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Whether you are a beginner or a seasoned investor in need of a refresher, the best investing books can serve as a great way to sharpen your knowledge. With these best investing books for beginners, you can pick Peter Lynch’s brain, learn the history of Wall Street or simply decide if you are ready to use those spare savings to begin investing.
If you want some extra guidance as you apply your newly acquired knowledge to your portfolio, consider enlisting the help of a trusted financial advisor.
Data and Methodology
We identified the books below through exhaustive research and analysis of the investing book market. They are listed in an order that’s in direct correlation with their individual composite score based on our methodology, which includes consumer ratings from multiple popular online bookstores.
1. “The Essays of Warren Buffett: Lessons for Corporate America” by Warren Buffett, ed. Lawrence Cunningham
Amazon Review Rating: 4.7
Goodreads Review Rating: 4.33
This book of Buffett’s letters over the years to Berkshire Hathaway shareholders is expertly compiled and introduced by investing author Lawrence Cunningham. The essays, on topics like corporate governance, common stock and valuation, give a glimpse into Buffett’s business practices and long-respected investment philosophy.
2. “The Bogleheads’ Guide to Investing” by Taylor Larimore, Michael LeBoeuf, Mel Lindauer
Amazon Review Rating: 4.7
Goodreads Review Rating: 4.29
“The Bogleheads’ Guide to Investing” is a recommendable read for anyone, regardless of how old you are or how much money you have. This investing book is essentially a roadmap to investing in the conservative, low-risk style of Vanguard founder John Bogle.
After introducing the basics, this easy-to-use guide breaks down all different types of investments and how they work. Overarching guidance on financial planning ties it all together, giving beginners a great idea of how to approach their own financial portfolio.
3. “The 5 Mistakes Every Investor Makes and How To Avoid Them” by Peter Mallouk
Amazon Review Rating: 4.6
Goodreads Review Rating: 4.31
While many investing books focus on what to do, Peter Mallouk’s book helpfully points out what not to do.
“The 5 Mistakes Every Investor Makes and How To Avoid Them” offers readers a primer on market risk. Mallouk then explains how to avoid common investment mistakes, warning about emotional investing and letting one’s cognitive biases cloud decision-making.
The book is short, sweet and to-the-point, yet informationally dense.
4. “One Up on Wall Street” by Peter Lynch
Amazon Review Rating: 4.6
Goodreads Review Rating: 4.29
In “One Up on Wall Street,” renowned investor Peter Lynch argues that average investors can rival professionals. What the everyman needs to do, Lynch explains, is pay close attention to the products and services they encounter on a daily basis.
Observations made at work or at the grocery store can translate into valuable, on-the-ground knowledge that can help you make more informed investments. He outlines how tenbaggers can help your portfolio experience phenomenal growth and how important it is to take the time to actually review a company’s financials.
Beyond that, Lynch explains which services and products could actually be a good investment for your portfolio moving forward.
5. “Security Analysis: Principles and Technique” by Benjamin Graham, David L. Dodd
Amazon Review Rating: 4.7
Goodreads Review Rating: 4.3
Benjamin Graham and David Dodd’s “Security Analysis” was originally published back in 1934. There are multiple editions of this over 700-page book, including one with a foreword written by Warren Buffett. In this, he raves about Graham and Dodd’s work, even stating that “they laid out a roadmap for investing that I have now been following for 57 years.”
Although “Security Analysis” is a bit dense, its information is integral to a deep understanding of investing. Due to the age of this book, some of its contents are slightly outdated. Nevertheless, the overarching lessons still readily apply today. It teaches the reader how to do things like diversify their portfolio, evaluate a company’s intrinsic value and account for risk.
6. “The Little Book of Common Sense Investing” by John C. Bogle
Amazon Review Rating: 4.7
Goodreads Review Rating: 4.15
Stocks are typically the focal point of conversations surrounding investing, but John Bogle takes a different route in this best investing book for beginners.
Bogle uses in-depth explanations of index investing and mutual funds to illustrate a less risky alternative to traditional stocks. The book also contains some of Bogle’s personal anecdotes to help make these concepts more relatable.
