by Mike Krueger

Created on: January 24, 2009   Last Updated: January 27, 2009

To determine what the top five investment books are, one has to consider context, the starting position or level of expertise that the investor is coming from. The top five investment books should be geared towards the novice investor. The reason for this is simple, and justified. As a novice to intermediate/ consumer investor I found that I took the advice of experts most sincerely over the years. As a result of my own shortcomings and reliance on those I honestly thought had it-all figured out, I found the following critical flaws that cost me thousands of dollars.

In 2002 when I looked at buying share of gold, everyone scoffed and told me not to. Second, within a week of the 2008 market crash, almost every expert claimed that they never saw the crash coming. Back in the nineties I recall the experts treating the dot-com phenomena as being so wonderful that all investors would find themselves living in a utopian Smurf village where everyone would be financially happy. I could go on, but the best starting point is in going back to the basics. So from fifth place I'll begin.

Number five now more than ever: The Communist Manifesto, by Karl Marx. For the simple premise that a utopian village with blue skinned people happily singing songs is just as destructive as a village where all but the mayor is being destroyed by exploitation.

Fourth place: Meditations, by Marcus Aurelius. The first truism is that it is easier to get men to willingly fight and die in battle than to patiently toil and sacrifice for ultimate reward. The second truism stated by the Roman emperor is that stoicism is crucial in getting men to labor away at the proverbial bridge that will likely lead to a better future.

Third place: Rich Dad, Poor Dad, by Robert Kiyosaki. In summary, this work takes the status quo of the ancient peasant/ industrial age way of thinking, and dumps such cultural perspective into the archaic dirt where it belongs. Mr. Kiyosaki explains to the reader why the masses of people have been duped into believing that the corporate tycoon, banker and politician are the only ones qualified to get rich in life. This book has been very inspiring to me.

Second place: The Richest Man in Babylon, by George S. Clason. In this easy and enjoyable to read story, the modern investor is able to identify with both merchants. One runs his business and spends lavishly enjoying the fruits of his labor. The other merchant saves, and uses the profits to further build his business with an eventual positive outcome as compared to the conclusion of devastation that the merchant living life in the fast lane finds himself in.

First place goes to: Understanding Stocks, by Michael Sincere Basically, this book takes the other four works of perspective and context that are indispensible and gives the investor the nuts and bolts of technical information that is needed for getting into the stock market and make more money than losing. I find that in reading this book that I am able to regain my focus thus enabling me to more consistently select the stronger companies that are able to bring in profit during a bull market, and still withstand a bear.

In short, I have found as an investor I feel very firmly in the value of the five books that I have mentioned here. Of course I would encourage the reading of the other suggested works listed by my fellow investors and scribes. In fact I fully intend to follow my own advice, but I would also encourage you to delve into the more philosophical works that can only help with stabilizing, focusing and disciplining ones perspective for bear market sustainability, and future profits while running with the bulls.

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