One of the best ways to gain confidence in investing is to learn from experienced professionals. Investors who have achieved great success in the market often share their knowledge and strategies in books. Whether you are just starting out in the world of investing or already have some experience, these 5 books will help you gain in-depth knowledge, make more informed decisions and take confident steps towards achieving your investment goals.
1. The Intelligent Investor
By Benjamin Graham
The book describes in detail how to build an investment portfolio, how to manage costs, the basic principles of issuing shares and bonds, and how to buy shares from the point of view of a cautious, long-term investor.
The main idea of the book is stated in the title itself: investors should make their financial decisions based on reason, not emotion. The author assures that the manifestation of intelligence is a matter of character and does not depend on a person's intellectual abilities.
The main idea of the book is stated in the title itself: investors should make their financial decisions based on reason, not emotion. The author assures that the manifestation of intelligence is a matter of character and does not depend on a person's intellectual abilities.
2. The Psychology of Money
By Morgan Housel
Through short stories, the author provides the reader with valuable advice on how to make sound financial decisions. The book emphasises that financial success is more a function of behaviour than intellect or education. Morgan believes that our financial habits are shaped by our upbringing and environment. If we want to change our financial situation, we need to be guided by future goals, not past beliefs.
Housel also stresses the importance of knowing when to stop, telling stories of how one wrong decision can lead to losing everything. He advises against comparing ourselves to others and suggests that we evaluate what we are willing to lose in the pursuit of more.
Housel also stresses the importance of knowing when to stop, telling stories of how one wrong decision can lead to losing everything. He advises against comparing ourselves to others and suggests that we evaluate what we are willing to lose in the pursuit of more.
3. Common Stocks and Uncommon Profits
By Philip A. Fisher
Philip Fisher's “Common stocks and uncommon profits” is a classic guide to long-term equity investing. Known for his strategy of selecting quality companies for long-term investment, the author describes a method that focuses on in-depth research of companies and their growth potential. Fisher emphasises the importance of analysing business models and company management, as well as the need to be a patient and disciplined investor.
The author discourages short-term trading and recommends focusing on companies with unique products, quality management and high growth potential.
The author discourages short-term trading and recommends focusing on companies with unique products, quality management and high growth potential.
4. Market Wizards
By Jack D. Schwager
In this book, renowned industry expert Schwager interviews a number of legendary traders, analysts and fund managers.
The book contains valuable insights that will help novice traders find their strategy in the market, while professionals will find new methods and strategies developed by the subjects of Schwager's interviews.
The book contains valuable insights that will help novice traders find their strategy in the market, while professionals will find new methods and strategies developed by the subjects of Schwager's interviews.
5. The Little Book of Valuation
By Aswath Damodaran
If you’re into understanding how to value stocks, businesses, or other investments, this book is a fantastic guide. Aswath Damodaran, a renowned expert in valuation, explains how to determine the true worth of an investment. This book breaks down complex valuation techniques in an accessible way, making it an excellent resource for anyone looking to develop their skills in assessing investment opportunities.
Best for: Investors looking to get a deeper understanding of how to value stocks and companies.
Best for: Investors looking to get a deeper understanding of how to value stocks and companies.
CONCLUSION
If you want to learn about investing, these 5 books will be your guide and help you understand the industry better.
The books give you both the facts and the advice you can use in your own investment strategy.
The books give you both the facts and the advice you can use in your own investment strategy.
How to invest?
Open a free brokerage account with Unibank Invest and start investing. The Unibank Invest app provides access to the world’s largest stock exchanges, enabling you to purchase international investment instruments, such as stocks, bonds, and ETFs.
To open a brokerage account, fill out the online application or call +374 43 004 382.