So you’re ready to start investing, or want to begin learning about investments? As a beginner, you may be easily thrown off by investment terminology and think that it’s safest to stay away from the strange and mystical world of investments. Well, contrary to what you think, investment is not at all difficult to understand if you put in the time to learn it just as you would any other subject.
Here are some of the best books and web resources that you should check out to whet your appetite and learn the basics.
Four best books
1. The Intelligent Investor
You’d see “The Intelligent Investor” on almost every list of investment books to read, and there’s a very good reason why. This book, authored by Benjamin Graham, is probably the sacred text for investors, regardless of their level of knowledge. You will learn about value investing, which takes a long-term view and also focuses on the fundamentals of the company, rather than speculation and quick-win tactics.
Written in 1949, the concepts and principles explained in this book have stood the test of time. Ideas are also clearly put forth and illustrated with examples so you’d be able to understand the message even with little or no investment knowledge. Hailed by Warren Buffet as one of the best investment books ever written, “The Intelligent Investor” is a great book to start your investment journey with.
2. A Random Walk Down Wall Street
This book by Burton Malkiel is an informative and straightforward investment book. The author explains how you can analyse potential returns not only pertaining to stocks, but a wide range of investment options, like real estate investment trusts and tangible assets such as gold.
The book presents various strategies for investing, such as value investing, growth investing, indexing, and also life-cycle investing, which matches investment strategies to your stages in life.
You can also draw lessons from the biggest mistakes investors make. This book is simple enough for a beginner to follow, and gives you a broad understanding of the various strategies on Wall Street.
3. Common Stocks and Uncommon Profits and Other Writings
Similar to how “The Intelligent Investor” is the ultimate guide to value investing, “ Common Stocks and Uncommon Profits” is what you need to read to learn about growth investing.
Philip Fisher authored the book in 1958 and emphasises on investing in quality companies, highlighting the importance of qualitative traits such as management, R&D, and growth potential as opposed to price trends and absolute value.
“Common Stock, Uncommon Profits” is a good supplement to the “Intelligent Investor” and provides another important perspective to investments. Read them both for a solid foundation to start with.
4. The Essays of Warren Buffett: Lessons for Corporate America
Written by one of the most successful investors in modern times, The Essays of Warren Buffet is a collection of his annual letters to the shareholders of Berkshire Hathaway organised in a thematic and structured way. The author, Lawrence Cunningham, has distilled decades of material into succinct wisdom and invaluable insight that are accessible to both investors as well as business managers.
This is definitely no technical textbook, but a source of sound advice from one of the most brilliant investors of today.
Three best websites
Well, with a name like Investopedia, you can imagine that this is somewhat like an investor’s encyclopaedia. This is where you can find free tutorials and actually learn how to do your numbers, from basic to more advanced ratios.
If you want to try your hand at stocks before actually putting in the money, try out the free stock simulator and see how you stack up.
2. The Motley Fool
One of the better known investment sites around, The Motley Fool is a good source of information for both the novice and the well-versed. There is also a Motley Fool Singapore version, which covers both the Singapore and U.S. markets. There is also educational content that is accessible to the individual investor.
3. The Street
The Street is a rich resource for you to start learning about investments, organised into easy-to-follow topics. It also features a stock screener and provides up to date news on the business world across a wide range of sectors and industries.
The best investors are constantly reading and expanding their knowledge. While you may consider signing up for an investment course for structured learning, these free and low-cost resources are a great start. The best part is, you can keep coming back to them as great references as you progress along the journey to becoming an investment guru yourself!
And of course alternatively, you can always visit iMoney’s Investment Learning Centre for more interesting tips and knowledge regarding to investments!
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