What are the best investing books of all time? Successful Investors are addicted to knowledge and this makes them read voraciously.
The billionaire investor Warren Buffett reads over 500 pages daily. In fact, he dedicates 80% of his day to reading books.
Reading is a necessary activity for investors. The more you consume, the more information you get to adequately analyze your investments and carry out your due diligence.
As an investor, you must always make the time to read and stay updated on the latest business developments, not just on companies you’re interested in but overall industry trends.
Studying investment materials is a habit that must be cultivated as it keeps your mind focused on the task and sharpens your thinking. Keep in mind that what you read is as vital as the time spent reading.
Reading the wrong books not only wastes valuable time but can mislead you by giving you the wrong information, ending in terrible investment decisions.
But even though there may be many investment courses you are currently undergoing like those offered by Dr Wealth or books on finance and stocks lining your favorite online or local book store, there are certain books that always make their way into the shelves of the savviest investors.
The crucial question though is does reading pay for an investor? Reading is important for two main reasons:
1. It allows investors to stay updated on market trends
2. Properly written investment books give an in-depth analysis of previous investment moves of successful investors and profitable insights on future moves; this provides an outline for what doesn’t work or works in the business world and Wall Street.
We also read to be exposed to continuous changes in industries, which occur on a daily basis. It’s like the Chinese saying “Avoid being the frog in a well” – meaning don’t have a tunnel vision. This is a scenario where a person has a fixed viewpoint because of limited exposure to various viewpoints or knowledge spheres.
With that said, what should we read? What are the best investing books of all time?
As a newbie investor, you should aim to read a broad range of materials and not just materials that revolve around business.
Warren Buffett’s business partner Charlie Munger has once stated that investors use the “latticework of mental models” in investments, and this requires information from various disciplines to form a complete view of investment.
But as a beginner, you may not be as savvy as Munger, so it’s recommended that you start by reading books relevant to investing like industry news, psychology, general business news, accounting topics, and business models.
If later on, you can handle the load, then you’d want to start consuming materials of diverse disciplines.
Studying the right investment materials or going through investment courses can give you as an investor a clear road map to financial freedom and success. And these are invaluable benefits.
While we’ve emphasized reading a whole lot as an investor, most investors end up going through numerous materials but retaining just minute aspects of the books they read. This ruins your reading efforts when it’s time to use your acquired information during investments.
The best approach would be to take notes or create a checklist while studying and keep vital points to a few lines to boost your knowledge absorption capacity. There’s no backdoor approach to this so you’d need to practice over and over to perfect it.
However, not all books are of the same standard when it comes to investing. If an author aims to capitalize on day trading, short term trading trends or popular trading fads they may not excel in teaching readers everything needed to be known.
Another author may offer strategies that can help potential and beginner investors gain individual financial freedom with tremendous financial profits. It’s about knowing how to separate the chaff from the wheat.
In this article we will list the best investing books from the the perspective of legendary Warren Buffett. These books are either recommended by Buffett, about Buffett, or something Warren Buffett would read. So let’s see the 20 best investing books of all time you should be reading:
