My Top 8 Favourite Books for Investors
What books would you recommend to investors?
Investors are constantly looking for new ways to invest their money. They want to get the best returns possible without having to put in too much effort. A lot of what I have learned comes from books. And there are plenty of books for investors out there, but not all of them are worth reading.
Out of the personal finance books available some focus on investing strategies while some focus on stories related to the authors investing journey. Whichever book you decide to purchase, all have useful takeaways which can help you progress to successful investing.
So here is my list of top five investment books that every investor should read:
1. The Intelligent Investor by Benjamin Graham
This is one of the most famous and well-known books about investing. It was first published in 1949 and has been translated into multiple languages. This book will teach you how to use fundamental analysis to find stocks with high potential growth. You will learn how to identify companies with strong fundamentals.
The book also teaches you how to avoid common mistakes made by investors when it comes to picking stocks. Often common mistakes early on in a person’s investing journey are what lead to a young investor giving up on the journey.
This book has been recommended by the likes of Bill Ackman, Warren Buffett, Michael Burry and many more well renowned investors.
2. Rich Dad Poor Dad by Robert Kiyosaki
Robert Kiyosaki’s father left him a fortune when he passed away. He then used this money to start his own business. He eventually became rich and now teaches people how they can do the same thing. His book focuses on teaching people how Robert came to understand the differences between the rich and the poor.
Without going into too much detail, the poor Dad in Rich Dad Poor Dad is Robert’s actual Dad who was a well educated man working a 9–5 whereas his rich Dad was actually his friends Dad who ran business’ and taught Robert his mindset to a wealthy life.
3. A Random Walk Down Wall Street by Burton Malkiel.
Burton Malkiel wrote this book back in 1973. Since its release, it has become an iconic book among investors. In fact, the book sold over 10 million copies worldwide.
In the book, Burton talks about the history of the stock market . He explains why markets go up and down. He also goes through several different types of investments including index funds, bonds, real estate and commodities.
He also talks about how to pick stocks using technical analysis. Technical analysis is a method of analysing the price movements of a stock or other asset based on past events.
4. The Little Book of Common Sense Investing by John C. Bogle.
John Bogle is known as the “Father of Index Funds”. He founded Vanguard Group Inc., which is the world’s largest provider of mutual fund services. In his book ‘The Little Book of Common Sense’, John shares his insights on how to invest your money successfully.
He starts off by explaining the difference between active management and passive management. Active managers try to beat the market by making risky decisions such as buying individual stocks. On the other hand, passive managers buy and hold a list of stocks that make up an entire portfolio. They tend to be less volatile than active managers.
Bogle also discusses some important topics like fees, inflation and taxes. He tells you where you should keep your money throughout the years so that it will grow faster safely.
His advice is simple yet effective! I recommend reading this if you want to get started with basic investment strategies.
5. One Up On Wall Street by Peter Lynch.
Peter Lynch is one of my favourite value investors. He worked at Fidelity Investments from 1972 to 1990. During his time there, he managed $150 billion worth of assets. After leaving Fidelity, he launched his own firm, the Lynch Partnership.
In his book, ‘One Up On Wall Street’, he talked about value investing and gave good tips on how to find undervalued companies. He also discussed behavioral finance, diversification and what businesses are attractive.
6. The New Market Wizards by Jack Schwager.
Jack Schwager is another great value investor. He works at the Schwager Center for Investment Research. This book highlights his best ideas, style and approaches to investing. He also talks about the importance of research and data when doing your own research.
This book is ideal for any beginner who wants to learn more about the basics of investing. It teaches you how to read financial statements, how to interpret charts and graphs, and how to use fundamental analysis.
7. The Warren Buffett Way by Robert Hagstrom.
Warren Buffett was at one point the richest man alive from investing his whole life. This book focuses on how he did it. It shows you how to be like Warren Buffett through his story and how he went from being broke to becoming the world’s greatest investor.
Warren Buffet has been in the stock market since childhood. In fact, he wrote a letter to his broker while still in grade school asking why they weren’t allowed to sell certain stocks. He eventually became one of the most successful investors ever.
8. The Complete Idiot’s Guide To Stock Investing by Sarah Fisher
Sarah Fisher is a finance teacher and host on CNBC. As the title suggests, she explains different types of investments and their benefits. She also discusses the differences between index funds, ETFs, mutual funds, hedge funds, private equity, and real estate.
You’ll find out how to pick winning stocks, how to choose a broker, how to trade stocks, how to manage risk and much more. If you’re looking for a comprehensive guide to stock investing, this is the perfect choice.
As a disclaimer, all of the links in this article to the books are Amazon affiliate links. By purchasing a book through our link you will directly support our blog at no extra cost to yourself.
I hope that you enjoyed this article. Please let me know in the comments below whether you learned anything new or plan on getting any of the books I have listed. Also let me know if there are any other books you think are useful for new investors and maybe it will make a future list.
Thanks for Reading 😀
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How do beginners learn to invest?
If you want to get started with investing, then you should focus on trying to learn as much as you can. Whether through the internet, books or mentors, investing is a process where you are constantly learning as there are always unique and new opportunities. I have listed some of my favourite books within this article which helped me get to grips with the basics.