Books certainly influence our day-to-day lives and they serve well in forming our professional backgrounds. In finance, one of the best way to have a grasp on the rapidly changing nature of financial markets is acquiring solid knowledge by following the rules and investing principles of the greatest.
This is why in this article we would like to discuss our top 6 books that you should definitely read about financial markets. Some of those books are available at http://forex-library.com for a free download.
Even if you are not a trader, you will find these books quite useful. By reading them you will be able to understand the financial system better, and it will not look as complex anymore. Enjoy reading though our list of the best financial books!
1) The Intelligent Investor
The Intelligent Investor was referred by Warren Buffett to as “the best book on investing ever written”. This masterpiece was produced by Warren Buffett’s mentor – Benjamin Graham. In a nutshell, this book is a thorough guide to learning long-term investing techniques. Since Benjamin Graham is the creator of value investing, “The Intelligent Investor” can turn out to be immensely useful for your understanding of this approach. In addition, this book can shield you from the mistakes associated with developing long-term investment strategies.
2) Irrational Exuberance
This book of the Yale economist Robert J. Shiller presents an extreme value by explaining financial markets from the different angle – behavioral economics. Shiller argued that market is far from being rational and therefore clarifies it from the perspective of herd behavior, sentiment and speculation. Initially, Robert Shiller released his book in 2000, although new editions were published in 2005 and 2009.
Shiller believed that the present stock market definitely displays classic features of so-called speculative bubble. The book contains several references to the dotcom bubble burst to support his main idea.
3) The Alchemy of Finance
George Soros is obviously one of the most successful investors living nowadays. His “The Alchemy of Finance” is a must-have book in your personal library. Soros has introduced both theoretical and practical account of modern financial trends in “The Alchemy of Finance”. Additionally, Soros developed his paradigm called “theory of reflexivity” that reveals unique investment strategies and poses a new view of contemporary financial markets.
4) The Handbook of Fixed Income Securities
Fixed income investing is presented greatly by the book written by Frank J. Fabozzi. The well-known “Handbook of Fixed Income Securities” was published several times. Since the release of the first edition, the financial markets have experienced a series of various events that changed some aspects of market conditions. This is why the eighth edition included 31 new chapters that correspond to the latest products, analytical tools, different methodologies and investment strategies. Hence, you can apply all this to define and thus capitalize on the potential of the market of fixed income securities.
The latest book edition includes the new topics as follows – electronic trading, exchange-traded funds, risk analysis from multi-factor fixed income models, macroeconomic dynamics, the corporate bond market and other important topics that vex minds of investors and financial analysts.
5) Stocks For The Long Run
This great book written by professor Jeremy J. Siegel is the guide to financial market returns as well as long-term investment strategies. Jeremy Siegel in his work has provided a lot of research, new evidence, a deep analysis in order to support his key strategies. “Stocks For The Long Run” gives one of the best tips explaining how to create a great portfolio with amplified returns and reduced risks.
Jeremy Siegel in this book argues that equities outperform all other existing financial assets in the context of returns. Additionally, he states that stock returns are safer and therefore more predictable when it comes to inflation. Based on his extensive research, the book delivers truly eye-opening effect to every reader.
6) Common Stocks and Uncommon Profits
Philip Fisher is known in the business world as the pioneer in the field of financial analysis. His work significantly influenced the theory of modern investment. “Common Stocks and Uncommon Profits” provides all the necessary information about analyzing the quality of a business and its potential for profitability.
Even though this book was released in 1958, you can definitely learn a lot about proper financial analysis from there.