Top 18 Best Investing Books to Read for Every Investor (2021 List)

By
Henry Mann
·
September 7, 2021

You’ve probably heard the saying, “The only certainty in investing is uncertainty”.

It’s true, the market is unpredictable, and you’ll never know with certainty what the future holds. Your only option is to prepare yourself by learning as much as you can about investing, strategies, and risk.

So, there is actually one certainty amongst all the uncertainty – you’ll never stop learning.

That’s where the best investing books come in. They’ll help you understand the markets, investing and trading strategies, the psychology of investing, and effective risk management to take control of your personal finances.

Here’s the thing, though. There are so many investment books out there with some being excellent and others, well, let’s say not so good.

So, where do you begin? Luckily, we’re here to help and with this article, we’ve got you covered with 18 of the best investing books to read.

How To Learn Investing From Good Investment Books

It doesn’t matter whether you’re a new investor or a more seasoned investor, investing can be daunting. You’ll have to consider things like different asset classes and investment instruments, how they compare, their risk/reward ratios and your specific risk appetite to develop strategies that fit your goals and requirements.

This is where the top finance books can be an invaluable resource. So, you could look at one of the classic investment books that give you great insights into the investment philosophies of well-known investors. Or you could consider one of the must-read investment books that teach you investment strategies and risk management.

No matter which you choose, they all hold the valuable information and wisdom you need to make your investing journey a success.

Best Investing Books for Beginners

One of the best ways to set yourself up for success, especially when you’re a beginner is to develop a solid foundation where you understand how investing works, how to manage risk, and how to find excellent investment opportunities.

With that in mind, let’s look at our selection of the best investment books for beginners.

The Intelligent Investor: The Definitive Book on Value Investing – Benjamin Graham

Top 18 Best Investing Books to Read for Every Investor (2021 List) The Intelligent Investor: The Definitive Book on Value Investing – Benjamin Graham

This is a bestseller. Arguably one of the greatest investment advisers of all time, Benjamin Graham provides a wealth of knowledge in The Intelligent Investor: The Definitive Book on Value Investing. His philosophy of value investing teaches you how to develop successful, long-term investment strategies, while at the same time helping you to prevent making costly errors.

Although published in 1949, market developments over the years have proven the wisdom in Graham’s strategy and philosophy. It's no wonder that it's often referred to as the stock market Bible and it's one of the best investment books you’ll ever read.

The updated, revised edition also has commentary by financial journalist Jason Zweig, who brings Graham’s strategies in line with today's financial markets and helps you better understand Graham’s principles.

You can buy The Intelligent Investor here.

The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns – John Bogle

Top 18 Best Investing Books to Read for Every Investor (2021 List) The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns – John Bogle

Ideal for beginners, The Little Book of Common Sense Investing shows you how to get more out of the market. Author and mutual fund pioneer, John C. Bogle describes in detail how to buy and hold a mutual fund that tracks a stock market index like the S&P500. As a result, you’ll learn one of the simplest and most effective investment strategies there is to build wealth over time with lower overall risk.

First published in 2007, Bogle's investment philosophy has stood firm and remained effective over the years. The 10th-anniversary edition includes two new chapters on asset allocation and retirement investing, and a wealth of updated information, further increasing the value of the book for both beginners and more seasoned investors alike. As a result, it’s arguably one of the best stock market books for beginners.

You can buy The Little Book of Common Sense Investing here.

The Essays of Warren Buffett: Lessons for Investors and Managers – Warren E. Buffet & Lawrence A. Cunningham

Top 18 Best Investing Books to Read for Every Investor (2021 List) The Essays of Warren Buffett: Lessons for Investors and Managers – Warren E. Buffet & Lawrence A. Cunningham

Warren Buffett is the one of the most successful investors in history, and arguably the most renowned. So, it's easy to see why when Buffett speaks, investors listen. Having amassed over $100 billion, his approach to investing and management has made him hugely successful and generated substantial wealth for his holding company, Berkshire Hathaway.

