Four Books Every Aspiring Investor Must Read

Did you know that the average number of books read by a CEO is 60 books per year? That's 5 books each month! This seems to be one defining trait of a person on top - being well-read.

As Oprah Winfrey puts it: "Reading... exposes you and gives you access to anything your mind can hold... It gives you the ability to reach higher ground."

Warren Buffet, the legend himself, likens reading to compound interest. "Read 500 pages every day. That's how knowledge works. It builds up."

The Oracle from Omaha (Buffet) as he is famously referred to, started investing at the age of 11. He already considers that "late" in the game. A young adult or young professional can obtain the power of compound interest by holding long-term investments. That means your assets generate more returns. Invest early - retire early.

If you are no longer young, don't lose heart! Remember still: "the best time is now!"

Investing is a rewarding process, especially, if you are well-informed and equipped with the right knowledge to make smart decisions. That means you can't just enter the arena with only a butter knife in hand. To be able to achieve rewarding results, an aspiring investor must understand the process. Learn how successful investors have done it. Glean from their experience and develop your own unique principles to level up the game. And while we all can't have geniuses like Peter Lynch (legendary mutual fund manager) as our mentor, we do have access to their minds!

In this article, I will be recommending books written by the pillars of the industry.

The four books every investor should read to be successful:

"Rich Dad, Poor Dad" by Robert Kiyosaki (1997)

"The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth in what seems to be an instant."

No aspiring investor should miss out on this exceptional book. It's considered one of the best books for personal finance because it teaches the readers how important financial literacy is. Kiyosaki paints a vivid image of the difference between a rich dad and a poor dad. He believes that while rich dads give their children lessons on money management, poor dads often ignore it.

In "Rich Dad, Poor Dad", Kiyosaki encourages investments that produce periodic cash flow. He points to stocks that provide dividends and real estate as favourable investments. The book shows us how to plan and build a life where earning money isn't the focal point.

"The Intelligent Investor" by Benjamin Graham

"The intelligent investor is a realist who sells to optimists and buys from pessimists."

This book is a complete guide on everything one needs to know - perfect for a beginner! It details the history of the stock market through all its ups and downs. The reader will gain insight into how to make strategies based on prevailing trends.

Benjamin Graham is revered and called the 'Godfather of Value Investing.' Pick up this book for an honest take on the investing world.

"One Up on Wall Street: How to Use What You Already Know to Make Money in the Market" by Peter Lynch

"People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences. Calamitous drops do not scare them out of the game."

A perfect combination of theory and practical knowledge, this book will equip the investor in you.

Peter Lynch started his way as an intern in the 1960s. Some 11 years later, he managed the Magellan Fund which had about $18 million in assets. By the year 1990, the fund had managed to grow to $14 billion in assets!

Lynch has worked his way to deservedly be called one of the most successful hedge fund managers and stock market investors of the century.

"The Essays of Warren Buffet: Lessons for Corporate America" by Warren Buffet (1997)

"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful"

While this book is addressed to Corporate America, it is written by one of the best investors in the world. To be able to pick the mind and strategy of Warren Buffet is a must for any investor at any level. The book contains secrets and teachings of Buffet, complete with case studies and exhaustive insights. Read his essays covering topics from corporate governance, investing, accounting, taxation, and beyond.

All these books teach us that the most successful investors were not lucky, instead, they were well-informed. Hone your skills through research and practice. Start today!