Three best investing books

From bestreviews.com
By
Kristin Yarbrough
BestReviews

The books Warren Buffett credits for his success were published in 1949, 1934, and 1776..

If investing were easy, everyone would be rich. But many investment strategies are relatively simple once explained by someone who's in-the-know.

Most renowned financial experts began as novices, and many of them share what they've learned by writing books detailing their strategies. For consumers, an investment in one of these books can pay for itself - and then some. With the right investing book, you can get the insight and knowledge needed to have success with your money. But it's hard to know whose strategy will boom and whose strategy will bust in your specific situation.

When looking for leading investment experts, it's hard to go wrong with Berkshire Hathaway chairman and CEO Warren Buffett. Our top pick is the first installment of his Three Favorite Books series. But if Buffett's old-school methods aren't your style, you can check our other recommendations.

Considerations when choosing investing books

When looking for an investing book, you must first consider the reading audience: yourself. Are you a beginner? A veteran looking to up your game? Or someone in between? What are your financial goals? What is your risk tolerance?

Basics: These books bring beginners up-to-speed on topics like history, portfolios, and indexing. A good book will cut through the jargon, explain clear strategies, and warn newbies about common pitfalls.

Classics:  An old investing book isn't necessarily an outdated book. Some superstars credit their success to books that are decades or more old. Many classics -- or updated volumes --  discuss methods that still work today, as well as the strategies and philosophies adopted by the pros.

Advanced: Advanced investing books are for seasoned investors looking for higher-level methods, such as buying up undervalued stocks or investing in high-earning companies. Not for the casual reader, they often contain data and discussions that require foundational market knowledge.

Real estate: Investing in homes and property is a whole different animal. Flipping a house isn't always as easy as it sounds, and landlord territory can be rife with landmines. If you're looking at flipping or renting, books focusing on these topics can help you navigate the process and come out ahead.

Features

With your profile in mind, take a look at specifics.

Edition: Investing principles often stay the same, but market conditions don't. Whatever the title, look for the latest edition published. The inclusion of a foreword often indicates a classic book that has been freshened up with updated information.

Resources: Even new editions can't stay up-to-the-minute. Many authors promote websites where they offer additional content or market-responsive tips.

Glossary: It's hard to make good decisions when you don't know the terminology. A glossary defining the lingo establish a beginner's foundation for success.

Concrete plan: Some books outline the step-by-step instructions you need to translate what's on the page into daily life.

Personal examples: Many books break up dry content with real-life success stories. Some books are penned by superstar investors, so you can see how their methods changed their lives.

Price

Most investing books won't break the bank. Prices from under $10 to around $30.

Inexpensive: Paperbacks from lesser-known financial experts start as low as $6 and cap at around $11.

Mid-range: Books in the $12 to $20 range may be either paperback or hardcover and often come from better-known authors.

Expensive: Like the financial heavyweights who write them, the premium hardcover books in this bracket have staying power.

FAQ

Q. What's the best age to start investing?

A. It's never too early to start! Don't be discouraged if you don't have thousands in play. Even $50 per month can grow into a sizeable nest egg, thanks to compounding interest -- a term you'll learn when you start reading. If this sounds like your speed, look for a book for beginners, preferably one tackling the anxieties of investing on a shoestring budget.

Investing books we recommend

Best of the best: Warren Buffett's Three Favorite Books, Book 1

Our take: A relatable book that distills complex strategies into straightforward plans that are easy to implement.

What we like: Focuses on classic investment tools like stocks and bonds.

What we dislike: We wish the book featured a wider variety of investment methods.

Best bang for your buck: The Only Investment Guide You'll Ever Need

Our take: Valuable for both newbies and veterans, this book shares timeless strategies that are relatable and applicable to today's economy.

What we like: Entertaining and informative. Relates both everyday and high-level hints.

What we dislike: Advocates primarily low-risk methods. Some may find its approach too conservative.

Choice 3: The Book on Rental Property Investing

Our take: A how-to guide that gives up-to-date, market-savvy advice for aspiring landlords and those who've taken the plunge. 

What we like: Refreshingly genuine approach. Not excessively sales-focused. Based in present-day market conditions. 

What we dislike: The author seems overly eager to promote his website.

Kristin Yarbrough is a writer for BestReviews. BestReviews is a product review company with a singular mission: to help simplify your purchasing decisions and save you time and money. BestReviews never accepts free products from manufacturers and purchases every product it reviews with its own funds.

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