Best Introductory Book on Investing

[RetireAge50]

I think their own brain is the best starting point. Then read when they have questions.

 

[RobbieB]

I have never read a book on investing, I just did it.

 

[Brianeboatman]

The Truth About Money by Ric Edelman. I love it.


I better not die right after retiring! I've saved for years to be able to enjoy the money and time. (This is one of my fears)

 

[Chuckanut]

Johnathan Clement's Money Guide - 2016.


The Millionaire Teacher by Hallam.

 

[RunningBum]

I think their own brain is the best starting point. Then read when they have questions.

A younger person comes to you for advice, and you tell them to use their brain, and read a book? How do you figure that will go over? I'd walk away from that, mumbling to myself, but loud enough for them to at least hear the last word: "hole".

 

[4nursebee]

Making the Most of Your Money- Jane bryant Quinn

 

[Jaded salami]

I'd recommend the book "Investing For Dummies". It's a very easy, light read with a good bit of humor in it. The Bernstein and Bogle books are great for people in this forum, but for someone who really doesn't want to learn about this stuff, the Dummies book is not nearly as imposing to get through.


Sent from my iPad using Early Retirement Forum

I was a CFO for a lumber company before I retired. I bought 20 copies of this book (out of my own pocket) for our management team. Several people had since commented to me that this was the best thing I had ever done for the company.

I also recommend A Random Walk Down Wall Street, it was the book that changed my investing habits for the better.

 

[6miths]

I would recommend 'Millionaire Teacher' as the best low level entry level book. And agree that 'The Four Pillars of Investing' is the best book for those who are eng/math/sci/business types. Bernstein's brief 'If You Can' is a really good potential wake up call in a very small dose.

 

[Cassius King]

This one sums up everything pretty well and is a quick read. I like it and recommend it to younger folks.

 

[redduck]

...This weekend, my God Son got into a conversation with me about investing. I was shocked by his lack of knowledge. He's 36, newly married, and has a family income that's probably around $130K. I was appalled to learn that he wanted advice on how to invest $5,000. I began talking about index funds but quickly learned that he didn't know what an index was. So I started describing the three major indexes.

It occurred to me that the best solution would be to recommend an introductory book on investing. But I've never read a book that elementary. Do any of you out there know a good book on investing that starts at ground zero??

note: bold by redduck

Hope that he didn't pick up that you were shocked and appalled--kind of interferes with the learning process. And, why would he need a description of the three major indexes?

I would suggest that he read no book. (Seems to have worked for RobbieB)

I have never read a book on investing, I just did it.

Anyhow, I would explain in real simple terms

chorus: could you do it any other way, redduck?
redduck: what's that now?
chorus: never mind.

and 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).

 

[laurence]

I think it depends on what his interest is and how much he likes to delve into details. For me, an engineer by training and profession, Bernstein's The Four Pillars of Investment is the best.

Jack Bogle is good at simplifying the topic. His black book on investing (or is it mutual funds) may be a good one to get started on.

Or, you "schedule" a session with him and walk him through the basics. For some people, that latter approach is best. I would prepare just as I would if it were a presentation to a customer/peer at work.

+1 on four pillars, it's what did it for me.

 

[atmsmshr]

A Random Walk Down Wallstreet was a good read and has been updated many times over the years.

An excellent book.

 

[tdv2]

An excellent book.

+1

 

[Koolau]

pssst! Where's unclemick? He can tell 'em most of what they need to know in one sentence. Could do a LOT worse! YMMV

 

[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. And more than once, many brokers at many companies. Moved stuff around as I saw fit based on performance or lack of same.

I don't know squat about this stuff and it's making me lot's of dough.

Really, just do it -

 

[REWahoo]

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]

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]

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?

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]

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.