Top Rated Investing Books for All: Must-Read Investment Books

Investing is a great way to grow money over time. The best investing books help beginners, kids, young adults, and women learn how to start. A must-read investment book explains what trading is and how an investor can build wealth.

Many top-rated books focus on long-term investment strategies. Some books are written for dummies, while others offer expert recommendations. These books teach about risk, record profits, and smart decisions.

Some of the greatest books on investing share lessons from investors like Warren Buffett and Peter Lynch. Each book has valuable insights to help readers in Australia and beyond.

A well-written book on investment is a great tool for learning. The best books ever written on this topic guide readers step by step. If you want to start investing, choose a book that matches your goals.

1. Security Analysis by Benjamin Graham & David Dodd

• Key Insights: Foundational text on value investing, introducing the concept of margin of safety and discussing how to analyze stocks based on fundamental analysis.
• Why Read: Understand the core principles of value investing and learn how to identify undervalued stocks.

2. The Intelligent Investor by Benjamin Graham

• Key Insights: Explains the importance of long-term investing, discusses the dangers of speculation, and presents the concept of intrinsic value.
• Why Read: Learn the fundamentals of intelligent investing and avoid common mistakes made by novice investors.

To summarize: 

1. There are many ways to make money, which are related to your activeness and passiveness, etc., but it is best not to be too speculative and value-oriented, and to be universally applicable to the public. "High-quality assets" are the most worry-free 
2. Predict the future + track record in parallel 
3. The margin of safety varies depending on the type of person/product/ticket, each shows its magic, exposure first//There must be country/market/industry differences and historical limitations Sexual issues exist, but it is indeed a classic. There are many examples from 50+ years ago. 

I don’t think I can read them carefully.

3. You Can Be a Stock Market Genius by Joel Greenblatt

• Key Insights: Teaches special situation investing techniques, focusing on finding mispriced assets and exploiting arbitrage opportunities.
• Why Read: Discover how to spot undervalued companies and capitalize on temporary market anomalies.

Joel Greenblatt's returns in the mature investment market in the United States are undoubtedly huge. This book was written in 1997. There are a large number of examples to support his point of view, that is, an ordinary investor can surpass professional investment through his efforts. 

Summarizes the deviations in asset pricing caused by the rigid mechanisms of institutional investors and the popular behavior patterns of individual investors. This situation does not involve difficult value judgments but rather uses short-term information advantages to obtain more stable and effective profits.

4. Common Stocks and Uncommon Profits by Philip Fisher

• Key Insights: Emphasizes the importance of selecting high-quality businesses run by strong management teams.
• Why Read: Develop skills in analyzing individual companies and discovering profitable investment opportunities.

A masterpiece! It explains the characteristics of outstanding companies, methods of discovering these characteristics, how to initially screen thousands of stocks, the formation mechanism of stock prices, the selection of buying and selling opportunities, the limitations of other investment methods, and the development of personal investment ideas. 

Of course, this book also has its flaws. 

• One: There is no in-depth explanation of how to communicate to find out the information you want. 
• Second: It is believed that communication is the main method of obtaining information other than financial statements, and it is not pointed out that information other than language can also provide important clues. 
• Third: Using the recommendations of other investors as the main preliminary screening, not realizing methods such as discovering potential companies through product experience.

5. One Up on Wall Street by Peter Lynch

• Key Insights: Shares the investment strategy of renowned mutual fund manager Peter Lynch, focusing on buying stocks of companies whose products consumers know and love.
• Why Read: Learn how to leverage everyday observations to identify promising investment opportunities.

After reading this, I re-evaluated myself and found that I may be more suitable for the lazy fund method.

Value investment. People who do stocks must first have a house, a sum of money that will not be used in the next few years, and possess qualities such as: calmness, keen insight, unremitting patience, a huge ability to withstand failures and setbacks, and timely management. 

Reflection, tolerance, humility, etc. + You also need to be able to read financial reports, have insight into big markets and business opportunities, and have insight into human nature - it would be a pity not to go into industry. Stock trading is only suitable for traders with large capital.

