Everybody, from lucky lottery winners, to celebrities and sportsmen can become rich, in many cases overnight. But not everybody can become wealthy. Wealth creation goes past simply making money. Wealth creation is a bit tricky to understand. The Investing Books for Beginners we’re showcasing in here will give you a hand of help.
Many consider that wealthy people are only those who can earn money while sleeping. Also called passive income. Such an income can only be acquired through wise investing and smart money management. The following books are talking just about those topics.
Barbarians at the Gate
The business world is a rather complicated one. Clients, competitors, suppliers, institutions, and everybody wants a piece of your pie. Bryan Burrough and John Helyar are including this topic in their classic investment book from 1989.
After RJR Nabisco was bought using leverage, the authors decided to put down on paper the history of junk bonds and leveraged buyouts. The company was acquired using a combination of equity and large amounts of debt, the cash flow being the collateral. RJR Nabisco, 30 years later is now a tobacco giant and food producer.
The story was initially covered for the The Wall Street Journal. Later, the authors decided to publish it as a book.
Security Analysis
Benjamin Graham is a legendary investor that laid down the foundation for equity investing. Together with David Dodd he wrote the playbook for this type of classical investing. Equity investing basically refers to buying and holding a certain stock with the purpose of gaining dividends. You can read all about it in “Security Analysis.”
Equity investing is a technique favored by the likes of Warren Buffet. It has the potential to considerably improve your investing thinking. Benjamin Graham was one of Warren Buffet’s teachers at the Columbia University. If Buffet, one of the greatest investors of all time decided to listen to Graham, then you can be certain that he has something solid to say.
The Intelligent Investor
This is another book published by Benjamin Graham in 1949. Graham lays down in this timeless book his vision when it comes to investing. He sees long-term investing as the way to go for most people. Day trading and arbitrage, although profitable come with more risks, often losing people money in the process. For that reason, Graham advocates for long-term investing a safer and surely effective strategy.
His book has been updated constantly for the last 65 years. Although Graham died in 1976, Jason Zweig took good care of his legacy, constantly updating his work.
Conclusion
Investing is situated at the base of anyone’s financial pyramid. Although earning large sums of money can be effective in the short term, investing should be anyone’s long-term goal. However, wise investments can only be made in the presence of the right information. For that reason, the three investing books mentioned above are essential for all beginners.
