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Top 11 Books For Long-Term Investing

Top 11 Books for Long-Term Investing

There are many great books on trading, economics, the psychology of investing, the history of finance, etc..  I strongly suggest that you read and study as many as you can.  Almost everything that you can read on the subject of investing, trading, economics, finance, etc. contain valuable insights for investors. But I’ve put the following short list together for you to start your study (deepen your understanding) of Long-Term Investing.

Remember - This list strictly deals with how-to books for successful long-term investing.

If you read these 11 books (a couple aren’t even books, there are also essays & investor letters) and you follow the basic precepts (buy value, buy safety, buy businesses with a durable competitive advantage, allow your investments to compound over many years), I have no doubt you can easily earn 15%-30% per year. after tax. If you couple this Long-Term Value Investment Strategy with selective & safe Income Techniques, it is possible to more than double this return number .

My only other assumptions are that you actually spend the time to read and study these materials – and then actually incorporate them into your thinking.  A very wise man once told me, “If you know, but do not do, you really don’t know.”

Your investing shouldnt require more than 2 to 8 hours per week. If you make more than two to three long-term investments per year, youre working way too hard.  (This doesn’t include any income generation activities such as covered call or shorts.)

You can buy all of the books on this list easily and cheaply (except for Seth Klarmans book, which is out of print). If you study them all carefully, it might take you six to nine months. Your total tuition would be less than $500 – and youd know far more about how to be a successful investor than 99% of the worlds top MBA graduates.

Being a successful investor takes a little bit more than just knowledge. Youve also got to master the traits listed in the very first book on my list. Its an essay written by Richard Russell. It contains the only real secret to becoming wealthy: the power of compound interest. It also demonstrates the key emotional distinction between wealthy people and everyone else.  Remember:

Wealthy Investors tend to be experts on Value!

If you want to be successful, You Must Have an Emotional Advantage!

The Most Powerful Tool Ever Invented By Man Is – Compounding!

He who understands interest ­– earns it!  He who doesnt understand interest – pays it!

With this emphasis and my earlier caveats, here are my personal top 11 information sources on common stock investing.