If you’re interested in becoming an investor, or you already are one and you’re looking to improve your skills, there are plenty of resources available for you to use.
And one of the best available resources is reading books. After all, many famous and skilled investors have published books detailing how they got to the level they’re currently at.
Following in the footsteps of these fantastic investors can be a significant step on your road to success. Thus, we’re going to recommend to you the top 15 investing books to read in 2019. Let’s get started!
Best Investing Books of All Time
There are many books by investors that are highly regarded by other investors and everyday people. These are the best books about investment to read, as they will truly kick-start your journey to wealth.
1. The Intelligent Investor
The Intelligent Investor, initially published in 1949, was written by Benjamin Graham. It has been revised various times throughout the years.
It’s an elaborate book with 640 pages and is a #1 Best Seller. Another highly successful investor, Warren Buffet, believes it’s the number one best investment book ever written.
This book is essentially an analysis of the process that occurs prior to investing. It outlines various tips needed to be a fantastic investor:
- Make a plan for the long run.
- Prepare and prevent any potential loss.
- Don’t take enormous leaps of faith.
- Understand the market is unpredictable. In the book, Graham personifies the market as though it is a man with mood swings, calling it “Mr. Market.”
- Create a game plan for your investments and stay with it. He refers to this as “formula investing.”
The pricing of the book is about $15 if you buy it online on Amazon, Kindle, Google Play Books, or Kobo. It is about $15-$20 if you order a copy from Amazon or buy it from a book store.
2. You Can Be a Stock Market Genius
Joel Greenblatt originally published this book in 1997.
The text outlines how to take control of the market system and earn a considerable amount of profit using special situations, and not going down the traditional paths investors seek. A variety of rules are outlined:
- Do not rely on other people’s work.
- Do not have faith in anybody but yourself.
- Enter your niche, look, and analyze the negatives of the situations before looking at the positives.
He dives into a variety of “hidden” stock market secrets and how to use even some negatives to your advantage. This book has been considered influential to many of the most prevalent investors today.
You can purchase the book for about $13 from online services and in a variety of book stores.
3. The Essays of Warren Buffett
The Essays of Warren Buffett was written/published by Warren Buffett and edited by Lawrence A. Cunningham in 1997.
As the name suggests, this book is comprised of a variety of essays, all written by Buffett. The majority of them were addressed to Berkshire’s shareholders. They provide a comprehensive breakdown to the fundamentals of business and the best way to invest.
Buffett talks about the importance of “economic goodwill” and “accounting goodwill”.
He also provides five examples of variables that may be a potential threat when investing in a business:
- How well can you see the future of that investment?
- How well the investment can be managed
- The purchasing price of the business
- Can the profit channel from the business to the shareholders?
- Taxation and inflation
4. Security Analysis
Security Analysis is yet another book written by Benjamin Graham.
This book should be read after The Intelligent Investor, as it provides a more detailed peek into the process Graham uses to pick stocks. It teaches you how picky you should before deciding how and when to invest.
Tips that are elaborated on in the book include:
- Check how stable a business is prior to investing.
- Purchase stocks that are selling lower than average; you can actually profit from these.
- Bond safety is determined by how financially stable the distributor is and if they can provide profit.
- Rather than just investing, you can spend money on preferable stocks/bonds that are not investments.
- You’re able to find balance in common stocks.
Throughout the book, you’re taught how to weed out good and bad opportunities to invest and how to make a significant amount of profit from your investments.
The book is at a pretty advanced level, hence why it’s essential to read the book’s predecessor first.
The book retails for about $20-$50, depending on if you get the classic version or a newer version of the book.
5. Reminiscences of a Stock Operator
Edwin Lefèvre wrote Reminiscences of a Stock Operator in 1923. This book takes on a different format than the works mentioned prior, as this book focuses on a specific person: Jesse Livermore.
Livermore was the first documented “day trader.” Rather than overtly identifying him as the subject of the book, Lefèvre uses the name “Larry Livingston.”
The book details Livermore’s journey from a worker in a bucket shop to a prevalent figure in the market. It’s a story of greed, fear, jealousy, and the desire for power.
A couple of takeaways from the book:
- Trust your gut in order to maintain your patience, composure, and confidence and become successful.
- Every new purchase of shares you complete should be more costly than its predecessor.
You can purchase the book for about $13-$25, depending on hardcover or paperback.
Best Investing Books for Beginners
If you’re a beginner investor, you may feel intimidated by intermediate or expert level books about investment.
Fortunately, there are a variety of books written specifically for beginners, allowing you to jump-start your career.
6. A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing
This book, written by Burton Malkiel in 1973, has been updated various times throughout the ages.
It details suggestions for how to live your life as an investor. Malkiel used his extensive knowledge in investing to teach readers the foundation of investing, with examples such as:
- The theory of firm foundation
- Stock values
- Computing investment
The book also explains theories investors are taught that are virtually useless, such as:
- Dow theory
- Relative strength
- Price volume
- Chart patterns
- Hemline indicators
This book is sold for $15-$25 at most sources.
7. The Four Pillars of Investing: Lessons for Building a Winning Portfolio
This book, a more recent work, was written by William Bernstein in 2002.
Bernstein claims, as the title suggests, that investments are built on four principles. The first one is the theory of investing. He claims the ideas of taking a risk and receiving profit go hand in hand. To receive return, you must take a leap of faith and face the chance you might lose.
The second pillar is the past related to investing. He makes it evident he believes in learning about your predecessors in investing, designating 30+ pages to teach you about the history.
