Here is a thorough list of the top investment books we’ve utilised to increase our knowledge of the stock market and develop our investing mindset.
80% of Warren Buffett’s waking hours are spent reading. I realise that, as CEO and Chairman of Berkshire Hathaway (NYSE: BRK.B), he may have a little more control over his workday than you or I, but every investor should strive to match his or her desire to continually increase their knowledge. Reading has to be your go-to activity, whether or not it occurs throughout the typical 9 to 5 workday. The finest investment books on our list will all help you think like an investor.
The best investing book is Peter Lynch’s “One Up On Wall Street.”
This book serves as the cornerstone of our company’s investing philosophy, which our staff members also follow in their own personal portfolios. The book’s three major concepts are that there are investment possibilities everywhere, to purchase what you know, and to hold investments for a long time. Lynch draws on his own life experiences while writing about his journey from Fidelity Investments intern to building a modest mutual fund named the Magellan Fund over the period of 23 years from $18 million to $14 billion. The Magellan Fund was the most successful mutual fund in the world, with returns averaging close to 30% annually.
Anyone considering starting to invest in stocks must read “One Up On Wall Street.” Lynch’s story offers a viewpoint that is free of fear and intimidation. Here at MyWallSt, we strive to imitate his de-mystification of the stock market for the little retail investor. It is, in our opinion, the greatest book on investing with which to start.
Favorite Aphorism: “Know what you own and why you possess it.”
Best Financial Management Book: Morgan Housel’s “The Psychology of Money”
If you’ve read any of Morgan Housel’s articles for The Collaborative Fund, you already know that he is among the industry’s most knowledgeable money managers.
One of the simplest and most approachable books on managing your finances that you might discover is Morgan Housel’s first book, in contrast to many financial books that may seem tome-like and mired down in statistics and charts. Riches vs. wealth, sensible vs. fair, charge vs. fine are just a few examples of phrases that Housel distinguishes between in his succinct 20 lessons. He also pulls from pertinent real-life events and gives them an incisive spin.
This would be the one book on money management you should read for the rest of your life. There is nobody who understands money management better than Housel, and his book is simple to read, fun, and enlightening.
Favorite quotation: “Good investment doesn’t always include making wise choices. It involves regularly not making mistakes.
Benjamin Graham’s “The Intelligent Investor” is the best value investing book.
What does the great Warren Buffett know when he calls “The Intelligent Investor” “the finest book on investing ever written”? You’re probably more interested in hearing my opinion on the subject, however.
Benjamin Graham’s name carries a lot of weight in the financial community, as seen by the Oracle of Omaha’s raving assessment. Graham is known by such lofty titles as “the father of value investing” and “the dean of Wall Street.” Seventy years after it was originally published, “The Intelligent Investor” still applies a common sense strategy to the stock market. The Intelligent Investor is a great introductory investing book for anybody who wishes to begin their financial adventure. It has been updated for contemporary times by Jason Zweig of the Wall Street Journal.
Here are Graham’s Six Key Principles of Intelligent Investing to give you a taste:
- Understand the company you are investing in.
- know the company’s management.
- Investing is not for rapid buy-and-sell transaction earnings; it is for long-term gains.
- Pick assets based on their intrinsic worth rather than their level of popularity.
- Always have a margin of safety while investing.
- Trust your own conclusions and observations.
Favorite Quotation: “Those who speculate earn money for their brokers; those who invest gain money for themselves.”
The Four: The Hidden DNA of Amazon, Apple, Facebook, and Google is the best book about big technology. via Scott Galloway
One of the most well-known tech journalists out there and a professor of marketing at NYU, Scott Galloway is probably one of the greatest Twitter accounts for investors to follow for anybody interested in the stock market.
His book, “The Four,” is about how Amazon, Apple, Facebook, and Google grew to be such significant parts of contemporary life, as well as their seeming imperturbability and capacity to bounce back from an increasing number of mistakes they made along the way. Galloway poses the difficult concerns concerning the alleged “Four Horsemen” and how they are seen in contemporary culture, which is far from being a love tale.
I thought this book to be an enlightening portrayal of the actual influence wielded by such a small number at the top of large corporations as someone who writes about these firms every week. I found Galloway’s comparison of “regular business thinking” and “Amazon business thinking” to be especially insightful. This book is essential for anybody with a stake in the Wall Street game.
