This book is one of the best investing books ever written and is one of Warren Buffet's favorites. Authored by Benjamin Graham also referred to as the father of value investing; The Intelligent Investor guides us towards making sound decisions when approaching securities and separates between an investing operation and pure speculation. One of the best aspects of this book is that it focuses on getting the best risk adjusted returns possible. In other words, getting the best return possible while avoiding excessive risk and pure speculation. From asset allocation basics to practical advice this masterpiece belongs in every investors bookshelf.

Beat The Market With The Best Investment Books
Get the books that will teach how to get above average returns on the market. Learn from the legends themselves. Here are my reviews of the best investing books.
The Intelligent Investor by Benjamin Graham
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Re...This classic text is annotated to update Graham's timeless wisdom for today's market conditions... The greatest investment advisor of the twentieth century, Benjamin Graham, tau...
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Security Analysis by Benjamin Graham
This book is rather extensive but is considered one of the best in its class. It covers and compares different types of securities and how to analyze potential returns. It also cover concepts that are essential for those that want to learn how to pick winning stocks. This book is amazing. If you haven't read The Intelligent Investor I suggest to read that one first before reading this one in order to get some prior knowledge about Graham's investing philosophy and how he approaches investments. To get the most out of Security Analysis the reader needs to have at least some basic knowledge about finance and its terminology.
Security Analysis: Sixth Edition, Foreword by Warren Buffett (Security Analysis Prior Editions)"A road map for investing that I have now been following for 57 years."--From the Foreword by Warren E. Buffett First published in 1934, Security Analysis is one of the most inf...
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The Essays Of Warren Buffett: Lessons for Corporate America By Warren Buffett And Lawrence Cunningham
What better could it be than to learn from the legend himself? Warren's shareholder letters have been treasured by investors wanting lo learn the secrets that are responsible for his historical performance. His track record is one of the most impressive records ever attained on Wall Street. They don't call him the Oracle of Omaha for nothing. If you want to go deeper into his investment philosophy this is the book you need. The Intelligent Investor and Buffetology combined with his essays are a powerful combination that will take you to the depths of Buffett's investment genius and his approach to business.
The Essays of Warren Buffett: Lessons for Corporate America, Second EditionThe definitive work concerning Warren Buffett and intelligent investment philosophy, this is a collection of Buffett's letters to the shareholders of Berkshire Hathaway written ...
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One Up On Wall Street By Peter Lynch
Peter Lynch piloted Fidelity's Magellan fund for a decade achieving outstanding returns that crushed the market averages. In his book he teaches us how to find killer investments using what we already know. This book is one of the highest rated investment books for the individual investor. It is a true gem in a world where many books tend to contradict one another. His writing style is very informative and at the same time a lot of fun. This book belongs in any investors book shelf no matter what type of investment philosophy he or she follows.
One Up On Wall Street : How To Use What You Already Know To Make Money In The MarketTHE NATIONAL BESTSELLING BOOK THAT EVERY INVESTOR SHOULD OWN Peter Lynch is America's number-one money manager. His mantra: Average investors can become experts in their own fie...
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Beating The Street by Peter Lynch
This book discusses unveils several strategies that Peter Lynch uses to get amazing returns. Some of the strategies include: finding regional banks that appear undervalued, exiting stocks at the right time, how to find growth stocks that are selling at a discount, how invest in cyclical stocks and many other strategies that can produce outstanding returns. His style of writing is easy to understand and fun to read. This book is more of a sequel to his other book One up on Wall Street.
Beating the StreetDevelop a Winning Investment Strategy -- with Expert Advice from "The Nation's #1 Money Manager" Peter Lynch's "invest in what you know" strategy has made him a household name w...
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Common Stocks, Uncommon Profits and Other Writings By Philip A. Fisher
In his book Fisher discusses what not to do as well as how to find profitable growth stocks by taking into account time and the price paid for an investment. How to choose investments that are conservative, what are the qualities that these investments have and how to approach price. One of the most important things that Fisher discusses is that the best time to sell a stock is almost never. This is a very important concept. Most of the time a high portfolio turnover guarantees poor returns compared to the market averages.
