Building Your Investment Knowledge
I’ll be honest, I’ve not read many books on investing. However, these books got me started (listed below) and laid a foundation to build upon.
I enjoyed all of these books and recommend them. They’re easy to read and written so a layman can understand. Rich Dad, Poor Dad is one of my favorites. It helped me think differently about new worth and investing.
Much of what I learned came from internet research and reading the financial news everyday. If I read an article about a stock, company, etc. and didn’t know the meaning of something, I’d look for the answer online. My favorite place to do this is Investopedia. There’s a plethora of information (including videos) available for free — think of it as the Wikipedia of investing!
As I mentioned earlier, I read the financial news on a daily basis. This keeps me on top of things, especially the companies I’ve invested in. I don’t read every article I come across, mainly headline news and those that concern my portfolio. My favorite place to do this is Yahoo! Finance. They have a news aggregator that will collect articles from various sources (Forbes, Bloomberg, Investor’s Business Daily, etc.) for specific stocks. For example, if I want to read the news on Apple, all I do is type AAPL (Apple’s stock symbol) into the search field and Yahoo! will show me articles. Try it!
Is it really necessary to put in the time to read all those books and articles? Of course not. If you only want to invest in mutual funds, then reading stuff on stock market investing is probably not necessary. Read what interests you and what you plan on investing in. However, the more you round out your investing knowledge, the more comfortable you’ll be when it comes time to put your money into an investment vehicle (individual stocks, index funds, bonds, etc.).
Since my choice of investing is individual stocks, I’ll read the news on stocks that I hold and those that I’m considering adding to my portfolio. This is important because I want to know if my money will continue to grow in the company I’ve invested in or if it’s time to sell. Without this knowledge, I won’t feel confident holding the stock or adding to my position (i.e. buying more shares of stock).
There’s no shortage of investing material out there. Just make sure you’re getting the information from a reputable source. If you’ll be buying books, get the latest edition — changes in laws can effect how you invest.