Books Offer Chapter and Verse for ’93 Investing

Investors fleeing certificates of deposits to the often unfamiliar world of high finance--stocks, bonds, mutual funds--have helped to create a boom for investment books.

“There are a lot of people who are taking charge of their finances in ways they’ve never tried before,” said Patricia Klein, buyer for Waldenbooks in Connecticut. “And there are suddenly more products available to help them do it. The combination has empowered people.”

“People are trying to get their lives in order, so they’re paying more attention to self-help books,” said David Harrison, director of books at Kiplinger Washington Editors Inc. “There is a great need for something that gives you complete, unbiased information.”

Sales of business books--which include investment books as well as books on management and other business topics--fell off somewhat last year, to $488.8 million from $527.9 million in 1990. But they are expected to grow again this year, fueled largely by the investment book segment.

Although this is not generally a field filled with bestsellers, some books have surprised even their publishers.

Jane Bryant Quinn’s “Making the Most of Your Money,” for example, has sold about 175,000 copies and appeared on several bestseller lists, according to a publicist at Simon & Schuster in New York. Kiplinger’s “Invest Your Way to Wealth,” which was launched without any promotional fanfare, has already sold about 45,000 copies, and sales are still very strong.

“Business books do tremendous business,” said Dorian Farrow, book department manager and senior buyer at Vroman’s Book Store in Pasadena. “Real estate books are also going crazy. We can’t keep enough in stock.”

Many of the strongest sellers are single-topic books, which advise people on how to buy foreclosed real estate or stocks without a broker. However, broader investment books such as Kiplinger’s are also beginning to jump off the shelves, largely through word of mouth, book buyers say.

Some experts maintain that these comprehensive investment manuals are vital to displaced bank depositors who find themselves considering a widening array of unfamiliar investments in an effort to earn a reasonable return on their money.

Yet with hundreds of titles, investors may have a hard time making a choice. And a bad business book is often worse than no book at all. Some, for example, are less than objective.

“There are a number of (authors) out there who are trying to sell you more than a book or a magazine,” Kiplinger’s Harrison said. Some books promote particular products that the author also happens to sell. While these products aren’t always bad, they aren’t for everyone--despite some author’s claims.

What books are worth considering if you are bent on learning the facts on investing?

The best books give readers ample information on the basics of investing, as well as numerous specific investments. They don’t preach and attempt to sell products. And they can be referred to, rather than read. (If somebody is trying to sell you a stock option, you should be able to quickly refer to the appropriate chapter and get the pros and cons without having to wade through information on various other options.)

That said, here’s a short, subjective list of some of the best:

* The best of the group is “Kiplinger’s Invest Your Way to Wealth” by Theodore J. Miller. It is clearly written and exceptionally comprehensive both in the number of subjects it covers and in the way it covers them. The book discusses everything from savings accounts to stocks, bonds, mutual funds, mortgage-backed securities, precious metals, limited partnerships and commodities.

In fact, there are few, if any, viable investment options that this book has missed. And it should be particularly attractive to risk-averse investors because it carefully details the drawbacks of each option.

Miller makes no secret of his opinions. One chapter is titled “Mutual Funds: The Best Investment Idea Anyone Ever Had.” Another section, which deals with limited partnerships, futures and penny stocks, is called “More Investments You Can Live Without.” But he backs his opinions with facts, so you can decide whether you agree.

With a retail price of $21.95, it is also one of the most expensive investment books. Still, it’s worth buying if you have enough money to experiment with a variety of options and you want a complete view of nearly anything your broker has to sell you.

* “The Dean Witter Guide to Personal Investing” by Robert M. Gardiner, first published in 1989, is not as comprehensive or current as the Kiplinger book. But it does cover many of the basics--including mutual funds, treasuries, CDs, bonds, annuities, limited partnerships, common stocks and real estate. Gardiner writes with a sense of humor--a rarity worth mentioning. Better still, his book is now out in paperback with a retail price of $4.99.

* “The New York Times Book of Personal Finance” by Leonard Sloane is an overall personal finance primer that focuses on investments between pages 161 and 240. Those 79 pages cover everything from record-keeping to basics on stocks, bonds, mutual funds, options and collectibles.

As an investment book, its main shortcoming is that it covers a number of investments you’ll never make but doesn’t talk about some that you might.

For instance, it gets into the rarified world of commodities trading but doesn’t review the pros and cons of mortgage-backed securities. Still, for those who need a personal finance primer as much as an investment book, it’s worth a look. Price: $13.

* Marshall Loeb’s 659-page “1993 Money Guide” is too long. But it’s got an 11-page table of contents that delineates (nearly to the paragraph) where everything is located. In other words, it works as a reference manual. The $15.95 guide devotes about 150 pages to investing and provides numerous recommendations about where to get further information.