Remember New Years 2020?
LOL. So much for our grand march into the new decade.
All isn’t lost though.
Pick up a new skill: Learn how to invest
With most of us at home, thanks to lockdowns brought about by COVID-19. You might as well pick new skills. The downtime provides a unique opportunity to make progress. It beats watching cat antics on Youtube. (Well, not really – but it’ll be helpful in the long run)
COVID-19 has proved that you need a variety of income sources. You never know when one source will dry up. The April 2020 unemployment statistics paint a grim picture. A different source, such as investing, could provide that much needed alternative income.
The stock market is one of those few investment avenues likely to deliver returns in booms and busts.
To enjoy the benefits, however, an investor must educate themselves and commit to being real investors and not merely traders. This list of the best books to read about investing in 2020 is an excellent start.
Investing comes down to your habits, emotional temperament, and discipline. (as these books demonstrate). Markets always go up and down. How you handle the cycles is what sets you apart from other investors.
Books to read about investing in 2020
These are some of the most popular investing books. They offer easy-to-digest investment basics for the new or veteran investor. They prepare you to spot opportunities and fully exploit them.
These books also point to the kind of emotional temperament you should adopt to succeed as an investor during the volatile COVID-19 period and beyond.
Think and Grow Rich (Napoleon Hill)
Think and Grow Rich is one of the best books to read about investing. Unlike other investing books, it dives into the core principles and mental models to build wealth.
The book is an all-time bestseller that helps you overcome psychological barriers to build wealth successfully.
In investing, success lies in your ability to manage emotions, and the book helps you clarify your goals, thus keeping you on course.
Rich Dad Poor Dad (Robert Kiyosaki)
Kiyosaki educates you through the story of his two fathers – a rich one and a poor one. His poor dad is a career professional while his rich daddy is an astute businessman. Both dads have different views and ways of managing money.
The book advocates pursuing financial independence through investments in one’s business. The author contends that it’s only by gaining financial literacy that you can understand money from a different perspective – as a tool to build financial independence.
Through the book, you’ll learn key investment lessons and shift your mentality from an employee to an owner and investor.
The Intelligent Investor (Benjamin Graham)
Benjamin Graham, the grand-daddy of value investing, sought to bring order to the investment scene. Through the book, he distinguishes between speculators and investors. He also defines an investment operation as “one which, upon thorough analysis, promises safety of principal and a satisfactory return.”
The book teaches you about the margin of safety and the need to take a long-term view.
The Intelligent Investor may have been written post the Great Depression, yet it still packs nuggets of wisdom relevant today.
A Random Walk Down Wall Street (Burton Gordon Malkiel)
A Random Walk Down Wall Street is one of the most popular books to read about investing.
The author looks into how the stock/financial markets work. He simplifies the investment process and the theories that underlie market performance.
The book’s premise is that the stock market is inherently efficient and that trying to find inefficiencies to exploit is a waste of time. Then, it suggests a framework for analyzing the market and using opportunities. Later editions include chapters on behavioral investment – an analysis of the psychology of investing and how to benefit from the psychology of the masses.
With investing, the more you know, understand, and apply, the better your overall performance. Educating yourself on the working of the markets gives you an edge.
The bottom line, lockdown period provides the best opportunity to learn something new. Pick a book that will re-shape your future.
Stay home. Stay safe.