11 Best Books on Investing

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Best Books on Investing

I’m new to investing, what should I do?

Nobody starts out an expert, and even the best investors in the world were once sitting where you are.

So how did the experts become, expert-y?

They got finance degrees, studied abroad and read. A lot. Luckily for you, they have now all written books compiling their experiences. In fact, some of the best books on investing. They discuss what works, what doesn’t. So you don’t make the same mistakes they did.

I have compiled a list of the 11 Best Books on Investing that I found very insightful and helpful. These books weren’t written by Pulitzer Prize authors, but by proven and successful investors. Whether you’re an experienced trader or you’re thinking about making your first investment. It always pays to learn from the best.

These books are in no particular order, but I would recommend Investing for Dummies for beginners. It will give you a fantastic foundation and make the other books more enjoyable to read. Also, read my article Investing for Beginners 101: The Complete Guide to Getting Started to help you on your investment journey!

I included a “Note†after each book to assist with your decision.

All these books are available on Amazon Kindle. Prefer listening to books? Try Amazon Audible and get 2 Free Audiobooks. Let’s take a look at the 11 Best Books on Investing.

Investing for Dummies

In the world of investing, slow and steady wins the race. With this mantra in mind, trusted author and finance guru Eric Tyson wrote Investing For Dummies. It’s reviewed as the best book on investing! Why?

He offers time-tested advice on how to develop a winning investment strategy that matches your abilities with your expectations. All the while ensuring you’re slowly and steadily growing your portfolio.

No matter where you are in your investment planning. The recommendations, and strategies in this popular and easy-to-follow reference. Offers everything you need to ramp up your portfolio. From the tax laws that affect investing decisions to the impact of the current political environment. This foolproof guide covers it all and gives you the confidence to invest like the pros.

Note: Best Book on Investing for Beginners

The Boglehead’s Guide to Investing

This is a DIY handbook that adopts the sage investment wisdom of John C. Bogle. He is the founder of Vanguard Group and author of The Little Book of Common Sense Investing. Another book on investing I also suggest later!

This witty and wonderful book provides the first step on the road to investment success. Illustrating how relying on typical “common sense†promoted by Wall Street will leave you poorer. This updated edition includes new information on backdoor Roth IRAs and ETFs. Plus changes to the laws on Traditional and Roth IRAs, and 401k and 403b retirement plans.

Investing can be simple, but it’s not simplistic. Over the course of twenty years, the followers of John C. Bogle have evolved from a loose association of investors to a major force. Forming the most active non-commercial financial forum on the Internet.

The Boglehead’s Guide to Investing imparts that wisdom from Bogleheads.org. You’ll learn how to craft your own investment strategy using the Bogle-proven methods that have worked for thousands of investors.

Note: Best Book on Investing for Beginners

A Random Walk Down Wall Street

This is an amazing book on investing that I enjoyed. It is easy to read and very entertaining. I learned a tremendous amount from this book.

The best investment guide money can buy, with over 1.5 million copies sold, now fully revised and updated.

In today’s daunting investment landscape, the need for Burton G. Malkiel’s best-selling guide to investing is stronger than ever. A Random Walk Down Wall Street established itself as the first book to buy when starting a portfolio.

This new edition features fresh material on ETFs and emerging markets. a brand-new chapter on “smart beta†funds. The newest marketing gimmick of the investment management industry. And a new supplement that tackles the complex world of derivatives.

Note: Best Book on Investing for Beginners

Rich Dad Poor Dad

It’s funny because my family read this investing book when it first came out — over 20 years ago! I was 11 when I read it, but I didn’t have a firm grasp on money or investing. I read it again when I reached my 20s and it will always be one of my favorites books on investing. Maybe for the nostalgia?

Rich Dad Poor Dad is Robert’s story of growing up with two dads. His real father and the father of his best friend, his rich dad. He discusses ways in which both men shaped his thoughts about money and investing.

The book destroys the myth that you need to earn a high income to be rich. He explains the difference between working for money and having your money work for you.

Note: Best Book on Investing for Beginners

The Little Book of Common Sense Investing

John C. Bogle is the Founder and former chairman of the Vanguard Group. He created the first-ever index fund, so he knows a good deal about investing.

He is best friends with Warren Buffet, who endorsed Bogle’s book. Saying that “investors large and small†should read it.

“The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns†takes the surprising approach that for many investors, the stock market is a lose-lose proposition. Don’t worry though, Bogle explains how he learned to turn the odds in his favor.

This isn’t Bogle’s only book. But his best because he injects his own flavor of investing techniques in a short and easy read.

Note: Best Book on Investing for Beginners

The Only Investment Guide You’ll Ever Need

This one has been around for over 40 years and for good reason. The Los Angeles Times says it “actually lives up to its name.â€

Don’t worry—it’s not antiquated with advice from the 1970s. It was recently updated in 2016 to stay current.

Andrew Tobias doesn’t address the wealthy investor. He offers tips and guidance for those with more limited capital. Using concise, witty, and understandable tips and explanations. Andrew Tobias delivers sensible advice and useful information on savings, investments, retirement, and much more.

