I want to get my brother a book or two for Christmas on investing in the stock market. He's recently started investing this year and he's really into it so I thought that a book would make a good gift. He has an accounting degree so he has a basic foundation in business and finance so it doesn't have to be an absolute beginners book. So what is the one (or two) book (s) that every investor should read? Or should I get him a subscription to Investor's Business Daily or Money magazine or something like that? All suggestions appreciated.
I have Barron'ts, both print and online edition. My favorite section is the Striking Price daily, made lot of money this year, hope to keep going. I do have a quant approach though so I don't use Barron's too much, it is a good magazine nonetheless.
IBD is good. I'm also a fan of Peter Lynch. But please tell him that investing on his own is a dumb idea. The best financial advisors put their money with someone else. Emotions get too involved when it's your own money, and a lot of people don't realize that. Just because your a good surgeon doesn't mean you should operate on yourself.
He's been buying stocks so I don't know if that is trading or investing. I'm a musician, so I don't know anything about that stuff. Fatty- I would agree that it's a bad idea to do it on his own but he's really into it and wants to do it and learn about it. He's not putting the whole farm in the market, but he likes having following the market and having a little piece. Macalu- I've got Rich Dad, Poor Dad on tape that I'll probably let him use but not as a gift. I think it's an interesting read (listen) if anything as someones opinion on how to approach their financial life.
I would basically agree with FFB. when I first got started in the market I started reading peter lynch, motley fool, and IBD. but books can never substitute for a real life market education which is expensive and hard. he just needs to remember that there is a ton to learn and you are always learning if you want to get started in the market. further, everything is a lot easier for the random newbie "investor" when the market continues to push to new highs. learning when to buy, sell, or hold is the HARDEST thing to do and it takes practice and discipline. ...and not only am I a random idiot but I am also a professional trader. one more point...just so your bro knows...low risk and high reward is the ONLY way to trade and invest. high risk almost never means more money...it just means high risk. and one more thing...i would also tell him to keep an eye out for different investment opportunities other than stocks. right now I have pretty much all my money in a money market account that yields about 5.3%, because there is nothing I am 100% confident about that I see. so basically i have zero risk and a relatively high reward. ok enough or I will continue to ramble. I hope he does good with the market.
My brother gave me this book called One Up on Wall Street by Peter Lynch. I didn't like how the guy on the front looked, so I never opened it.
Monkey Business is a great book as is Liar's Poker. Not about investing, but damn entertaining nonetheless. Also, if you get a chance, check out that Muhammad Yunus' book, Banker to the Poor, which talks about his Nobel Prize winning banking concept in Bangladesh. Otherwise, you can always get him this bad boy and teach the guy about capital structures, time value of money, valuation of a firm, etc.:
b/c there's nothing concrete in his book that would help you in making the right steps towards investing. http://www.johntreed.com/Kiyosaki.html]This is an extensive research on Kiyosaki[/U]. even if you're skeptical about the research, i don't think one can deny that his books don't really do much for you when it comes to knowing how to invest. i used to read his stuff too, but i never really gained anything from it.
Any of these are excellent: A Random Walk Down Wall Street The Little Blue Book that Beats the Market The Poker Face of Wall Street Fooled By Randomness: The Hidden Role of Chance in the Markets and Life Freakonomics Against the Odds: The Remarkable Story of Risk Fortune's Formula: The Untold Story of the Scientific Betting System that Beat the Casinos and Wall Street Reminiscences of a Stock Operator
I totally agree. When I first read his book I thought it was great because it has a lot of 'rah rah' stuff that gets your blood pumping. But then you realize you still have no idea what to do. After you read some more then you realize all his books are good for is to get you thinking that investing is the right thing to do in life. But beyond that there is nothing substantial at all about his books.
i just finished reading it and i completely agree. it does a good enough job of getting you in the mindset that investing is the smart thing to do, but it in no way teaches you how to go about doing it. i personally didn't see what all the hoopla was about...
yeah i remember reading a few pages of his books and it is complete bs. kind of like that old douche bag that comes on PBS, wayne dyer, with all that inspirational crap. he is a nice storyteller but that's about it. ...but if it makes you feel good then read it. going back and thinking about how far i have come with my trading ever since i got started in the market when i was learning about investing is just mind boggling to me. there is just so much to learn about the market and yourself that can only be learned by experiece and money. that being said you can still become a competent investor with the books and resources that have been mentioned in this thread. i guess also your bro might be interested in the market wizards books by jack schwager. they let you see how many different ways people make money in the markets and they are good reads.
