I get asked occasionally what books and websites I would recommend for those that want to do more reading about finance and investments. There are some great books out there about both topics, and a few websites I usually visit every day for the latest news. I decided to write this post today, after looking at my Amazon page yesterday; here is what I found:
I thought it would be nice to see how my book listing looked on Amazon, so I typed my book name in the search bar, and up came the listing. But above the listing were 3 other finance books that Amazon was “recommending”. That’s fine, I would never suggest my book is the only one about finance you should read, but I have a real problem with the specific books I saw on the same page as mine:
· Options for Beginners
· Iron Condors for Beginners (a type of options-trading strategy, not a bird from some show you might find on the Cartoon Network, though that would be just as useful)
· Covered Calls for Beginners
All three of these books are about options, which I do not believe is at all a good strategy for beginners! In fact, I recommend most (not necessarily all) people to stay away from options altogether. My book is about investing the right way for long-term success, and above it are 3 books that give beginners tips on what is essentially gambling!
I understand that those books were probably written for people who feel options are right for them but don’t know much about them yet. Ok, I get it, and that’s fine. It’s just the way it looks that irked me. I’m not saying that nobody should ever buy and sell options, just that there is a lot of risk involved and they are not right for most people.
But it does make me uneasy to see the words “options” and “beginners” in the same sentence. Are there other places on Amazon where one can find such titles as “Brain Surgery for Beginners”, “Nuclear Waste Disposal Made Easy”, or “Tight Rope Walking for Dummies”?
And I was really offended when I saw the tagline for the book on covered calls that called them “riskless”. Um, no. There is nothing risk free about any option strategy; quite the reverse. I don’t like them because they never fully compensate you for the risk you are taking. The same can be said of blackjack, roulette, craps….you get the picture.
I’ll do a post later this week on options for those that are interested, but in the meantime I thought I’d provide you with a proper reading list for those who want to learn more about finance and investments. Of course, I hope you will read my book! But here are some great works I highly recommend:
The Intelligent Investor by Benjamin Graham
This is considered by many to be the “bible” of investing, and though it was written in 1949, when the world was recovering from the war and the Detroit Lions were actually good, it is still extremely relevant today. For those that are serious about becoming successful long-term investors, this is definitely a must-read.
One Up on Wall Street by Peter Lynch
Though he’s not as famous now as he was in the 80s and 90s, Peter Lynch is one of the greatest mutual fund managers of all time. Here’s a world-class investment manager that writes a book saying ordinary people can invest just as well as the professionals…”Sacrilege!” was the response from Wall Street. I was sceptical too until I read it. Don’t think after reading it you will be able to pick stocks better than mutual fund families with floors full of CFAs and PhDs, but this book does provide some very sound advice for those wishing to be successful investors.
Here are a few others I would recommend:
· A Random Walk Down Wall Street by Burton Malkiel
· Your Money and Your Brain by Jason Zweig
· Index Funds by Mark Hebner
· Everything written by Jack Bogle, creator of the index fund and founder of Vanguard
If you have read a book on finance/investing you’d like to recommend, please leave a comment to this post or post a reply on LinkedIn! Mine is by no means an exhaustive list, and I’d like to hear what publications you’ve found helpful!
As for websites, there are thousands of course, but here is what I usually scan on a regular basis:
The Wall Street Journal (wsj.com)
This site requires a paid subscription, though maybe you can get on for free if you’re a student or work for a school/university (that’s how I have access). WSJ can be a bit dry at times, but there is no better source for financial/investing news and information on the planet. Case in point: there is an article today titled “When Investors Forget Fundamentals, the Market Is Broken”. I couldn’t have said it better myself! The article also features a picture of Warren Buffett, the greatest investor who ever lived. Perfect!
CNBC (cnbc.com)
Regular readers of this blog know I am not a big fan of CNBC the network, but I’m a huge fan of their website. The cable network should be watched for entertainment purposes only, and the talking heads/clowns featured thereon largely ignored. But the website features objective news reporting (rare to find these days), solid news coverage, and well-written articles. Highly recommended.
Yahoo Finance (finance.yahoo.com)
Is Yahoo still around? Didn’t Google vanquish them like 15 years ago?? Yes, and yes. I don’t recommend Yahoo for much these days, but their Finance section is still going strong, and is still one of the best. A great source of news and data on just about any investment.
Morningstar (Morningstar.com)
Speaking of sources of data, nobody in the solar system, and at least 3 neighboring solar systems, tops Morningstar when it comes to available data on investments. A lot of their content can only be accessed by subscribers (for serious analysts it’s worth it), but most people can get everything they need from the site for free. A few words of caution: they are great at aggregating data, but terrible at making recommendations. Completely ignore the Star ratings (seriously, pretend you don’t even see them!), and if they recommend buying a certain stock or mutual fund…run! I don’t care where you run to, just run! Make your own judgments without even reading their recommendations. Unless of course you have an aversion to money!
Again, this is hardly a comprehensive list; just the sites I like to go to frequently. I seriously invite your suggestions/recommendations, and to reach the most people possible it might be a good idea to post your replies to my post on LinkedIn. Happy reading!
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