Three Great Books for Novice Investors
Since I've started this company, I've been very pleased by the number of questions about books that would be helpful for those looking to get into the stock market for the first time. Other than the one I'm currently writing - yes, I am, but it's a ways off - there are a few that have been very helpful in giving me a good understanding about the investing world. Some of these books have new editions, as the market changes every year, but for the most part these provide universal concepts that can be applied to modern times even if the examples used in the book is dated. So without further ado, here are the best books for all your investing questions and needs:
1) "A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing" by Burton G. Malkiel
Everyone, and I mean everyone, before you ever buy your first stock should read this book by Burton Malkiel since it provides everything you ever wanted to know about the stock market in a very clear and precise way with plenty of easy-to-understand examples. There is a new edition of this book just about every year, it is now on edition 10 and I was education on the 8th edition - but the message is overall still the same. My first mentors on Wall Street suggested I read this book to better understand what the stock market is all about. Frankly, I'm very glad I did.
2) "Be Smart, Act Fast, Get Rich: Your Game Plan for Getting It Right in the Stock Market" by Charles Payne
This might come as no surprise, since I used to work for Charles Payne, but I really think his message about being in the stock market should ring true with young investors everywhere. Granted, this book was published in 2007 right before the stock market collapse and the beginning of the Great Recession, but pay that no mind. The strategies and concepts are still very true today and offer a very easy-to-understand approach to the stock market that you won't find with books written by other experts.
3) "Best Practices for Equity Research Analysts: Essentials for Buy-Side and Sell-Side Analysts" by James J. Valentine
This one is a little bit pricey, and can be a more difficult read, but I found this book incredibly helpful when I was learning the ins and outs of becoming an equity research analyst. It's especially great if you want to REALLY discover what it's like to be a stock analyst and what the best methods are when recommending a stock. Be prepared for a lot of jargon, but if you're fresh out of college there should be no problem in understanding.