✔️ Information reviewed and updated in November 2023 by Eduardo López
The world of investments is an extremely competitive sector and very difficult to master, so if you are a beginner, in no way should you even think about entering this world without any type of reference. Therefore, today we tell you about the great financial books that will allow you to begin your path in the world of investments and finances.
Introduction to Investing Books
If you are interested in learning from the best books on business and finance, it is important that you have a guide, and above all, know what the scope of knowledge you can have from textbooks is.
Books on finances will provide you with knowledge, including practical tools that will allow you to improve your personal finances, make appropriate decisions, thoroughly research the investments you will make and, above all, understand the financial world in general to make the best decisions.
As part of education regarding investments, it is essential to understand that all these benefits will come in the long term and these books will help you permanently forget the idea which we normally have, of becoming rich overnight thanks to investments.
Why read investing and finance books?
Reading books about investments and finances is a practice that will help you understand the basic concepts, relying on the greatest experts in the world of finance, to understand what stocks, investment funds, bonds are and, above all, know Differentiate between the different types of assets considering the risk, and anticipating the return of each of your investments.
In this way, you will be able to create an investment strategy based on your economic capabilities, focusing mainly on making decisions that bring greater dividends and, above all, adapt this knowledge to your investment style.
The 10 best investment books
Now that you know everything you will learn from the most acclaimed stock and investment books, let's move on to the Top, in which you will surely find an excellent path where you can start.
1. The Wolf of Wall Street
This book is a true reference as it is known worldwide thanks to the film released with the same name. It has become one of the essential books on investments.
Although it does not revolve around technical knowledge, you will learn from one of the most famous investors in the world, Jordan Belfort, who wrote this book in 2007, telling his path to success as a Wall Street stockbroker.
Although Jordan Belfort became an antihero of the investment world mainly due to his illegal, fraudulent practices, deception of investors and other unethical practices, it is a good parameter to consider and avoid falling into this type of behavior.
2. The money flow quadrant
Continuing with our list of recommended investment books, we cannot miss one of the most important authors in terms of personal finance, Robert Kiyosaki.
Perhaps this is not his best-known book (we will talk about the most important one later), however, this is an excellent text which will allow you to delve into knowledge recognized as standards in the world of investments, including the possibility of generating assets and starting to create wealth.
Best of all, this textbook implements activities to be carried out by anyone, even without investment capacity, starting as an employee, moving to self-employment, to becoming a business owner, and finally an investor.
3. Thinking, Fast and Slow
This text by Daniel Kahneman is not a technical book on finance, but the author is a winner of the Nobel Prize in economics.
Although you will not find complex economic theories in it, you will learn how human thinking works and, above all, how cognitive biases can influence us to make wrong financial decisions.
This book will help you understand human thinking and avoid making decisions based solely on emotion.
4. A random walk down Wall Street
This is one of the best books on Wall Street, in which Burton Malkiel will teach you the theory of the efficient market, a method which will allow you to make informed financial decisions, acquiring information about different asset classes, and managing your portfolio so you can choose the best in the long term.
5. The little book that beats the market
Continuing with our top recommended investment books, this text written by Joel Greenblatt will help you learn a strategy known as the “magic formula”, which will allow you to find the stocks with the most growth potential, focusing on companies with high growth potential. growth, at extremely competitive prices.
Far from difficult-to-understand rhetoric and metrics full of technicalities, this book will teach you how to choose the right actions, based on simple and easy-to-apply criteria.
6. One step ahead of Wall Street
This book written by Peter Lynch is one of the best books on Wall Street, because in it you will learn from one of the best investment fund managers, acquiring practical advice from his experience, which will allow you to identify the most attractive investment opportunities, learning to evaluate companies with the greatest growth potential.
7. The smart investor
This is one of the great financial books, one of the most incredible classics written by Benjamin Graham, where you will acquire the fundamental tools to understand what gives value to stocks and, above all, create your own strategies to minimize risk. .
8. Rich dad, poor dad
We had already talked about Robert Kiyosaki, and this is the personal finance book for beginners par excellence, where through the author's own story, you will learn how to change your chip and start thinking like a true wealth creator.
9. Too Big to Fail
Of course, not everything in the world of investing is profit, and in this book you will learn what led Wall Street to fall into the 2008 financial crisis.
10. Liar's Poker
We will finish our list of essential books on investments, with one of the best books on Wall Street, written by Michael Lewis, and published in 1989, where you will learn what it was like to live on Wall Street, at the time of its greatest boom.
Conclusions and learnings about the world of investments
With this list of books you can learn aspects such as:
- Investment basics.
- Investment strategies.
- Diversification of your portfolio.
- Risk management.
- Human psychology to understand investments.
- Highly complex financial analysis.
- Long term planning.
With these books you will acquire the basic learning, learning the necessary skills to enter the world of investments. If you like this type of lists, in a future installment we will talk about the five best trading books.
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