Favorite Quotation: “Recognize that you may need to bear it or go on, and expect that a certain percentage of failure is out of your control.”
The best book for long-term investing is Christopher Mayer’s 100 Baggers.
The best way to explain it is to use its complete title: The book is titled “100 Baggers: Stocks That Return 100-to-1 and How To Find Them.” In this book, Christopher Mayer deconstructs the fabled 100-bagger, which is a stock that returns $100 for every dollar invested. It draws inspiration from Thomas Phelps’ 1972 book “100 to 1 in the Stock Market,” giving Phelps’ ideas a more contemporary spin.
I like how Mayer always uses examples from the actual world to support his investing theories. Regardless of what he is discussing—return on equity, insider ownership, buybacks, or economic moats, for example—there is always a fantastic company to support his claim.
As you read the book, it becomes clear that although the industries, sectors, or products that have generated 100-fold returns for investors don’t have many things in common, they do have a few things in common, with effective leadership being foremost among them. For those who are more devoted to reading, Mayer also has a highly accessible writing style, and at 210 pages, this book is manageable as a weekend read.
Favorite Quote: “Stuff is going to happen over the course of an investment life—both good and bad—that no one predicted happening. Concentrate on the chances in front of you rather than playing the guessing game. Additionally, there are always a lot of prospects in all marketplaces.
The best book on index funds is Burton Malkiel’s “A Random Walk Down Wall Street.”
Many consider Malkiel’s book, which bills itself as the “time-tested technique for successful investing,” to be essential reading before beginning a 401(k) or managing your own account. The Random Walk Hypothesis, which basically holds that moves in the stock market are random and cannot be forecast, is referenced in the book’s title. Malkiel elaborates on the idea, emphasising the folly of attempting to take advantage of the stock market’s shortcomings and the advantages of a long-term approach.
A Random Walk has been methodically updated to reflect stock market developments. In no way did I anticipate learning about Bitcoin in a book that was originally released in 1973. Nevertheless, the book’s appeal and how timeless its ideas are, over 50 years after they were initially written, are shown by the need for ongoing revisions. The lessons one may learn from Malkiel’s writing will serve as crucial tools in the armoury of any beginning investor, even if certain chapters may be difficult for those just starting out to understand.
Favorite Quotation: “A blindfolded monkey tossing darts at the stock listings may choose a portfolio that performs as well as those managed by specialists.”
The best book about the investing brain is Malcolm Gladwell’s “Blink: The Power of Thinking Without Thinking.”
A list like this would be incomplete without including Malcolm Gladwell, in my opinion. One might argue that you should create a separate list just for Gladwell, which would all help you become a better investor. I’ve limited it to “Blink” since I believe it to be the most pertinent to the thinking of the investor. How many businesses have you looked at without doing any real research and simply had a gut feeling about? How many of these instincts proved to be accurate? The movie “Blink” attempts to explain this occurrence.
Blink carefully examines the influence of instincts, hunches, and the aforementioned gut emotions. I’ll leave the explanations of “thin-slicing” and “the adaptive unconscious” to Gladwell. He is successful in educating us about the strength of human judgement as well as its flaws via his eye-opening case studies and what must have been a mountain of background study. It’s an intriguing book that compels the reader to consider how they make decisions.
Favorite Quotation: “The ability to know, in those initial two seconds, is not a talent bestowed miraculously on a select few. It is a skill that any of us may develop for ourselves.
The best Silicon Valley thriller is John Carreyrou’s “Bad Blood.”
As far as investment books go, “Bad Blood” deviates from the usual. Rather than being a book on investment, it reads more like a detective story. Even so, it is still just as instructional as the other novels on our list.
The tragic Theranos tale will be familiar to anybody with an interest in the stock market. The reader will be left wondering, “How can they keep getting away with this?,” throughout this story of deception and deceit involving the never-ending hunt for the next unicorn. John Carreyrou’s best-selling book provides a thorough analysis of the Silicon Valley startup ecosystem and its susceptibility to manipulation.
Anyone with even the tiniest interest in investment, technology businesses, Silicon Valley, or investigative journalism should read “Bad Blood,” in my opinion. Any investor who reads The Wall Street Journal alum’s description of greed will reflect on their own investment approach. The two key lessons we can learn from this book are to not believe the hype and to invest in what you know.