6. The Little Book of Common Sense Investing by John C. Bogle

• Key Insights: Promotes passive index investing and advocates for low-fee investment options.
• Why Read: Understand the benefits of index investing and learn how to minimize costs associated with active management.

A pretty good little book. A lot of data is provided. To put it bluntly, just buy the total market index fund regularly. This is indeed possible in the United States, but I don't know about it outside the United States.

"Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees" - Warren Buffett

7. The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success by William N. Thorndike Jr.

• Key Insights: Profiles eight exceptional CEOs who consistently delivered superior returns to shareholders.
• Why Read: Examine the leadership traits and strategic choices that led to outstanding performance in the business world.

Very readable. A few key points: 

A good CEO often has a good COO who is responsible for daily operations, so that he can be free to think about strategic issues. 

When the company's stock price is high, cheap assets are purchased through the stock exchange, and when the company's stock price is low, buybacks are used as investments to enhance shareholder returns. 

It is better to be vaguely right than to be precisely wrong. Get used to thinking independently. Being right does not depend on others’ agreement, but because the facts and reasoning are well-founded. Take a long-term view and wait patiently for opportunities to arise. 

In relatively decentralized operation management, as long as financial expectations are met, managers should not interfere. 

Be careful when hiring managers, but don’t hesitate once you hire them. 

Select people based on performance, so no one has to worry about who is trying to please you. 

It is extremely cost-conscious, does not have a bustling office, and does not have many administrative personnel at the headquarters. 

Operations are decentralized but capital decisions are centralized. Excessive non-core businesses should be sold off promptly. 

Board members must have investment and investment in the company to truly manage the company. 

Acquisition decisions do not require dozens of pages of lengthy discussions; they focus on the target market’s growth potential, industry competition, potential operational improvements, and cash generation capabilities.

8. Margin of Safety by Seth Klarman

• Key Insights: Presents a deep value investment approach, focusing on purchasing assets at substantial discounts to their intrinsic value.
• Why Read: Learn how to identify deeply undervalued stocks and manage risks effectively.

Klarman's value investing philosophy: 

Buying stocks at a price below value can bring a margin of safety to investors and is the only strategy that can truly avoid risks. 

The three cornerstones of value investing: are bottom-up investment selection, oriented toward absolute returns, and treating risk and return equally. 

The process of value investing: keeping cash for a long time, buying cheap, cash flow, corporate liquidation, risk arbitrage, and catalysts. 

Klarman is similar to Buffett in the early days, different from Munger's search for great companies, and different from Fisher's growth stock investment. 

Enlightenment: From the perspective of absolute returns, it is not easy to lose money if you buy cheaply; the challenge is to evaluate the value and how to return it.

9. The Big Short by Michael Lewis

• Key Insights: Documents the lead-up to the 2008 financial crisis, highlighting the actions of a handful of individuals who profited from predicting the collapse of the housing bubble.
• Why Read: Gain valuable insights into the causes of the financial crisis and learn lessons applicable to today's markets.

The financial industry is a high-end industry, so high-end that it is difficult for ordinary people to understand. Only smart people are playing a game that is destined to collapse. 

This book focuses on another group of smarter young people who saw through the situation early and found a way to make a fortune in the disaster. Young people, be careful about entering the financial industry.

10. TAsset Allocation by Roger Gibson

The definitive guidebook for successful long-term investing The third edition of Roger C. Gibson's Asset Allocation: Balancing Financial Risk was released in 2000 on the heels of the biggest bull market in a century and amidst talk of a new economy. 

The bear market that followed was the worst since 1973-1974 and destroyed roughly half of the stock market's value. Through it all, Roger Gibson's advice to investors remained the same. 

Gibson once again offers techniques to design all-weather portfolios that improve long-term performance, while mitigating overall risks through widely varying market environments. 

Grounded in the principles of modern portfolio theory, this fourth edition of his investing classic explains how and why asset allocation works.

11. The Most Important Thing by Howard Marks

• Key Insights: Highlights the importance of maintaining discipline and patience in investing, offering guidance on managing risk and navigating market volatility.
• Why Read: Improve your ability to assess risk and make sound investment decisions amid changing market conditions.

