Books are very powerful instruments in the right hands. The right book at the right time can seriously change your life for the better.
This year that has just started is a new chance of realigning your economic stars and make you a successful investor. Can you imagine orchestrating your life around passive income and letting your money work for you instead of doing it the other way around?
Well, these are the best investing books for 2020 that you should be reading right now, so pick wisely and let the future shine brighter than ever.
Why is it the right time to invest?
The number one economic power in the world is run by an economist who´s made a fortune investing wisely and multiplying capital. He is going for reelection, and that means that he is going to do everything within his power to have a pushing, on the rising economy and get voters support. Let´s see some of the reasons why it is a great time to make your money work for you:
- No trade war between the US and China – So far, the back and forth fight between the two world superpowers has been more fruitful than catastrophic. This election year might prove to be even more so as the stock market rise is one of Trump´s priorities. This doesn´t only affect the US and Chinese citizens; investors globally can benefit from these two countries’ understanding of each other on a commercial level.
- No worldwide recession – The biggest stock markets of the world have shown no slowing down or recession this first month, and this positive trend is bound to stay that way for the following months. If there is a growing worldwide economy, unless you invest the wrong way, your money shall multiply.
When the time to invest is right, you need to know exactly where to put your money to make it grow. The time is now, and this is how to do it right.
What is an investing book?
Investing books are a written compendium of good ideas about what to do with your money. We are going to go through a wide variety of them with topics going from your good habits in preserving your savings to cryptocurrency. These written guidelines are usually put down by economists or very successful investors who want to share their secrets with the coming generations. You can use an investing book as a set of guidelines that will show you the path to economic solvency and a better, happier life.
Unlike many other books, investing ones are those you can work on. This means that they should sit on top of your desk to be consulted all the time. Typically, you´ll see them underlined and heavily used by the reader because they are closer to a manual than they are to an entertainment. Do not buy an investing book to read in your spare time, or while you are on holiday to then just forget about what to do, use it as a guide to a better life and stick to it. In the case of cryptocurrency literature, it is crucial to understand how the new market works and what will the future of the economy look like. It is only after you´ve understood this that you can invest and make a wise decision about Bitcoins and such.
How can books change your life?
There are many ways in which books can change your life. First of all, it is a very healthy habit for our brain. According to specialists in the matter, book reading can:
- Improve your brain function – According to recent studies, reading can help slow down the aging process of your mind and heighten the connectivity in it, especially in the left prefrontal cortex.
- Broaden and improve your vocabulary – Especially in economy and finance, to broaden your vocabulary is a must to understand market fluctuation and when and where to invest.
- Make you a more empathic person – Psychology Today found out that reading books can help you experience the world through a different point of view. This is a total must for investors.
- Reading improves your mood – A study conducted by Penguin showed that people who read half an hour daily feel sharper and more cheerful than those who don´t. Being happier and learning at the same time sounds like a plan.
There are some of the fundamental physical and mental wonders of general reading, but for those who pick wisely and read the right investing books, those benefits multiply. Among those extras are being able to either retire as wealthy members of the world community, making their money grow or having a great side income, or perfecting their spending habits to healthier ones or learn about new ways of making money. These can be game-changers for you and those around you; it is just a matter of understanding where to put the money. For that, the list you are about to read will tell you exactly everything you need to know.
The best-investing books for 2020
Here they are, this is the selection of the best investing books you should be looking at this year. Read it carefully, make your choice, and change your future.
“The intelligent investor” By Benjamin Graham
Chosen by many dedicated websites as the number one in their list, this book by Benjamin Graham is considered somewhat of a Holy Grail in the topic. Just for you to know, Graham was Warren Buffet´s mentor, and it was Buffet himself who said that chapters eight and twenty have been crucial to his investing activity. After you read this book, you´ll have a deeper knowledge of what investing is like, what are the basics to understand stock market changes, and, of course, foresee them. Graham is, perhaps, the biggest author you can read on investor psychology, contrarian investing, and buy-and-hold. We chose it as number one on our list because of its importance in shaping the world we have today.
“The essays of Warren Buffet” By Warren Buffet
Would you have a cup of coffee with this investing legend and let him break down fifty years of successful investing career with you? Well, that is exactly the tone in which this book is written, which makes it an essential yet easy reading. Just like his mentor, Mr. Buffet has taken some time off his busy days and made a manifest to help upcoming. Potential investors put their money in the right place and also understand how the relationship between shareholders and corporations work. This book is in its fourth edition and is still a best-seller; it is high time you give it a chance.
