11/23/2018 10 Books Every Investor Should Read

Top 10 Books Every Investor Should Read

By Investopedia Sta | Updated October 13, 2018 — 8:59 PM EDT SHARE

When it comes to learning about investment, the internet is the fastest, most up-to-date way to
make your way through the jungle of information out there. But if you're looking for a historical
perspective on investing or a more detailed analysis of a certain topic, there are several classic books
on investing that make for great reading. Here we give you a brief overview of our favorite investing
books of all time and set you on the path to investing enlightenment.

"The Intelligent Investor" (1949) by Benjamin Graham

Benjamin Graham is undisputedly the father of value investing. His ideas about security analysis laid
the foundation for a generation of investors, including his most famous student, Warren Bu ett.
Published in 1949, "The Intelligent Investor" is much more readable than Graham's 1934 work
entitled "Security Analysis", which is probably the most quoted, but least read, investing book. "The
Intelligent Investor" won't tell you how to pick stocks, but it does teach sound, time-tested
principles that every investor can use. Plus, it's worth a read based solely on Warren Bu ett's
testimonial: "By far the best book on investing ever written."

"Common Stocks And Uncommon Profits" (1958) by Philip Fisher

Another pioneer in the world of financial analysis, Philip Fisher has had a major influence on modern
investment theory. The basic idea of analyzing a stock based on growth potential is largely
attributed to Fisher. "Common Stocks And Uncommon Profits" teaches investors to analyze the
quality of a business and its ability to produce profits. First published in the 1950s, Fisher's lessons
are just as applicable half a century later.

"Stocks For The Long Run" (1994) by Jeremy Siegel

A professor at the Wharton School of Business, Jeremy Siegel makes the case for—you guessed it—
investing in stocks over the long run. He draws on extensive research over the past two centuries to
argue not only that equities surpass all other financial assets when it comes to returns, but also that
stock returns are safer and more predictable in the face of the e ects of inflation.

"Learn To Earn" (1995), "One Up On Wall Street" (1989) or

"Beating The Street" (1994) by Peter Lynch
Peter Lynch came into prominence in the 1980s as the manager of the spectacularly performing
Fidelity Magellan Fund. "Learn To Earn" is aimed at a younger audience and explains many business
basics, "One Up On Wall Street" makes the case for the benefits of self-directed investing, and
"Beating The Street" focuses on how Peter Lynch went about choosing winning stocks (or how he
missed them) while running the famed Magellan Fund. All three of Lynch's books follow his common
sense approach, which insists that individual investors, if they take the time to do their homework,
can perform just as well or even better than the experts.

"A Random Walk Down Wall Street" (1973) by Burton G. Malkiel

This book popularized the ideas that the stock market is e icient and that its prices follow a random
walk. Essentially, this means that you can't beat the market. That's right—according to Malkiel, no
amount of research, whether fundamental or technical, will help you in the least. Like any good
academic, Malkiel backs up his argument with piles of research and statistics. It would be an
understatement to say that these ideas are controversial, and many consider them just short of
blasphemy. But whether you agree with Malkiel's ideas or not, it is not a bad idea to take a look at Trading Center
how he arrives at his theories.

"The Essays Of Warren Bu ett: Lessons For Corporate America"

(2001) by Warren Bu ett and Lawrence Cunningham
https://www.investopedia.com/articles/basics/03/050803.asp 1/4
11/23/2018 10 Books Every Investor Should Read
Although Bu ett seldom comments on his current holdings, he loves to discuss the principles
behind his investments. This book is actually a collection of letters that Bu ett wrote to shareholders
over the past few decades. It's the definitive work summarizing the techniques of the world's
greatest investor. Another great Bu ett book is "The Warren Bu ett Way" by Robert Hagstrom.

"How To Make Money In Stocks" (2009, 4th ed.) by William J.

O'Neil Partner Links
Bill O'Neil is the founder of Investor's Business Daily, a national business of financial daily
Sign up for our daily newsletters
newspapers, and the creator of the CANSLIM system. If you are interested in stock picking, this is a
great place to start. Many other books are big on generalities with little substance, but "How To Make
Money In Stocks" doesn't make the same mistake. Reading this book will provide you with a tangible
system that you can implement right away in your research. 

"Rich Dad Poor Dad" (1997) by Robert T. Kiyosaki

This book is all about the lessons the rich teach their kids about money, which, according to the
author, poor and middle-class parents neglect. Robert Kiyosaki's message is simple, but it holds an
important financial lesson that may motivate you to start investing: the poor make money by
working for it, while the rich make money by having their assets work for them. We can't think of a
better financial book to buy for your kids.

"Common Sense On Mutual Funds" (1999) by John Bogle

John Bogle, founder of the Vanguard Group, is a driving force behind the case for index funds and
against actively-managed mutual funds. In this book, he begins with a primer on investment strategy
before blasting the mutual fund industry for the exorbitant fees it charges investors. If you own
mutual funds, you should read this book.

"Irrational Exuberance" (2000) by Robert J. Shiller

Named a er Alan Greenspan's infamous 1996 comment on the absurdity of stock market valuations,
Shiller's book, released in March 2000, gives a chilling warning of the dot-com bubble's impending
burst. The Yale economist dispels the myth that the market is rational and instead explains it in
terms of emotion, herd behavior and speculation. In an ironic twist, "Irrational Exuberance" was
released almost exactly at the peak of the market.

The more you know, the more you'll be able to incorporate the advice of some of these experts into
your own investment strategy. 

Day trading “starter kit.”

Learn to create a trading plan with Investopedia Academy’s “Become A Day Trader." This online
course is taught by an actual Wall Street Trader, includes a step-by-step playbook for 6 trades you
can use right away, and takes less than a day to complete. Watch free trailer > >

RELATED ARTICLES
INVESTING
The Top 5 Books Every Young Investor Must Read
Reading these respected books by finance legends will provide indispensable
business and investing insights for young investors.

INVESTING

Investing Books It Pays To Read

We provide some classic and lesser-known titles to add to your collection.

https://www.investopedia.com/articles/basics/03/050803.asp 2/4
11/23/2018 10 Books Every Investor Should Read

FINANCIAL ADVISOR

20 Must-Read Books for Finance Professionals

These 20 books o er insight into the past and present worlds of finance and how
financial professionals can improve their business.

INSIGHTS
Warren Bu ett: The Road To Riches
Find out how he went from selling so drinks to buying up companies and
making billions of dollars.

INVESTING

Why Warren Bu ett Envies You

The Oracle of Omaha can move over - there's a new investor in town.

INSIGHTS
4 Reasons Bu ett's Portfolio Is Irrelevant to Today's Investors (AXP,
KO)
Find out why investors should not try to emulate Warren Bu ett's stock portfolio
and why they could not achieve his same level of success.

INSIGHTS

Economist Guide: 4 Lessons Warren Bu ett Teaches Us

Learn how Warren Bu ett's most famous investment advice can teach investors to
manage their own money and practices.

MANAGING WEALTH
Bu ett's Biggest Mistakes
This investment guru is still human, and his biggest investing blunders prove it.
Find out where he went wrong, and what you can learn from his mistakes.

MANAGING WEALTH

Bu ett's early days as a value investor

Warren Bu ett has been honing his investing process for years. Check out how he
become a billionaire from early days as a value investor.

MANAGING WEALTH
Warren Bu ett: How He Does It
Warren Bu ett has consistently ranked highly on Forbes' list of billionaires. He has
a careful methodology for evaluating value stocks and investing.

RELATED FAQS
Q: Why does Warren Bu ett largely avoid investing in the technology sector?
Learn why Warren Bu ett has traditionally avoided investing in technology companies, and read about his value
investing ... Read Answer >>

Q: How is Warren Bu ett Plan bequeathing his estate?

Find out how much Warren Bu ett is leaving for his heirs and how he wants the funds invested a er his death.
Read Answer >>

Q: What's the largest charitable donation Warren Bu ett ever made?

Learn about Warren Bu ett's biggest financial contributions and how his estate is to be divided between charity
and Bu ett's ... Read Answer >>

https://www.investopedia.com/articles/basics/03/050803.asp 3/4
11/23/2018 10 Books Every Investor Should Read
Q: Warren Bu ett's Annual Salary at Berkshire Hathaway
Warren Bu ett receives a nice salary, and he continues to stay involved with his company and his community.
Read Answer >>

https://www.investopedia.com/articles/basics/03/050803.asp 4/4