Saturday, March 6, 2010

Investment Books You Must Own!

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March 6, 2010

There are literally thousands of investment books out there. The books listed below have been written by the most experienced investors. They are the best of the best that we have found so far. There will be more to come as we continue to review, but we will only recommend those in which we think will help the investor get the education needed to invest wisely and make intelligent investing decisions. The top 3 are my favorites. More to come on charts and other stock picking techniques.

If you were to read all of the below books you would not only have a great knowledge of how to evaluate and pick stocks for yourself but a good education on how the economy works. There is literally a WEALTH of knowledge in these books that each and every investor will benefit greatly from. These are the best of the best. These books contain information that should significantly increase your investing knowledge as professional wall street investors use them, and they are not too difficult to read or understand.


The Intelligent Investor by Benjamin Graham.

If you want to invest the good ole fashioned way then this is definitely for you. This is perhaps the most important and influential book ever written about value investing. Originally published in 1934 by Ben Graham, this work has been heralded by such notable investors as Warren Buffett as "the best investing book ever written". In it, Graham presents two types of investing styles - one for every day people who don't want to think about their portfolios ("defensive") and the business man or woman who wants to enjoy maximum returns ("enterprising").
The Intelligent Investor







One Up On WallStreet by Peter Lynch and John Rothchild

One up on Wall Street is one of the first books any investor should read. In it, famed mutual fund manager Peter Lynch teaches you how to use what you already know to make money in the market. You will get a lot of Bang for your Buck. One of the most highly reviewed investment books. You may have to dust off most of your books in your library, but not this one as you will come to it time after time. Every investor should read this one! We often strive to find the great stock, when the great stock was striving to find us! Peter Lynch.


One Up On WallStreet








The Essays of Warren Buffett: by Warren E. Buffett and Lawrence A. Cunningham

I personally live in Nebraska and we ALL know Warren Buffet and we desire to invest the Warren Buffet way. Anyone who is worth their salt as an investor has read the Berkshire Hathaway shareholder letters, written by Buffett. In this book, Professor Lawrence Cunningham selects and arranges these corporate "essays" by topic and relevance. It is a great tool to have handy and can teach you a lot about management, business valuation, investing philosophy, the use of stock options, economic and accounting goodwill and more.
The definitive work concerning Warren Buffett and intelligent investment philosophy, this is a collection of Buffett's letters to the shareholders of Berkshire Hathaway written over the past few decades that together furnish an enormously valuable informal education. The letters distill in plain words all the basic principles of sound business practices. They are arranged and introduced by a leading apostle of the 'value' school and noted scholar, Lawrence Cunningham.

What's new in the second edition? This new edition has extensive additional content that highlights topics of vital national or international significance, including:
- the proliferation of stock option compensation and excessive CEO pay;
- Berkshire s shareholder-designated contribution program and the controversy over the abortion issue that led to its termination;
- the explosion of derivative financial instruments and related perils and how Berkshire dealt with managing a sizable portfolio of them after buying Gen Re;
- the dramatic increase in foreign currency trading in the past five years along with the astonishing growth in the US trade deficit;
- management succession at Berkshire Hathaway as Mr. Buffett ages;
- commentary on his philanthropic thinking in giving his entire fortune to charities; and
- the fairness and other matters concerning taxation of corporations.

Here in one place are the priceless pearls of business and investment wisdom, woven into a delightful narrative on the major topics concerning both managers and investors. These timeless lessons are useful to members of a wide range of professions, including law, accounting, finance and management, and provide rich teaching materials for courses in those fields.

The Essays of Warren Buffett






Common Stocks and Uncommon Profits & Other Writings: by Philip A. Fisher and Ken Fisher

Philip Fisher is one of the most prominent and important financial thinkers in history. One of the most beloved investment books of all time. In this book, he examines the fifteen qualities of an excellent business. When this approach is coupled with Graham's "value" method, it can be a very powerful thing. Here is what Warren Buffet says: "I sought out Phil Fisher after reading his Common Stocks and Uncommon Profits and Other Writings. When I met him, I was as impressed by the man as by his ideas. A thorough understanding of the business, obtained by using Phil’s techniques . . . enables one to make intelligent investment commitments."
–– Warren Buffett
Common Stocks and Uncommon Profits & Other Writings




Go to the bottom of this page and look for the “Bundle” Deals.





Security Analysis 6th Edition: Sixth Edition, Foreword by Warren Buffett (Limited Leatherbound Edition) (Security Analysis Prior Editions) by Benjamin Graham and David Dodd (Hardcover - Sept. 19, 2008) Warren Buffett developed some of his trading styles from this legendary author---The Father of Investment Books author----Benjamin Graham.

The Grand Father of all trading books. Warren Buffet has written this updated version's foreword because Warren has used some of these methods to analyze, value and choose stocks for years now. Security Analyis was originally written by Professor Benjamin Graham in 1934. Five editions and a million copies later, the seven hundred page investing treatise will teach you how to analyze and value almost any investment. If you take more than a casual interest in building your networth, this book will change your life.



OR Hard Copy cheaper! Security Analysis 6th Edition Hard Copy


Security Analysis 6th Edition Leather Back





Investopedia to Wall Speak

This book "Investopedia to Wall Speak" is a **MUST HAVE for all traders; especially Beginners. Why? Because it explains the terminology of the stock world. The 10K, 10k, 8k, just everything regarding investment terms that you WILL run across and ask yourself "what does this mean". This will be your quick reference book that you will turn to to all the time. Well worth it. This book is the glossory of all stock terms that is very easy to read and well explained. If you are going to trade stocks and be serious about trading this book will help you big time. Spend the $12.89 because it is well worth it. You will learn sooo much and you will not be in the dark when reading those financial statements. This is a great book to go with the others because you will easily understand the terms in the other books.










