5 Influential Investing Books We Should All Read

  • 5
  •  
  • 1
  •  
    6
    Shares

influential books we should all readUnless you have a business degree or work in the world of finance, investing can be intimidating. However, what you don’t know about stocks, bonds and mutual funds can be downright expensive; if you pick the wrong fund for your 401(k), IRA, taxable account or any other, you can put your financial life at risk. It’s best to learn about the influential investing books to reduce these risks.

5 Influential Investing Books We Should All Read

Fortunately, there have been some terrific influential books written that can help distill the art and science of investing into something the average reader can understand. Here are five great books every new investor should add to their library.

This post was written by our talented writer, Will Lipovsky. Enjoy!

1) The Intelligent Investor

If you could only read one book on investing, Benjamin Graham’s 1973 classic is the one to choose. The Intelligent Investor.

This book describes:

  • the history and operation of the stock market,
  • its inner workings, and
  • the forces that affect it.

Once he defines the environment, Graham goes on to explain:

  • how to evaluate companies and their stock,
  • provides tips on how build an effective portfolio, and
  • offers several case histories to clarify what constitutes good and bad investments.

The latest version features annotation by investment expert Jason Zweig, which provides modern context for many of Graham’s original thoughts.

Related: Where Is Your Money REALLY Invested?

2) A Random Walk Down Wall Street

Another classic that was also published in 1973, is  A Random Walk Down Wall Street. This book offers an explanation and a spirited defense of the efficient market hypothesis. The author, Princeton’s Burton Malkiel, argues that stock pricing and valuations are so hard to predict that one could consider them almost random. He then proceeds to describe the best ways to build a portfolio to achieve your investment goals. Malkiel’s discussion of mutual funds, and the updates he’s provided to the text over the years since originally publishing this book, are of particular value to today’s beginning investors.

3) The Motley Fool Investment Guide

David and Tom Gardner of the Motley Fool, an internet staple since the time of AOL and telephone modems, published a great beginner’s investment guide in 2001. They have updated it routinely ever since.

While some of their advice is admittedly dated (like the “Foolish Four” dividend stock strategy), their information about how to evaluate companies and choose stocks for the long run is as timely as ever. The brothers write in an irreverent, approachable style too, which makes this book the least dry of all the offerings on this list.

4) The Essays of Warren Buffett: Lessons for Corporate America

Warren Buffett, the Oracle of Omaha (he lives a few miles from me — how awesome is that?), is arguably the most famous investor of all time. In these essays, Buffett lays out all of the ideas that he has developed in his five decades at the helm of Berkshire Hathaway. (This is a company whose growth has averaged nearly 20 percent for 50 years!)

Buffett describes how he evaluates companies:

  • to determine if they are worth investing in,
  • he discusses assets like real estate, and
  • goes into great detail about the things he believes an investor must take into account when taking a chance on a company.

Mr. Buffett also shares a great deal of his philosophy about the role of business and wealth in our society, which is equally worth reading as well.

5) The Millionaire Next Door

The Millionaire Next Door, by Thomas Stanley, is a bit of a counter-intuitive choice for this influential books list, since it does not directly deal with investing. However, Stanley’s detailed analysis of this nation’s wealthy is a must read for anyone who desires to achieve financial security for themselves.

Millionaire looks at the affluent and surmises the traits that they all share. In helping us understand the reason why the rich have achieved their financial success, Stanley offers us a path to follow suit. Many of the habits of the rich (their no-nonsense frugality, for instance) are as invaluable to people seeking to achieve their financial goals as any information about the stock market.

Have you read the influential investing books above? Which is the most influential in your opinion?

If you enjoyed this article, Get email updates (It’s Free!)


  • 5
  •  
  • 1
  •  
    6
    Shares
  • 5
  •  
  • 1

Investing Money

Derek

AUTHOR Derek

My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

12 Comments

  1. I’d like to add “Simple Path to Wealth” by JL Collins who focuses on investing as a means to achieve financial freedom. He also has fantastic blog posts about investing over at jlcollinsnh.com. Enjoy!

    • Thanks for the add! We’ll have to check that one out!

    • You’re welcome, Centsai!

  2. Hi Derek

    all those books are good, I’ve recently finished the warren buffett on. Its a good read although very big. Its cool to know that not all companies yearly reports are dry and boring spreadsheets with some PR added to it.

    • Awesome! Yeah, I really love Warren Buffett. Probably one of my favorite ultra-wealthy personalities.

  3. Derek,

    I guess I’ve been reading the wrong books on building wealth 🙂 Currently sitting on my desk are “The Millionaire Real Estate Investor” by Gary Keller and “Money, Master the Game” by Tony Robbins. I have a goal to read 75 books in 2017, so I’ll have to check these out!

    Have you explored using Amazon links in your blog posts?

    Erik

    • Hi Erik! I don’t think those are bad books – I’m sure you can learn something from them! I just like the old classics a little better. 😉

      I have explored using Amazon links in my posts, but has successfully earned zero dollars from it. Womp wommmm… so I’m not as intentional about using them anymore. And honestly, I like Valorebooks better anyway.

      • I’ll have to check out Valorebooks. From going another their website a little bit, the selection is a less than Amazon, but the prices seem to be better. Are my thoughts consistent with your experience?
        Erik recently posted..Goals for 2017 for The Mastermind Within

        • Yup, I’d say that’s right. They probably don’t have everything under the sun like Amazon, but the prices are typically better.


Add a Comment

Your email address will not be published. Required fields are marked *

CommentLuv badge

Related posts