Complete Beginner...

[Caruso329]

Ok, I have already used the search function to no avail. I am interested in investing when my poker bankroll becomes large enough to allow it. I would like to take the time until them to start studying everything I can about the market.

Please list any recommended books, websites, etc. and how much you recommend it.

I know you guys get a lot of these posts, and if I overlooked something while searching please link me. I searched for "beginner", "starting", "new", "books" (which only came up with day trading), and "websites". Sorry for being a newb. Cheers!

[MarkL444]

Im in the exact same boat as you. Hoping to start getting my feet wet in a few months. I just ordered The Intelligent Investor. Ill let ya know how that goes or if I find anything else.

[adios]

I would start with something like "A Random Walk Down Wall Street" because that book at least provides some insight into ideas of risk aversion and market effeciency. Look up FatOtt's posts in this forum. He had a post that spelled out the types of books to read that would be very useful. I'll add that a basic knowledge of how securities are valued is essential IMO FWIW.

[RunDownHouse]

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I'll add that a basic knowledge of how securities are valued is essential IMO FWIW.

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For that grab Graham's The Intelligent Investor (which I'm sure everyone here has heard about) and also Expectations Investing by Rappaport and Mauboussin (which I'm sure very few here have read). Expectations Investing is probably the best book out there on how stocks are valued and what those values mean in the market.

[Caruso329]

Thanks everyone, I'll try to grab those books as soon as I can. Also will look up those posts.

[parttimepro]

Okay, The Intelligent Investor is a great book, but it is incredibly boring. And not at all something a beginner should start with. Not sure how much of a beginner you are, but if you're absolutely new, I'd honestly pick up one of the "Dummies" books. It'll give you an easy understanding of what stocks and bonds, dividends, splits, P/E ratios, index funds, etc. actually are. After that something like A Random Walk that deals in depth with issues of the fundamentally chaotic behavior of the market.

[RunDownHouse]

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Okay, The Intelligent Investor is a great book, but it is incredibly boring.

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But... but I want to make money the easy way, without thinking or working too hard! Isn't there just a get-rich-quick guide out there?!

[zerosum]

Begin your studies by learning how difficult it is to beat the market and how valuable simple diversification and asset allocation can be. Read the books listed below, and then re-read them. You may want to read them in the order in which I present them.

If you still want to pursue stock selection and portfolio construction after you have read these 3 books, let me know. I'll be happy to provide a list of books and articles that I have found useful.

The books:

1. Winning the Loser's Game, by Charles D. Ellis

2. Common Sense on Mutual Funds, by John C. Bogle

3. Asset Allocation, by Roger C. Gibson

[Caruso329]

Thanks everyone again on the posts.

parttimepro, I am like I said in the title, a complete newbie. I have never dabbled in stocks, bonds, mutual funds, or any part of the market whatsoever. I am not interested in a get-rick-quick scheme, I am interested in my security financially in the future. I am only 18 so I think now would be the best time to start investing and planning for when I am out of college.

I will pick up the Dummies book, and zerosum's 3 books that he listed. When I finish those and think that I understand the topics covered, I'll send you a PM zerosum.

Thanks for everyone's help again.

[gvibes]

[ QUOTE ]
Thanks everyone again on the posts.

parttimepro, I am like I said in the title, a complete newbie. I have never dabbled in stocks, bonds, mutual funds, or any part of the market whatsoever. I am not interested in a get-rick-quick scheme, I am interested in my security financially in the future. I am only 18 so I think now would be the best time to start investing and planning for when I am out of college.

I will pick up the Dummies book, and zerosum's 3 books that he listed. When I finish those and think that I understand the topics covered, I'll send you a PM zerosum.

Thanks for everyone's help again.

[/ QUOTE ]

I would recommend a Random Walk Down Wall Street as well. Also, The Four Pillars of Investing by William Bernstein is excellent.

Diehards.org is an excellent, long time horizon investing site. They largely advocate the use of low cost index funds.

[bigpicks]

try a group stock pick. Scheduled for 02/07/2005


http://www.freeibforums.com/forums/index.php?mforum=bigpicksinvesto&showforum=2

Obviously if you dont like the pick, you dont have to buy it.

[elus2]

try these

Bull! by Maggie Mahar (http://www.amazon.com/exec/obidos/ASIN/006056413X/002-0879361-9228068)

Ben Graham online lectures (http://www.wiley.com/legacy/products/subject/finance/bgraham/)

then i would pick up some accounting theory books and learn how to properly read financial statements. pick up some books on competition and business management. some authors you could look up would be guys like Michael Porter and Peter Drucker.

[bigpicks]

do what you want, but if you guys want to get in on more stocks before they run, join our group pick. The next group buy i scheduled 02/07/2005:

http://www.freeibforums.com/forums/index.php?mforum=bigpicksinvesto&showforum=2

If you dont like the group's pick you dont have to buy it. But you have to break your order into parts in order to get in early. The price usually raises quickly..

[AlwaysWrong]

Can you explain what this is / how it works?

[imported_Jim C]

Then, if you want to learn the thinking and technique of a person who consistently beat the market, read Alchemy of Finance , by George Soros. Soros was a hedge fund manager who operated the most successful hedge fund in history. He's the guy who made billions trading the British Pound and became famous. Soros is a hero of mine for other reasons (see soros.org (http://soros.org)), and an amazingly brilliant man.

Soros exploited what he calls "far from equilibrium" conditions in the market -- basically situations where the market is not operating efficiently for a variety of reasons. He explains how and why these conditions occur and how he detected them and profited from them.

He also made me realize that I'm not all that interested in becoming an expert in this field. It was still a fascinating book, though!

FWIW,
Jim