I want to learn more about investing, capital allocation and general practices for building long-term wealth…
There’s a few investing books I would certainly recommend
The Intelligent Investor - Ben Graham
The intelligent investor is probably the best book on investing ever written. Warren Buffet has even said the book completely “changed his life”.
In the book, Graham puts forward a mental framework for value investing. The practice involves investing in equities which the market has long ignored and holding them for extended periods of time.
Graham outlines a few simple rules which, if followed closley, would almost certainly lead to exorbitant profits.
• Buy companies discounted below book value
• Invest with a margin of safety
• Avoid companies with a negative earnings per share for previous years
• Market crashes should be thought of as exciting times to buy - you would be pretty excited if the Apple store opened one day with 30%-40%
Graham’s advice has stood the test of time. His most dogged disciple, Warren Buffett, now has a networth of $84 billion.
The books itself has sold over 1 million copies of the hardcover and it continues to sell paperback copies.
Judging by the reviews on Amazon, the books is as popular today as its ever been:
Okay, this is the book to read if you are serious about investing in stocks. Benjamin Graham’s “value investing” method is the time-tested “choose 'em carefully and hold 'em” long-term strategy used by Warren Buffett. Benjamin Graham is the man that Warren Buffett calls The Man. So, you know, if you want to be rich like Warren Buffett, read this book.
Common Stocks Uncommon Profits - Philip Fisher
This is another book I would highly recommend. The book does exactly what it says on the tin. It goes through the various ways an enterprising investor can make money on the stock market
Fisher explains each of the concepts clearly, coherently and most importantly at a fast pace - meaning you aren’t bogged down in tedious financial theory.
This book is another Warren Buffett favourite, who has proclaimed himself to be “85% Ben Graham and 15% Fisher”
Fisher’s philosophy shares similarities to Ben Graham:
• Purchase and hold for the long term
• Hold a concentrated portfolio
• Buy outstanding companies with compelling growth prospects
• Buy companies that you understand very well
Even as a investing enthusiast, I can get lost in books with clunky/boring financial theory. I found this book absolutely fascinating. It was incredibly useful and there were no excessively long passages…
Thanks Kublai, appreciate those posts!!!