Books
When I first started investing in 2001, I didn’t know much about stocks, mutual funds, and bonds, not to mention such technical terms as dividend reinvestment, asset allocation, and rebalancing. My first investment was Vanguard Wellington Fund that I purchased in December 2000. You may ask why I chose this particular fund over others. Well, the reason was very simple: I read some good comments about the fund’s history and past performance. Without knowing much about this fund, I mailed a check of $3000 to Vanguard the next day and started my first investment. That was how the whole investment thing began.
To fill the gap between my knowledge and the reality of investment, I started visiting financial websites such as MarketWatch, SmartMoney, and MorningStar, etc. Among them, my favorite is MorningStar and I especially like its Vanguard Diehards and Income & Divided Investing forum. Many knowledgeable people at the forums are willing to share their investment experiences and give advises for every issue that I could think of in investing.
Though the information I got from the forums were helpful, they weren’t not comprehensive enough and not systematic in getting some fundamentals about investing. So I started to buy and read some books on investing and personal finance. The first book I read was Common Sense on Mutual Funds, by John C. Bogle, founder of Vanguard.
Click here to see the books that I have read and recommend for new investors.
Books I have read
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition)
The greatest investment advisor of the twentieth century, Benjamin Graham taught and inspired people worldwide. Graham’s philosophy of “value investing” — which shields investors from substantial error and teaches them to develop long-term strategies — has made The Intelligent Investor the stock market bible ever since its original publication in 1949.
Over the years, market developments have proven the wisdom of Graham’s strategies. While preserving the integrity of Graham’s original text, this revised edition includes updated commentary by noted financial journalist Jason Zweig, whose perspective incorporates the realities of today’s market, draws parallels between Graham’s examples and today’s financial headlines, and gives readers a more thorough understanding of how to apply Graham’s principles.
Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor
“Cogent, honest, and hard-hitting-a must read for every investor.” -Warren E. Buffett Praise for Common Sense on Mutual Funds
“Invoking both Thomas Paine and Benjamin Graham, Jack Bogle outlines a supremely logical plan not only to better investors’ returns, but to improve the whole fund industry. This isn’t just the best book yet by Bogle, it may well be the best book ever on mutual funds.” -DON PHILLIPS, President & CEO, Morningstar, Inc.
The Intelligent Asset Allocator: How to Build Your Portfolio to Maximize Returns and Minimize Risk
William Bernstein is one of today’s most unlikely financial heroes. A practicing neurologist, he used his self-taught investment knowledge and research to build a popular investor’s website. Now, in the plain-spoken The Intelligent Asset Allocator, he shows independent investors how to build a diversified portfolio—without the help of a financial advisor. A breath of fresh air for investors tired of overly technical investment tomes, this book will help investors:
- Learn the risk/reward characteristics of various investment types
- Understand and apply portfolio theory for an improved risk/reward ratio
- Sharpen their focus, and take control of their investment programs
The Four Pillars of Investing: Lessons for Building a Winning Portfolio
The Four Pillars of Investing gives investors the tools they need to construct top-returning portfolios–without the help of a financial adviser. In a relaxed, nonthreatening style, Dr. Bernstein provides a distinctive blend of market history, investing theory, and behavioral finance, one designed to help every investor become more self-sufficient and make better-informed investment decisions. The 4 Pillars of Investing explains how any investor can build a solid foundation for investing by focusing on four essential lessons, each building upon the other.
Security Analysis
Graham and Dodd’s Security Analysis is hands-down the most influential investment book in history. The classic 1951 edition is the first edition of the bestselling investment bible that was written during a time of economic stability and prosperity. It provides investors with techniques and strategies for profitable investing in an economic environment that most resembles today.
Security Analysis: The Classic 1951 Edition features a far more contemporary focus on the wisdom and legitimacy of common stocks for individual investors.
