It’s a well-known fact that you need to do a lot of research to have some degree of success with investing. But where exactly do you start researching? There are hundreds of books about investing, and if you go online, the amount of resources at your disposal grows exponentially.
So, what resources should you use? Well, we have a few recommendations to make. In this post, we’ll go through 15 of the best investing books you can find.
#15 Rich Dad Poor Dad (By Robert Kiyosaki)
Rich Dad Poor Dad is one of the best books for beginner investors and people interested in real estate. It talks about crucial life lessons that the author learned as he grew up with two dads – the poor dad (his father) and the rich dad (his best friend’s father).
The book then illustrates the importance of having a “rich” mindset, stressing the importance of learning more about finance, making investments that generate money in the long run, and above all, setting the goal of complete financial independence as your primary objective so that you can get out of the “race of corporate America”.
The key takeaway from Kiyosaki's book is “Instead of working for money, have the money work for you”.
#14 Think And Grow Rich (By Napoleon Hill)
Written during the 1930s, this bestselling work from Napoleon Hill is still as relevant today as it was when it was published. The book is aimed at beginner investors and it explains the psychology of success, examining how personal beliefs and perspectives influence one’s success in life.
For the detracting reader who thinks the title is a bit corny, we're glad to tell you that Hill’s work is based on more than 20 years of research coming from interviews with some of America’s wealthiest figures. From his studies, he drew a list of 13 principles needed for success, which he extensively describes in this work.
#13 The Behavioral Investor (By Daniel Crosby)
The Behavioral Investor is a psychological book that explores the idea of our emotions leading us to make terrible investments, and it also offers practical solutions to compensate for these shortcomings of the mind whenever building wealth is concerned.
The main idea that Daniel Crosby’s book stresses on the reader is that “wealth, truly considered, has at least as much to do with psychological as financial wellbeing”.
The book is divided into three parts:
- Part one introduces the influence of external factors on our choices.
- Part two discusses the four main psychological factors that impact our behaviour when we're investing.
- Part 3 provides a framework for overcoming those shortcomings and improving both your returns and overall behaviour.
#12 The Intelligent Investor (By Benjamin Graham)
The Intelligent Investor is a book that introduces you to the basics of value investing. It was written by economist and investor Benjamin Graham (whose disciples include Warren Buffett and Irvin Kahn).
It includes information on important concepts such as behavioural economics, position trading, contrarian investing, and market fundamental analysis.
The fact that the book’s content has managed to remain as relevant today as it was in 1949 (when the book was originally published) speaks volumes of how timeless Benjamin Graham's wisdom really is.
#11 Thinking, Fast And Slow (By Daniel Kahneman)
Written by renowned psychologist and Nobel Prize laureate in Economics Daniel Kahneman, this book explores how one’s thought process impacts investment success.
The book explains that our thinking can be divided between two systems. First, there's system one, which is fast, emotional and has the initiative. Then, there's system two, which is more deliberate, down-to-earth and rational.
The book also stresses that reliance on system one can lead to flawed decision-making, and it teaches you techniques you can use to protect yourself from its shortcomings.
The book is also written in a lively, conversational style, which helps explain extremely complex concepts by presenting them in an easily comprehensible manner.
Despite the fact that the main focus of this book is on investing, Kahneman also explores how biased thinking impacts outcomes both in our business and everyday lives.
#10 A Random Walk Down Wall Street (By Burton G. Malkiel)
A Random Walk Down Wall Street is often recommended by many as the first book new investors should purchase before starting a portfolio.
By reading this book, you get introduced to the various investment terms and what they mean, what investing strategies to use, how to make more accurate market predictions, what common mistakes to avoid, and more.
Malkiel’s book doesn’t offer any get-rich-quick schemes — instead, it offers detailed tried-and-tested methods that help you ensure your long-term investment success.
#9 Beating The Street (By Peter Lynch)
Beating the Street is a book written by Peter Lynch, and in it, he explains his investment strategies step-by-step and offers advice on how to select the right individual stocks and mutual funds for your investment portfolio. He also stresses his belief that an individual investor has better chances to exploit market opportunities than Wall Street throughout the book.
It might seem impossible for beginner investors to make a name for themselves in today’s financial environment, but this book can serve as a reminder of how wrong thinking like this can be.
It’s also a great read for long-term index investors to get a contrarian view of their own strategy.
#8 The Coffeehouse Investor (By Bill Schultheis)
Next on the list of the best investing books for beginners is a very underrated book, The Coffeehouse Investor by Bill Schultheis. It’s a fantastic book for anyone that feels intimidated by the stock market.
