The Top Investing Books
One thing that I get asked WAY too often is, what are the best books on investing? What are the must-reads that everyone has to read in order to be successful at this game? What if I’m a beginner? What should I be reading to get myself started? -The Intelligent Investor
-Poor Charlie’s Almanack
Well, that’s all going to be answered in this article. The best part? I’ll be attaching all the amazon links here, so you’re able to purchase it instantly! And I’m incredibly sure these will be life-changing.
One Up on Wall Street by Peter Lynch
Written by the most successful mutual fund manager of ALL TIME, Peter Lynch has a way with both writing and investing. His writing style is extremely absorbing, and it’s a lot of fun to read. There’s a lot of very theoretical, formal and boring books out there.
But this ain’t one of those. It’s one of those investing books that once you start, you simply cannot put it down. And it’s highly likely you’re going to read it in one go.
Here’s what you’ll get. You’ll learn the techniques that Lynch used to find his “multi-bagger” stocks. These are stocks that return several hundred percent.
And he gives extremely sound advice on managing these companies in your portfolio as well. He talks about how simple his strategy is, and it makes you realize that investing doesn’t have to be complicated at all.
Best of all? You don’t have to know much finance to read it. As long as you can nail down the basic terms, like what a stock is, you’re good.
The Alchemy of Finance by George Soros
George Soros is the world’s most successful trader ever. He’s made a lot of money and he’s given a lot away. And yes, while he has been the subject of controversy, this book is absolute gold.
The book gives you an understanding of how the more macro things work, and an in-depth look into Soros’ framework and thinking. It shows how reflexivity, Soros’ philosophical creation, is key to understanding the behavior of financial markets.
He also explains how trends in currencies work, what drives them as well as differences between “benign” and “vicious” circles, showing how reflexive relations drive trends.
The greatest part is “The Experiment”, which is all this theory at work. He shows how he applies his framework to trading, real-time, and tracks every move and every thought and every bit of fundamental change that comes out.
However, while it’s an absolute glorious read, it’s rather dry. Soros’ ambition was to be a philosopher and that’s the perspective from which it’s written, and the first chapter is extremely boring.
But it’s an absolute wonder for sure.
Buffettology by Mary Buffett
Warren Buffett is synonymous with investing and is the greatest investor of all time. However, he has never written a book specifically on investing, who better to learn it from than his daughter-in-law?
Buffettology introduces the concept of a moat, the key concept in Warren Buffett’s strategy. It goes into depth on how you find moats, and how buying great businesses cheap will win in the long run.
The book also explains looking at investing from a business perspective. As Ben Graham said, “Investing is most successful when it is most business-like”.
It’s also very easy and simple to read, and it was the first book ever to explain Buffett’s strategy,
The Intelligent Investor
This is the bible of value investing. However, it’s a hard and boring read. It also has a lot of outdated things like specific series of bonds, and a recommended 75-25 allocation between stocks and bonds.
The issue with that is bond yields are at all-time lows, so owning bonds is not necessarily the best for generating returns.
However, chapters 8 and 20 are the key ones to read.
Chapter 8 talks about how to look at market fluctuations, something that is valid till this day and likely will be valid until the end of time. It also introduces the famous parable of Mr. Market.
Chapter 20 expounds on the importance of a margin of safety. Whenever you invest, always invest with a margin of safety so that you have something to fall back on when things go wrong.
Poor Charlie’s Almanack
This is the book on Charlie Munger, Buffett’s “silent” business partner. Charlie was the one who introduced Buffett to the idea of buying great businesses instead of just mediocre ones.
This book also has a lot of worldly wisdom in addition to Charlie Munger’s stuff and is incredible as a guide for life. It has eleven speeches by Charlie Munger that are absolutely life-changing.
And it has some absolutely incredible advice that is valid for every single person out there—one of the most excellent books of all time.
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Categories: Financial Advice