Best Books for Complete Beginners

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MissOptimist
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Best Books for Complete Beginners

Post by MissOptimist »

From your experience, what was the best investing book you have read for beginners? I'm looking for a book that explain investing in index funds in a simplistic way. I would like to know about choosing the right index funds based on my situation, rebalancing, and what to watch out for in the economy and how to prepare.
retired@50
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Re: Best Books for Complete Beginners

Post by retired@50 »

MissOptimist wrote: Sun Sep 20, 2020 7:30 pm From your experience, what was the best investing book you have read for beginners? I'm looking for a book that explain investing in index funds in a simplistic way. I would like to know about choosing the right index funds based on my situation, rebalancing, and what to watch out for in the economy and how to prepare.
Personally, I liked Jack Brennan's book "Straight Talk on Investing: What You Need to Know".

Or see Boglehead wiki link: https://www.bogleheads.org/wiki/Books:_ ... nd_reviews

Regards,
This is one person's opinion. Nothing more.
Grt2bOutdoors
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Re: Best Books for Complete Beginners

Post by Grt2bOutdoors »

The Little Book of Common Sense Investing - 2nd Edition by John C. Bogle. Don’t be fooled by its reference to Little, it’s chock full of everything you need to become a successful investor.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
L82GAME
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Re: Best Books for Complete Beginners

Post by L82GAME »

First, “If You Can”, linked here: https://www.etf.com/docs/IfYouCan.pdf

Follow up with, “ How a Second Grader Beats Wall Street”, by Allan Roth.
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Re: Best Books for Complete Beginners

Post by LadyGeek »

This thread is now in the Investing - Theory, News & General forum (general question).
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DSBH
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Re: Best Books for Complete Beginners

Post by DSBH »

“The intelligent asset allocator” which I bought almost 20 years ago and still referred to every now and then - https://www.amazon.com/Intelligent-Asse ... B005XM6NRY

Will buy this one soon - https://www.amazon.com/Bogleheads-Guide ... 1119487331 - to learn from the most experienced BHs that I am aware of.
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codoriti
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Re: Best Books for Complete Beginners

Post by codoriti »

It was JL Collin's Simple Path to Wealth that go the ball rolling for me, and with some more research and few other books (some mentioned in this thread) I ended up here. And I'm so glad I did, at a relatively young age!

https://www.amazon.com/Simple-Path-Weal ... 1533667926.
Grt2bOutdoors
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Re: Best Books for Complete Beginners

Post by Grt2bOutdoors »

DSBH wrote: Sun Sep 20, 2020 7:58 pm “The intelligent asset allocator” which I bought almost 20 years ago and still referred to every now and then - https://www.amazon.com/Intelligent-Asse ... B005XM6NRY

Will buy this one soon - https://www.amazon.com/Bogleheads-Guide ... 1119487331 - to learn from the most experienced BHs that I am aware of.
The first selection above is math intensive - an average person is not going to understand that book. Sorry but it’s true.
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BarbBrooklyn
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Re: Best Books for Complete Beginners

Post by BarbBrooklyn »

When I got divorced in 1998 and realized I was going to need to understand investing, I spent a day during a day off from work in the "finance" section of a local bookstore. I needed a book that I could understand. After leafing through a bunch, I found this:
https://en.m.wikipedia.org/wiki/The_Onl ... _Ever_Need

No idea if there is an up to date edition, but Mr. Tobias taught me about index funds, never to pay loads and that, at 45, I had a long time horizon.
BarbBrooklyn | "The enemy of a good plan is the dream of a perfect plan."
boomergeneration
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Re: Best Books for Complete Beginners

Post by boomergeneration »

I also like the Andrew Tobias book, The Only Investment Book You'll Ever Need. It is funny and a quick read. He updates it periodically.
Dougroseville
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Re: Best Books for Complete Beginners

Post by Dougroseville »

Grt2bOutdoors wrote: Sun Sep 20, 2020 10:38 pm
DSBH wrote: Sun Sep 20, 2020 7:58 pm “The intelligent asset allocator” which I bought almost 20 years ago and still referred to every now and then - https://www.amazon.com/Intelligent-Asse ... B005XM6NRY

Will buy this one soon - https://www.amazon.com/Bogleheads-Guide ... 1119487331 - to learn from the most experienced BHs that I am aware of.
The first selection above is math intensive - an average person is not going to understand that book. Sorry but it’s true.
Not only that (very math intensive), it might encourage a person to become overly slice and dice crazy (and have a SCV bias). I read “The intelligent asset allocator” prior to reading: https://www.amazon.com/Four-Pillars-Inv ... 1932378014
"The Four Pillars of Investing" is a much more comprehensive, but easier read. It is my favorite investing book, I have given away about 6 copies. Highly recommended.
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Re: Best Books for Complete Beginners

Post by Johm221122 »

