Good Books on Investing

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Permalink Reply by jacquesk on January 4, 2009 at 7:00pm

Hi ff123
Here is a short list in no particular order than the way they tumbled out of my brain. Probably need more information on where you are at before I could recommend anything specific. Starting with a few books on value based investing is a good way to start.

The Intelligent Investor : Benjamin Graham (a classic)
The Intelligent Australian Investor Chris Leithner
Value : James Carlisle

I would also recommend reading a book or two on the psychology of investing. The Psychology of Investing by John R. Nofsinger is very good.

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Permalink Reply by ff123 on January 4, 2009 at 9:37pm

Thanks Jacuesk,

now mortgage is under control want to start thinking about planning to retire - but apart from the magazines and paper want to understand both property and sharemarket before really taking a plunge - reckon that 09 should be a year of learning and 10 should be execution.

Am scared of Finical planners as they all seem to be spruikers - so I figured I should read and at least be in a position to ask questions before actually parting with any cash.

Curious about a book called the "Psychology of Investing" sounds a bit heavy like do I have to remember how my mother spanked me in order to determine my risk profile?

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Permalink Reply by jacquesk on January 5, 2009 at 5:18pm

Hi ff123
Absolutely. If you are going to invest getting spanked by the sharemarket at one time or another is a certainty. :-)

It is a very good idea before you start to invest to know how ones own mind can trip you up. The recommended book isn't that hard a read.

I am in a similar situation to you. I paid off my house and are now investing with the aim of increasing the amount of money available for me to live on when I retire as I have nowhere near enough superannuation.

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Permalink Reply by ff123 on January 5, 2009 at 10:04pm

lWill attempt to get that book from the Library - I guess like everything else in life if you understand where your comfort zone and choose investments accordingly you are more likely to get a good result.

like others got my spanking from the Share market via the Super which has taken a hit.

The curious thing about the super is that it has gone down by about 20% while the actual stock market has gone down by 43% - so this experts do know something but not as much as the people who pulled out and invested in cash - if there are very many of them. So I guess I'm looking for a book which explains how to read balance sheet properly - probably a complete idiots guide.
From what I have learnt so far is that companies who do not pay dividends out of borrowings are good companies - also their credit ratings is a reasonable indicator of what the banks think - but how you go about finding this out without passing out reading a 60 page document is beyond me.


Property books seem easier to find and understand - and this asset class interests me greatly at the moment because they are the only from of investment likely to yield a steady income in these uncertain times (and at retirement this will be essential) - if you have paid off enough debt.

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Permalink Reply by Kbot on January 8, 2009 at 2:36pm

Hey ff123, super didn't go down as much as shares because part of the asset allocation of your super fund would have some in cash & some in fixed interest, not because they know what they're doing! ;)

In terms of planners, I reckon you should steer clear of them. They make a cut from the amount of money you invest, and usually encourage you to borrow more so that they make more money. It doesn't matter whether they make you money or lose you money, they still get paid. And most are pretty hopeless when it comes to investing, because it's NOT THEIR MONEY.

I like the sound of 2009 being a year of educating yourself and 2010 as the year to execute what you have learnt. The fact that you're willing to do this means that you're already on the road to success. So many people rush in without knowing what they're doing only to get "spanked", not realising that it takes time to learn not only how to make money, but more importantly how to hang onto it.

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Permalink Reply by jacquesk on January 8, 2009 at 2:45pm

Oddly enough there are some Complete Idiots Guides on Investing. There is one on value investing, based on the quick flip I had through it, seemed ok. I recommend pillaging your local library. Most of mine have a very good section on investing albeit items like 100 best investments for 2009 are worth avoiding as the picture has generally changed during the time it takes to publish the item.

I have a different view on financial planners. Mine has been very useful and I do not begrudge any of the money he has earnt off me as he has saved me from the odd problem and saved me far more money than I have paid him.

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Permalink Reply by Kbot on January 8, 2009 at 4:19pm

Hey Jacquesk, ok painting all planners with the same brush isn't fair, it's just that I used to work closely with many planners for several years when I worked in banking and didn't meet many I'd trust with my money. Of course, it all depends on your circumstances - a good planner can be of assistance if you have complicated investments and some even specialise in super, which can be a great help.

For example, this guy on CompareShares knows what he's talking about:

Should you roll your SMSF into an allocated pension?

The complete idiot's guides/Dummies guides can be fantastic - many are put off by the title and many more think they already know it all ;). I bought the Dummies guide to Investing by James Dunn, and it covers just about EVERYTHING you need to know to get started. I recommend it highly for anyone starting out.

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