Young people and professionals must start investing early. One of the main reasons for this is the power of compound interest. By holding a long-term investment, you can generate more return on his or her assets. A few years ago, investments might translate into tens of thousands, or even hundreds of thousands, of additional funds for your retirement savings.
But while early investment is important, it is also important to invest wisely. These five classic investment books provide indispensable business and financial insights for young investors.
“Rich dad, poor dad” (2000) by Robert kiyosaki
This classic is a must-read for young investors. Kiyosaki’s point is that the poor and middle class work for money, but to learn a lot. He stressed the importance of financial knowledge and proposed financial independence as the ultimate goal to avoid the massive competition of us companies. The authors point out that while accounting is important, it can also be misleading. The bank marks the house as an individual’s asset, but it is indeed a burden in terms of cash flow due to the need for margin payments. Real assets add cash flow to your wallet.
Mr. Kiyosaki urged investors to provide regular cash flow to investors, while offering an upside in the value of stocks. Shares in real estate investment and dividends are favored. The author points out that America’s education system is designed to let people lifelong hard work, the school system in teaching people to create enough wealth to do very well, so they don’t have to work again. Kiyosaki also stressed the importance of tax planning.
In his article, warren buffett is widely regarded as one of the most successful investors in modern history, and he offers his views on various topics that are important to American companies and shareholders. Young investors can see the interface between the company’s management and shareholders, and the process of thinking about improving the company’s corporate value.
Buffett’s papers include corporate governance, finance, investments, alternatives to common stock, mergers and acquisitions, accounting and valuation, accounting policies and taxes. Buffett outlined his basic business principles and served as Berkshire hathaway (brk-a). The housekeeper
) to inform the shareholders of the company that their common interests are the same. He had the idea of introducing talented managers into portfolio companies and letting them alone. He claims to buy shares in these stocks at a discount to their intrinsic value. He is against investment trends.
Peter Lynch’s “jump street” (1994)
Peter lynch is one of the most successful stock investors and hedge fund managers of the last century. He first worked as an intern at Fidelity Investments in the mid-1960s. Nearly 11 years later, he oversaw the Magellan fund, which had nearly $18 million in assets. By 1990, the fund had grown to $18 billion in assets with nearly 1,000 equity positions. During that time, the fund’s average return was over 29 percent per year.
“Beating the streets” gives readers a glimpse into lynch’s thinking and thinking process in deciding whether to buy or sell stocks. Lynch argues that individual investors can take advantage of market opportunities better than Wall Street and encourage investors to invest in what they know.
“Smart investors” (1949) by Benjamin graham
The book, written in 1949, is hailed by warren buffett as the best investment book ever. Benjamin graham is considered the “father of value investing”. This model argues for buying stocks that are undervalued relative to their intrinsic value, which is determined through fundamental analysis.
Graham delves into stock market history and informs readers of fundamental analysis of stocks.
He discusses various ways to manage your portfolio, including ways to be active and defensive. Then he compared the shares of several companies to illustrate his point.
The idea of getting rich was written in the great depression, and has sold more than 30 million copies worldwide. Hill has done extensive research on his life’s relationship with wealthy individuals. Under Andrew Carnegie’s advice, hill published 13 successful principles and personal achievements from his observations and studies. These include desires, beliefs, professional knowledge, organized planning, persistence and “sixth sense”. Hill also believes that people with the same ideas can brainstorm, and their efforts can create synergies.
The book delivers valuable insights into the success and richness of psychology, and given the emphasis on shock value entertainment and negative information at the present time, it should be considered a priority reading.
The best investors don’t just do it overnight, but hone their skills through years of thinking, research and practice. When you complete these books, here are a few to add to your reading list.
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