It is imperative to educate yourself before you start investing. While it is important to start investing as early as you can, it is also important to invest wisely. These five classic investing books can provide indispensable business and finance insights for investing beginners.
"Rich Dad Poor Dad" (1997) by Robert Kiyosaki
This classic is a must-read for investing beginners. Kiyosaki's view is that the poor and middle class work for money, but the rich work to learn. He stresses the importance of financial literacy, and presents financial independence as the ultimate goal in order to avoid the rat race.
"The Essays of Warren Buffett: Lessons for Corporate America" (1997) by Warren Buffett
In his essays, Warren Buffet is widely considered to be the most successful investor— he provides his views on a variety of topics important to investors. Investing beginners can get a glimpse of the interface between a company's management and its shareholders, as well as the thought processes involved in enhancing a company's value.
"Beating the Street" (1993) by Peter Lynch
Peter Lynch is one of the most successful stock market investors and hedge fund managers of the past century. "Beating The Street" allows the reader to peek into Lynch's mind and thought processes in terms of deciding whether to buy or sell a stock. Lynch believes that an individual investor could exploit market opportunities better than Wall Street, and encourages people to invest in what they know.
"The Intelligent Investor" (1949) by Benjamin Graham
This book was written in 1949 and has been hailed by Warren Buffett as the best investing book ever written. Benjamin Graham is considered the "father of value investing." This paradigm advocates the purchase of stocks that appear under-priced relative to their inherent value, which is determined through analysis.
"Think and Grow Rich" (1937) by Napoleon Hill
"Think and Grow Rich" was written during the Great Depression, and has since sold more than 100 million copies worldwide. Hill conducted extensive research based on his associations with wealthy individuals during his lifetime. This book conveys valuable insights into the psychology of success and abundance, and should be considered a priority read given the current time period's emphasis on shock-value entertainment and negative news.
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