The Essays of Warren Buffett: Lessons for Investor and Managers consists of a curated selection of Buffett’s original annual letters to the shareholders of Berkshire Hathaway accompanied by author and scholar, Lawrence A. Cunningham’s commentaries. It's the definitive account, and according to Buffet, the best source of his approach and philosophy to investing.

You can buy The Essays of Warren Buffet: Lessons for Investors and Managers here.

The Little Book That Still Beats the Market – Joel Greenblatt

With over 300,000 copies in print, The Little Book that Beats the Market is widely recognised as one of the best books on investing. In it, author Joel Greenblatt describes how investors can outperform market averages using a formula that relies on buying stock in good businesses when they’re available at low prices.

In The Little Book that Still Beats the Market, Greenblatt expands on the information in the first book and describes the basic principles and strategies of successful stock market investing. Using plain language and easy math, he sets out his formula for investing that has been tested extensively.

In this way, you’ll learn the principles of value investing step by step from one of the best investment books for beginners which, in turn, provides you with a long-term investing strategy that you understand and can stick with.

You can buy The Little Book That Still Beats the Market here.

The Bogleheads’ Guide to Investing – Taylor Larimore, Mel Lindauer & Michael LeBoeuf

The Bogleheads’ Guide to Investing is an extensive DIY handbook that’ll show you how to develop your own investment strategy using the proven methods of John C. Bogle. By using these methods, which have worked for literally thousands of investors, you’ll learn how to invest effectively, lower your risk, and diversify your portfolio.

Considering the effectiveness of his methods, it's no wonder that Bogle's followers have grown to one of the largest and most active investor communities on the Internet. So, if you're looking for a road map to successful investing that contains expert guidance and sound advice, this is probably one of the best books on investing you'll ever read.

You can buy The Bogleheads’ Guide to Investing here.

Best Books on Investing for Stock Traders

It’s no secret that stock trading can be extremely lucrative. It can, however, be quite challenging. So, where do you begin? How do you choose the right stocks to invest in?

Hopefully, our selection of the best books on stock investing can help and give you the guidance you need to make investing in stocks easier and more successful.

A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing – Burton Malkiel

In A Random Walk Down Wall Street, author, economist, financial advisor, and successful investor Burton Malkiel describes in detail why you're likely to outperform the portfolios of professionals when you buy and hold a range of diversified index funds. This time-tested and extensively researched strategy alone makes this one of the best stock investing books.

His advice goes further than this, though. You'll also learn to analyse the potential returns for stocks and bonds, hedge funds, commodities, and more. In the updated edition Malkiel also provides valuable information on the recent bubble in cryptocurrencies and critical facts, analysis, and guidance on how you can grow your portfolio while limiting your risk.

You can buy A Random Walk Down Wall Street here.

How to Make Money in Stocks: A Winning System in Good Times and Bad – William J. O’Neill

If you're serious about making money on the stock market, How to Make Money in Stocks is one of the best books on stock investing and definitely worth a look. William J O'Neill's formidable CAN SLIM investing system has, over the years, helped over 2,000,000 investors to successfully grow their portfolios. And now you can also learn this seven-step strategy for making as much profit as possible with the least risk.

In the expanded edition, O’Neill also describes in detail how you can find winning stocks at bargain prices and shows you how to pick the best stocks, mutual funds, and ETFs for the most profit. Ultimately, How to Make Money in Stocks gives you all the tools you need to become, and remain, a successful stock market investor.

You can buy How to Make Money in Stocks here.

Market Wizards: Interviews with Top Traders – Jack D. Schwager

What better way is there to learn making money with stocks than from some of the world’s best traders? In Market Wizards: Interviews with Top Traders, you’ll get to do exactly that.

Author Jack D. Schwager has interviewed dozens of top traders including Richard Dennis, Paul Tudor Jones, Marty Schwartz, Bruce Kovner, and more. He then shows you what made these traders so exceptional and gives you the principles you can use to become a successful trader yourself.

Not only does this make Market Wizards one of the best books on stock investing, but also one of the most fascinating as well.

You can buy Market Wizards here.

Trade Your Way to Financial Freedom – Van K. Tharp

Trade Your Way to Financial Freedom goes further than just giving you a strategy to follow. In it, Van K. Tharp describes his 17-step model that you can use to develop your own profitable trading system.

