When it comes to investing, there are a few books I have found to be exceptional. I continue to read those books again and again. Each time I read them, certain points become clearer. Information that I hadn't thought about in some time comes back to the surface. Often, I find I now have examples in my own investment experiences that support the points I have read many years ago. To me, this further enforces the value of the knowledge from these books.
As time passes, some of the examples in the books become dated, but most of the key information is the same and just as applicable to today’s environment.
My favorite books are The Intelligent Investor, One Up On Wall Street and The Most Important Thing. These three books provide a solid basis for investing.
In One Up On Wall Street, Peter Lynch of Magellan Fund fame provides a lot of sage advice. While many investor's think they are at a huge disadvantage to professional investors, Lynch believes there are many reasons why the individual investor has a large advantage on professional money managers. Comparing what Lynch says to my own experiences, I would say that Lynch is spot on.
Chapter two in One Up On Wall Street is entitled "The Advantages of Dumb Money". In a short 13 pages, Lynch provides a lot of great insights and advice. One of my favorite passages is this, "I know you don't expect the plastic surgeon to advise you to do your own facelift, nor the plumber to tell you to install your own hot-water tank, nor the hairdresser to recommend that you trim your own bangs, but this isn't surgery or plumbing or hairdressing. This is investing, where the smart money isn't so smart, and the dumb money isn't really as dumb as it thinks. Dumb money is only dumb when it listens to the smart money."
Be smart, be well-read, be aware and be successful.