This wave of value investors has their investment philosophy, but it is not deep enough. Of course, if they can implement that philosophy well, they will be able to make profits in their investments. Nor do I mean that the deeper the philosophical thinking, the higher the profit margin.

Even if you don’t invest, this book is worth reading. I feel that people who are engaged in finance think about the people and things around them much more than ordinary people. It’s a very interesting book. I read it in the comment section, and it seemed like a barrage was opened. Same.

12. Elliott Wave Principle by Robert Prechter

• Key Insights: Analyzes historical cycles and trends in the economy and financial markets, providing tools for forecasting future developments.
• Why Read: Strengthen your ability to anticipate changes in the broader economic context and adapt your investment strategy accordingly.

In a metaphysics book, I learned three things.

1. The information fed back by the stock market is advanced, and all good and bad news will be fed back in advance. If you buy stocks based on public information, you will only catch a tail or be trapped. 
2. For any well-known stock Vs, don’t pay attention to what they are saying, but pay attention to the purpose of what they say. Don’t be a fish in the crowd. You must have your ideas when choosing stocks to buy and sell. 
3. Waves also talk about trends. A correction cannot penetrate the original bottom, and a rebound must penetrate the original top.

13. How We Know What Isn't So by Thomas Gilovich

What we are talking about is a principle that everyone understands, but with examples, you will find that many times what should be done should not be done. There are some references to happiness and the like. If you are very suspicious of people, I suggest you read it carefully to ensure that you will have new views after reading it.

It also talks about misunderstandings in thinking and logic. There is no need to ask for too many books like this, just find the most reliable one, read it carefully, digest it, and remember it.

14. Behavioural Investing by James Montier

This book believes that interviewing management is a waste of time because management is often biased and overly optimistic. This is the conclusion formed by the author who looks at the problem from a quantitative perspective. 

The purpose of interviews with management is not management’s profit forecast, but management’s thinking on major issues such as competitive landscape, company strategy, capital allocation, etc. 

Through long-term management meetings, tracking, and comparison, it can help Judge the quality of management. Good management and bad management still have very different effects on company returns. 

15. The Psychology of Money by Morgan Housel

• Key Insights: Explores the psychological factors influencing financial decision-making, offering practical advice on managing emotions and cultivating healthy financial habits.
• Why Read: Improve your ability to navigate the complex relationship between emotion and investment decision-making.

The subsequent discussion around pessimism and optimization is worthy of the title of the book, lively, interesting, and inspiring. 

There are a few points in the first half that are well described: 

1. Exchange cash for stocks and houses, and what you get are stocks and houses, not cash. It is so simple, but it still leaves thousands of people unwilling to accept it after having their heads broken and bleeding; 

2. No one's choice is incomprehensible. They all make choices based on their personal experience and knowledge accumulation. 

Whether you are judging yourself or others, you must understand the difference in perspective. The biggest gain is to think more about wealth and richness. 

The author's awareness of paying in full to prevent mortgage investment is based on personal independent goals. It is worth referencing and maintaining sufficient cash holdings. 

Money is just a bridge to the ultimate value, and people cannot live on the bridge. The first step in training a money concept that suits you is to understand your life goals, otherwise, freedom will not be expected. 

16. The Bond King by Mary Childs

• Key Insights: Chronicles the career of Bill Gross, founder of PIMCO, detailing his innovative fixed-income investment strategies and their impact on global financial markets.
• Why Read: Gain insights into the history of fixed-income investing and learn from the strategies employed by one of the industry's greatest minds.

A few places that impressed me: 

1. When Bill Gross resigned, regulators were worried that this would cause instability in the entire financial market - in the months after he left Pimco, the Total Return fund lost $100 billion, but not much Money flowed into Gross' fund, and both sides lost. 
2. Compared with other financial biographies, this one is very interesting in that it writes about the delicate relationship between financial tycoons and financial media. The author also gave enough reporter credit to other reporters. 
3. I read the postscript and acknowledgments carefully. , it is not easy to report and write such a book. I don’t know why several short reviews on Douban gave it average reviews, which made me wonder if I had a filter for Mary.

