THOUGHT LEADERS

5 Books Top Investors always recommend

The best way to win time is to not work for your money. Instead, as Robert Kiyosaki writes in his best-seller Rich Dad Poor Dad, let your money work for you.  

In other words, investing your time into working non-stop is not as sustainable in the long run as investing your money into your future. “When you invest, you are buying a day that you don’t have to work,” investment advocate Aya Laraya famously said.  

Here are 5 must-read books on investment top investors recommended:  

  1. The Intelligent Investor, by Benjamin Graham

The author of this timeless book, Benjamin Graham, was a professor at Columbia Business School when then 19-year-old Warren Buffet was a student. Buffet, who went on to become the richest man in the world, still recommends this book as one of his all-time best reads on investing.  

“Many people take their ques for what to do from what the market itself is doing but Graham would tell you that the market is there to serve you not to inform you,” Buffet recalls in his documentary Becoming Warren Buffet. What Benjamin Graham is suggesting we do in this book is look at the underlying value of a company’s activities instead of relying on market gossip.  

  1. The Outsiders, by William Thorndike Jr.

The Outsiders follows eight unconventional CEO’s and their rationales and behaviours for success. “It focuses on the less sexy but equally important job of a CEO – capital allocation,” Mebane Faber, CIO and portfolio manager at Cambria Investment Management, previously told Business Insider.  

But the real premise of this book is that great CEO’s, as measured by the long term returns of their company’s stock, exhibit similar traits. Among the eight leaders that Thorndike highlights is Katharine Graham from The Washington Post Company who was the CEO during the time the Pentagon Papers leaked, and the Watergate scandal came to light.    

  1. The Little Book of Common SenseInvesting, by Jack Bogle 

This little book holds big promises as it’s not only recommended by the likes of renowned investors but also written by one. Jack Bogle, founder and retired chief executive of The Vanguard Group, is an innovative investor who created the world’s first index mutual fund in 1975. He wrote another classic titled Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor, but the little book we’ve picked is just as timeless but a slightly more current. 

The Little Book of Common Sense Investing, as the title suggests, is a guide to understanding markets better and mobilising your investment potentials.  

  1. The Snowball: Warren Buffett and the Business of Life, by Alice Schroeder

Economist John Kay recommends this book on Five Books for three reasons. Firstly, Buffet is the most successful investor in history. Secondly, he’s a successful investor based in Omaha, Nebraska, miles away from Wall Street. Thirdly, his investment philosophy has been based on some very simple ideas, which are essentially a modernised version of Benjamin Graham’s philosophy. 

  1. The New Coffeehouse Investor: How to Build Wealth, Ignore Wall Street, and Get on with Your Life by Bill Schultheis

In this book, Schultheis breaks down the complexities of investing into three simple principles:  

  1. Don’t put all your eggs in one basket.
  2. There’s no such thing as a free lunch.
  3. Save for a rainy day. 

Andrew Hallam, a teacher who became a millionaire at 36, previously told CNBC that he recommends this book among his top 5 must-reads. “Promoting a low cost, index fund solution to investing, he (Schultheis) guides his readers as if he’s your affable neighbour, explaining the process over coffee,” Hallam writes. “You can enjoy this book from cover to cover in a single afternoon.” 

 

This post is sponsored by Volkswagen Touareg and produced by BrandStudio24.