Security Analysis on Wall Street: A Comprehensive Guide to Today's Valuation Methods, Univ. Edition (Wiley Frontiers in Finance) by Jeffrey C. Hooke (Paperback - Sept. 3, 1999)

This book focuses on helping the average investor make a value investment on a specified type of stock. It will show many examples. You will learn that many firms exaggerate their sales to dupe you, the investor into either not selling or buying. After reading this you should be confident in making a secure investment, an investment that you can go to bed and sleep soundly because you know you have invested in a growing company. The author Jeff Hooke worked on Wall Street. This book will give you many real examples and charts. It is a MUST Read for those who do their own research and do not have a broker.

Security Analysis on Wall Street: A Comprehensive Guide to Today's Valuation Methods








The Interpretation of Financial Statements (Hardcover) by Benjamin Graham, Spencer B. Meredith and Michael F. Price.

Financial Statements usually give an accurate picture of a company. If you are investing on your own without a broker you are in fact your own broker; so you have to know what a broker knows. This book is a good way of self-educating. If you invest in penny stocks you absolutely must know how to read these statements because most penny stocks don't make it. Become an intelligent investor leader, not a loser follower. Know the financial terms and expressions as they often can be tricky to comprehend to the average investor. A book for that one and ALL investors should read.

The Interpretation of Financial Statements






The 9 Steps to Financial Freedom: Practical and Spiritual Steps So You Can Stop Worrying (Paperback) by Suze Orman

The Money Management Queen tells all in this great seller. Here are the 9 steps to financial freedom: 1. Step back in time to see how your feelings about money can be traced to your past. We all have "money messages" passed down from generation to generation. 2. Face your money fears and create new, positive truths. 3. Be honest with yourself. Ouit using plastic cards for money. They are addictive and destructive as drugs, giving you a quick fix by satisfying temporary desires. 4. Be responsible to those you love. Establish life insurance, wills, power of attorney, estate planning, etc. 5. Be respectful of yourself and your money. If you do what needs to be done with money, you will attract money to you. 6. You and your money must keep good company. Credit cards are never good company. Get out of debt. Respect yourself and your money by making every penny work for you. 7. Trust yourself more than you trust others. Find the "little voice" inside you; listen to what it has to say. 8. Be open to receive all you are meant to receive. When you are in control of your money and have enough to be generous, money flows to you. 9. Understand the ebb and flow of the money cycle. Money has natural cycles as it ebbs and flows through your life. Remember this: There are three ways of getting money in this world: (1) Work for it (2) inherit it (3) invest the money you save (the most powerful, respectful way to get money there is). You cannot be successful until you lose your fear of money. This is a good read and a very popular book that teaches you all about managing money.

The 9 Steps to Financial Freedom







The New Buffetology: The Proven Techniques for Investing Successfully in Changing Markets That Have Made Warren Buffett the World's Most Famous Investor (Hardcover) by Mary Buffet and David Clark.

This book doesn’t just talk about financial analysis, it shows you directly how to do it yourself. This describes the Warren Buffet style of investing and how he came to make a decision on buying a company with a Durable Competitive Advantage; the phrase used most. It explains some of Warren’t thinking when he bought Coke, Geico, etc. If you believe in value investing this book should be worth your while. It is simple to read and you can practice what you learn by browsing over some balance sheets on Yahoo Finance. There is one thing about Warren and that is he can almost see the future. He doesn’t use a chart to invest, he doesn’t invest in the “hot” stocks of today, he doesn’t go with momentum, he rather looks at a company that is undervalued in which he believes will be discovered and take off someday. His track record is truly amazing; no one on Earth can deny this. If you want to how the Greatest Investor to ever live makes a decision, then this is probably for you.
The New Buffetology






Warren Buffet and the Interpretation of Financial Statements: The Searh for a Company with a Durable Competitive Advantage: The Search for the Company with a Durable Competitive Advantage [Deckle Edge] (Hardcover) by Mary Buffet and David Clark.

This is another book that helps interpret financial statements. This book is easy to read and I would say that it is for beginners. I would recommend reading “The Interpretation of Financial Statements” after this one if you have not read that one first. If you have a basic knowledge of finance and accounting you many not necessarily need this one, but is good for beginners. *Note: Mary Buffet was married to Warren’s son for 12 years. A book that most Professional Financial Institutional Investors have by their sides is “New Buffettology”, a great read for anyone who is Serious about investing. See above.
Warren Buffet and the Interpretation of Financial Statements: The Searh for a Company with a Durable Competitive Advantage







How to Detect Financial Shenanigans
Financial Shenanigans: How to Detect Accounting Gimmicks and Fraud by Howard Schilit (Hardcover - Mar. 1, 2002).

This book is actually not that difficult to read considering it is dealing with accounting. It is a great book for anyone doing their own investing (especially short investing). It is a good book to add to your financial education. Not the first book I would read, but I would recommend to add to the realm of your investment knowledge because sooner or later you will run into a company that is inflating it’s numbers and by reading this book you should know how to spot that it. For such a small price you can save some big bucks.

How to Detect Financial Shenanigans








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