10 books to help you become an intelligent investor

 

A RANDOM WALK DOWN WALL STREET

by Burton G Malkiel

Malkiel, a Princeton economist, popularized the random walk hypothesis which says that the direction of the stock market can’t be predicted and hence it is very difficult for fund managers to continuously outperform the market average.

 

BEATING THE STREET

by Peter Lynch

In this book, Lynch, a legendary fund manager gives an insight into his stock picking techniques and in vesting methods using the mutual fund route. According to him, knowing a company well before investing is very important. Lynch tells how one can construct a winning portfolio through research, insights and experience that can beat even the experts.

NUDGE: IMPROVING DECISIONS ABOUT HEALTH, WEALTH AND HAPPINESS

by Richard H Thaler and Cass R Sunstein

Two professors of behavioural economics take the reader through the way people think and in the process they often change the way one thinks.

RICH DAD POOR DAD

by Robert Kiyosaki

Kiyosaki, a businessman and financial educator, tells his life’s story through the life history of two men, a `rich dad’ and a `poor dad’. The book tells, among other things, what the rich kids learn about money that kids from middle class and poor background do not. It also teaches about the utility of financial intelligence and financial literacy for every individual.

AGAINST THE GODS: THE REMARKABLE STORY OF RISK

by Peter L Bernstein

In this book, Bernstein tells the story how people as diverse as gamblers and doctors, monks and businessmen, composer of operas and scientists work to eliminate risks. The book is not only about risks related to business, finance and investing, but in almost every walk of life.

THINK AND GROW RICH

by Napoleon Hill

With over 100 million copies sold since it was written in 1937 and promoted as a book on self-development, most of its messages relate to increasing income and building wealth.

THE INTELLIGENT INVESTOR

by Benjamin Graham

A classic from Warren Buffet’s teacher, the book professes buying a basket of undervalued stocks that meet some of the criterion put forth by Graham and pay not much attention to individual stocks or industries. Graham, who taught at Columbia University, found that long term returns from his basket to be double of what Dow Jones Index returned.

THE LITTLE BOOK OF BEHAVIORAL INVESTING

by James Montier

Through this book one of world’s leading behavioural analysts helps people with ways to overcome psychological hurdles, like overconfidence, biases, emotions etc. while investing. The book also guides how to identify investing mistakes and avoid those.

WINNING THE LOSER’S GAME

by Charles Ellis

In this book about long term investing, Ellis explains how to avoid common investing mistakes, be realistic about returns and virtues of disciplined investing.

 

THE LITTLE BOOK OF COMMON SENSE INVESTING

by John C Bogle

The founder and former head of Vanguard has a very important message for readers in this famous book: By investing in index funds, which give average market returns and keep costs low, investors will be eventual winners over those who invest in funds that try to outperform the market.