Tag Archives: books

Educate Yourself

One of the key factors when starting out investing in the stock market is to educate yourself. Before jumping in and investing your hard earned money be sure to learn whatever you can about the process and the intricacies of investing, If you know of someone who can mentor you that you trust, that’s better and icing on the cake.

Before I seriously started investing money in the stock market I made a point to read and learn whatever I could about stock market investing, the different type of investment strategies, the risk and pitfalls to watch for, and to determine what I was getting myself into. I went and purchased a couple of books by well known investors so I could understand what I was looking at, what I should be lokkinig at, and what to do with the information. Two books that I found helpful were Phil Town’s Rule#1 and Warren Buffett and The Interpretation of Financial Statements by Mary Buffett & David Clark.

There are a few morw out the and you can probably find them on Amazon. But be warned about some books on investing that you may find on the Internet. Specifically, I am referring to those that are “mentioned”/advertized on Twitter, in investment groups on Facebook or Mewe. Now, I’m not trying to say that they are worthless nor am I judging their quality. All I’m saying is that I tend to be suspicious of the authors of these e-books on investing where they mask their true identity behind a Twitter handle or any kind of vague handle. One of the things you should do is vet the author of the book you are interested in. Amazon generally contains a link with the authors name where you can research the author and determine if it is worth getting the book. Most of the e-books on Twitter and elsewhere in the Internet do not because they don’t disclose the authors true identity. Is the information being presented actually from the presented author or are they just rehashing someone else’s information. Maybe, after reading the e-book, you have additional questions or need further clarification on certain points. How do you know if the author is actually qualified to present such financial information?

That would be like seeking medical advice from an unknown source. The person answering your medical question may be someone totally unrelated to the medical profession and yet giving out medical advice. You have no idea how good or bad their information is. Do you know if they even follow their own advice? Without knowing the true identity of the author you open yourself to a number of risks and they avoid any liability/fiduciary responsibility.

Speaking for myself, I would never purchase any book (hard cover or e-book) about investing unless I knew the identity of the author and was able to verify their credentials.

I have previously published articles about being cautious with sources of advice and information here, here and here.

Rule#1 by Phil Town

This is another book that I seriously recommend that you read. The book is called Rule 1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week! written by Phil Town.

In this book Phil Town goes through the different calculations and math of determining the best investments that meet your strategy and criteria. He expalins things in terms that anyone can understand. He also explains how he’s used the different calculations and what his criteria is that he used. This book is one that every newbie investor must have in their library.

The Money Game

As as newbie investor (I just got seriously started this year) I make a point of finding books and articles that are informative and allow me to learn more about investing. One such book is The Money Game by Adam Smith.

I came across this book and got interested because it deals with Wall Street and how it functions. It details stories about people making money on Wall Street. A way to learn is to understand how others have made their money on Wall Street and then try to apply certain aspects of their strategy to our own.