![]() This book lays out what is involved in improving your “mental game” and what you can do to set yourself up to be a more disciplined value investor. You need to have the ability and temperament to remain rational and actually execute your process when the going gets tough and you are under tremendous pressure. After you master the intricacies of building your own investment process, the hardest part is not analytical but behavioral. This book is not here by mistake, even though its title will make you think it’s about poker rather than investing. How successful would this approach be in the current investment environment? How much of the approach was influenced by the investor's personality and how much by the external environment during which they were investing? ![]() ![]() What about this approach appeals to you and what does not? Each time I have learned something new, informed by the additional investing experience that I have had since the prior reading.Īs you read each of these investing books, keep asking yourself these questions: I have read the first book on the list, Benjamin Graham’s Security Analysis, four times in my almost two decades of professional investing. Instead, this is a path that will take most of you years to master. Don’t rush – this is not a list of easy investing books that you can master in a few weeks or even a few months. You will increase your odds of becoming a good investor if you study each book before moving on to the next one. The list of the best investing books presented below is in the order in which you should read them. Use the insights in these books to build your own investment process, don’t just blindly copy theirs. ![]() Instead, become the strongest investor that you are capable of becoming by customizing what you learn. So don’t run around trying to be the next Warren Buffett. Your investment operation and constraints might be different. Your strengths and weaknesses are different. Customize – You are not Warren Buffett, Benjamin Graham or Phil Fisher. If you don’t practice applying the knowledge that you glean as you read these investing books, you might be left with a deceptive feeling of mastery of the material where none exists.ģ. The most successful investors in the world have not been professors merely armed with theories, but rather practitioners who understood theory and were able to successfully apply it in practice. Apply – Investing is not a theoretical endeavor. Do you understand why the master investor used the approach that he or she did? What was the historical context or investing environment that they were in? How are the different parts of the investment process related to each other?Ģ. Understand – You should be able to understand the key investing ideas in each book, not just quote them. As you read each of these investing books, you should also be doing three things:ġ. You need to have a process for using what you learn to develop your own investment philosophy and investment process. Reading even the best investing books is not enough. The best way to become an investing expert is to combine these approaches. Others attempt to become expert investors by copying previous investing masters, such as Warren Buffett. Some choose to learn investing purely from first principles. Combination of art and science needed to achieve mastery.Temperament required to remain rational under pressure.Behavioral biases that can negatively impact our judgment.Long feedback loop between decisions and outcomes.Learning how to become a good investor is difficult because of the: The investing books that I describe below have helped many aspiring investors make their journey from a beginner to an investing expert. ![]() I am frequently asked: what are the best books on investing? How do I develop my investment philosophy and process? How do I become a good investor? I have mentored many aspiring investors, and I also teach the Value Investing Seminar at the F.W. ![]()
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