AMA SG Young Investment
Personal Finance Books
Asked on 11 Sep 2018
This question is no longer accepting new answers because it has been merged with Hi! Are there any books or courses in Singapore that are recommended for a beginner like myself to understand how to get started on investing?
It would be a great help if you could understand how to read financial statements, such as income statements, balance sheets and cashflow statements. These statements can be found in the annual report of companies listed on stock exchanges. These statements form the basis for quite a good number of investments, as they tell about the financial health of the company!
Companies can smoke investors by saying that they their company has performed very well over the last few years, but numbers don't lie. More importantly, asset classes such as stocks, bonds, ETFs and REITs all utilises financial statements to understand what kind of investments to develop.
You can read more about financial statements at the following sites:
*Benjamin Graham's "An Intelligent Investor"
-the founder of value investing, a must read for all investors
Phillip A Fischer "Common Stocks & Uncommon Profits"
-More qualitative take as compared to Graham, Warren Buffett calls himself 80% Graham and 20% Fischer
*Burton Malkiel's "A Random Walk Down Wall Street"
-Classic on financial markets valuation techniques
*Pat Dorsey's "Five Successful Rules of Stock Investing"
-One of the most practical investing books out there
1.Start a investment stock simulator account(investopedia has one) (not for everyone)
2.Accumulate savings in the meantime
3.Open a trading account(do some research on brokerages available- charges and commissions especially if you intend to trade more actively)
4.Trade when you are ready
For a list of books I recommend, you can refer to this link: https://sgyounginvestment.blogspot.com/p/books-i-recommend.html
The next step is to get started in investing. Start small and have a feel. When you put your money in, you'll start to learn even more :)
I would recommend some easy to read books like Rich by Retirement and Quit Like a Millionaire. Not too technical and easy to execute.
Start small and you will be fine. I hope I started at 19 years old like you.
Hi, optimum choice to start investing in your young age.
the book recommendations already mentioned are fine.
you don't need to read a lot of books, though.
what you should incorporate into your actions early however are timeless 'truths' of investing:
-time horizons for equity to hold are at least 10 years (patience ...)
-invest periodically (cost averaging)
-reduce cost of investing as much as you can (brokerage commission fees and account maintenance fees, cheap products like ETFs)
-avoid trading (nobody can time the market), instead Buy&Hold
-don't trust finance professionals too much (they often are biased to recommend their own expensive/underperforming products like unit trusts or incomprehensible structured products)
-avoid the 'bad ones' (unit trusts, options, CFDs, ETNs, ...), also investing into single stocks as a retail investor is controversisl when studies show that even the pros are incapable of picking stocks successfully over the long term (compared to market benchmarks)
-avoid greed, with equity investing 3-5% nominal annual performance averaged over longterm is good, 5-10% very good, 10-15% would be fantastic
more on my thinking: