There’s nothing I love more than curling up with a good book. And if that book can make me richer, so much the better. That’s one of the reasons I turn to investing books to help me find strategies for putting my money to work.
If you want to start investing and don’t know where to begin, the following titles will give you a master class in how to grow your wealth.
9 best investing books for beginners
Before you get too far into investing, read some — or all — of these books. They include some of the best-known titles in the field and are all geared toward the budding investor.
1. “Oblivious Investing” by Mike Piper
It’s not a book by a famous investor, but “Oblivious Investing” is one of the best investing books for beginners. Piper is a CPA and an avid indexer. His book explains the ins and outs of the indexing strategy in an accessible, relatable fashion. If you want to invest but are paralyzed by fear, this book will give you the confidence to get started, while limiting some of your risk.
2. “The Little Book of Common Sense Investing” by John C. Bogle
When you’re ready to take your indexing strategy to the next level, move on to “The Little Book of Common Sense Investing” — written by the guy who invented index funds. Bogle talks about why it’s folly to think of beating the market. Instead, he offers practical advice on how to use indexing to build long-term gains without worrying about what the market is doing today.
3. “The Four Pillars of Investing” by William J. Bernstein
Once you’ve started your investing strategy, you can learn more about the principles of making money in the markets with “The Four Pillars of Investing.” This book takes you through such concepts as risk and reward, market history, and the psychology of the market. It’s one of the best investing books for building a solid working theory of the market. The down-to-earth approach is practical, and Bernstein uses his knowledge as a neurologist to help you lay a strong foundation for investing.
4. “All About Asset Allocation” by Richard A. Ferri
One of the key principles of long-term investing involves making the right choices about which types of investments you hold. “All About Asset Allocation” is a basic primer on the use of stocks, bonds, real estate, and other types of investments to build the right portfolio for yourself. This overview will give you the knowledge you need to fine-tune your strategy and lock in long-term gains.
5. “Your Money and Your Brain” by Jason Zweig
Longtime Wall Street Journal financial journalist Zweig takes you on a journey to the ways your brain can mess you up as an investor. Looking at the scientific research surrounding psychology, economics, and investor behavior, “Your Money and Your Brain” is the perfect read as you begin to gather confidence in your investing ability. Beginning investors can learn about the pitfalls of overconfidence in their planning, and discover actionable tips for avoiding mistakes that can drag you down.
6. “The Intelligent Investor, Rev. Ed” by Benjamin Graham, Jason Zweig, and Warren E. Buffett
Graham’s classic tome was recently updated with help from Zweig and Buffett. This book explains the strategy of value investing in a way that anyone can grasp. If you are interested in choosing individual investments, it’s a good idea to read this book first. The new edition includes modern examples and headlines, and it offers a practical guide for applying time-tested principles to today’s market.
7. “Buffettology” by Mary Buffett and David Clark
Once you have the basics down, learn from the master: Warren Buffett, the world’s most famous value investor. Authored by those who have seen Buffett up close and personal, “Buffettology” looks at the mathematical calculations used by the Oracle of Omaha in selecting his investments. Not only does this book offer information that can help you apply Buffett’s decision-making process to your portfolio, but it also profiles 54 “Buffett companies” for you to start with.
8. “A Random Walk Down Wall Street” by Burton G. Malkiel
One of the classics of investing, “A Random Walk Down Wall Street” introduces beginning investors to concepts of portfolio-building. It includes beginning- to intermediate-level material on how to choose stocks. Additionally, the updated version shares helpful information on investing using exchange-traded funds and emerging-market securities. It’s perfect for a slightly more advanced beginner who’s ready to try to expand their horizons.
9. “Thinking, Fast and Slow” by Daniel Kahneman
At first blush, this book doesn’t seem to be about investing. However, it is about how we think — and that can have a profound effect on how we manage our investments. Kahneman, a Nobel Prize-winning economist, presents a captivating look at how cognitive biases can lead to disastrous decisions, including blunders in the stock market. This practical guide can help you learn to tap into your “slow thinking” abilities to make better decisions about how you invest, how you manage your money, and even how you live your life.
Learn and start investing
Not every investing strategy is for everyone. However, these books will set you on the path toward figuring out what works best for you. Beginning investors can learn about psychology, time-tested strategies, and even discover simple ways to limit risk while building wealth for the future.
Use these books to learn about how investing and the market work, gain a little experience, and then decide for yourself if it’s time to move on to more advanced strategies.
Want to get started investing?Here are the top investing options for 2020!
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