17. The Only Investment Guide You'll Ever Need by Andrew Tobias

• Key Insights: Offers straightforward explanations of various investment instruments and strategies, helping readers develop a broad understanding of the investment landscape.
• Why Read: Acquire a basic grasp of the diverse array of investment options available to investors.

I learned the importance of saving money from an investment book. One penny saved is two pennies earned. The investment strategy can be summed up in a nutshell: Just buy index funds honestly within an acceptable range.

This is a best-selling book of investment advice for the American public. People who have no foundation in financial management and investment can read it, but most of the advice is only suitable for the national conditions of the United States. The summary of this book is: don’t go into debt, spend less, and invest more.

18. The Intelligent Asset Allocator by William J. Bernstein

• Key Insights: Focuses on the critical topic of asset allocation, explaining how to construct efficient and resilient investment portfolios.
• Why Read: Build a strong foundation in asset allocation theory and learn how to implement it in practice.

This book explains MPT (modern portfolio theory) very well - a way of understanding investment, but it requires readers to have a certain mathematical foundation (especially a statistical foundation). 

Among them, it has certain reference significance for the long-term historical data statistics of the U.S. capital market.

For financial novices, this is a very good introductory book. It contains many terms and concepts, and the explanations are easy to understand and highly maneuverable. 

I set up a Vanguard account while reading and plan to follow the instructions in the book. Use the listed tax-sheltered accounts and taxable accounts to purchase index funds. 

This is a book that is worth reading and taking detailed notes at the same time. It will be very beneficial for future practical operations.

19. The Black Swan by Nassim Nicholas Taleb

• Key Insights: Challenges traditional assumptions about probability and uncertainty, arguing that rare, unexpected events play a crucial role in shaping financial markets.
• Why Read: Expand your understanding of the nature of risk and its implications for investment decision-making.

Why do some people say that for a book published in 2007, it was highly praised abroad but not so enjoyable to read? 

The book is full of the author's speculative philosophical insights and examples. A mixture of philosophy, psychology, statistics, and finance. 

There is too much good content, but if I have to summarize it in concise language, the core content gives me the impression that "the secrets are unpredictable, so deal with them calmly." 

According to the ancients, when faced with uncertainty, one should "take it suddenly without being surprised, and without getting angry if it is thrown at without reason." 

People are always afraid of the unknown. Taleb said that the future is unpredictable and all explanations are hindsight. So how should we deal with it? 

In my opinion, the most fundamental point of this book is to correct your mentality, spend your time and energy where they should be spent, and don't waste your time trying to predict the future, especially don't bet all your money and life on it.

20. The Little Book of Value Investing by Christopher Browne

• Key Insights: Provides practical guidance on identifying undervalued stocks, understanding the importance of a margin of safety, and the long-term benefits of patient, value-focused investing.
• Why Read: Gain a solid understanding of the principles of value investing and learn how to apply them in real-world investment scenarios.

The author is worthy of being a veteran who has been in the investment field for decades and covers some important principles of value investing in the book. 

The author is also more down-to-earth and tells readers that when doing value investing, they must endure loneliness, ignore all kinds of criticism, and stick to their own choices and decisions. These are the most difficult aspects of investing.

If readers are still not satisfied after reading this book, they can download "What Has Worked in Investing" from the author's company website or search for it on Google.

Unfortunately, the author passed away in 2009, and this book became his final work.

21. A Random Walk Down Wall Street by Burton Malkiel

• Key Insights: Argues for the efficiency of stock markets and promotes passive index investing as the most reliable method for achieving long-term investment success.
• Why Read: Understand the foundations of modern portfolio theory and explore the merits of passive versus active investment approaches.

The core point of this book is that the best way for individual investors to manage their finances is to invest in index funds and reasonably distribute their investment portfolios. 

The first half is written in an easy-to-understand manner. There are some things in the back involving tax avoidance and asset allocation in the United States that are not applicable. 

However, the overall idea is that young people save and invest quickly. The younger they are, the more aggressive they can be. 