He dedicated the book to his broker, who, he says, “from time to time made me just that.â€

Note: Best Book on Investing for Beginners

Principles: Life and Work

“Significant…The book is both instructive and surprisingly moving.†—The New York Times

I love stories and Ray Dalio’s story is inspiring. One of the world’s most successful investors and entrepreneurs. Ray shares the unconventional principles that he’s developed, refined, and used over the past forty years to create unique results in both life and business. Principles any person or organization can adopt to help achieve their goals.

In 1975, Ray Dalio founded Bridgewater Associates, out of his two-bedroom apartment in New York City. Forty years later, Bridgewater Associates has made more money for its clients than any other hedge fund in history. Also, it has grown into the fifth most important private company in the United States, according to Fortune magazine.

Along the way, Dalio discovered a set of unique principles that have led to Bridgewater’s exceptionally effective culture, which he describes as “an idea meritocracy that strives to achieve meaningful work and meaningful relationships through radical transparency.†It is these principles, and not anything special about Dalio—who grew up an ordinary kid in a middle-class Long Island neighborhood—that he believes are the reason behind his success.

In Principles, Dalio shares what he’s learned over the course of his remarkable career. He argues that life, management, economics, and investing can all be systemized into rules and understood like machines. Dalio lays out the most effective ways for individuals and organizations to make decisions, approach challenges, and build strong teams. He describes the innovative tools the firm uses to bring an idea meritocracy to life.

While the book brims with novel ideas for organizations and institutions. It offers a clear, straightforward approach to decision-making that anyone can apply. No matter what they’re seeking to achieve.

Note: Best Book on Investing for Novices

The Intelligent Investor

Before his death, Benjamin Graham was a renowned professor known as the godfather of investing. Graham published the first edition of this book in 1949, and Buffett himself called that version “the best book on investing ever written.â€

What’s unique about this book is its lack of “Rah! Rah! Anything is possible and anyone can do it!†rhetoric. It takes the opposite approach, although it’s not without positive encouragement. It won’t tell you how to make millions, but rather how not to lose your shoes. The author imparts must-read basics to get you started in investing and keep you going for a long time.  He provides trading strategies and how to analyze stocks. Also, a comprehensive history lesson on the stock market.

Note: Best Book on Investing for Novices (some of the material is outdated–a must read though!)

The Essays of Warren Buffett

The third edition of “The Essays of Warren Buffett: Lessons for Corporate America†was released in 2015. It’s a worthy read if for no other reason than it pays to learn from the very best.

You’d be hard-pressed to name a more successful investor than Warren Buffett. In this book, he’s taken the time to share what he knows and has learned over the years.

The book offers an excellent explanation of the relationship between corporations and their shareholders. Which makes it ideal for those new to investing who don’t have an understanding of this yet.

This collection of essays spans more than 50 years! They’re all spoken in a tone that suggests you’re having a cup of coffee with the great legend himself.

Note: Best Book on Investing for Novices

Thinking, Fast and Slow

Having won a dozen awards is the international bestseller, Thinking, Fast and Slow. Daniel Kahneman, the renowned psychologist and winner of the Nobel Prize in Economics, takes us on a groundbreaking tour of the mind. He explains the two systems that drive the way we think.

System 1 is fast, intuitive, and emotional. System 2 is slower, more deliberative, and more logical. The impact of overconfidence on corporate strategies, the difficulties of predicting what will make us happy in the future, the profound effect of cognitive biases on everything from playing the stock market to planning our next vacation. Each of these can be understood only by knowing how the two systems shape our judgments and decisions.

He engages the reader in a lively conversation about how we think. Kahneman reveals where we can and cannot trust our intuitions and how we can tap into the benefits of slow thinking. He offers practical and enlightening insights into how choices are made in both our business and our personal lives. Also, how we can use different techniques to guard against the mental glitches that often get us into trouble.

Note: Best Book on Investing for Novices

One Up on Wall Street

For what it’s worth, I think it’s a fantastic book — also FREE with Kindle Unlimited. Peter Lynch had a great track record and I like his philosophy.

But, there are some caveats. He talks about certain companies that were great investments but aren’t necessarily great investments anymore. Also, some of his advice is archaic — such as doing investment research by going to the mall.

Overall his advice is sound. Lynch believes that solid investment opportunities are everywhere. They litter the ground at our feet. We just have to stop walking so fast, pause in our everyday lives, and bend down to inspect the clutter so we can pluck out the most viable options. In doing so, we can beat the pros to the punchline and get in on an investment before the rest of the world realizes its potential.

“One Up on Wall Street†has sold more than a million copies since its release in 2000. The New York Times says Lynch, a renowned investor in his own right, is “in a league by himself.â€

Note: Best Book on Investing for Novices

Best Books on Investing Conclusion

This list of the 11 Best Books on Investing will give you a solid investment foundation. Each book has its own unique flavor. So find the book that suits you best. I will guarantee you that after reading one of these books, you will invest with confidence.

Finally, some advice about what NOT to read. Avoid all books about penny stocks, day trading, swing trading, and forex (foreign exchange) trading. Once you have a good understanding of investing — read whatever you want. For now, you should consider those topics “How To Lose All My Money 101.â€

Educate yourself before risking your money. Only invest what you can lose and make investments that you understand.

Best of luck!

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