5 Books to Read Before You Start Investing

Five books to read before you start investing

New to investing? You’re not alone. However, if you are starting your investment journey, either online or offline, research is critical when it comes to investing. If you’re into books, paperbacks, online, or kindle, here are some books we think you might want to check out before starting your investment journey. There might be some insights you’ll find helpful!

Book 1: Rich Dad, Poor Dad by Robert T. Kiyosaki

The first book we recommend is Rich Dad, Poor Dad by Robert T. Kiyosaki. This book tells about a boy who has one rich father and one poor father. His story will help you gain financial knowledge and develop the mindset to build a life of financial freedom. It is worth spending a little time reading this book since it teaches you to understand that you have a choice in life. Instead of doing a job that you don’t like for the sake of paying bills, this book encourages everyone to explore more options on how to make money.

Book 2: The Richest Man in Babylon by George S. Clason

A series of short stories, the book teaches uncomplicated lessons to show that the keys to wealth building remain unchanged throughout history. Through all these short stories, Clason wants people to know that as long as you work hard and are willing to learn from your mistakes, becoming wealthy is not impossible.

Simply put, this book encourages you to save at least 10 per cent of your earnings. Clason also notes that desires and necessary expenses are two different things. Focus on improving your skills and establishing a future income. Until you crush the spirit of procrastination within you, you will never arrive at the finish line of success.

Book 3: The Intelligent Investor by Benjamin Graham

This book teaches you that to be an intelligent investor, you must be disciplined, patient, and eager to learn new things. It is also essential to control your emotions and to think for yourself. Instead of IQ, the author of this book states that the intelligence needed to be a good investor has much more to do with character. 

With intelligent investing, you should do three basic things. First, conduct research on a company and the situation of its business practices. Second, make sure that you have a safety net from potential severe losses. And lastly, don’t expect perfect results, but aim for “adequate” performance.

Book 4: The Little Book of Common Sense Investing by Jack Bogle

The Little Book of Common Sense Investing by Jack Bogle emphasizes that investors can have more success by keeping investing simple. An investor can achieve this by owning the total stock market portfolio. That means you own every company listed on the stock market. William of Occam first introduced the concept of simplicity in 1320, which stated that when there are multiple solutions to a problem, choose the simplest one. 

It has become a major scientific inquiry principle, also known as the “Occam’s razor” concept. This is about choosing the simplest way to own all businesses on the stock market so you can own the stock market over the long term instead of trying to beat the stock market.

Book 5: A Random Walk down Wall Street by Burton G. Malkiel

Last but surely not least, you should also read A Random Walk down Wall Street by Burton G. Malkiel. This book tells a story about how investors can make money in the stock market by following a simple journey guaranteed to bring success. Malkiel states that patience isn’t enough when it comes to being an investor, but you should also get accustomed to concepts about stocks and what analyzing them consists of.

Book summaries only go so far, so please check out our other articles to learn more about how you can get in on the investment space here in Malaysia!