Navigating the world of personal finance and investing can be a daunting challenge for just about anyone, particularly those just who are just getting started in investing.
But learning about investing and finance need not be a difficult process. Luckily, there is a wealth of literature out there for guiding beginning investors.
While they won’t tell you what to buy and when, these books can serve as a guide to help you wade through the muddy waters of investing.
You’ll find that these books on finance and investing provide tremendous, nuanced insights while also being enjoyable reads. While some of these books were published decades ago, they have withstood the test of time and the advice offered are still applicable today.
Here’s the list, in no particular order.
The Intelligent Investor, by Benjamin Graham (1949)
Graham is widely regarded as the father of value investing. Famous investors such as Warren Buffet have credited Graham for laying the foundation for them with his ideas about security analysis. The Intelligent Investor teaches sound, established principles that every investor can use. According to Buffet, it is “by far the best book on investing ever written”.
Think and Grow Rich, by Napoleon Hill (1937)
The book Think and Grow Rich was, rather ironically, written during the Great Depression. Hill conducted extensive research based on his associations with wealthy individuals. The book stresses the importance of planning and persistence to increase one’s income, and it makes the argument that people can succeed in any type of career.
The Essays of Warren Buffett: Lessons for Corporate America, by Warren Buffett (1997)
Buffett is widely considered the most successful modern investor. In this book, he outlines his views on a wide range of issues which are of importance to corporate America, investors and shareholders. The book delves into the interaction between a company’s management and its shareholders. It also highlights the thought processes involved in enhancing a company’s enterprise value. It is an absolute must-read for investors.
How to Make Money in Stocks, by William J. O’Neil (2002, 3rd ed.)
O’Neil is the founder of Investor’s Business Daily, a financial research and media company, and the creator of the CAN SLIM system. This book is of great interest to investors keen on stock picking and serves as an excellent blueprint. How to Make Money in Stocks is full of substance and is quite on point and trimmed, leaving out any ambiguities. This book is recommendable if you are looking for an approachable book that you can apply to your day-to-day investing.
Learn to Earn, by Peter Lynch (1995)
Lynch is well known in the world of investments: beginning his career in the 1980s, he served as the manager of the well-known Fidelity Magellan Fund. Learn to Earn targets a younger audience and focuses on explaining business basics. Lynch takes a common-sense approach and insists that individual investors can perform just as well or even better than experts can if they adopt a strategic approach to investing. This book is strongly recommended for younger readers and beginning investors.
While investing can seem frightfully complicated, one need not go through the process alone. Many investment and finance giants have passed on their knowledge and experience in the form of widely available books. The books listed here are but a drop in the ocean when it comes to the abundance of professional advice and guidelines for investing.
Are there any good books in investing for newbies I’ve left out? If so please do share your personal favorites in the comments section below.