10 BOOKS THAT EVERY INVESTOR SHOULD READ
Without a doubt, the best way to become a better trader and make smarter investment decisions is to pick up a book. Whether you’re an experienced trader or you’re thinking about making your first investment, it always pays to have a good understanding of the rules and trends in the markets and to keep on top of them as they change. The books mentioned below are packed full of valuable knowledge, tips, techniques and insights for investors of all levels from those that have excelled. Take a look:
1. Benjamin Graham - The Intelligent Investor
The Intelligent Investor was praised by the legendary Warren Buffett as “the best book on investing ever written.” Though Graham (also known as the godfather of value investing) wrote this book way back in 1949, it remains as relevant as ever. Graham’s widely embraced philosophy of value investing is a strategy focused on making low risk decisions with a long term investment mindset. This book undoubtedly shaped the thought processes and strategies of some of the world's leading investors.
2. Jeremy Siegel - Stocks for the long run
Nicknamed the ‘buy and hold bible’, this book by finance Professor and investing enthusiast Jeremy Siegel convincingly argues that long-term and low risk investments are the key to achieving the best results in the stock market. The book also covers a much broader view of the financial market by sharing thoughts on the best strategies, tools and techniques that investors should use to acquire an advantage in the field such as how to determine if the market is overvalued.
3. Peter Lynch - One Up on Wall Street: How to Use What You Already Know to Make Money in the Market
Unlike the majority of material out there, "One up on Wall Street" is a feel good investment guide. The positive mood is evident throughout the book as renowned investor Peter Lynch explains that lucrative investment opportunities are everywhere and that the average investor can easily rival professionals if we pay attention to investment opportunities regarding the products and services that we use every single day. As claimed by Lynch, observations that we make at work or out shopping for example can be converted in valuable knowledge that we can capitalise upon before the pros.
4. Warren Buffett - The Essays of Warren Buffett
This compilation of letters from Buffet himself to Berkshire Hathaway interestingly covers major topics that every successful investor should understand including corporate governance, finance, mergers, accounting and valuation. Through this book, we are offered a unique glimpse into Buffet’s thought processes and can gain insight into the business strategies and investment philosophies of modern history’s most successful investor.
5. Peter Lynch - Beating the Street
After starting out as an intern at Fidelity Investments in the 1960’s, Peter Lynch has become one of the most successful stock market investors and hedge fund managers of the past century. Beating the street explores Lynch’s views on investing and gives particularly good advice on how to decide whether to buy or sell a stock explaining that each individual should invest in different stocks depending on their personality and investment goals.
6. Peter Mallouk - The 5 Mistakes every Investor makes and how to avoid them
Most investing guides out there solely advise us on what we should be doing. Conversely, this book focuses on what we shouldn’t be doing. Read this to find out the common mistakes that all investors make whilst learning a number of straightforward methods to avoid such costly decisions (eg: learning the importance of disciplined investment management and not allowing ourselves to let emotion and bias hinder success).
7. John Bogle - the Little book of Common Sense Investing
Legendary investor John Bogle is the Founder of the Vanguard Group so it’s safe to say that the former CEO of the worlds largest provider of mutual funds knows a thing or two about investing. In this book he makes no attempt to hide the fact that the stock market can be unfair to the average investor. Despite this, he voices his own innovative techniques that he believes can give the average investor a much greater chance of profiting from the stock market including using common sense and ignoring the daily movements of stocks in favour of a longer term buy and hold strategy.
8. Burton Malkiel - A Random Walk Down Wall Street
This best selling, informative guide from Burton Malkiel highlights the importance of having conviction and confidence in your investment decisions whilst informing us how to manage our investments during hard times. Malkiel urges the use of a more hands off approach to managing stocks and explains why over analysing when trading can be detrimental to investment portfolios. This is a great read for new traders and covers an array of investment definitions and commonly used strategies that you need to know!
9. Burton Malkiel & Charles Ellis - The Elements of Investing
In this easy to read guide, best selling authors Malkiel and Ellis break down the most important skills and appropriate mindset needed to invest wisely. Here you will find sensible investment advice like how to avoid over complicating your portfolio and staple principles and rules for example, diversifying your portfolio and avoiding high levels of risk to help deal with trading issues such as fear, greed and over trading.
10. Joel Greenblatt - The Little Book That Beats the Market
If what you want is straight talking investment advice from the Founder and Managing Partner of Gotham Capital then look no further. Within this book the value investor and hedge fund manager explains the basic principles and methods that he believes make up the ‘magic formula investing method’ of outperforming the market by investing in quality companies at discounted prices. A great read.
The more you read, the more you’ll know. Although this list is just the tip of the iceberg when it comes to the array of quality investing books, it’s a good start. After the basics, consider picking up a more topic-specific piece like Michael Lewis’ ‘Liar’s Poker.’ Or one centered around a historical financial event such as John Kenneth Galbraith’s ‘The Great Crash 1929.’ If you need any more recommendations, don’t hesitate to ask me on Etoro.
Disclaimer: All trading involves risk. Only risk capital that you are prepared to lose. I am not responsible for any losses or damages that you may incur as a result of following advice given on this page.