Beware of bull market risks and reverse risks. Market operations, 6-4 stock and bond risk balance, etc. There is a lot of content and it is very practical.

22. Reminiscences of a Stock Operator by Edwin Lefèvre

• Key Insights: A fictionalized account of legendary trader Jesse Livermore, exploring themes such as greed, fear, and the psychology of trading.
• Why Read: Gain insight into the emotional aspects of trading and learn from the experiences of one of the most successful traders in history.

People who are new to the stock market should understand some big principles and have an overall understanding of the stock market. Awareness and methodology are the basic prerequisites for doing anything well.

After reading this book for the third time, I gained some new insights. The most important thing when making investments is to have your independent logic and not rely on other people's tips. 

The most profitable trades will often bring you profits from the beginning, while most of the trades that are trapped as soon as you buy will end with a stop loss.

23. The Dhandho Investor by Mohnish Pabrai

• Key Insights: Draws upon the principles of value investing and applies them within the framework of a simple yet powerful investment philosophy called 'Dhandho.'
• Why Read: Discover a new perspective on value investing and learn how to apply these principles systematically.

Investment master Pabrai introduced his investment philosophy. The parts and cases introduced are very interesting, and the main concepts behind them are also explained clearly. 

It would be better to read it together with "Wealthier, Wisdom and Happier". Pabrai is not simply copying Buffett. 

For Pabrai, who has had the experience of successfully starting a business, the investment perspective and mentality of an entrepreneur are his unique advantages. 

As for the investment philosophy and practical operation, it is "brought in by the master. Cultivation depends on the individual.”

24. The Warren Buffett Way by Robert G. Hagstrom

• Key Insights: Details the investment philosophy and methods used by Warren Buffett, one of the most successful investors of our time.
• Why Read: Study the investment practices of a true master and gain inspiration for developing your own investment strategy.

There is a skill and a way, which is Buffett's investment philosophy, which is also a bit of a philosophy of life. In the past, I thought the story was too long-winded, so I read other books. 

Looking back, I found that these qualitative things are exactly where Buffett is strongest. The author takes the trouble to talk about a lot of investment disciplines and principles, but the core is the sentence in the last chapter. 

If you spend ten thousand years talking to a fish about how to live on land, it would be better to spend one day walking on land. Running a business has the same kind of value.

25. The Intelligent Portfolio by Christopher L. Jones and William F. Sharpe

• Key Insights: Combines elements of Modern Portfolio Theory and behavioral finance to create a comprehensive guide to building and managing investment portfolios.
• Why Read: Develop a deeper understanding of portfolio construction and learn how to build a well-balanced investment plan.

The Intelligent Portfolio draws upon the extensive insights of Financial Engines—a leading provider of investment advisory and management services founded by Nobel Prize-winning economist William F. Sharpe—to reveal the time-tested institutional investing techniques that you can use to help improve your investment performance. 

Throughout these pages, Financial Engines’ CIO, Christopher Jones, uses state-of-the-art simulation and optimization methods to demonstrate the often-surprising results of applying modern financial economics to personal investment decisions.

26. The Art of Short Selling by Kathryn F. Staley

Even for most investors who don’t do short selling, this book is still of great significance, because 90% of investment books only tell you how to pick stocks, what to buy instead, and when to buy, but they don’t tell you how to judge when to sell. Leave. Experienced traders know that selling is much more difficult than buying.

27. The Smartest Guys in the Room by Bethany McLean & Peter Elkind

• Key Insights: Traces the rise and fall of Enron, revealing the inner workings of corporate corruption and the consequences of unethical behavior in the boardroom.
• Why Read: Learn from past mistakes and better understand the potential pitfalls of blindly trusting corporations and their executives.

A very good book! It is a book worth reading again and again. I hope to find similar books to read again. 

I started graduate school in 2013. In class, the professor still likes to use the Enron incident as a case. There is nothing new under the sun. 

If you study the Enron incident thoroughly, I feel that you will have in-depth thinking about a series of similar incidents. 

The characters in the book are very vivid, the events are organized, and the language is concise and to the point. 

