Now that you are ready to take the plunge into investing, there is no better time to consider this all-important question: “How do I educate myself as an investor?”
There is no substitute for time and experience. But without venturing into untried waters, how could one gain experience? But the problem with investing is that it can be an expensive and painful education (especially since it involves YOUR money).
Practical knowledge contributes to successful investing but what is often overlooked is the soft skills that every budding investor must develop. One of the ways to cultivate these skills is to read books that either demonstrate what has worked for other successful investors, or that tell stories of what made successful investors great.
As a “young” investor you are bound to make a mistake or two. Hopefully by educating yourself beforehand, you can reduce the financial pain to a minimum and start on the right foot. Here are our favourite reads:
Rich Dad Poor Dad, also widely regarded as the #1 Personal Finance book of all time, tells the story of Robert Kiyosaki and his two dads – one of them his real father “Poor Dad” and the other, the father of his best friend, “Rich Dad” – and extols the ways in which both men have shaped his perspective about money and investing. In this bestseller, the author stresses the importance of financial literacy, and presents financial independence as the ultimate goal and a way to avoid the relentless and soul-crushing rat race.
The Essays of Warren Buffett is an edited collection of wisdom pulled from Warren Buffett’s noted letters to shareholders of Berkshire Hathaway Inc. By providing to his shareholders (and the wider world) such a candid and transparent explanation of his actions, he has given us a model of how the relationship between companies and their shareholders ought to work. An enlightening and timeless read for anyone who has interest in business, finance or investing.
No one is really born a great investor. With lots of thinking, practice and diligent learning, investing can be for everyone!
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