I’m new to investing and have a pretty basic understanding of the stock market. I got The Intelligent Investor because it’s supposed to be the book on investing, but as I started reading, I felt like I might need something simpler first. Maybe something that explains how the stock market works, gives a bit of history, and covers common terms.
Am I overthinking this? Should I just push through and keep reading? Or is there a beginner-friendly book you’d recommend I start with?
Thanks in advance!
Honestly, The Intelligent Investor can be a tough read. I’d focus on two chapters: Chapter 8 (Mr. Market) and Chapter 20 (Margin of Safety). Even Warren Buffett highlights these as essential.
For other books, Peter Lynch’s One Up on Wall Street and Beating the Street are great for beginners. If you want to dig into history, check out Liars Poker by Michael Lewis and When Genius Failed by Roger Lowenstein. They’re entertaining and informative.
The Snowball by Alice Schroeder is another excellent read if you’re interested in Buffett’s life and principles. Also, consider reading Buffett’s letters to shareholders. They’re packed with wisdom. Howard Marks is also worth checking out for more advanced investing insights.
@Graydon
Good tips, thanks! I’ll definitely check out those chapters and books.
Leith said:
@Graydon
Good tips, thanks! I’ll definitely check out those chapters and books.
Glad you found it helpful. Let me know if you need more recommendations!
If you’re looking for something easier, try The Psychology of Money. It’s an insightful, easy read about how we think about money. For stock market basics, Why Stocks Go Up and Down is great for understanding financial statements and fundamentals.
@Whitney
I actually read The Psychology of Money and loved it. I’ll check out Why Stocks Go Up and Down. Thanks!
Start by opening a Fidelity account and putting your money in something like VOO (S&P 500). While you’re learning, your money can start growing.
If you’re unsure about account types like Roth IRA, traditional IRA, or taxable accounts, feel free to ask. For now, a taxable brokerage is fine while you figure things out. VOO or VTI will serve you well in the long term, even after reading all the books and learning everything about investing.
@Joss
Thanks! I already have a Fidelity account and started investing. I just want to understand more so I can feel confident in what I’m doing.
Check out the recommended reading list in this forum’s wiki: https://www.reddit.com/r/investing/wiki/readinglist
Teal said:
Check out the recommended reading list in this forum’s wiki: https://www.reddit.com/r/investing/wiki/readinglist
That’s super helpful, thank you!
Stocks for the Long Run is a fantastic overview. It’s thorough but not overwhelming.
Not a book, but the Netflix series Explained has an episode on the stock market that covers the basics really well.
Dez said:
Not a book, but the Netflix series Explained has an episode on the stock market that covers the basics really well.
That’s a great suggestion. I’ll give it a watch. Thanks!
For beginners, I’d recommend The Little Book of Common Sense Investing by John Bogle. It’s short and covers index fund investing really well. Buffett’s annual letters to shareholders are also goldmines of insight. Here’s the link to the letters: https://www.berkshirehathaway.com/letters/letters.html.
@Corey
Thanks for the suggestion! I’ve already added The Little Book of Common Sense Investing to my cart.
I think A Random Walk Down Wall Street by Burton Malkiel is the best place to start. It gives a solid overview of investing.
Ainsley said:
I think A Random Walk Down Wall Street by Burton Malkiel is the best place to start. It gives a solid overview of investing.
I’ve heard great things. It’s in my cart. Thanks for the recommendation!
Sometimes it’s helpful to look at what top investors are doing, like Warren Buffett or even trades by members of Congress. It gives insight into strategies and trends.
The summary of The Intelligent Investor is simple: You probably won’t beat the market, so invest in diversified index funds like VOO or VTI.