The book highlights the wisdom of simplifying your investment decisions, which not only translates to you getting better stock market returns but also means that you will have more time to follow other interests you have in life.
It’s a short read (it's only 224 pages long), but for the novice investor dreaming of making it big overnight, this book serves as an excellent reminder of why that kind of thinking is impractical and provides simple advice on what you should do to improve your returns.
#7 The Essays Of Warren Buffett (By Warren Buffett)
The Essays of Warren Buffett: Lessons for Corporate America is a collection of Buffet’s shareholder letters (from Berkshire Hathaway) and other writings. He can easily be considered one of the most successful investors in modern history.
Throughout the book, you'll get insight into Buffet’s take on various topics, including corporate governance, finance, and investing.
For beginners, this book is a prime resource for learning the investment principles that helped make Warren Buffett the success he is today. It can also be used to get a glimpse into the workings of modern corporate finance as well, so checking this book out is very much worth your time.
#6 Principles (By Ray Dalio)
In Principles: Life and Work, Ray Dalio shares the lessons he learned from his highly successful investment career with his readers.
Starting his investment firm out of his two-bedroom apartment in NYC, he managed to grow it into one of the most important private companies in the United States over the course of 40 years.
In this book, you'll be introduced to Ray Dalio’s set of unique principles that helped make his business such a huge success. He also teaches you how to be more effective in leadership and management, making the advice he offers in this book pretty invaluable.
#5 The Little Book of Common Sense Investing (By John C. Bogle)
In this book, John Bogle, the creator of the first index fund, founder of The Vanguard Group and close friend of Warren Buffett, provides strong insights and perspectives on how to get more out of your investments.
The book details Bogle’s pioneering techniques and strategies when it comes to investing, even going as far as illustrating how you can still turn the odds in your favour in a lose-lose situation (or how you could lose everything in a win-win situation if you're not careful).
It's a book recommended by some of the best financial minds out there, and reading this book will allow you to earn the most gains with the least risk of destroying your investing capital.
#4 The Only Investment Guide You’ll Ever Need (By Andrew Tobias)
Using language that is concise and somewhat humorous, Andrew Tobias explains financial concepts and information that would otherwise be very boring while keeping you from losing interest. This is a great book to pick up if you're a beginner, as it will help you learn the basics of finance and investment quickly.
It’s not exactly meant for experts, but there's enough value in the book to still make it a worthwhile read even if you're experienced on this topic.
Andrew Tobias’s guide has been a favourite for those looking to upgrade their knowledge of finance and overall fiscal responsibility. It has been revised to reflect the present condition of the financial market environment, so you don't need to worry about this book being outdated.
#3 The Clash Of Cultures: Investment vs. Speculation (By John Bogle)
Another great investing book by John Bogle, The Clash of the Cultures, is one that Warren Buffett recommended during his 2012 shareholder letter.
In the book, Bogle argues that short-term speculation is crowding out long-term investing. It’s a great read that includes several tips for investors on how to devise their investment strategy.
It offers ten actionable steps that investors from coming from anywhere can take, and although he acknowledges in his book that his words may not be the best strategy ever devised, that the the number of strategies that are worse is infinite.
#2 Where Are the Customers' Yachts?: or A Good Hard Look at Wall Street (By Fred Schwed)
Fred Schwed uses this book to uncover the hypocritical nature of Wall Street. He talks about the story of a visitor to New York who admires the yachts owned by brokers and bankers. He then ponders where the yachts of all their customers went. After all, they did follow the advice of their bankers and brokers. They should be able to afford them, right?
In his 2014 shareholder letter, Warren Buffett recommends reading this book by Fred Schwed. Of course, this is not the first time he praised this book. Back in 2006, Warren Buffett said, “This is the funniest book ever written about investing. It delivers many truly important messages on the subject”.
#1 Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger (Edited By Peter D. Kaufman)
Poor Charlie’s Almanack is a collection of advice from Charlie Munger, the vice-chairman of Warren Buffett’s Berkshire Hathaway.
It's a book that encapsulates information about his life and philosophy regarding investing. It also offers a glimpse of conversations Munger had at Berkshire Hathaway meetings.
It is an insightful look into one of the geniuses in the world of stock market investing and a book that Warren Buffett reads himself.
The amount of research needed to get into investing can be a bit overwhelming, but in this day and age, all the information you need is just a few simple clicks or taps away. Today is definitely the best time to get into investing, considering the plethora of information you can use.
The books found on this list are certainly a good starting point, and they'll get you on the right track, but they are by no means the only resources out there. Use the advice on these books to start investing but make sure to keep reading more every day to learn new strategies and stay on top of your game.