We have selected several books to help you understand the world of economics, finance, and investment. With their help, even without having a special education, you can pump knowledge and learn how to invest money wisely. Check them out!
1. The Intelligent Investor by Benjamin Graham
The book was first published in 1949 but is still relevant today. It can be safely called a handbook for a novice investor. There are no mathematical formulas but there are many fundamental principles of investing.
Benjamin Graham founded the value investing strategy. It implies that the investor looks for undervalued companies and buys them with the expectation of future growth. The book outlines the principles of how to do this.
Thanks to this book, you will learn to distinguish the price of a company from its real value, you will be able to understand the basics of the stock market and fundamental analysis. The book will also explain why the stock you bought is primarily a part of the business.
2. The Most Important Thing by Howard Marks
An investor with 20 years of experience in banks and investment companies publishes his notes, which he wrote over the time working with clients. This book is about the philosophy of investing. You will not find charts and equations in it but you will read advice to investors about the price and value of companies. The book teaches you how to manage risk, resist emotions and manage capital.
3. Economics: The User’s Guide by Ha Joon Chang
A professor from Cambridge University in his book explains how the world economy works. The examples are very simple. The boy who has two pence and who wanted to buy bird feed is allegedly persuaded by his father to put money in the bank, which the boy does. But then the boy gets scared for his money, shouts, and demands to return it. After that, all other visitors to the bank also begin to demand their money.
So, the author begins to talk about the functions of investment banks and moves on to the causes of the 2008 global financial crisis. The narrative moves from simple topics to complex ones. Starting with a short excursion into the history of capitalism, the author talks about the main functions of money, exchange rates, the basic laws of the economy, the structure of central banks and why they are needed, the work of supply and demand, and why they are so important.
This book will also help you to understand and apply the trading strategies as it explains the basics of economics. However, it is always helpful to use specialized resources like the Forextime blog, which is available for India and will provide you with all the necessary information on Forex trading.
4. AI Superpowers: China, Silicon Valley, and the New World Order by Kai-Fu Lee
A book is about the prospects of artificial intelligence written by one of the top experts on the topic and one of the 100 most influential people in the world according to The Times. Kai-Fu Lee is one of the most influential people in the field of AI in the world. Scientist and a venture capitalist with a dizzying career (Apple, Silicon Graphics, Microsoft, Google).
He argues that the dramatic change everyone expects from artificial intelligence will come sooner than expected. But they will not be associated with “thinking machines that will take over the world”, but with economic consequences. The race between the superpowers, China and the United States, could lead humanity to disaster: AI will allow the rich to get rich even more, and the gap between them and the poor will become huge.
5. All About Investing in Gold by John Jagerson and S. Wade Hansen
How to get the maximum benefit from investing in gold and minimize the risks? This book is about how to differentiate your portfolio by using gold as your key asset. In order not to lose your head in the pursuit of profits in the gold market, you need to proceed very carefully. The practical advice given by the authors can be a starting point for further activities.
When we talk about investment books, there are three other important titles that should be mentioned. These are:
- Investments by William Sharpe,
- Company Valuation by Nick Antill, and
- Investment Valuation by Aswath Damodaran.
We have not included them in the main list because they are much more complex than the books mentioned above. They have a lot of formulas, graphs, and specific terms but also a lot of use. Without these publications, the literature on investment education would be incomplete. For example, in William Sharpe’s book, at the end of each chapter, there are assignments to test your grasp of the material and questions for the CFA Professional Financial Analyst certification exam.