He also shows you how to evaluate trading systems based on their risk to reward ratio and goes deep into risk, position-sizing, macroeconomics, and various stock trading models.

Maybe the most crucial point of all, is that Tharp shows that there's no one-size-fits-all approach to trading and that your success, ultimately, lies in the interplay between your trading style, goals, psychology, personality, and a well-designed and tested trading system.

Once you understand this, you'll be able to develop your own strategy to make your trading success more likely.

You can buy Trade Your Way to Financial Freedom here.

One Up on Wall Street: How To Use What You Already Know To Make Money in the Market – Peter Lynch

The former fund manager of Fidelity's multibillion-dollar Magellan mutual fund, Peter Lynch describes how he reached his massive success in One Up on Wall Street. He then gives you a straightforward way to find the right stocks to buy by reviewing financial statements and looking at the numbers that really matter.

The core idea of the book, however, is that, because the best opportunities can be found in local shops or businesses, you have the chance to learn about successful companies long before the experts do. And because of this, you'll be able to invest in fast-growing companies that could grow 10 times or more and make your portfolio grow with them.

You can buy One Up on Wall Street here.

Best Books About Investing for Asset Allocators and Indexers

Some say that the key to successful investing is effective asset allocation so that your portfolio is properly diversified to maximise returns and minimise risk. For this reason, you must know the right asset allocation strategies.

To learn these strategies, you could take a look at our selection of the best books for investing in assets.

All About Asset Allocation – Richard Ferri

By this time, we all know that diversification is crucial, not only to limit risk but also to increase returns. And for this an effective asset allocation strategy is vital. Fortunately, in All About Asset Allocation, Richard Ferri will show you how to diversify your portfolio and implement a successful asset allocation system.

As a result, you’ll learn how to develop an asset allocation strategy that suits your specific investment goals, needs, and requirements. It also shows you how to select the right stocks, mutual funds, ETFs, and other assets, which of these asset classes work well together, and why they do.

Ultimately, when you understand effective asset allocation, you’ll be able to know when, why, and how to change your asset allocation strategy as circumstances change.

You can buy All About Asset Allocation here.

The Little Book that Still Saves Your Assets – David M. Darst

High net worth individuals and financial institutions use proper, effective asset allocation strategies to not only grow their assets but to protect them against risk as well. In The Little Book that Still Saves Your Assets, David M. Darst shows you these strategies and guides you on how to use them to increase your returns, minimise your risk, and achieve your investing goals. This makes it one of the best investor books to read.

The advice given in this book is based on years of real-world experience and extensive research by one of the world’s experts in asset allocation. By learning and studying the strategies presented by Darst, you'll be able to better manage your money in today’s tough investment climate by using the right mix of stocks, mutual funds, ETFs, commodities, and other assets.

You can buy the Little Book that Still Saves Your Assets here.

The Intelligent Asset Allocator – William Bernstein

In today's markets, successful investing is more challenging than ever before, and balancing the risk and rewards is more critical. One of the best ways to navigate these challenges is to have a robust and diversified portfolio of assets.

In the Intelligent Asset Allocator, one of the best books for investing in assets, self-taught investor William Bernstein will show you how to develop and manage such a portfolio for long-term success. In the process, you’ll learn strategies for improving your risk/reward ratio, optimal asset allocation, and how to implement your strategy.

You can buy the Intelligent Asset Allocator here.

The Sector Strategist: Using New Allocation Techniques to Reduce Risk and Improve Investment Returns – Timothy J. McIntosh

Over time, the markets and the investment climate have evolved significantly. As a result, it may be time to reconsider investment strategies and break away from outdated concepts. That is exactly what Timothy J. McIntosh suggests in The Sector Strategist.

In his book, McIntosh challenges inaccurate and outdated investment assumptions, provides concrete information that will allow you to perform fundamental analysis on any sector and shows you which sectors have, historically, performed better. McIntosh also shows you which sectors he sees as promising and looks at alternative investment opportunities you can consider for further diversification.