“The little book of common sense investing” By John C Bogle
This book was written by the man who was credited with creating the first index fund in history. That alone makes him a legend and his book a good read, but also he was Buffet´s best friend (who endorses the book saying that every investor should read it). He starts from a difficult point stating that the stock market is a lose-lose situation but then gives them practical advice on how to turn odds in your favor. He´s written more than just this book, but we believe this is a short, easy read that will help you take your first steps and understanding how the investing world works.
“You can be a stock market genius” By Joel Greenblatt
This book has influenced many of the people that we now consider the best investors of a generation. It will give the reader great insights about how to invest in restructurings, spin-offs, rights offering, merger securities, bankruptcies, recapitalizations, and risk arbitrage, among others. In other words, what Greenblatt teaches is how to have the perfect timing to beat the market investing in times of crisis and on special occasions. The one thing that this book doesn´t do for you is the research to come across these situations, but once you do find them, you´ll find its approach is very knowledgeable and practical.
“Market wizards” By Jack D. Schwager
To many people, this book can be considered a master class by some of the most successful stock-market investors in the world, like Marty Schwartz and Paul Tudor. The author, Jack D. Schwager, interviews them with great, piercing, precise questions to give the reader insights into the stock market. As if that wasn´t enough, he also included a psychology section with Dr. Van K. Tharp that helps people make wiser and more controlled investing decisions. As the title announces it, you can get all the info from market wizards and win your wand investing wisely.
“One up on Wall Street” By Peter Lynch
Mr. Lynch operated the Magellan Fund for 13 years (1977-1990) and gave back to the investors a sky-high 29% breaking the S&P Index eleven out of the thirteen years. We can say that the man has some credentials, and he uses them well, having a great impact on the investing world and selling many thousand copies a year since publishing (2000). The most interesting part of his book is how he breaks down the methods and the philosophy for investors to succeed. Many of his readers praise him for giving the average investor the tools to compete with those who have bigger capital.
“Cryptocurrency investing for beginners” By Stephen Riles
The complete title is “The ultimate guide on how to retire as a millionaire, even if you have no idea what you´re doing” and is exactly the starting point of the author: those who know nothing about cryptocurrency. You´ll go with him through everything from scratch, and he will explain what they are, how they work, how to pick the right one reducing risks and keeping it safe, the best strategies, and some tips and tricks. The future is here, the future is now, and it is called cryptocurrency; as an investor in the 21st century, you cannot be out of this growing tendency.
“Principles: Life and work” By Ray Dalio
Bill Gates said that this book provided him with invaluable guidance, and its author, Ray Dalio, is the creator of one of the five biggest investment companies in the US: Bridgewater Associates. His book is not only instructional, but it is also partly an autobiography, which gives it a little more of an emotional touch and a lot of background and context to all the affirmations he makes. He was an average mid-class kid who started his company in his apartment and grew it to the top. This book is a New York Times best-seller, and it is as moving as it is formative, a definite must to read.
“Thinking, fast and slow” By Daniel Kahneman
This book was written by the 2002 Nobel Prize in finance sciences Daniel Kahneman, who happens also to be a psychology teacher at Princeton University. He goes deep into thinking biases and how they can affect the clarity of your analytic thinking when investing. He states that the more rational and clear you are, the better your decisions will be and gives tips and procedures to recognize your own biases and lock them away from the decision-making process. Its main focus is investments, but the principles he describes can be applied in other areas of your life to live better and more focused on achieving your goals.
“A random walk down Wall Street” By Burton Malkiel
The author sold over 1.5 million copies of this book that takes readers down to the very beginning and teaches them how to talk the talk before they can walk the walk. You´ll see much of the technical terminology, and jargon explained and applied to different investing scenarios. He also explains how to avoid common investing mistakes for beginners and how long-term planning is much better than get-rich-fast approaches. If you are starting and want to go through the ABC of stock markets and to invest, this is an invaluable addition to your library.
The bottom line
Reading the right investment book in 2020 can help you change the perception of the world that you have and make the stars rule in your favor. A good book can give you the insight and understanding you need to take your money to the next plateau putting it in the right places. We´ve put together a comprehensive list with every kind of approach out there by some of the most important names in the industry covering topics that go from the psychology of investing in explaining the terminology to cryptocurrency. Are you ready to be an investing wizard? Make 2020 your year and get started with these books!