It can be seen that the author has done a lot of homework, kudos! I read the reprint. In the postscript, the author briefly compared Enron with the 2008 financial crisis. 

Although the number of words is small, it is very thought-provoking.

28. The Millionaire Next Door by Thomas J. Stanley & William D. Danko

• Key Insights: Identifies patterns among millionaires, debunking myths surrounding wealth accumulation and providing actionable steps towards financial independence.
• Why Read: Gain insights into the habits and mindsets of self-made millionaires and learn how to emulate their success.

The biggest lesson I learned from this book is that wealth is something accumulated, not something spent. 

Being rich is not about living in a luxury house, driving a luxury car, carrying a famous bag, sitting in a first-class position, or eating at famous restaurants. 

This luxurious lifestyle not only does not allow us to have wealth but also makes us become low-level wealth accumulators. 

Getting rich is not an easy task, it requires you to be diligent, thrifty, good at planning, and perseverance. 

I think if you can do the above, even if you don't achieve any material accumulation, you can still gain some spiritual wealth. 

1 million US dollars, 6 million RMB, start from now on, be diligent and frugal, and be the master of life, not a slave to vanity.

29. The Essays of Warren Buffett: Lessons for Corporate America edited by Lawrence A. Cunningham

• Key Insights: Compiles timeless wisdom from Berkshire Hathaway's annual reports, offering valuable perspectives on corporate governance, management, and investment strategy.
• Why Read: Benefit from the sage counsel of one of the greatest investors of all time and learn how to think like a top-notch corporate leader.

The book compiled based on Buffett's letters is very rich in content. Investment is an attitude towards life, which requires a certain understanding of human nature and lifelong learning. 

If you can understand and apply these ideas of Buffett, I believe there will be long-term rewards and you will become very rich (materially and spiritually). Mr. Market is there to serve you, not to guide you.

30. The Great Crash 1929 by John Kenneth Galbraith

• Key Insights: Recounts the events leading up to the 1929 stock market crash, shedding light on the underlying causes and consequences of the event.
• Why Read: Understand the origins of the Great Depression and learn from the mistakes of the past to inform present-day investment decisions.

The "stock market crash" that began in the United States in 1929 eventually developed into an economic depression that spread all over the world and affected more than 10 years. 

It is inextricably linked to subsequent historical events such as Roosevelt's "New Deal" and the outbreak of World War II. 

It is precisely because the impact of this "stock market crash" was so great and the cost so heavy that it has become a subject of repeated discussion by economists and historians. 

This book is the most widely circulated among many works. 

It not only explains the reasons for the "stock market crash", but also vividly demonstrates the blind optimism and speculative psychology of Americans at that time. 

Facts have proved that a "stock market crash" will not eliminate speculation. 

For us ordinary people, this little book by Galbraith not only once again reveals the complexity of economic activities, but also sounds the alarm on risk awareness. 

Advanced consumption and financial investment appear more or less in everyone's daily life, and they have their rationality. 

But if we lose our vigilance and become overly obsessed with consumerism and short-term gains, we may incur huge risks.

31. The Simple Path to Wealth by JL Collins

It can be used as an introductory book for those who don't understand it at all. But for those who already know about 401K, IRA (Roth), and Index Funds, and those who already have their investment style, you don’t need to read it. 

The debt cycle is also the tide of the US dollar, and timely short-term loans and long-term investments are also important.

If you live in North America, this book will change your life.

The core point is:

1. Avoid all debt (including mortgage) 
2. Control spending, save rate >= 50% 
3. Simple investment - index funds (USA's index) 
4. Get F Money. 
5. The withdrawal rate is controlled below 4%.

Conclusion

These books cover a range of understanding the fundamentals of investment philosophies and strategies, from value investing to passive investing to behavioral finance. 

These books list offer practical advice and insights into the art and science of investing and are essential reading for anyone looking to build wealth and improve their investment skills through the markets.

We have compiled a list of must-read books on investment, from basic entry-level to advanced professional, and a total of 30 best investing books of all time in the field of financial investment have been selected. 

Each entry highlights the unique insights offered by the book and why it's essential reading for investors.