Top 5 Resources To Become A Better Investor
Morningstar Learning Center
For beginners, the best way to become a better investor is to learn the basics of investing. Morningstar, a popular mutual fund and stock resource company, offers a variety of short courses in their learning center on everything from stocks, mutual funds, bonds, and portfolio construction. Investors could do worse than complete a few of these.
Read The Investment Classics
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Many successful individual investors start by reading the so-called investment classics. These are books written by some of the professions wealthiest and most successful investors. A few I recommend are Common Sense on Mutual Funds
Educate Yourself About Various Asset Classes
Successful investors need to know the risk/return characteristics of several different asset classes, not just stocks and bonds. Other important asset classes include real estate, commodities and cash, all of which may have a place in your portfolio. You should have a pretty good idea of how these asset classes fit into your portfolio after reading the investment classics above; Unconventional Success has a particularly good treatment of the major asset classes. You might also want to check out my articles on various asset classes and asset allocation.
Determine Your Risk Tolerance
Knowing how much risk you can handle is essential to being successful as an investor. You are likely to panic and abandon your investment plan at the worst possible moment if you unwittingly take too much risk. Know thyself.
Be Inquisitive
By now, you should be more or less comfortable with managing your own investments, but there’s a seemingly infinite amount of information out there. Intelligent students never stop learning. Interested the mathematics of modern portfolio theory? Google it and learn. The world is your oyster.
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I also like the book The Only Three Questions That Count, written by Ken Fisher – the billionaire son of legendary investor Phil Fisher.
I would also reccomend ‘The Market Wizards’ by Jack D. Schwager, which is different from other investment books in that it interviews actual traders.