If you want to build your wealth, then look no further than the masters for advice! There are plenty of books about money out there written by those who have experience. There are books about finance, books about money management, and many more. There is another important niche to remember, though, and that is books about investing.
Best Investing Books
When it comes to investing, a wealth of information has been published from those who have generated billions of dollars in their lifetimes. If you’d like to share in even just a fraction of that success, then here are seven of the best investing books you’ll ever read that could change your life forever.
1-“The Intelligent Investor: The Definitive Book on Value Investing” by Benjamin Graham
Hailed by investing guru Warren Buffett as “the best book about investing ever written”, The Intelligent Investor is a must-read for anyone interested in learning about the world of stocks.
Graham is considered by many to be one of the greatest investment advisors of the twentieth century. His core philosophy of picking stocks was based on finding the ones that would produce the most value; a practice that has now become what’s known as “value investing”. Under Graham’s method, buying a stock and hoping that the price would go up was absurd. Instead, he encouraged investors to look at the price relative to the value of the business and other sound metrics.
Don’t let the fact that this book was originally published back in 1949 deter you from reading it. Graham’s instance that the best way to make a return and avoid loss was to buy companies as cheaply as possible is still a widely respected practice today. Definitely check it out if you want to get a firm grasp on what makes a good stock pick.
2- “The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns” by John Bogle
The late Jack (John) Bogle isn’t just the founder and former CEO of The Vanguard Group, one of the largest mutual fund organizations in the world. He’s also been considered by many to be the godfather of the modern investing approach. In fact, Bogle even has a cult-like following of financial enthusiasts called the Bogleheads who preach his methods.
What makes Jack Bogle and this book so invaluable? The Little Book of Common Sense Investing is the classic guide to getting more out of investing using one of the simplest strategies known to date: By purchasing low-cost index funds. According to Bogle, trying to beat the market is “a loser’s game” because “the more the managers and brokers take, the less investors make.”
First published in 2007, Bogle’s philosophy for simple and effective wealth-building over the long term has proven over and over again to be fool-proof. Read this book and find out just how simple your approach to investing could be.
3- “Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!” by Robert Kiyosaki
Ever heard someone try to tell you “your house is a liability, not an asset”? You can thank the teachings of Robert Kiyosaki for that!
Since its first publication back in 1997, Rich Dad Poor Dad has become an inspiration for many people with a thirst for ambition. Though its not exactly a “how-to” style investment book, Rich Dad focuses on something much more fundamental: The method.
The premise of the content is that Kiyosaki grew up with two very influential figures in his life – his real father and the father of his best friend. Kiyosaki’s friend’s dad was “rich dad” and he taught him that being the owner of a business with people working for you to make money was the ultimate way to build wealth. His real father (poor dad), on the other hand, struggled financially even though he was well educated and had a great job.
Even though Kiyosaki himself has sometimes received attention for being controversial, make no mistake: This is the definitive book for learning the difference between working for money and having your money work for you.
4- “A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing” by Burton Malkiel
Much like Jack Bogle, author Burton Malkiel challenges many of the methods, strategies, and superstitions about stock picking and the investment industry as a whole. (As a matter of fact, his advice was first called “garbage” in a review by Businessweek.)
In A Random Walk Down Wall Street, you’ll find out it’s the fund managers, advisers, and stockbrokers who are making all of the money when it comes to investing, and not you! Instead of trusting these people with your savings, Malkiel offers a simple, long-term solution for investing success: Purchase low-cost index funds.
For anyone new to the concept of investing, A Random Walk Down Wall Street is perfect. In fact, after you read it, you’ll probably have a better idea of how to build your wealth, avoid loss, and minimize fees than nearly all of your peers.
5- “Thinking, Fast and Slow” by Daniel Kahneman
What’s a book from a psychologist have to do with investing? Apparently, a lot! Nobel Prize Winner Daniel Kahneman’s classic book “Thinking, Fast and Slow” explores the world of behavioral economics, one of the most difficult and least understood aspects of investing.
Kahneman’s basic premise is that each of us has two systems that drive the way we think and make choices. System One is fast, intuitive, and emotional while System Two is slower, more deliberative, and more logical.
As the author suggests, “The best we can do is a compromise: Learn to recognize situations in which mistakes are likely and try harder to avoid significant mistakes when the stakes are high”. In other words, we rely too much on our intuition and gut to tell us what we should do with our money when we should actually be slowing things down and be more analytical.
Check this book out if you’d like to take a more methodical approach to investing.
6- “The Essays of Warren Buffett: Lessons for Corporate America” by Lawrence Cunningham and Warren Buffett
What list on investing could be complete without a submission from the master himself Warren Buffett?
As Berkshire Hathaway’s CEO over the past 50 years, the company has surpassed the average return of the S&P 500; a testament to Buffett’s ability to pick winning stocks. Each year, Buffett writes an annual letter to the Berkshire Hathaway shareholders where he shares his thoughts, wisdom, and insight for the future. This book is a collection and analysis of several of those letters.
With the latest fifth edition from 2019, you’ll be amazed by Buffett’s thoughtful yet practical approach to investing. Do yourself a favor and see what insight you can gain from one of the richest people in the world.
7-“Think and Grow Rich” by Napoleon Hill
Finally, let’s not forget the 1937 masterpiece from Napoleon Hill Think and Grow Rich. In this classic, Hill draws on 25 years of research from some of the most economically successful individuals of the 20th century: Andrew Carnegie, Thomas Edison, Henry Ford, and many others.
Hill argues that thinking is more conducive to success than any other feature, including money, education, or specific knowledge about something. Therefore, if you want to become rich, you first have to learn how to belive you will.
Final Thoughts: Best Investing Books
Getting into the world of investing can be scary and intimidating, which is why we brought you this guide to the best investing books. Learn from those that have already been through the ups and downs of investing, and gather the knowledge you need to be successful. Get reading and get investing!