MissOptimist wrote: Sun Sep 20, 2020 7:30 pm From your experience, what was the best investing book you have read for beginners? I'm looking for a book that explain investing in index funds in a simplistic way. I would like to know about choosing the right index funds based on my situation, rebalancing, and what to watch out for in the economy and how to prepare.
If I was looking for a beginner book I'd start with "Investing For Dummies"
As far as What to watch out for in the economy, Turn off the noise. You're not supposed to be Watching the economy and basing investing decisions off it, If your indexing. That is called market timing. Pick an asset allocation that fits your situation and then just put investing on automatic mode
Tattarrattat
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Re: Best Books for Complete Beginners

Post by Tattarrattat »

Agree with all of the recommendations above. Personal Finance for Dummies is a very approachable book that covers your entire financial life, not just investing, in a rational and pragmatic way. Making the Most of your Money, by Jane Bryant Quinn, similarly also covers everything, in more depth. The quickest and cheapest reading solution for just the investing part would be the If You Can pamphlet, by Bernstein, which I think is a free download. Covers the basics of index style investing efficiently and the money you are not spending on a book you can put into a total stock etf.
LarryCarell
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Re: Best Books for Complete Beginners

Post by LarryCarell »

Grt2bOutdoors wrote: Sun Sep 20, 2020 7:36 pm The Little Book of Common Sense Investing - 2nd Edition by John C. Bogle. Don’t be fooled by its reference to Little, it’s chock full of everything you need to become a successful investor.
this is the one. if some terms are unfamiliar use investopedia.
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Re: Best Books for Complete Beginners

Post by Jeff Albertson »

here's one you'll read: "Can The Best Financial Tips Fit On An Index Card?"
https://www.npr.org/sections/alltechcon ... k-is-there
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Re: Best Books for Complete Beginners

Post by Sandtrap »

MissOptimist wrote: Sun Sep 20, 2020 7:30 pm From your experience, what was the best investing book you have read for beginners? I'm looking for a book that explain investing in index funds in a simplistic way. I would like to know about choosing the right index funds based on my situation, rebalancing, and what to watch out for in the economy and how to prepare.
Increasing income is the flip side of investing.
Why?
Because there's no money to invest if it's not earned and saved (net dollars) first.
And. . .
The greater the income, (and greater the "net" income). . . then things are even better.
Example:
Earn 1 dollar/hour and save and invest 10%
VS
Earn 100 dollars/hour and save and invest 10%

Thus, 4 wheels on a car are needed.
Gross Income
Savings (from net income)
Investing
Motivation / Behavior (good enough or wealth?) Why? Because action is needed after reading books.

Experiential learning is a good thing. So, for some real life examples, read this:
Millionaire Next Door
https://www.amazon.com/dp/1589795474/re ... _ti_sims_2

j :D
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Brianmcg321
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Re: Best Books for Complete Beginners

Post by Brianmcg321 »

codoriti wrote: Sun Sep 20, 2020 8:39 pm It was JL Collin's Simple Path to Wealth that go the ball rolling for me, and with some more research and few other books (some mentioned in this thread) I ended up here. And I'm so glad I did, at a relatively young age!

https://www.amazon.com/Simple-Path-Weal ... 1533667926.
Another recommendation for JL Collins.

His blog is great also. https://jlcollinsnh.com/stock-series/

Here’s a great interview. https://youtu.be/T71ibcZAX3I
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.
venkman
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Re: Best Books for Complete Beginners

Post by venkman »

I recommend you start by reading through the BH Wiki. You may not need a book after that.
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Eagle33
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Re: Best Books for Complete Beginners

Post by Eagle33 »

I read Christine Benz articles on Morningstar. If you click on her name at the top of a recent article it will take you to the last couple of years of her articles. Her writing style was more bite-size for my eating than the more fire hose of Bogleheads forum. Once I figured out a mental framework, then this forum became consumable. That was me, your experience and tastes may differ.
Rocket science is not “rocket science” to a rocket scientist, just as personal finance is not “rocket science” to a Boglehead.
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Re: Best Books for Complete Beginners

Post by MN-Investor »

Investing Made Simple by Mike Piper.

Common sense, a very quick read. I bought about 6 of them and gave them to nephews and nieces who are starting out in their careers.
The key to success - Save early, save often, invest well.
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Re: Best Books for Complete Beginners

Post by willthrill81 »

To be honest, unless the person wants to get into the investing 'weeds', no book is necessary. Buy a low-cost target date fund, and call it a day.
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Re: Best Books for Complete Beginners

Post by balbrec2 »

boomergeneration wrote: Sun Sep 20, 2020 11:04 pm I also like the Andrew Tobias book, The Only Investment Book You'll Ever Need. It is funny and a quick read. He updates it periodically.
+1
This is a great book for beginners. More than just investing.
An overall personal finance primer.
Jeff Albertson
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Re: Best Books for Complete Beginners

Post by Jeff Albertson »

Morgan Housel's golden rule of wealth (18 second video):
https://twitter.com/ChrisWillx/status/1 ... 6257190914
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