Books to read if you want to learn how to invest wisely

Written by American investor and Vanguard Group founder, John C. Bogle, The Little Book of Common Sense Investing is a captivating read which explains how investing in index funds can take readers way ahead of time in terms of financial growth. In the book, Bogle also decodes why low-cost investments have a big impact on long-term returns. One of the most beginner-friendly investment guides available, it outlines the most straightforward and efficient investment approach to wealth creation.

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Often considered the bible of investing, The Intelligent Investor by American economist Benjamin Graham is a pool of abundant financial knowledge for any investor. It covers everything — from value investing, financial planning and asset allocation to buying stocks, mutual funds investing and building wealth.
The book serves as a money manual for novice investors, protecting them from making expensive mistakes by educating them on how to create long-term financial plans.

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Robert G. Hagstrom’s The Warren Buffett Way gives readers a peek into the mind of the business magnate to help them understand how he analyses and reacts to investing. Furthermore, the book guides readers on how to acknowledge one of the toughest challenges for investors — overcoming loss aversion or the propensity to focus on the agony of losing money rather than reaping the benefits of the profits made. This is one of the key lessons which makes this a perfect read for beginner investors.

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Published in 2017 by McGraw Hill Education, Stock to Riches is written by stock market veteran Parag Parikh, who is also the founder of Parag Parikh Financial Advisory Services. The book makes stock investing simpler for readers by breaking down the different terms and concepts that every investor must be familiar with to thrive in stock trading.

Additionally, it offers crucial viewpoints by citing many examples to guide novice investors entering the Indian stock market. Another fact that makes this book perfect for newcomers is that it delves deep into the importance of healthy investor behaviour in achieving financial success.

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Authored by Burton G. Malkiel, an American economist and financial executive, A Random Walk Down Wall Street is an extensive guide on new-age investing. It describes exchange-traded funds (ETFs) and investment prospects in developing economies. Additionally, the book also talks about smart-beta investing and examines the constantly evolving world of the stock market.

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Ramit Sethi’s I Will Teach You To Be Rich is based on the four pillars of personal finance — banking, saving, budgeting, and investing. The New York Times bestseller, which is specifically aimed at young investors in their 20s and 30s, explores the wealth-building ideas of personal entrepreneurship. This modern blueprint for new investors encourages them to make the first move by simplifying concepts and doing away with complex technicalities.

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Co-written by Taylor Larimore, Mel Lindauer and Michael LeBoeuf, The Bogleheads’ Guide to Investing is an invaluable handbook intended for individuals struggling to establish a sound financial foundation. The book educates readers on many investment-related topics like purchasing stocks or accumulating retirement funds. It also demonstrates how applying a few straightforward strategies can have a significant impact on one’s financial well-being. Accessible to readers with no finance background, the title is great for anyone looking to make safe and long-term investments.

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The Wall Street Journal bestseller Napkin Finance: Build Your Wealth in 30 Seconds or Less by Tina Hay is a well-structured handbook to help anyone master financial literacy. Throughout the book, the author has drawn skimmable descriptions of finances, investments, and retirement plans which a layperson can easily understand. Filled with illustrations, the book demystifies the principles of the subject with much ease.

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Broke Millennial Takes on Investing by Erin Lowry is a great launchpad for readers who are trying to understand the basics of budgeting, finance and investing. In the book, the author discusses various behavioural patterns related to investment such as how to handle your anxiety about investing, the importance of retirement savings and how to actually buy and sell a stock. Further, the author also justifies his opinions and ideas with a holistic approach that appeals to both millennials and GenZ.

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Written by chartered financial analyst Gautam Baid, The Joys of Compounding discusses principles and theories of finance based on the ideologies of financial philosophers like Ben Graham, Charlie Munger, Warren Buffett and other scholars. Additionally, the book elevates the importance of simple and disciplined investing practices, such as value investing, identifying quality stocks, and acquiring insurance, in an individual’s life. With myriad examples, it proves how this very habit can compound one’s finances.

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