The third level is the psychological factors related to investing. Berenstein states your greatest enemy in your investment endeavors is yourself. His tips related to this are:
- Do not be overly confident/arrogant.
- Conventional pathways aren’t always the most appropriate way to go.
- Don’t let one setback ruin your morale.
- Overall success is what matters, not every individual instance.
The fourth and final pillar is the business in investing. This section is spent talking about how the market is designed to challenge you and take your money, and a good investor does everything in their power to put the odds more in their favor.
This book retails for approximately $20.
8. Common Sense on Mutual Funds
Common Sense on Mutual Funds was written by John C. Bogle and published in 1999.
This book’s focus is on mutual and index funds. It is separated into five chapters, which are each organized like essays based on different topics, all linked to mutual funds.
Bogle lays out how you should deal with mutual funds as an investor. He also emphasizes having a long-term business strategy that you stick to.
Bogle’s main advice is this: Cheaper index funds should be utilized in with a disciplined and low-turnover portfolio strategy. He also warns about the uncertainty that comes with investing. Some other points he makes include:
- You need to put a portion of your profits in savings, participate in retirement plans, and finance through index funds.
- The truth of investing is: when many investors are confident, the market valuations are as well. When many are not, the market is more appealing.
- For successful investing, you must continue investing for a long time.
- Focus on things you can control.
The book retails for $18-$25.
9. Stocks for the Long Run
This work, written by Jeremy J. Siegel in 1991, was updated to its fifth edition in 2004.
The book mainly looks at the long-term of finance and the market since the early 1800s. Topics covered include:
- The verdict of history
- Stock returns
- The economical environment in regards to investing
- The ups and downs of stocks
- Gaining profit from stocks
This book sells for $15-$20.
10. One Up on Wall Street
One Up on Wall Street was written by Peter Lynch in 1989.
This book is one of the simplest, yet engaging, investment books. It’s clearly written for everyday people, and not a high-level investor. This book does not take the conventional approach, saying you need investors in order to be successful.
Instead, Lynch says you solely need to have a profound consciousness in regards to your surroundings and the businesses and industries around you.
Throughout the reading, he provides insight on what mindset and thought process you need in order to understand if you should or shouldn’t take on a particular investment project.
Lynch also provides tips on how to maintain your profits in the long run and continue to be successful.
This book is sold for $12-$16.
Best Personal Investment Books
If you’re solely building your personal finances and not focusing on other businesses, the remainder of this list is for you.
11. Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence
This book, written by Vicki Robin and Joe Domingo, is regarded as “wonderful” by Oprah Winfrey.
Your Money or Your Life is designed as a nine-step process – a clear and concise path to receiving financial stability and independence and managing your money.
It pushes you to create a game plan before you jump into investing. They emphasize you should avoid major setbacks at all costs, such as:
- Spending more than your profits.
- Buying high and reselling for less than you received it for.
- Trapping yourself in a career path you don’t enjoy.
- Quickly turning to experts without putting in any research on your own. Experts will feed off your lack of knowledge and confusion.
This book can be yours for $14-$16.
12. Dave Ramsey's Complete Guide to Money
In the pages of this book, Dave Ramsey provides a comprehensive breakdown of issues regarding consumers and debt. A good portion of the book is based on consumer debt, but it also highlights real-life situations many US residents deal with in their day-to-day life. Examples include:
- Insurance policy management
All of the tips come from a rational perspective and not a, “you should always take risks” type of view.
You can buy this book for about $10-$13.
13. “Millennial Money Makeover: Escape Debt, Save for Your Future, and Live the Rich Life Now”
This book, written by Conor Richardson, is mainly targeted at people in their early 20s, as this is typically the age range where you begin needing a more in-depth understanding of money.
This extremely easy to read book provides solutions for an issue that is sadly highly relatable for young adults: student debt. Rather than allowing people in this age group to remain overwhelmed, it lays out how to get past this stage and live lavishly.
Richardson makes his points by teaching the consumer:
- How to pay off debt
- How to build an automated savings system and its importance
- Managing necessary big purchases
- How to live the “millionaire lifestyle”
This book costs about $10.
14. All the Money in the World
In this reading, Laura Vanderkam captivates the reader by explaining how they can build up their profits while living their ordinary lives.
She implies we have more money than we realize and that it’s actually enough to get us to the level of success that is so coveted. Vanderkam will teach you how to use the money you have to live the life you desire through wise spending.
15. The Millionaire Next Door
The Millionaire Next Door, written by Thomas Stanely and William D. Danko, takes a non-traditional route in describing the life of a millionaire.
Rather than detailing them as extravagant, showy materialists, Stanely and Danko describe them as everyday people like you. This way, you do not become attached to the concept of being wealthy. You can paint a picture of yourself as a millionaire for motivation.
The book is based on Stanely’s interviews of American millionaires. He asked them how they received their wealth, they answered, and their responses became the book.
The book is formatted in seven steps that will send you on a spiral towards success. You will go from your ordinary, average life to being part of the top tax bracket.
This book can be purchased for $10-$20.
If you’re trying to build your wealth, you have plenty of resources. It doesn’t matter if you’re focusing on businesses around you or just on yourself. It’s also insignificant whether you’re an expert or still unfamiliar with the foundation of investing.
No matter who you are, there is a resource, specifically a book, that will suit your niche. You can learn from many famous investors who wrote phenomenal books for current and future investors. This article is designed to get you started.