What book to read?

[ahnathan]

Ok, so I know there is an entire section on books and I am aware that I should (and will) read more than a single source.

But what I am looking for specifically is what the forum thinks would be the best book to educate myself on the TYPES of investments.

What is the difference between a value and growth stock? Between mid and small cap funds. What is an expense ratio? What is the dividend rate, what exactly does this mean and when/how are dividends paid. What is the difference between short and long term bonds, what is bond yield?

 

Does that make sense? Maybe the right book is just the WCI one, but its just kind of hard to tell based on the descriptions.

 

Any insight much appreciated, thanks!

[VagabondMD]

I would read one of Bill Bernstein’s books, perhaps the Four Pillars of Investing. Larry Swedroe’s books also cover some of these nuts and bolts.

If I had to do it over, I would just read the Bogleheads book, create a simple three (or four) fund portfolio and spend the reading time on books covering history, art, and some novels. The countless hours spent ostensibly educating me on investing mostly compelled me to make things more complicated than they have to be.

[Peds]

bogleheads guide to investing

[canadianoutlaw]

Ditto positives. Four Pillars, just because it is such a work of art, and then Bogleheads for its practicality

[ENT Doc]

Agreed - Bogleheads Guide to Investing for overview and broad strategy. Four Pillars to get into more of the nitty gritty. Random Walk to go a bit further.

[ahnathan]

Bogleheads it is -- ordered

 

Thanks team

[Drop it into MD]

Good choice.  I read that one off the advice of this site and I agree it is very useful.  When you are done with that I recommend Redshirts :P

[ENT Doc]

I think you can also find quick answers to the basics on google:

“What is the difference between a value and growth stock?”

https://www.fidelity.com/learning-center/investment-products/mutual-funds/2-schools-growth-vs-value

“Between mid and small cap funds.”

https://financialengines.com/education-center/small-large-mid-caps-market-capitalization/

“What is an expense ratio?”

https://www.investopedia.com/terms/e/expenseratio.asp

“What is the dividend rate, what exactly does this mean and when/how are dividends paid.”

https://www.investopedia.com/terms/d/dividendyield.asp

“What is the difference between short and long term bonds, what is bond yield?“

https://finance.zacks.com/short-term-bond-vs-longterm-bond-rates-3138.html

https://www.investopedia.com/terms/b/bond-yield.asp

[Molecularblonde]

Vagabond MD wrote:

I would read one of Bill Bernstein’s books, perhaps the Four Pillars of Investing. Larry Swedroe’s books also cover some of these nuts and bolts.

If I had to do it over, I would just read the Bogleheads book, create a simple three (or four) fund portfolio and spend the reading time on books covering history, art, and some novels. The countless hours spent ostensibly educating me on investing mostly compelled me to make things more complicated than they have to be.

Click to expand...

Just ordered mine too.

Thanks Vagabond.

[jacoavlu]

In the meantime check out "The Three Fund Portfolio" over on bogleheads, it's free

https://www.bogleheads.org/forum/viewtopic.php?t=88005

You may end up in the camp that doesn't worry about value v growth, small v mid, dividend rates, bond yields, etc.

[Hatton]

To get your mindset right read the millionaire next door

[wonka31]

My son is a big Chica Chica Boom Boom guy right now. It’s pretty solid.

[WealthyDoc]

You don't need to know all those details about investing.  You can just buy the whole market and forget it.

I recommend starting with a personal finance book.  If you haven't read Jim Dahle's WCI, that is the best place to start.  Then maybe Personal Finance for Dummies (by Eric Tyson).