A lot of people have written about the best investing books or the best books about money, but what about books for the beginning investor? I wanted to put together my list of favorite books to get started investing.
These books are designed for the beginner, but still have a lot of solid topics that any level investor can use. Some of these books do get pretty darn complicated, so be aware. However, for anyone that specifically wants to focus on investing, I highly recommend these books. They will help you build a mindset to be a successful investor over time.
Here is my take on the five best investing books to get started investing!
1. Millionaire Teacher by Andrew Hallam
I’ve talked about Millionaire Teacher several times here on The College Investor, and even did an interview with Andrew Hallam (which you can read here). Well, the reason I’ve done that is because this book is one of my favorites for new investors looking to get started investing. It teaches basic strategies that anyone can apply – the premise that a teach becomes a millionaire should highlight that.
The other great aspect of this book, however, is that it is very easy to read and is deigned for the novice. It skips a lot of technical fluff and focuses on what you need to know, when you need to know it. Andrew Hallam does a great job explaining the basics, and then moving into more complicated topics.
2. A Random Walk Down Wall Street by Burton Malkiel
A Random Walk Down Wall Street was one of the first investment books I ever mentioned on The College Investor. It is still one of my favorites, especially for beginning investors. The premise of the book is that a “random walk” will yield the same results as a seasoned trader over time. Or, in a better example, a monkey could do the same as you!
However, beyond the hyperbole, the book makes a lot of solid arguments around index funds, diversification, and portfolio allocation theories. For a beginner getting into the stock market, this is an excellent educational tool on how you should craft your investment portfolio to be able to keep up with the total market over time. This book was also written for financial novices, so you don’t need to be worried about being overwhelmed by technical jargon you won’t understand.
3. Common Stocks and Uncommon Profits by Philip Fischer
There is more to investing in the stock market than just value investing, and that is where Philip Fischer comes into play. In Common Stocks and Uncommon Profits, Fischer extols on the tenants of growth investing. However, beyond the focus on growth, this book really shines in highlighting Fischer’s 15 Points of Investing, which all investors can benefit from.
Warren Buffett once said that he was 85% Graham and 15% Fischer. The reason for this statement is, that while Buffett really looks at the fundamentals of a company like Graham discusses in-depth, he also leverages Scuttlebutt and like wide moats like Fischer discusses.
Adding this book to your investment collection will give you a different, but valuable, perspective.
4. The Interpretation of Financial Statements by Benjamin Graham
If you’re going to get started investing in individual stocks, it is essential that you understand them. That is where The Interpretation of Financial Statements by Benjamin Graham comes into play. Reading this book is step one in truly understanding how to invest in individual companies.
If you’re looking to move beyond the mutual fund and ETF and into individual stock holdings, you have to fully understand what you’re getting into. Benjamin Graham goes into extreme detail on how to analyze financial statements of companies, and it is a must-have for any fundamental investor. Consider this book if you’re looking to move beyond the annual reports and proxy votes and into some serious statement analysis.
5. The Intelligent Investor by Benjamin Graham
The Intelligent Investor is a little more meaty than most of the books on the list, and it is by far the most technical. That’s why I placed it at #5 on my list. However, after you’ve gone through the first few books, this one really takes it to the next level, especially when it comes to finding and evaluating individual companies to invest in. Since Benjamin Graham is known as the father of value investing, it should come as no surprise that this book focuses on key value investing strategies that all investors can apply.
If you want to get a book that is full of solid investing insight, especially when it comes to evaluating and identifying individual companies to invest in, The Intelligent Investor is a great place to start. But be warned – it is long, and it can be very technical at times. If you can get through that, though, it is a very solid read.
Bonus: Money: Master The Game by Tony Robbins
This is a bonus because it’s a new addition to my list in 2016. Money: Master The Game by Tony Robbins is a great book on investing and money by Tony Robbins. As Tony self-purports in the beginning of the book, he’s not a master of money. So, what does he do? He sits down with some of the smartest, most successful investors in the world and get’s them to tell him their secrets. He then shares these secrets with the world in his book.
The answers really aren’t surprising. What is surprising is some of the tactics used by these investors to get there, and why so many people still don’t believe it. Anyway, check out the book, I highly recommend it.
What other books do you recommend for getting started investing?
Integrator says
I’ve developed a strong focus on dividend investing, so from that point of view, I’d recommend:
1. The Single Greatest Investment – Lowell Miller. This book makes the case for a correlation between dividend investing and wealth
2. The dividend growth investment strategy– doubling your retirement income every 5 years. This book illustrates how you can increase you passive dividend income with sustained dividend increases every year.
The other good book is Peter Lynch’s One up on wall street, which speaks to how an average investor can outperform the market.
I have heard about some of the books that you mention above but haven’t read them in full (I’ve skimmed Intelligent Investor and Common Stocks and Uncommon Profits). I’ve put them on my list of investing books to work through.
William @ Drop Dead Money says
Great books, and I have three of them. One other book to consider is Million Dollar Portfolio by David and Tom Gardner of the Motley Fool. It is an excellent guide on how to build an “everyman’s portfolio” of a few stocks, and I found it to be the perfect transition from an index fund to specific stocks.
John S @ Frugal Rules says
Great list of books, I have a couple of them myself. I think #2 is a great resource for almost anyone that is looking to get into investing. It’s very well written and boils down investing so pretty much anyone can get a better understanding.
AverageJoe says
It depends on the age. I started my son with Ramit’s book I Will Teach You To Be Rich. All that testosterone spoke volumes to a high school boy.
krantcents says
Great choices! I would add John Bogle’s book “John Bogle on Investing“
Tie the Money Knot says
I read The Intelligent Investor about 5 years ago (at least), and found it to be quite interesting. Certainly not an easy, light read…and admittedly I did find some of it a chore to go through. But you can come away from it enlightened with a greater appreciation for successful investing.
Brick By Brick Investing | Marvin says
I love the intelligent investor however it can be a very dry read for a novice investor. I recommend getting the version that is updated with recent commentary.
Listen Money Matters says
Great set of picks. I read The Intelligent Investor in part of my initial “Warren Buffet obsession”. I haven’t checked out any of the others, I’m definitely going to check them out on Amazon now!
Miss T @ Prairie Eco-Thrifter says
My hubby is big on reading about investing. I will have to pass on these titles to him.
Rob @FinancialSprout says
I’ll have to check these out, because I want to get an early start at investing. I’m only 17 and I feel like I’ll be a step ahead of the game if I start now. Thank you for the suggestions.
Sarah Park says
These are interesting books to have. Thanks for sharing this wonderful list.
Aram Durphy says
I might add The Little Book of Value Investing, by Christopher H. Browne. It has plenty of interesting studies and other facts to back up the value investing approach.
Will Van Hartog says
4 hour Work week is a great article to get your teeth into as well!!