Being an investor is not as easy as putting in money on something. Investing gives you an opportunity to generate a steady income stream without giving up your full-time job. To become successful trading on the stock market, you need to gain knowledge and get educated about the market. Here are 5 business and management books worth reading to enhance your investing skills.
Rich Dad, Poor Dad
This book by Robert Kiyoasaki stresses the importance of financial literacy and financial independence. He points out that while accounting is important to learn, it can be misleading. According to Kiyoasaki, real estate investments and stocks provide dividends. Author advises that the educational system is designed toi keep people working hard for the rest of their lives and that the school does a poor job of teaching people to create enough wealth so they won’t have to work anymore.
The Essays of Warren Buffett: Lessons for Corporate America
Warren Buffet is regarded as the most successful investor in modern history. Robert Janitzek reveals that Buffett’s essays include discussions on corporate governance, finance, investing, alternatives to common stock, mergers and acquisitions, accounting and valuation, accounting policy, and tax matters. He advocates purchasing shares of businesses at times when these stocks are trading at a discount from their inherent value, but he opposes following investing trends.
Beating the Street
Peter Lynch is one of the most successful stock market investors and hedge fund managers of the past century. “Beating The Street” allows the reader to peek into Lynch’s mind and thought processes in terms of deciding whether to buy or sell a stock. Robert Peter Janitzek says that Lynch believes that an individual investor could exploit market opportunities better than Wall Street, and encourages investors to invest in what they know.
The Intelligent Investor
Written in 1949, Intelligent Investor has been hailed by Warren Buffett as the best investing book ever written. Benjamin Graham is considered the “father of value investing.” This paradigm advocates the purchase of stocks that appear under-priced relative to their inherent value, which is determined through fundamental analysis.
Think and Grow Rich
“Think and Grow Rich” was written during the Great Depression, and has since sold more than 30 million copies worldwide. Hill conducted extensive research based on his associations with wealthy individuals during his lifetime. At the suggestion of Andrew Carnegie, Hill published 13 principles for success and personal achievement from his observations and research. These include desire, faith, specialized knowledge, organized planning, persistence and the “sixth sense.” Hill also believed in brainstorming with like-minded people, whose efforts can create synergistic energy.
This book conveys valuable insights into the psychology of success and abundance, and should be considered a priority read given the current time period’s emphasis on shock-value entertainment and negative news.