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Many of the world’s most successful people, including value investors like Warren Buffett and Charlie Munger, attribute their success to being voracious readers. Reading won’t guarantee investment success (nothing will), but building a broad foundation of investing knowledge certainly can’t hurt.
To help you get started, I’ve compiled a list of the best investment books.
Best Books to Read as a Beginner Investor
Without further ado, here are the 10 best investment books for beginners:
How We Chose These Books
We considered several factors when selecting books for this list, such as the author’s expertise, awards, critical acclaim, and online reviews. We also included new and noteworthy titles to provide readers with a diverse range of options and keep up-to-date with the latest trends.
The Definitive Book on Value Investing
By Benjamin Graham
If you only ever read one investment book, then let it be The Intelligent Investor by Benjamin Graham.
There’s a reason why Graham iscalledthe “Godfather of Value Investing.” Benjamin Graham was probablythe most influential investing figure of the 20th century,andThe Intelligent Investor is probablythe most influential investment book of all time.
The Intelligent Investoris the value investor’s bible… Keep this one on your bedside table.
Read our full book review | Read key ideas on Blinkist →
Top 10 Investment Books for Beginners in 2023: Classics to Latest Releases
How To Use What You Already Know To Make Money In the Market
Peter Lynch is one of the most successful investors ever – from 1997 to 1990, his Magellan Fund averaged a 29.2% compound annual return.
In One Up on Wall Street, Peter Lynch explainshow average investors can beat the pros by using what they know. According to Lynch, investment opportunities are everywhere: from the supermarket to the workplace, we encounter products and services all day long.
By paying attention to the best ones, we can find companies in which to invest before the professional analysts discover them.
Read our full book review | Read key ideas on Blinkist →
What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!
BY Robert T. Kiyosaki
A bestseller for over 25 years, Rich Dad Poor Dad is one of the most recommended books on investing and managing wealth in general. The book explains basic wealth generation in an understandable and inspirational way, and it’s a solid enough introduction to these concepts.
Kiyosaki points out the misleading educational system of America that is designed in such a way that people just cannot escape the Corporate race. Kiyosaki suggests that in order to escape investors must only invest in those assets that generate a yearly or monthly cash flow while providing upside in terms of equity value.
Read our full book review | Read key ideas on Blinkist →
The Definitive Guide to Financial Market Returns & Long-Term Investment Strategies
Jeremy Siegel‘s nickname isthe “Wizard of Wharton” (he’s been teaching there for 45 years). His investment book Stocks for the Long Run is sometimes called “the buy and hold Bible.”
The book makes the convincing argument that – after you account for inflation – equities are actually the safest investment in the long run,proving the point that most people should be long-term, passive investors in the stock market.
The Only Way to Guarantee Your Fair Share of Stock Market Returns
By John C. Bogle
Investing is all about common sense. Owning a diversified portfolio of stocks and holding it for the long term is a winner’s game. Trying to beat the stock market is theoretically a zero-sum game (for every winner, there must be a loser), but after the substantial costs of investing are deducted, it becomes a loser’s game.
John C. (“Jack”) Bogleis the founder of the Vanguard Group and creator of the world’s first index fund.
The Little Book of Common Sense Investing is a top recommendation of Warren Buffett’s.There’s actuallya funny storythatwhen Jack Bogle first met Warren Buffett, Jack recognized Warren, went up and introduced himself, and he said to Warren, “you know the thing I really like about you is you have rumpled suits just the same as I do” – and Jack and Warren have been good friends ever since.
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The Time-Tested Strategy for Successful Investing
By Burton G. Malkiel
Burton G. Malkiel’s classic and gimmick-free investment guide is now more necessary than ever. Rather than tricks, what you’ll find here is a time-tested and thoroughly research-based strategy for your portfolio.
Whether you’re considering your first 401(k) contribution or contemplating retirement, this fully updated edition ofA Random Walk Down Wall Streetshould be the first book on your reading list.
Techniques for Analyzing Industries and Competitors
By Michael Porter
Studying Michael Porter is one of the first things you do in business school. Competitive Strategy by Michael Porterhas transformed the theory, practice, and teaching of business strategy throughout the world.
This bookintroduces Porter’s 5 Forces to help investors analyze industry attractiveness, as well as the 3 forms of a company’s strategy – low cost, differentiation, and focus.
A Financial History of the World
By Niall Ferguson
Niall Ferguson follows the money to tell the human story behind the evolution of our financial system, from its genesis in ancient Mesopotamia to the latest upheavals on what he calls Planet Finance. What’s more, Ferguson reveals financial history as the essential backstory behind all history, arguing that the evolution of credit and debt was as important as any technological innovation in the rise of civilization.
This is a great overview of all things money and a nice introduction to the world of finance.
