Hey guys, I have lurking in this forum for a while with the occasional post. However, I am wanting to begin diving into this but want to do the reserach and learn, learn, learn first. So get me started with some good beginner reading for the beginner. I don't have any investments past the company 401k, a savings account and cash in the safe. So get me started with a good book.

David Bach's Automatic millionaire books
Robert Kiyosaki's rich dad poor dad
Dave Ramseys total money makeover


Or do you mean books that teach more specifically about how the investments work?

"Mutual Funds for Dummies" is the book I loan to all
the younger folks at work that ask.  It is loaned out
now so I can't look for who the author is.

DanM

Coffeehouse Investor
Making The Most of Your Money
Common Sense on Mutual Funds
Random Walk Down Wallstreet (maybe a little technical, but very good)

Hey Yanker I have a book a kept from an inventing class I took at UofO, pretty good book explaining what diferent investments are.  I bring it over next time we go shooting.

Quoted: Robert Kiyosaki's rich dad poor dad

junk.

Quoted: Coffeehouse Investor Making The Most of Your Money Common Sense on Mutual Funds Random Walk Down Wallstreet (maybe a little technical, but very good)

not junk.

also see
Graham, "The Intelligent Investor"
Bernstein, "The Four Pillars of Investing"
Larimore et al, "The Bogleheads Guide to Investing"
Ferri, "All About Asset Allocation"

and finally, study this and understand what it means to you:
www.callan.com/resource/periodic_table/pertbl.pdf

ar-jedi

The Richest Man in Babylon

I can't believe it took until ar-jedi posted for someone to list the bible:  Benjamin Graham's The Intelligent Investor

Quoted: www.callan.com/resource/periodic_table/pertbl.pdf ar-jedi

That is good stuff!

see also this excellent compilation:
socialize.morningstar.com/NewSocialize/asp/FullConv.asp?forumId=F100000015&lastConvSeq=47299
and
www.diehards.org/readbooks.htm

note that the first link above includes two "free" web-based online books.

happy reading,
ar-jedi

I'm still learning myself, so take this as advice from one n00b to another.

It seems that there's no lack of financial advice books out there.  Every author has their own viewpoint; buy stocks or don't buy stocks, get into the blah industry or avoid the blah industry and go for the blahblah industry, mutual funds will make you wealthy versus avoid mutual funds like the plague...  Each author looks at known past events (whether they're downturns or upswings) and comes to completely different conclusions...

Then there are the infomercials telling you to log in at whateveropportunity.biz and to have your credit card handy.....

It's enough to drive any new person batty-- I know because it drove me batty.  I finally decided that there was at least a grain of truth in most books and researched the known names online.  My goal was to find out if they made more money selling books or if they made more money with the investments and ideas that they pushed.  (I'd much rather go with the person who makes more money with the advice they offer rather than the one who makes more money hawking the advice that they offer.)  

It's time for some full disclosure: Trying to pin down another person's finances is not easy.  I was only somewhat successful; my guess is that the authors are bright enough (or has people who are bright enough) to know how to hide crap using the incorporation shell game.  But after researching, I went off to eBay and Half.Com (never buy new books when you can save big by buying used ones) and started shopping.  Here's what I got:

1.  The Richest Man in Babylon by George S. Clason. While the book can be criticized for being overly simplistic, it's great for the beginner and can't be said to offer controversial advice.

2.  The Millionaire Next Door by Thomas J. Stanley and William D. Danko.  Much more in-depth and sometimes harder to understand.  It's also been criticized by some for having conservative political leanings.  However, it's the ONLY book I've heard of that actually goes straight to the wealthy (1,300+ if memory serves) and asks how they became wealthy.

3.  The Millionaire Mind by Thomas J. Stanley.  Some argue over whether it's a companion to or a progression from the aforementioned Millionaire Next Door, but that's not truly important.  This book (which I'm still reading) is more insight into how the wealthy think about life, purchases, etc.  (As I'm not totally through this book, I don't feel it right to truly offer a review beyond this little bit.)

4.  Some of the Rich Dad, Poor Dad series by Robert T. Kiyosaki.  This author and his series of books are controversial here on Arfcom and elsewhere.  Many of the criticisms are valid; earning money peddling his ideas versus actual implementation of his ideas, possible storytelling (did this Rich Dad ever exist among other things), mostly focusing on real estate while ignoring (some would say short-changing) other investment vehicles, concentration on inspiration versus perspiration, etc.  At the same time, no one gains legions of devotees (or keeps them) if they're an out-and-out fraud.  I will defend his views of how the tax system is set up to screw the individual over the business owner.  Forming a legitimate business really does help one mitigate taxes and bring home more at the end of the day.  I also appreciate his views (that are echoed by other authors) that you should spend some time each day/week/money/year reviewing all of the financials from your investments.  There is no autopilot for those who want to get ahead.  Finally, as I am seriously mulling the purchase of investment property within the next 12 months, his fixation on real estate does not bother me overly much.