Ultimately, the knowledge imparted in The Sector Strategist will allow you to grow your portfolio and reduce your risk.

You can buy The Sector Strategist here.

Best Investment Strategy Books

It’s simple, to be a successful investor you need an effective investment strategy. A proper strategy lets you find the right assets to invest in, limits your risk, and increases your chances of making a profit.

To learn some of the best strategies there are, take a look at our selection of the best investment books to read.

The Warren Buffett Way: Investment Strategies of the World – Robert G. Hagstrom

As mentioned earlier, Warren Buffett is one of the most successful investors there’s ever been and also one of the most revered business leaders. So, it makes sense that, if you want to be a successful investor, you emulate Buffet, his philosophies, and his investment and business strategies.

That is what The Warren Buffett Way enables you to do. It describes the psychological foundations of Buffett's investment approach in detail. You’ll therefore learn how to think like a long-term investor and how to behave rationally despite market uncertainty which, in turn, sets you up for greater investment success.

You can buy The Warren Buffet Way here.

Unconventional Success: A Fundamental Approach to Personal Investment – David F. Swensen

In Unconventional Success: A Fundamental Approach to Personal Investment, investment legend and best-selling author David F. Swenson goes against the often-conventional advice that average investors invest in for-profit mutual funds.

In contrast, he promotes investing in a well-diversified, equity-oriented portfolio and avoiding actively managed and poorly constructed mutual funds to create an environment where you can thrive. In doing so, you’ll avoid excessive management fees, portfolio churning, and increased tax liabilities.

Simply put, Unconventional Success gives you all the tools and information you need to ensure investment success and improve your financial future.

You can buy Unconventional Success here.

What Works on Wall Street: The Classic Guide to the Best-Performing Investment Strategies of All Time – James O’Shaughnessy

All too often, we listen to so-called “experts” for investment advice, and, ultimately, their strategies don't work. This is What Works on Wall Street wants to eliminate. It's the only in-depth guide that lets you see the market in context and understand that the highs and lows are a normal part of investing.

And when you understand this, you'll be able to rely on proven strategies that enable you to increase your returns despite market downturns while limiting your risk. Here, James O'Shaughnessy provides you with the most effective and successful investment strategies and shows you what works and what doesn't.

Simply put, What Works on Wall Street is one of the top investing books if you want objective facts and effective strategies for success.

You can buy What Works on Wall Street here.

Investment Titans: Investment Insights from the Minds that Move Wall Street – Jonathan Burton

In Investment Titans, nine of the greatest financial minds including John C. Bogle, William Sharpe, and Paul Samuelson detail the foundations and strategies of becoming an intelligent investor. Through their wisdom that’s based on experience and facts and not on trends or emotions, you’ll learn that, although market conditions change, the fundamentals of successful investing stay the same.

By learning and understanding these fundamentals, you’ll learn how to choose the right stocks for your portfolio, how to manage risk, how risk influences your investments, and where you can find the right information to make investment decisions. Ultimately, this gives you the insights you need to make your investments more profitable.

You can buy Investment Titans here.

Key Takeaways on the Best Books To Learn About Investing

One of the best things you could do to set yourself up for investing success is to learn as much as you can about investing, risk, and strategies. As they say, knowledge is power, and with investing this is especially true.

To empower yourself with the knowledge you need, there’s arguably no better way than reading some of the best investing books there are. Hopefully, this post showed you some of the best books on investing available today and makes it easier for you to get started.

Plus, if you don't have time to read a whole book, here's some articles you can read:

Reddit Stock Picks: Delete the App, Your Portfolio Will Thank You

Investing Imposter Syndrome: 5 Super Achievable Ways to Overcome It

Institutional vs Retail Investors: Why Individuals Are at a Disadvantage

Complete Guide: Investing in IPOs (2021)

Vending Machine Business: A Step-by-Step Guide to an Actually Profitable Side Hustle

Plus, if you want to get up to speed with one of the best sectors to invest in of last year:

Complete Guide: How to Invest in Mining Stocks (New 2021)

How to Profit Investing in Mining Stocks: 8 Resources to Guide You

FAQs