7 Books and Podcasts For Investing Beginners
Some of my children have recently started their own investment journeys. If they had followed my advice, they would have started sooner. As we all know the earlier you start, the better off you will be. In saying that though, it is never too late to start.
I realised at a young age was that if I wanted to create more wealth, it had to be through something other than my day job. Our time is a great but finite resource, and we only have so much of it to give. I can’t create more hours in my day, but I can build more wealth over time by learning to invest.
So, if you’re new to investing or if you want to go back to the basics, here is a list I compiled for my children to get them started. There are many resources out there, and it can be easy to get caught up in the trends and noise about where to invest your money. I think these resources give you a good foundational knowledge of investments, and they will help you decide what type of investor you want to be before you rush into the market (and potentially make some costly mistakes.)
The Little Book of Common Sense Investing, by John Bogle
A simple, but not simplistic explanation of low-cost index investing.
In this book, Bogle describes a simple and effective investment strategy for building wealth over the long term: buy and hold, at very low cost, a mutual fund that tracks a broad stock market Index such as the S&P 500.
Since the book was first written, Bogle has added two new chapters designed to provide further guidance to investors: one on asset allocation, the other on retirement investing.
The Simple Path to Wealth, by JL Collins
JL Collins is one of the heavy-weights of the personal finance industry. He presents his no-nonsense advice and blogs freely on the topic and about his journey to financial independence. This is a series of letters he wrote to his daughter – it's a quick and easy read. It makes a great gift for your children.
A Random Walk Down Wall Street, by Burton Milkiel
This book provides an explainer of all major investment vehicles, from stocks and bonds to real estate investment trusts and tangible assets. The updated edition includes a new chapter focusing on behavioural finance, or how our emotions affect our financial behavior and investment strategies
Buffettology, by Mary Graham and David Clarke
Warren Buffet is one of the richest men in the world, and one of the great investors. He’s amassed his enormous fortune using a very specific investment strategy, developed on a basis of long term investing.
I recommend this book if you want to understand more of Buffett's investing style and philosophies.
If you want even more of Buffett, particularly his more recent takes on investment opportunities, his annual letter to the shareholders of Berkshire Hathaway is another great place to start. These annual letters have also been compiled into a series of essays.
The Intelligent Investor: The Definitive Book on Value Investing, by Benjamin Graham
Benjamin Graham is known as the father of value investing. He taught Warren Buffett and his book lays a framework for evaluating a business' worth based on financial value, not short-term trading techniques
Get Started Investing, by Equity Mates
If you find the first two books a bit dense, and are more of a podcast person, then this one might be for you.
In this series, the two hosts will walk you through the investing process step by step, explain all the basics and unpack all the jargon. It’s very easy to listen to, and particularly good for young investors.
Equity Mates also have a range of recommended books on their website. They say that one piece of advice their expert investors would give to their younger selves is, more often than not, to "read more.” I wholeheartedly agree.
Thinking, Fast and Slow, by Daniel Kahneman
Kahneman is a psychologist and winner of the Nobel Prize in Economics While this book isn’t about investing per se, it is a great exploration into the human mind and the science behind the way we think.
The way we think impacts everything from where we choose to vacation to even how we invest in the stock market. Reading this book might help you better understand your own biases, emotions and thought processes, whilst also providing you with a better overall framework to make investment decisions.
I hope the list helps you get started - or at least gives you some gift ideas for your children and grandchildren! As I mentioned, there are many other books and podcasts out there so if you would like to recommend one, please drop a comment below and we will add it to the list.
Happy Investing!
This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, you should consider whether the information is appropriate considering your particular objectives, financial situation and needs.
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