This page contains a short list of the ultimate best books on investing. They are all written so that they can be read by private investors who do not work professionally with investing. But make no mistake. The books are excellently written and widely recognized internationally by professional investors.
If you want more, you can find the full list of book recommendations here.
Happy reading!
#1: The intelligent investor
Author: Benjamin Graham
From my perspective, there’s only one right place to start the journey to becoming an investor: Read Benjamin Graham’s 1949 classic! The book has been continually revised, and Graham’s story is just as relevant today as it was when it was written. It is easily accessible and provides a sublime introduction to the basic principles of investing. Graham was Warren Buffett’s professor and mentor at Columbia.
#2: A Random Walk Down Wall Street
Author: Burton G. Malkiel
Subtitled “The Time-Tested Strategy for Successful Investing”, Malkiel’s book is a complete investment book, covering fundamental concepts, a review of market history over the past fifty years and a practical guide for investors. Burton Malkiel is a professor at Princeton, but like Graham, he has decades of practical experience from Vanguard, where he stayed for 28 years.
#3: You Can Be A Stock Market Genius
Author: Joel Greenblatt
In his book, Greenblatt covers basic concepts such as investment principles and portfolio composition. But the book stands out for its focus on special situations, such as spinoffs, risk arbitrage, bankruptcy and options. In other words, situations that most private investors (and professionals) steer clear of. Despite the difficult-to-access topics, Greenblatt manages to keep the book short, understandable and with a great sense of humor. Greenblatt is an adjunct professor at Columbia and founder of Gotham Asset Management.
#4: One Up On Wall Street
Author: Peter Lynch
In the book, Lynch provides an excellent overview of the factors needed to succeed in the stock market and how to spot a good investment by observing your surroundings as a consumer. The format is informal, humorous and with many good examples. Lynch was the manager of Magellan Funds and for several decades was the most successful asset manager on Wall Street.
As a follow-up, we highly recommend his second book, “Beating the street”, which focuses on practical implementation of the concepts in “One Up On Wall Street”
#5: The Most Important Thing
Author: Howard Marks
As the subtitle indicates, “Uncommon Sense for the Thoughtful Investor”, Howard Marks addresses the basic (and more advanced) principles of investing. The principles are based on the author’s 40 years of experience as a hedge fund manager. He provides a clear and interesting overview of what it takes to create success and the pitfalls along the way. Howard Marks is the founder of Oaktree Capital Management, the world’s largest investor in distressed securities.
The book can be purchased on Amazon here.
PS: Howard Marks writes an exceptionally good newsletter that is widely recognized internationally, takes the temperature of the market and is even free. Read it here.
PPS: There is an annotated (“Illuminated”) edition of the book, with valuable additions from some of the most recognized investors of all time. Check out the book here.
