Reading should form an integral part of an individual’s every day if one aspires to experience success as an investor, trader or generally as a living being. One of the most successful and well-recognised investors, Warren Buffett, once stated that he spends around 80% of his time daily reading. The Oracle of Omaha insisted that more time spent reading and thinking would offer him less time to make dumb and impulsive decisions.
Here are some of the books that could be worthwhile for an individual looking to improve their financial knowledge and assistance in refining their investment strategy, trading strategy or even both.
The Intelligent Investor by Benjamin Graham
This book has become one of the most-read books for individuals looking to improve their investing knowledge and investment strategy. Warren Buffet once referred to the book as one of the “best book on investing ever written”, which speaks volumes to the quality of the book. The book, written in 1949, covers the basics of what the greatest investment advisor of the twentieth century calls “value investing”.
Even though it has been over seven (7) decades since the release of the publication, Benjamin Graham’s wisdom has stood the test of time. Thus, this book would be ideal for an investor looking to start out and include the author’s wisdom in their investment strategy.
A Random Walk Down Wall Street by Burton Malkiel
This is the second book focusing on helping in the creation or improvement of an investor’s investment strategy by introducing the investor to a very important hypothesis in the financial markets, the “Random Walk“. The random walk hypothesis suggests that the stock prices are random, and the security’s past movement can’t be used to predict its future movement.
The author aims to advise how an individual could embrace the randomness of the security movement in developing an investor’s successful long-term investing strategy.
The Essays of Warren Buffet: Lessons for Corporate America by Lawrence A. Cunningham
The book could be a cornerstone for investors looking to learn more about investing. The book covers insightful reports from Warren Buffet, one of the most iconic and intelligent investors ever.
The book features numerous essays that cover topics such as corporate governance, the impact of mergers and acquisitions, accounting policies, and tax matters that the Oracle of Omaha believes could be crucial for successful investing.
The Disciplined Trader: Developing Winning Attitudes by Mark Douglas
Mark Douglas also aims to address one of the major stumbling blocks to investors’ success, the subject of the psychology of trading. The book was originally published in 1990, and its relevance even today must be recognized.
The success and longevity of the book lie in the author’s ability to break down the most complex subjects unambiguously and concisely. The book also gives sound advice on how a trader can improve their basic mindset and attitude in improving their trading strategy.
Trading In The Zone by Mark Douglas
The second entry by Mark Douglas is one of the most recognisable psychologic of trading books in the market. This book can successfully help a trader in the creation of a trading strategy as it emphasises the need to form consistency and identifying and improving the traders’ strengths while limiting their weaknesses.
The book’s main takeaway is that making money consistently comes as a consequence of mastering the most critical psychological and mental skills. A trader must develop a strategy and choose consistency over any other reasoning or justification in their trades to become successful.
The Richest Man In Babylon by George Samuel Clason
The last book for this series is specifically aimed at individuals looking to improve their personal finance and money management. The book is aimed at low-entry to semi-knowledgeable audiences and is presented in parables and stories, making it very engaging and interesting.
The author covers topics including the simple rules of making money and the importance of saving money in the pursuit of wealth creation. The author outlines seven (7) simple rules of money that, when properly implemented, could help an individual achieve both short-term and long-term financial goals.
Summary
Individuals read for different reasons, and the books mentioned above are just a few that could help an individual address a specific need or get an idea of the general workings of the financial and capital markets. Above and beyond books, it could also help the development of a trader, investor or any individual intrigued by the financial markets to keep short and concise articles on articles on specific topics, such as insightful articles published in the Trive’s Learning platform.
Sources: Investopedia, FourMinutesBooks, Business Insider.
Disclaimer: Trive South Africa (Pty) Ltd, Registration number 2005/011130/07, and an Authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act 2002 (FSP No. 27231). Any analysis/data/opinion contained herein are for informational purposes only and should not be considered advice or a recommendation to invest in any security. The content herein was created using proprietary strategies based on parameters that may include price, time, economic events, liquidity, risk, and macro and cyclical analysis. Securities involve a degree of risk and are volatile instruments. Market and economic conditions are subject to sudden change, which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. When trading or investing in securities or alternative products, the value of the product can increase or decrease meaning your investment can increase or decrease in value. Past performance is not an indication of future performance. Trive South Africa (Pty) Ltd, and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered from using or relying on the information contained herein. Please consider the risks involved before you trade or invest.
