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10 Books Worth Investing In

17 Sep

The financial services area is so deep and  so broad, there are enough good  books written about it to keep investors busy for a lifetime. If you are an  avid reader, here are 10 books you’ll want to add to your reading list. If it  has been a while since you last picked up a good book, any one of these  recommendations is well worth a trip to the bookstore or library.

“The Battle for the Soul of Capitalism” (2005) by John C.  Bogle John Bogle, a mutual  fund giant and long-time advocate for the little person, takes a  hard-hitting look at everything that ails the financial system in the United  States. From overcompensated CEOs and overpriced  mutual funds to Wall Street research scandals and the focus on short-term  results over long-term gains, Bogle lays bare the truth behind what went wrong  with capitalism. He also highlights the impact that mutual funds and their  boards of directors have on the corporate policies of the companies that they  run, and he provides a prescription for how stockholders can exercise their  will, reclaim the companies they own and put the financial system back on  track.

“Conspiracy of Fools: A True Story”  (2005) by Kurt Eichenwald Written by a senior investigative reporter  at The New York Times, this entertaining look at the Enron  meltdown introduces readers to the rogues’ gallery behind the biggest failure in  corporate history. From influencing the nation’s energy policy to misleading  investors and analysts, the audacity, arrogance and greed of these  characters is presented in a novelistic style that will keep you reading from  the first page to the last.
SEE: Business Owners: Avoid Enron-esque  Retirement Plans

“Freakonomics” (2005) by Steven D. Levitt  and Stephen J. Dubner Popular, thought-provoking and controversial  are all good words to describe this look at how a self-proclaimed rogue  economist “explores the hidden side of everything.” This is an economics text  written for the average reader, not for Rhodes scholars, and it explores a host  of real-world topics ranging from violent crime and the hierarchy of drug  dealers’ networks to backyard swimming pools and baby-naming patterns.  “Freakonomics” and its 2009 sequel, “SuperFreakonomics”are interesting  departures from the financial services genre’s usual fare.

“Fooled by Randomness” (2004) Nassim Nicholas  Taleb Taleb draws on his experiences as a professional trader and  math professor to provide an intellectual look at the role of luck in achieving  financial success. He provides food for thought to anyone curious about the role  of skill in stock picking and the value of psychology in decision making.  Whether you believe that great fortunes are made through hard work and  persistence or merely via the fickle hand of fate, this book will bring a new  perspective to your ruminations. Fortune declared it one of “the  smartest books of all time.”

“Bull’s Eye Investing” (2004) by  John Mauldin When John Mauldin looked at the future, he didn’t see  the traditional buy-and-hold methodology  as a viable stock market strategy. Mauldin highlights the virtues of absolute  return investment vehicles, such as hedge  funds and old standbys like gold, as ways to make money in a decade that he  predicts will be marked by stagnant markets. Citing factors such as new  accounting standards and rising pension  costs, he paints a bleak vision of the future and uses a variety of studies to  make a compelling argument for his outlook and investment approach.

“A Mathematician Plays the Stock  Market” (2003) by John Allen Paulos

Most people know that numbers  play a huge role in stock market analysis, and they assume that mathematical  genius provides some hidden insight that mere mortals cannot hope to match.  Using personal insight from his own efforts to beat the Street, Paulos provides  a humorous and entertaining look at the mathematical theories and technical  analysis methods that all too often fail. If you like math, you will love  this book.

“Value Investing Today” (2003) by Charles H.  Brandes

Benjamin Graham, Warren  Buffett and Charles Brandes are all giants in the field of value  investing. Their stock screening, portfolio construction and insight into  the markets made them all famous – and rich. Brandes introduces the strategies  behind the success of the value approach. The third edition of this book,  originally published in 1989, updates supporting data and adds several new  chapters, including strategies to capitalize on international markets.

“The Millionaire Mind” (2000) by Thomas J.  Stanley

In his earlier book, “The Millionaire Next Door,” Thomas J.  Stanley collaborated with William D. Danko to provide a profile of the “average”  millionaire. In “The Millionaire Mind”, Stanley provides a detailed look at the  type of thinking that helped these millionaires amass  their wealth. Everyone who aspires to millionaire status shouldn’t just read  this book, they should study it.

“John Neff on Investing” (1999)  by John Neff The legendary manager of Vanguard’s Windsor Fund built  his reputation as a bargain  hunter extraordinaire. With a contrarian approach to picking stocks, Neff  bought low and sold high. For investors who count themselves among Neff’s many  fans, this account of how he got the job done is well worth the read. That said,  anyone reading this book in hopes of finding a shortcut to making a few bucks  will likely be disappointed – there are no quick fixes offered  here.

“The Millionaire Next Door” (1996) by Thomas J. Stanley and  William D. Danko

If you have ever had a burning desire to know “how  the other half lives,” this is the book for you. When looking for the rich, “The  Millionaire Next Door” advises us to forget the Lamborghinis, yachts and  personal helicopters and focus instead on the people who live across the street,  because the average millionaire isn’t who you might expect it to be. Many of the  folks with seven-figure bankbooks live in average suburban neighborhoods, drive  average cars and live just like the rest of us!

 

This list  of books is sure to broaden your perspective and may even make you question what  you already know. Regardless of which book you choose to read, when it comes to  finance and investing, a little knowledge can go a long way.

Source Investopedia

 

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Posted by on September 17, 2012 in Finance,Taxation and Investment

 

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