One of the most important factors in your investing journey has to be the knowledge that you acquire in order to make necessary decisions for profits. With so many variables which can come into play, refining your education on different investing techniques is absolutely ESSENTIAL to a successful portfolio.
Because of this, I have pieced together a list of books, which I have put to the test to become your rules and guidelines while you’re investing your hard earned capital. Without a doubt, the narratives below have aided me in gaining a 47% return on my investments.
These books contains philosophies, techniques, as well as specific quotes from some of the greatest investors of our time. I would HIGHLY recommend these books to anyone serious about developing their knowledge of the markets.
Without further adieu, let’s start with number 1 on our list…
1.Money Master the Game by Tony Robins
I truly believe that this book is one of the main reasons that I have personally been successful in most of my investing endeavors. Tony Robins is a financial GENIUS when it comes to investing and personal finance. With so many resources and assets at his fingertips, Robins uses his knowledge to not only give you insights on how he has tackled his money management, but he also connects with some of the greatest investors of our time. One of the many people he connects with is billionaire hedge fund owner Ray Dalio, who delivers his expertise as well.
Ray Dalio even gives a generalized portfolio diversification which he backs with what he calls the “All Weather Portfolio” meant to be able to withstand any condition of the market. I found this information to be priceless and HIGHLY recommend taking a deeper look into this.
Be warned, this book is extensive but it is PACKED with useful knowledge which you can begin implementing into your life almost IMMEDIATELY. Tony Robins’ guide to financial wealth and freedom is for anybody at any stage of life, and he does an amazing job at making all of his concepts easily understood.
2.The Intelligent Investor by Benjamin Graham
There’s a reason why many refer to this book as the “Bible in the Investing World”. Warren Buffet, one of the most highly regarded investors of our time swears by this book, and has developed many of his investing principles based off of it.
While the book can be a bit outdated because of recent developments in the market, for example, the current status of bond yield rates, and the emergence of cryptocurrency, there are many essential principles that can still be unpacked from this information rich book.
Furthermore, this book goes into depth about historic moments throughout the lifespan of our markets to discuss economic trends to look out for in the future that could potentially repeat themselves.
If you are someone who finds they are controlled by the emotions that are attached to investing, this is an amazing place for you to begin researching. By no means are these concepts easy, but they will push you just enough to better prepare you for your investing journey ahead.
3.The Little Book That Still Beats the Market by Joel Greenblatt
This was actually the first book that got me hooked on the market. I believe that this is one of the most fundamentally structured books that is currently available to investors, and for good reason.
What Greenblatt discusses, SERIOUSLY simplifies harder concepts of the investing world and delivers them in a way that is easily digestible. He reveals how there is no such thing as a perfect formula that will make you money no matter the current status of the market. This concept is something that everyone needs to hear as many “investing gurus” swear that their investing strategy is foolproof.
Another down-to-earth concept the author manages to expertly conceptualize is the idea of waiting for the perfect time to put your money into the market. So many people are manipulated by the external optimism of the “next biggest investing opportunity” that they end up investing at the wrong times. Greenblatt discusses how if we wait for a specific moment where the market gives us an offer that is extremely favorable for returns, then we are in a great position to make a profit consistently.
While many of the ideas expressed in this book are obviously shared with The Intelligent Investor it is a great place to start for new investors who are looking for an easily digestible book.
4.The Richest Man in Babylon by George S. Clason
This is by far one of my favorite books that I’ve ever had the privilege of reading. Clason develops well thought out stories which allow the reader to stay engaged throughout the duration of the book. They all contain essential concepts towards both investing and personal finance and how to better manage your money within that space.
When it comes to investing, many of us think about mainly investing in the markets. On the flip side, Clason gives rules and tips to better fund your investments as well as recognize the best potential opportunities to make profits when they present themselves.
One of the best ideas he expresses is the concept of making your money work for you. He dissects exactly how you can put your hard earned cash to work and then make the money that you earn from your endeavors also work for you, essentially creating a giant loop of compounding your hard earned capital.
With such a simple way of discussing money making concepts, it really does feel like you are gaining information that only the wealthy are supposed to know about. As someone who has read and implemented this book into my own life, I can firmly say that each concept Clason teaches has DRAMATICALLY changed my monetary situation in life.
5.Rich Dad’s Cashflow Quadrant by Robert T. Kiyosaki
Robert Kiyosaki is a legend in the personal finance and investing world. With so many unique and ground-breaking concepts, Robert Kiyosaki’s Cashflow Quadrant is an amazing book to read if you feel like your mind still needs to be shifted towards an investing mindset.
Kiyosaki expertly exposes the typical mindset of how the majority of people attempt to create wealth and instead offers a different way of thinking through investing. He argues that by altering your mindset, you can create a life in which your money is working for you instead of having to be a slave to money.
This concept goes into depth even further as he emphasizes the importance of investing in other options than just the stock market. Anyone who has done in depth research into Kiyosaki knows his impressive portfolio which involves real estate. In this book, he discusses exactly how he has diversified his portfolio with real estate and how that has made him millions of dollars passively (not to mention, gives him tax breaks, more on that in the book as he discusses the concept of cashflow).
These books are an amazing place to start if you are eager and ready to get into the investing world. As my own personal investor, I don’t know what I would have done if it wasn’t for these books listed above. I HIGHLY recommend that you take the time to DO YOUR RESEARCH and gain the necessary knowledge in the books above if you are wanting to become monetarily comfortable.
The best 5 books to read when you are beginning investing are:
- Money Master the Game by Tony Robins
- The Intelligent Investor by Benjamin Graham
- The Little Book That Still Beats the Market by Joel Greenblatt
- The Richest Man in Babylon by George S. Clason
- Rich Dad’s Cashflow Quadrant by Robert T. Kiyosaki
If you have any questions about the books above, or just want to discuss your opinions about the books, don’t hesitate to reach out! I’m always looking for opportunities to discuss these concepts with you, the reader!
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Andrew Martinez, owner and writer of Minerva Money