My next move is to purchase some of the dictionaries offered by Barron's.  These small books explain common (and not-so-common) terms used in various industries. They've got one specific to Finance and Investment, one for Banking, another for Real Estate, a dictionary of legal terms, and a bunch of others.  Frankly, I think it's good policy to know just what in the hell people are saying when they want your money!    Seeing that no one ever writes a prospectus in plain english, I figure that I'll be using these little dictionaries in my future.

Anyhow, from one n00b to another, that's my advice.

Good luck to you,

Mike

Read Investor's Business Daily and Barron's regularly.

Then you must determine your time horizon and how much risk to take, which are personality/psyche questions only you can answer. What works for others probably won't work for you.

Focus on understanding and managing RISK, not "HOW MUCH WILL I MAKE?".

Also either learn to make your own trading decisions (don't blindly follow guru's like Cramer) or learn how to research ACTUAL TRADING HISTORY of money managers and give yours to them in the form of investing in a fund, etc. This can actually be an excellent learning opportunity for you as well.

Did I mention limiting RISK?

Don't paper trade, it's not the same. Start with tiny amounts. Real money makes you concentrate like nothing else and tiny position size LIMITS RISK.

Decide beforehand where to get out if the position goes against you and KEEP THIS RULE. Do not "hope" it will come back. It LIMITS RISK. Nothing is a sure thing in trading but losses. Small losses ARE normal. Big losses mean you suck at RISK MANAGMENT.

Buy when it feels right to sell. Really.

Sell when it feels right to buy. Really.

When wrong - quickly get out with a small loss. The next trade is only a commission away.

When right - hold on for the ride and avoid the temption to cash in too soon.

Quoted: Quoted: www.callan.com/resource/periodic_table/pertbl.pdf That is good stuff!

ps:
here is another along the same lines, from Janus, with a little more data: link

note especially the graph on the 2nd page.

ar-jedi

Definatly read The Millionaire Next Door.

Any of you guys recommend this book?  I had someone recommend it a while back...but never followed through in reading it.

Security Analysis

"Greed is Good" Jonathan Hoenig   Jonathan explains all the major vehicles of investing in this book, great overview when the picture gets muddled.  He is on Fox news on Saturday mornings and he writes for SmartMoney.com.  He is awesome and full of good, real world advice.


"The Intelligent Asset Allocator" William Bernstein  Assett allocation is the most important concept in managing one's own money, IMO.  

The ETF Guide is a good read, it's more about expenses and asset allocation than just ETFs.  Best part is that it's online for free!

The Investor's Almanac is full of good information.  You can get it at any bookstore.

Quoted: Any of you guys recommend this book?  I had someone recommend it a while back...but never followed through in reading it. Security Analysis

Read Graham's THE INTELLIGENT INVESTOR if Security Analysis is too painful to read.  I've read both and The Intelligent Investor is a lightweight, easier to read version of it.  

Buffetology is pretty good too.

i thought this thread needed a bump.

ar-jedi

Coffeehouse Investor
Making The Most of Your Money
Common Sense on Mutual Funds
Random Walk Down Wallstreet
Graham, "The Intelligent Investor"
Bernstein, "The Four Pillars of Investing"
Larimore et al, "The Bogleheads Guide to Investing"
Ferri, "All About Asset Allocation"  <--- already started on this one



What order would you guys recommend reading these. Figure absolute beginner to more advance.
Thanks,
Matt

this would be my suggested way to do it...

Bernstein, "The Four Pillars of Investing"
Ferri, "All About Asset Allocation"  
Larimore et al, "The Bogleheads Guide to Investing"
Coffeehouse Investor

Random Walk Down Wallstreet
Graham, "The Intelligent Investor"

Making The Most of Your Money.
Common Sense on Mutual Funds.

ar-jedi

Quoted: this would be my suggested way to do it... Bernstein, "The Four Pillars of Investing" Ferri, "All About Asset Allocation"   Larimore et al, "The Bogleheads Guide to Investing" Coffeehouse Investor Random Walk Down Wallstreet Graham, "The Intelligent Investor" Making The Most of Your Money. Common Sense on Mutual Funds. ar-jedi

Thanks.

Matt

Im suprised no one has mentioned "The only investment guide you will ever need" by Andrew Tobias.

Also for all the people touting "The millionaire next door", check out "Fooled by Randomness".  Its one of the best investing books that isnt really about investing at all.

Secrets For Profiting in Bull and Bear Markets

By: Stan Weinstein

"Secrets For Profiting in Bull and Bear Markets" was my first book on trading, and one of my favorites, I will also suggest "Options as a Strategic Investment" by Mcmillan, for any options enthusiasts.  

The WSJ guide to investing seems good for getting acquainted with the landscape.  Haven't finished it, but it seems not so much to have advice as it is to get you acquainted.

I like Barrons and WSJ articles, but some of their analysis of what to buy / sell seems a bit like infomercials.  Same for their faith-building / reassurance articles especially in WSJ lately.

You should learn how to read and someday understand the SEC filings.  A few accounting classes or a book on understanding financial statements would be good, too.

Fair-Value Accounting is a concept gthat in my personal opinion should be studied and feared since some companies seem to want to apply it where it isn't really reliable.  Now why would they want to do that, Mr. Skilling?