Due to the current circuit breaker, many people are looking for productive ways to pass their time. At the same time, there has been increased interest in investing due to recent market volatility.
As we have recommended several times before, it is important to give yourself as much basic knowledge as possible before investing your hard earned money.
To help pass the time and learn more about investing, we’ve compiled a list of books based on recommendations from leaders in the financial industry in Singapore.
Freddy Lim, Co-Founder and Chief Investment Officer of StashAway
Against the Gods: The Remarkable History of Risk by Peter L Bernstein
Lim’s recommendation, Against the Gods, takes a historical perspective and explores our understanding of risk at different times.
In this popular book, Bernstein illustrates the impact of risk on a wide range of businesses. As Lim says, âRisk is inherent in our daily life.
The book is a comprehensive history of man’s efforts to understand risk and probability. It’s an ambitious exposition of how risk is managed from ancient times to the present day. “
Sam Rhee – President and Chief Investment Officer, Endowus
The Little Book of Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Returns by John Bogle.
The author of this book is the founder of the Vanguard Group, which is a pioneer and leader in low-cost mutual funds and index funds. In his book, Bogle shares his investing philosophy and explains the importance of passive investing.
It is clear that the book influenced Mr. Rhee, who told us “Singapore does not have access to the best passive index funds, so Endowus was created to try to solve this problem and was successful in integrating the Vanguard passive index funds. in CPF for So it’s a special book because we work closely with value-aligned investment partners like Vanguard and Dimensional. “
Rhee also emphasizes the importance of the book’s subtitle. “This refers to the tragedy that” the miracle of compound returns has been overtaken by the tyranny of compound costs. “
People want to be a hero and boast outsized returns on a few of their investments, but just cutting costs could be the fastest way to make an investment successful if you can focus on the long term and have globally diversified market exposure to harness the power of compound returns. “
Adam Reynolds, CEO of Saxo Markets APAC
Manias, Panics, and Accidents: A History of Financial Crises by Charles P. Kindleberger
Kindleberger’s book, originally published in 1978, is equally relevant over 40 years later. Klinberger was a financial historian and Ford Professor of Economics at MIT for over 30 years.
In his book, Kindleberger examines the natural patterns of financial crises, which provides readers with a historical perspective.
As Reynolds, CEO of Saxo Markets APAC puts it, “learning from history is far more important than learning from any trading guru.” The book currently costs S $ 94 on Amazon, but you can listen to the book on Audible for free during the platform’s free trial.
Kay Van-Petersen, Global Macro Strategist at Saxo Markets
The Richest Man in Babylon by George Samuel Clason
The Clason Classic is not specifically an investment book per se. However, the book does cover topics on personal finance, including financial planning, wealth management, and savings.
These are clearly essential topics for any investor. As Van-Petersen puts it, “If you don’t understand money, then looking to invest is the proverbial plow before the horse. You’d be surprised how many well-paid executives have very little foundational knowledge of creation. of wealth. “
Not only that, the book is relatively easy to read, Van-Petersen suggests that you could even read it with your children.
Bianca Fischer, IG Premium Client Manager
The Big Short: Inside the Doomsday Machine by Michael Lewis
Fischer’s pick, The Big Short, tells the story of the 2006-2007 housing bubble in the United States, which led to the 2007-2008 financial crisis.
Fischer appreciates the lessons from the book, especially the lessons he teaches future traders. In his words, “Know your instrument, study the instrument, and fundamentally understand what it involves and all that comes with it.”
If you’re interested, The Big Short was also developed into an award-winning film in 2015.
Kelvin Teo, co-founder and CEO of the Funding Societies group
The smart investor by Benjamin Graham
The smart investor is considered by many to be the gold standard when it comes to investing books. In Teo’s words, âAfter 70 years, this 1949 classic is still a must read because the market is made up of humans and human nature has not changed. It teaches the fundamentals of investing as much as its character.”
If Teo’s highly skilled recommendation isn’t enough, Warren Buffet called the book “hands down the best book on investing ever written” – quite the endorsement.
DJ Kang, Founder and CEO of ValueChampion
Margin of Safety: Value-Driven Investment Strategies Risk Free for the Smart Investor by Seth Klarman
Margin of Safety teaches readers to invest, but also to be critical. One parable that struck DJ was the story of the canned sardine trade. Without giving too much away, this story illustrates the difference between speculation and rigorous investment.
In the words of DJ, Klarman’s book teaches that “invest everything to find situations where you can make money even when you are not quite right, because you have a large margin of safety. .
For example, if you thought something increased by 30%, you will still make money if you get it wrong and it only increases by 10-20% â.
Since the book is no longer published, it typically earns over $ 1,000 for a used copy. We recommend that you search the internet for a free copy or contact someone who may have a copy that you can borrow.
Stay safe and keep learning
Whether you are investing in stocks using your online brokerage, local startups on a crowdfunding platform, or relying on a top robotics advisor like Endowus or Stashaway, there is something to learn from everyone. those books.
We sincerely hope that you and your family are healthy and happy, and that these books will help you pass your time during the breaker.
For the latest updates on the coronavirus, visit here.
This article first appeared in ValueChampion.