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Kian Chee

Asked on 04 Dec 2019

What is your number one investment book to read for a beginner?

I just started investing and would like to add to my knowledge.

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21 answers

Answers (21)

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Daryl Liao, Fti
Daryl Liao, Fti
Level 7. Grand Master
Answered on 05 Dec 2019

The 5 rules of successful stock investing by Pat Dorsey!

It runs through the basic financial ratios and gives examples of what are some of the areas you have to take note of when applying them.

An example would be construction companies tend to have high ROE as they have relatively high debt out of the Total Assets.

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Frankie Rappaport
Frankie Rappaport

07 Feb 2020

Https://b-ok.cc/book/814845/783193
Rach Tay
Rach Tay

08 Mar 2020

Thank You!

My number one has been listed, but there are a number of other good picks to be had, so I'll give you an alternate book to consider: Thinking, Fast and Slow by Daniel Kahneman

It'll help you understand behavorial science better, which is important as well when investing.

1 comment

👍 6
Frankie Rappaport
Frankie Rappaport

07 Feb 2020

Https://b-ok.cc/book/1214612/224dc8
Jonathan Ang
Jonathan Ang
Level 7. Grand Master
Answered on 06 Dec 2019

F-wall street :)

0 comments

👍 3

Hi Kian Chee,

The 5 Rules of Successful Stocks Investing by Pat Dorsey is a good read for beginner! It was my first investment related book (Other than Rich Dad Poor Dad) which got me interested in investing.

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Kian Chee

06 Dec 2019

You're the best man!
J Yeoh

06 Dec 2019

Thank You!
Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 8. Wizard
Answered on 04 Dec 2019

Either millionaire teacher by Andrew Hallam or rich by retirement by Joshua Giersch. Both are written for our local context and are not difficult to read.

0 comments

👍 2

The Little Book That Beats The Market (and anything else by Joel Greenblatt tbh). :)

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Jeremy Chia Ming Wen
Jeremy Chia Ming Wen
Level 3. Wonderkid
Answered on 05 Dec 2019

As a beginner who was interested in an aggressive portfolio to grow my wealth, what I really wanted to know was:

What does a stock represent?

What is a stock market index?

How do i pick the right stocks to invest in?

How to analyse a company using a fundamental-based approach

The book that helped me answer all these questions was Peter Lynch's "One up on Wall Street".

Peter Lynch was a legendary fund manager who managed the Magellan Fund from 1977 to 1990. During his tenure, the fund had an annualised return of 29%. We are lucky that such a successful investor was willing to share his secrets to the investing public.​​​

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👍 1
Hwee Kian
Hwee Kian
Level 7. Grand Master
Answered on 05 Dec 2019

One Up on Wall Street is a good read. You can download the ebook from NLB mobile.

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Wilson Nid A Break
Wilson Nid A Break
Level 9. God of Wisdom
Answered on 04 Dec 2019

The Intelligent Investor by Benjamin Graham

1 comment

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Kian Chee

05 Dec 2019

Thank You!
Choon Yuan Chan
Choon Yuan Chan
Level 9. God of Wisdom
Answered on 04 Dec 2019

"One up on Wall Street" by Peter Lynch

1 comment

👍 1
Kian Chee

05 Dec 2019

Thank You!
Bjorn Ng
Bjorn Ng
Level 9. God of Wisdom
Answered on 04 Dec 2019

100 Baggers by Christopher Mayer. One of the best I've read so far. Golden nuggets inside!

1 comment

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Kian Chee

05 Dec 2019

Gonna check this out!
Junus Eu
Junus Eu
Level 9. God of Wisdom
Answered on 04 Dec 2019

For a beginner, I would definitely recommend one that demystifies all the jargon out there!

Also, I would pick something that is easy to read.

So here's my pick!

https://www.goodreads.com/book/show/75893.The_Little_Book_of_Value_Investing

​​​

0 comments

👍 1
Geraldo L.
Geraldo L.
Level 7. Grand Master
Answered on 26 Feb 2020

Second Rich by retirement as mentioned by Davin Lee. It's curated for the local context and personally I find that the strategies outlined in the book makes alot of sense and works well for the average investor.

0 comments

👍 0
YL
Yan Lin
Level 3. Wonderkid
Answered on 19 Dec 2019

100 Baggers: Stocks That Return 100-to-1 and How To Find Them

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Fabian Ng
Fabian Ng
Level 2. Rookie
Answered on 12 Dec 2019

Hi Kian Chee,

I just started out investing about 2 months ago so I'll describe my journey.

Firstly, I think most people might recommend "Rich Dad Poor Dad" to get a feel of the philosophy behind investing.

But let's break it up into 'modules' and dive straight in.

Module 1 - Understanding Stocks and How to Evaluate Them

Recommended text: The little book of value investing by Christopher Browne.

Your goal here is to understand how the stock market works. Why people buy companies. Form a personal checklist of what ratios to look out for, and the rationale behind these ratios

Module 2 - Reading financial statements

Recommended text: Warren Buffett Accounting Book - reading financial statements for value investing by Preston Pysh and stig Bordenson

Your goal here is to be comfortable and successfully appraise the balance sheet, income statement and cash flow statement.

Module 3 - Learning from history and what you can relate to.

Recommended Texts: The Intelligent Investor, One Up Wall Street

Your goal here is to see how value investing transitions from picking undervalued stocks with a margin of safety based on book value, to Peter Lynch's appraisal of different companies that are relevant to all of us! Try practicing lynch in your daily life. It's fun!

Module 4 - Investing in a Singaporean Context

Recommended text: Expanding your circle of competence - Kelvin Seetoh

Kelvin writes a gem that describes his investing journey in evaluating companies in the retail, REITs, hotel and bank industries. Offers perspectives that are relevant to the average Singaporean, as well as practical and implementable checklists of what you should be looking while investing in these industries. You should be comfortable with buying your first stock after reaching this stage.

2 comments

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Bibiana
Bibiana

14 Dec 2019

Awesome share, Fabian! You know Kelvin too?
Fabian Ng
Fabian Ng

14 Dec 2019

Hahaha yes! his book was the one that actually ignited my passion for investing
Davin
Davin
Level 7. Grand Master
Answered on 12 Dec 2019

Something not so deep --› Rich by retirement - Joshua Giersch

0 comments

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KC
Kian Chee
Level 2. Rookie
Answered on 05 Dec 2019

Thank you everyone for sharing! Really helpful! I've just finished Fwallstreet and am now looking forward to reading your recommendations! Cheers! :D

0 comments

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Wallace Chai
Wallace Chai
Level 9. God of Wisdom
Answered on 05 Dec 2019

Warren buffet accounting principle is the book i would recommend. From that book, you will be able to understand most of the accouting terms.

After reading the books, i managed to filter off most of the low quality companies just by looking at their financial!

Hope this helps!

1 comment

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Kian Chee

05 Dec 2019

Thank You!
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