Best Introductory Book on Investing

[REWahoo]

Quote:

Originally Posted by RobbieB It's true, I never read a book. I also never heard of all these guys you all are referencing all the time with their financial columns / blogs. I just did it.

I thought you said your financial advisor did it for you.

[Fean]

I recommend Mike Piper's book Investing Made Simple. It is a very short, simple, and clear introduction to investing.

I had DW read it and I keep a spare copy with our will and financial plan. DW didn't have much interest in investing, but I feel better knowing that she now understands the basic principles and can manage our portfolio if I was ever hit by a bus. She loved the book and even wanted to get copies for other family members.

[RobbieB]

Quote:

Originally Posted by REWahoo I thought you said your financial advisor did it for you.

That's true, they did. They (as in all of them, there were many) picked out my stuff and I just bought it.

But I looked at the statements every month (or quarter) just like my bank statements and my CC bills and this tells me who is doing good and who is not.

I have never bought a stock or a fund on my own and I never will. I pay brokers instead to do this for me. Eventually you find one (or more) that rock!

Hire the best, fire the rest -

[Totoro]

And how do you know which one is the best?

[RobbieB]

The one that has the most growth during the good times and the least loss during the bad times. The ones that are the easiest to talk to and that also don't pester the crap out of me selling stuff.

[REWahoo]

Quote:

Originally Posted by RobbieB The one that has the most growth during the good times and the least loss during the bad times.

How do you objectively measure this?

Quote:

Originally Posted by RobbieB The ones that are the easiest to talk to and that also don't pester the crap out of me selling stuff.

That one is easy to measure!

[RobbieB]

I just look at the statements and they always have a "this month - last month" comparison. No spreadsheets, nothing complicated.

And they always come at the same time, about a week after month end. I look at them and then put them in my 3 ring binder.

[CaliKid]

I have read MANY investment books. By far my favorite was The Only Investment Guide you will Need by Andrew Tobias. It was updated last year or this year maybe. It covers so many topics from insurance to investments at a very basic level. He writes from a frugal perspective which most of us can appreciate and want to instill in the younger generation. I also like Simple Money by Tim Laurer.

[6miths]

Quote:

Originally Posted by CaliKid I have read MANY investment books. By far my favorite was The Only Investment Guide you will Need by Andrew Tobias. It was updated last year or this year maybe. It covers so many topics from insurance to investments at a very basic level. He writes from a frugal perspective which most of us can appreciate and want to instill in the younger generation. I also like Simple Money by Tim Laurer.

I'm just rereading The Only Investment Guide You Will EVER Need and it definitely is a good one. He tends to wander around a bit IMHO but his writing style is very engaging and he does do a good fusion of The Millionaire Next Door and some of the good common sense asset allocation/indexing/cost matters books. It is full of great examples of scams and pitfalls.

[AtlasShrugged]

Here's another vote for "A Random Walk Down Wall Street" by Burton Malkiel. Or anything by John Bogle.

[UpAnchor]

Quote:

Originally Posted by redduck I would explain in real simple terms ... suggest he get into a Target Date Fund. Then you could discuss the differences in the various Target Date Funds' make-up (e.g. mostly large U.S companies, some international companies and some bonds). The two of you could pick a specific fund. You could talk to him about ways of adding to the fund. Then, if he's interested he could start reading. Hopefully, he won't be all that interested--and that he just continues to put money into the Target Fund (ok, maybe something into Wellesley as he get older).

I second Redduck's idea of the TDF to just get things going, assuming it's index-based and low cost. But I'd also recommend a book to help him determine a suitable AA and choose the TDF accordingly, rather than based on date name.

I've read - and keep in my library - nearly all of the books suggested here. I like them for different reasons but - when recommending a single book for someone starting with zero previous knowledge in investing - I go for drop-dead simple and a quick read. I like Dan Solin's books for that reason and others. Quick read, short chapters that get right to the point, covers the essentials, how to do it with Vanguard, Fido, or TRP. By the time the reader/new investor has time to get bored or sleepy, he's already at the end of the book and with the most critical basics grasped.

Mike Piper's book - mentioned by others - is another great choice. As much as I like 4 Pillars, Random Walk, and others, I feel they are more suitable for a few weeks or months into the new investor's learning process - just not day one.

[eta2020]

The GCC Asset Allocation - Go Curry Cracker!Go Curry Cracker!

This young retired couple has handful of funds. One does not need to read books to have such portfolio.

"Simplicity is the ultimate sophistication." Leonardo da Vinci

[eytonxav]

Take a look at this link which recommends "A Random Walk Down Wallstreet" and Irrational Exuberance":
The Only Two Investing Books You Really Need to Read | TIME

[UpAnchor]

Quote:

Originally Posted by eta2020 The GCC Asset Allocation - Go Curry Cracker!Go Curry Cracker! This young retired couple has handful of funds. One does not need to read books to have such portfolio. "Simplicity is the ultimate sophistication." Leonardo da Vinci

No, one does not have to read books but one does need to gain one's knowledge somewhere. The problem is - whether it be books, blogs, brothers, or buddies - there is a lot of good and bad information out there. Had the OP not asked specifically for book recommendations we could be discussing some of the other good sources.

The GCC crew appears to have made some major changes to the structure of their portfolio, but not blindly so. They are obviously not without some investing knowledge/experience. I note in particular the shedding of individual stocks in favor of indexing. Any decent source of investing info - be it books or otherwise - would help one understand that a handful of cost-efficient funds, well diversified and reasonably allocated, can be sufficient for the long-term investor.

As an aside, we're just talking about the "investing". Of course there's also the "saving" (or LBYM, whatever) in order to have something to invest in the first place. When I find myself recommending a beginning "investing" book, the beginner often needs to learn some good habits in that area as well. So then we're talking more about personal finance, not just investing.

[RenoJay]

+1 on Bogleheads Guide to Investing


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[Travelwanted]

Here is an incredible list of great resources:

https://www.bogleheads.org/wiki/Tayl...nvestment_Gems