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To be a successful investor, or to be in a position to teach people about investing, I think the more you know the better. Investing is one of those things where the specific details might change, but the overall picture will have a lot of repeated characteristics. Take bubbles for example, the Dotcom bubble and the 2008 bubble were different, but in both cases prices were overvalued and based on speculation rather than sound investing fundamentals.
By learning as much as we can, we put ourselves in a better position to help ourselves and others. Especially as a professional, you always want to have all of the answers for clients. So to learn as much as you can, here as my three favourite investing books I think you should read.
Rich Dad Poor Dad
Rich Dad Poor Dad by Robert Kiyosaki is probably the most commonly read book by entrepreneurs that I know of. It’s often one of the first books a lot of young entrepreneurs read, and it helps inspire them to get on the path they’ve dreamt of.
Rich Dad Poor Dad is a story that goes through two viewpoints, a well-educated dad that works hard every day, and a self-educated entrepreneur who owns businesses. The main point of this book is talking about the idea of being an entrepreneur, being in a position where you can earn passive income, rather than physically working for every cent you make.
Passive income is all about creating wealth without having to do something at that time. Think about being a business owner, or having a rental property. You can make money while not physically being there, allowing you to do many other things. Someone could have dozens of business or rental property, each of them earning the owner an income.
This book is perfect for someone trying to figure out what they want to do as a career, and the benefits of creating sources of passive income. I believe the most valuable commodity for each of us is time. The more you can make with the littlest amount of time, the more time you get to keep. I think a good goal is to be as rich in time as you possibly can.
A Random Walk Down Wall Street
A Random Walk Down Wall Street by Burton Malkiel is my favourite book on investing, hands down.
This book takes us back in time and looks at some of the biggest market bubbles, why they happened, and most importantly: the investor psychology behind each crash. I find the psychology behind investing incredibly interesting. The way people think and behave really tells us a lot and gives us clues to avoid future bubbles. In each case of a bubble, specifics change, but big picture things and investor behaviour are very similar.
It also dives into technical and fundamental analysis, the random-walk theory, the efficient market hypothesis, modern portfolio theory, smart-beta, and honestly so much information that it can really overload your brain. But if you read through it at a safe pace, make notes, think about the information so you can really digest it, it’s all gold.
This book is great for anyone looking to be in a position to help others, anyone looking to learn more about investing to benefit themselves (traders or self-managers), or any professional looking for a more in-depth look into how the investing world works.
The Intelligent Investor
The Intelligent Investor by Benjamin Graham is the classic. Graham is referred to as the father of value investing, based on the ideas and concepts that he came up with in The Intelligent Investor.
Warren Buffett considers it one of the best books on investing ever written. He himself read the book as a teenager, and Buffett was so intrigued by it, that he applied and went to Columbia Business School to study under Graham. Graham became a mentor to Buffett and really set him on the right path for all of his success in the investing world.
Originally published in 1949, the book will come off as outdated in many ways, but at the same time, the fundamentals and principles are still relevant. No matter what you’re talking about, solid fundamentals are a key. Without fundamentals, any success is probably due to pure luck rather than skill.
This is a great book for anyone looking to build on their fundamental understanding of investing, and to learn how one of the greatest minds in investing, saw a strategy that is still as relevant as ever in today’s markets.
About the Author
Winnipeg based Financial Advisor focusing on investments, financial planning, and mortgages. I prioritize education, because I believe the more we know, the more we all benefit. It allows me to help people make the most of their financial future.
Disclaimer: The information in this article is not intended to encourage any lifestyle changes without careful consideration and consultation with a qualified professional. This article is for reference purposes only, is generic in nature, is not intended as individual advice and is not financial or legal advice.