Common Stocks and Uncommon Profits and Other Writings (Wiley Investment Classics)Widely respected and admired, Philip Fisher is among the most influential investors of all time. His investment philosophies, introduced almost forty years ago, are not only stu...
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The New Buffettology by Mary Buffett And David Clark
While this book was now written by Warren Buffett himself if focuses on his investment philosophy. This book teaches you how to approach stocks like Warren and teaches you a wealth of information on choosing stocks using simple but highly effective methods that anyone can use. It also has some pages that readers can photocopy and use as a workbook to fill with information regarding potential investments. This book is a lot of fun and very easy to read and understand yet what it teaches you is very powerful if applied properly. Personally this is one of my favorite books about investments and finance.
The New Buffettology: The Proven Techniques for Investing Successfully in Changing Markets That H...If you read the original Buffettology, you know exactly half of what you need to know to effectively apply Warren Buffett's investment strategies. Published in 1997, the bestsel...
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katiem2Nov 21, 2012
QuantumLouieNov 21, 2012
Some people use the following formula to build their ETF portfolios: 100 minus Your Age is the percentage that goes into stocks and what is left goes to bonds. As the person ages his or her portfolio becomes more conservative and less risky.
Technical analysis can help you achieve better returns than most people that invest without looking at the charts. For example, investing in one of these ETFs every time the security hits support will be better in the near and long term than investing when securities are hitting resistance which is a common mistake many make. Many people decide to invest when they see prices rising instead of dollar cost averaging when securities are starting to bottom out or are hitting known support lines. So yes, trading knowledge can help you get better returns even when investing for the long term. Some value investing wisdom: the price you pay for an investment will determine the overall return. The higher the price the lower the return, the lower the price the higher the return.
katiem2Nov 21, 2012
Thanks for the helpful insights and it is great to get the recommendation of someone who's actually read, study and applied the principles.
QuantumLouieNov 21, 2012
From these books my personal favorites are: The Intelligent Investor and Buffetology. They are excellent books that put a lot of things related to investing into perspective like the differences between trading and investing. Peter Lynch's books are also great reads filled with a lot of expert advice. I have read all these books except Security Analysis which I have yet to finish because it is more than 600 pages long and gets complicated from time to time.
I tend to stay away from high leveraged trading like Forex, and Futures. If the market gaps to the wrong side of the trade in Forex or Futures a stop loss can't save you and your capital can disappear in the blink of an eye, you can even end up owning money. It can be a rewarding business and I know many people make serious money trading but personally I am more inclined to the passive income side of things. Like Warren Buffet says: "The first goal is not to lose money". =)
QuantumLouieNov 21, 2012
For example, using some of the income received from writing sites like this one to buy shares from companies that are very stable and that are very good businesses like Coca Cola, Wal-Mart, IBM and the like or just an index fund that tracks the S&P 500. You would be collecting dividends in addition to the money generated by your articles or better yet you can reinvest those dividends by enrolling in a DRIP program for some years. The end result is that as you continue to write more content and increase your earnings, your stocks are generating a passive income that keeps growing every year. Think of it as a double income stream that grows every year. It is a faster path to an early retirement as long as you ignore market fluctuations and avoid selling when the market crashes as it always does from time to time.
One of the advantages of investing some money every month is that your investments get dollar cost averaged which results in a lower cost basis. Over the years your capital can grow to huge amounts. You can also invest money in a tax advantaged account like a ROTH IRA. In the U.S. you can file your online writing earnings as self employment income so you can move money to your IRA and invest it. This method does not contribute to an early retirement but ensures a good one if you do not need the income that is generated by your shares for a long time. Balancing capital between bonds and stocks is also a good idea and is recommended by Graham and others to create a more stable and lower risk portfolio.
katiem2Nov 21, 2012