“The Little Book of Common Sense Investing” is just over 200 pages, making it a very manageable read. Although a bit repetitive, the book offers personalized, real-world advice in simple language that is easy for beginners to understand.
7. “The Intelligent Investor” by Benjamin Graham
Amazon Review Rating: 4.7
Goodreads Review Rating: 4.24
Warren Buffett praised “The Intelligent Investor” as “the best book on investing ever written,” and he is certainly not alone in his opinion. Though Benjamin Graham – also known as the “godfather of value investing” – wrote this investing book way back in 1949, it remains as relevant as ever. Graham’s widely embraced philosophy of value investing, a strategy focused on earning long-term wealth gains while avoiding risk, is front and center. He also tucks in tidbits on the stock market’s history and tips on how to analyze a stock investment.
This definitely stands as one of the best value investing books you want to read.
8. “Common Stocks and Uncommon Profits” by Philip A. Fisher
Amazon Review Rating: 4.6
Goodreads Review Rating: 4.14
“Common Stocks and Uncommon Profits,” authored by the legendary investor Philip Fisher, is a seminal work in the field of investment literature.
First published in 1958, the book has stood the test of time, offering invaluable insights into the art of investing in common stocks. Fisher’s approach is centered around the idea of investing in companies with strong growth potential, emphasizing the importance of thorough research and understanding of a company’s management and operations.
Fisher places significant emphasis on the quality of a company’s management team, arguing that it is a critical factor in determining a company’s success. He advises investors to look for management teams that demonstrate integrity, innovation and a commitment to long-term growth. By focusing on these attributes, investors can identify companies that are well-positioned to navigate challenges and capitalize on opportunities.
9. “The Misbehavior of Markets: A Fractal View of Financial Turbulence” by Benoit Mandelbrot
Amazon Review Rating: 4.5
Goodreads Review Rating: 4.09
“The Misbehavior of Markets: A Fractal View of Financial Turbulence” is a groundbreaking book by Benoit B. Mandelbrot, a mathematician renowned for his work on fractals.
This book challenges traditional financial theories by introducing a new perspective on market behavior. Mandelbrot argues that markets are far more complex and unpredictable than conventional models suggest. By applying fractal geometry, he provides a fresh lens through which to view financial markets, emphasizing their inherent volatility and the limitations of standard economic theories.
Mandelbrot’s work challenges the conventional wisdom that markets are efficient and follow a normal distribution of returns. Instead, he demonstrates that market movements are often erratic and can deviate significantly from expected patterns.
This revelation is crucial for investors who rely on traditional models that assume a predictable market environment. By recognizing the limitations of these models, investors can avoid overconfidence in their predictions and remain vigilant in their investment strategies.
10. “A Random Walk Down Wall Street” by Burton Malkiel
Amazon Review Rating: 4.7
Goodreads Review Rating: 4.14
Burton Malkiel’s “A Random Walk Down Wall Street” boils down the basics without sacrificing readability. In his guide to navigating the market and managing investments, Malkiel advocates for the broad-based index fund over stock picking. A good investing book to read before starting a portfolio, Malkiel offers tips on assessing potential returns on everything from stocks and bonds to money markets and home ownership.
Bottom Line
The more you read, the more you will know. This list is just the tip of the iceberg when it comes to the array of quality investing books available. After covering the basics with the best investing books for beginners, consider picking up a more topic-specific tome, like Michael Lewis’ “Liar’s Poker,” or maybe pick up a book centered around a historical financial event, like John Kenneth Galbraith’s “The Great Crash 1929.”
Tips If You’re Just Starting to Investing
- Investing is a complicated process that requires significant research to make informed decisions. If you don’t want to do all the work yourself, consider speaking to a financial advisor. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goal, get started now.
- Make a plan and figure how much you want to put into the market. Then try mapping out a diverse portfolio. To get an idea of how your investments could grow over time, stop by SmartAsset’s investment calculator.
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All Goodreads ratings in this story are as of April 2019.