The 4 Most Important Books To Master Investing.
One up on Wall Street
In this book Peter Lynch outlines the advantage the amateur investor has in the stock market over the professional money manager. His principle of buying what you know is an important aspect to consider before putting large sums of capital to work. The book describes how the average person has special insights into businesses they encounter on a daily basis whether it may be from their hobbies, work or weekly grocery shopping. Lynch is a legend of the industry who generated returns of 30% per year for 13 straight years before his retirement at the ripe old age of 46 in 1990.
The intelligent Investor
Argued by many as the greatest book ever written on the subject of investing, the author Benjamin Graham (who was Warren Buffett’s teacher and mentor) outlines the fundamentals of what it takes to pick out winners and outperform the markets. The book has many chapters that deal with the various investing styles and important commentary on dealing with market fluctuations and the concept of margin of safety in the valuation process. The book looks at the importance of not paying exorbitant prices when buying stocks.
Guide to Investing in Gold and Silver
One of the best books written on the case for investing in gold and silver. In an era of central banks pumping money into the world economy and driving down interest rates to near zero levels, Maloney makes an argument for the economic downfall of major world powers due to mass inflation and the civil unrest that will follow within these nations. He slams fiat currency and its faults and how only gold and silver are the only real money which has stood the test of time throughout history.
Common Stocks and Uncommon Profit
This book was written by one of the greatest investors of all time Philip Fisher. In the book he espouses the importance of investing in companies that grow aggressively to give superior returns over the long term. In many ways he was ahead of his time and a true pioneer of growth investing with him turning his focus on investing in technology firms which has the potential to grow into great businesses over the long term. Fisher also looked beyond quantitative factors in his investment process and focused on the intangible factors such as researching their product, asking customers of their opinions, identifying if the company has a positive relationship with their employees etc. He called this the Scuttlebutt Method. Phil also had the belief that a concentrated portfolio of just a few stocks would be sufficient and would provide fantastic returns than owning dozens of mediocre businesses.
