...
HaloNoble6 Posted October 4, 2004 Author Report Share Posted October 4, 2004 Thanks, I'll check these out. Quote Link to comment Share on other sites More sharing options...
A.West Posted October 4, 2004 Report Share Posted October 4, 2004 felipe, Out of that group, I think the Malkiel book would be best as a first read, because it addresses big questions first, and will provide lots of cautions that are useful to a novice investor - things that prevent you from losing lots of money or wasting money. My main caveat on Malkiel is that he promotes the Capital Asset Pricing Model, which is flawed in my opinion. However, lots of beginning investors would be better off if they behaved as if it were true, focusing on diversification and risk management. Malkiel can also help you decide what kind of investor you should be. After you decide what kind of investor you plan to be, then you can better decide what else to read. If you plan to mostly invest in mutual funds, then you may want to read books that relate to that. If you plan to make short term trades or invest long term, then different books are called for. I work in equity research and hold the CFA (Chartered Financial Analysis) charter, but the things I read and like the best are probably of little use to most non-pro investors. For those looking to analyse stocks, I think one needs to understand the entire business environment, understanding business management, theory of competitive advantage, marketing, accounting, economics, corporate finance, and valuation theory, as well as portfolio and capital market theory. That's pretty much the whole course for the CFA program. see www.cfainstitute.org They have a small section for individual investors. I think some investors waste their time by spending too much time on investments. It's important, but sometimes its better to spend a few hours per year with a passive investing strategy, adjusted over time, and invest your time and resources not on stocks or bonds, but the best investments for you, like your own business or profession, or your real estate, or a hobby you may enjoy more (though investing can be an interesting and rewarding hobby too). Good luck! Quote Link to comment Share on other sites More sharing options...
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