It’s very important for people to start investing early. The main reason for doing so is to obtain the power of compound interest. By investing for a long time and making sure you get the best compound interest rate on your investment, one generates more returns.
Do you know if you invest 2000rs per month into a mutual fund and suppose it’s giving an average of 15% return then it can generate unto 1.4 Crore return in 30 years? Yes, just 2000rs per month. (Invested Amount: 7.2 Lacs, Return Amount: 1.4 Crore)
Only investing Early is not important but you need to invest wisely as well. Old People use FD as an investment as it generates 7% interest (in India) but if you learn to invest and come across Equity, Bonds, PPF as an investment. You will realize that there are many far better investment options available.
The only thing you need to know is how to invest. We have gone through many books and finally came up with books that can teach you how to invest wisely. These books provide better insight into investment and will guide you in the right direction.
So here are the books. Note order of books doesn’t have anything to do with its ranking.
Author: Robert Kiyosaki
Robert Kiyosaki is an American businessman and author. He is the founder of Rich Global LLC and the Rich Dad Company, a private financial education company that provides personal finance and business education to people through books and videos.
This classic is a must-read for people who are about to start investing. The Book is Robert’s story of growing up with two dads his real father and the father of his best friend his rich dad and the ways in which both men shaped his thoughts about money and investing. This book points out how middle-class people and the rich person’s approach to finance and investing. It says that middle-class work for money, while the rich work to learn.
Author point out the importance of financial literacy and presents financial independence. Author gives thing framework for getting rich. He tells audience to differentiate between assets and liability. Also He focuses about cashflow. The author says that America’s educational system is designed to keep people working hard for the rest of their lives, and that the school system lacks financial education so that people can create enough wealth so they won’t have to work anymore. The author also highlights the importance of tax saving.
Author: Benjamin Graham
Benjamin Graham was an American investor, economist, and professor. He is known as the “father of value investing”. He was the guru of Warren Buffett, one of the most successful investors in the world. Warren Buffett described him as the second most influential person in his life after his own father.
Over the years, the market has proven the wisdom of Graham’s strategies. In the book, Graham explores the history of the stock market and emphasize the reader on doing fundamental analysis on a stock. He discusses various ways of managing your portfolio. The author reads out many must-read basics to get you started in investing, recommended strategies and how to analyze stocks.
Apart from these, The author talks about the fundamental disciple of investing which is very important in the stock market. Some investors call this book as the stock market bible.
Author: Peter Lynch
Peter Lynch is one of the best stock market investors and fund managers of the past century. He started with Fidelity Investments as an intern. After 11 years, he started managing the Magellan Fund.
He grew the fund from $18 million to $18 billion in assets During his time, the fund gave average returns of more than 29% per year.
This book allows the reader to look into the author’s thought processes in terms of deciding whether to buy or sell a stock. The author belives that individual investor can get better return from stock market by exploit market opportunities better then professional wall Street guys.
he emphasize on investing about which investor already know.
The author explains his own strategies for investing and offers advice on how to pick stocks and mutual funds.
Author: Mohnish Pabrai
Mohnish Pabrai is an Indian-American businessman, investor, and philanthropist. In 1991 he started his IT consulting and systems integration company, TransTech, Inc. with about US$30,000 from his own 401K account and US$70,000 from credit card debt. He sold the company in 2000 to Kurt Salmon Associates for US$20 million. Today he is the managing partner of the Pabrai Investment Funds (a family of hedge funds inspired by Buffett Partnerships), which he founded in 1999.
Here the author gives some examples of how some investors started with nothing and became wealthy using principles of business.
In a straightforward and accessible manner, The Dhandho Investor lays out the powerful framework of value investing. This book discusses the framework of the business savvy Patels from India. Any investor who adopts the framework is bound to improve on results and soundly beat the markets and most professionals.
Author: John Bogle
We have picked up this book as very few people have time to follow the market and do stock market investing. Most people invest through mutual funds in the stock market. We wanted to place one book related to mutual funds in our list.
John Clifton “Jack” Bogle was an American investor, business magnate, and philanthropist. He was the founder and chief executive of The Vanguard Group and is credited with creating the first index fund.
Warren Buffet describes this book as “Cogent, honest, and hard-hitting–a must read for every investor.”
In this book, critical look at the mutual fund industry and help investors navigate their way through the staggering array of investment alternatives that are available to them.
Written in a straightforward and accessible style, this reliable resource examines the fundamentals of mutual fund investing in today’s turbulent market environment and offers timeless advice in building an investment portfolio.
Along the way, The author shows you how simplicity and common sense invariably trump costly complexity, and how a low cost, broadly diversified portfolio is virtually assured of outperforming the vast majority of Wall Street professionals over the long-term.
Each of the books that we have mentioned about are one of the books in their respective investment sector. Reading them will bring you more financial disiplice and education which may help you invest wisly which may result in better returns on your investment.
The advice I would give is to read everything in sight. And to start very young. It’s a huge advantage in almost any field to start young. If that’s where your interest lies, and you start young, and you read a lot, you’re going to you’re going to do well.Warren Buffett
Wish you happy reading.!!!