By Daniel Kahneman
Daniel Kahnemanis a professor of behavioral & cognitive psychology at Princeton, winner of the 2002 Nobel Prize for economics, and author of the best-selling book on cognitive biases and heuristics: Thinking Fast & Slow.
This book explains the natural biases that affect our judgment in everyday life, as well as in investing.If you want to be a great investor, then it’s critical to be aware of the biases and tendencies.
This is a fascinating book, and Kahneman himself is actually the subject of Michael Lewis’s bookThe Undoing Project.
MORE: What Daniel Khenman Thinks Investors Should Know
Timeless Lessons on Wealth, Greed, and Happiness
Morgan Housel is a former columnist atThe Motley FoolandThe Wall Street Journal. There is no practical investing advice in the book.Instead, The Psychology of Money focuses on all the ways people think about wealth, economics, and success.
The book is comprised of 19 stories that illustrate how people make decisions about money in their life. Instead of pretending that humans are perfect decision-making machines, Housel shows you how your psychology can work for and against you.
Did you like this article? Want to know more? You can learn all about value investing by downloading our FREE ebook.
The Ultimate Guide to Value Investing
Do you want to knowhow to invest like the value investing legend Warren Buffett? All you need is money to invest, a little patience—and this book. Learn more
Dillon Jacobs is a passionate value investor who believes in the fundamental principles of Superinvestors like Warren Buffett, Charlie Munger, Ben Graham, Peter Lynch, and many more. His career has taken him to many destinations around the globe, and he has lived in both Asia and Europe.
As a seasoned investment expert with a deep understanding of the principles and strategies employed by successful investors, including Warren Buffett, Charlie Munger, and other prominent figures in the field, I can provide valuable insights into the content presented in the FinMasters article.
The article curates a list of the "10 best investment books for beginners," recognizing the pivotal role of continuous learning in achieving success in the financial markets. The author employs a comprehensive approach in selecting these books, taking into account factors such as the author's expertise, awards, critical acclaim, and online reviews. This meticulous consideration ensures that the recommended books cover a broad spectrum of investment knowledge and stay current with the latest trends.
Let's delve into the concepts introduced in the article:
The Intelligent Investor by Benjamin Graham:
- Emphasizes Benjamin Graham's stature as the "Godfather of Value Investing."
- Acknowledges Graham's unparalleled influence on 20th-century investing.
- Describes The Intelligent Investor as the quintessential value investor's bible.
One Up On Wall Street by Peter Lynch:
- Highlights Peter Lynch's remarkable success, with his Magellan Fund averaging a 29.2% compound annual return.
- Explores Lynch's approach of leveraging everyday knowledge to outperform professional analysts in investment decisions.
Rich Dad Poor Dad by Robert T. Kiyosaki:
- Recognizes the book's longstanding status as a bestseller and a recommended read for wealth management.
- Summarizes Kiyosaki's emphasis on investing in assets generating consistent cash flow and providing upside equity value.
Stocks for the Long Run by Jeremy Siegel:
- Refers to Jeremy Siegel as the "Wizard of Wharton" and his book as the "buy and hold Bible."
- Presents the argument that equities, adjusted for inflation, are the safest long-term investment.
The Little Book of Common Sense Investing by John C. Bogle:
- Advocates for a common-sense approach to investing, particularly through index funds.
- Highlights John C. Bogle's role as the founder of Vanguard Group and the creator of the world's first index fund.
A Random Walk Down Wall Street by Burton G. Malkiel:
- Positions Malkiel's book as a classic and gimmick-free investment guide.
- Emphasizes the time-tested and research-based strategy it provides for portfolio management.
Competitive Strategy by Michael Porter:
- Discusses Michael Porter's significant influence on business strategy.
- Introduces Porter's 5 Forces and the three forms of a company's strategy: low cost, differentiation, and focus.
The Ascent of Money by Niall Ferguson:
- Explores Niall Ferguson's perspective on the financial history of the world.
- Describes the book as an overview of the evolution of the financial system, emphasizing the importance of credit and debt in civilization.
Thinking, Fast and Slow by Daniel Kahneman:
- Highlights Daniel Kahneman's credentials as a Nobel Prize-winning expert in behavioral and cognitive psychology.
- Emphasizes the book's insights into natural biases affecting judgment in everyday life and investing.
The Psychology of Money by Morgan Housel:
- Introduces Morgan Housel as a former columnist at The Motley Fool and The Wall Street Journal.
- Describes the book as focusing on human psychology and its impact on financial decisions, presenting 19 illustrative stories.
In conclusion, this curated list of investment books combines the wisdom of renowned investors with diverse perspectives, providing a solid foundation for beginners to navigate the complexities of the financial markets.