To achieve success in the investment world, you must be well equipped with financial knowledge, and to be well-equipped, you must read certain investment books that will broaden your vision and prepare you for the financial markets. Reading and understanding investment books can help you make the right investment calls.
The ten books suggested below will help you understand market trends and investing psychology and guide you by becoming a successful investor in 2021. As the stock market is becoming complicated day by day, these books will be the perfect tool to aid you in decision-making.
The Intelligent Investor
Benjamin Graham, the author of “The Intelligent Investor,” was known as the godfather of investing. The book primarily targets investors who are new to the investing field with the main focus on long-term investing. This book includes everything from the basics of investing to the recommended strategies and guides you on analyzing the stocks. Moreover, The Intelligent Investors gives the readers an insight into the history of stock market. The Intelligent Investor is endorsed by Warren Buffett, who is considered the greatest investor of all time. He called the 1949 version of the Intelligent Investor “the best on investing ever written.” If you are interested in taking the long-term approach in Investing, then The Intelligent Investor must read as it will take you through the entire investment process step by step.The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition)
A Random Walk Down Wall Street
The author, Burton Malkiel focuses on investors aiming to handle their first 401(k)s. The main aim for this book is to guide readers with a strategy that they don’t necessarily need to spend long hours on handling extensive portfolios. The book guides the readers from the beginning and makes the financial world’s concepts easier for a new investor. A Random Walk Down Wall Street allows the readers to get their hands on the primary investment terms and apply them to various investment strategies. The primary focus is on long-term investment rather than short-term investments, which are attractive to new investors. Moreover, this book gives deep insight into predicting prices and avoiding common mistakes that many new and advanced investors make. The revised edition of this book named “A Random Walk” has sold over more than 1.5 million copies, reflecting the popularity of this investing book.A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing
Thinking, Fast and Slow
“Thinking, Fast and Slow” was Daniel Kahneman New York Times bestseller. The author is a renowned psychology professor at Princeton University and has deep knowledge and understanding of financial markets. Moreover, his accomplishments included a Nobel Prize in Economics Sciences in 2002. This book dives into the investor’s thought process and thinking while investing and highlights psychology’s impact on investing. Daniel Kahneman explains in detail that how to make to make the right investment decisions without taking emotions into account. This book further explains to the investors the effects of biases in investing and how to remove them. Thinking, Fast and Slow is applicable not only in the financial world but also in everyday life. After finishing this book, you will be able to make rational decisions with proper analysis, thinking, and conclusion.Thinking, Fast and Slow
The Only Investment Guide You’ll Ever Need
If you are looking for a book with humor sprinkled on it, then The Only Investment Guide You’ll Ever Need is the perfect place to start. This book has been in the markets for over 40 years and was recently updated in 2016 to keep up with the financial markets’ fast-paced economic conditions. Apart from focusing on the wealthy investors, having a huge chunk of capital, Andrew Tobias offers tips and assistance for investors who new to the investment world and have limited capital. Andrew Tobias dedicates this book to his broker, who helped in various stages of his investment journey. To date, there have been more than 1 million copies sold, which reflects the credibility of this investment book.The Only Investment Guide You’ll Ever Need
Beating the Street
If you are a day trader and are looking for an investment book that will polish your day trading skills, then Beating the Street is tailored-made for you. The author, Peter Lynch, beautifully explains the theories of mutual funds and gives the readers real-world advice on forming the perfect investment strategy that will turn out to be profitable. The book educates the readers that investing in the stock market is not a chance game, but it depends on how well you do your due diligence regarding companies you are interested in. This book’s credibility can be judged from the fact that Peter Lynch managed to run one of the most successful mutual funds of all time from 1977 to 1990. Therefore, the words behind this book come from a person who knows how to multiply money.Beating the Street
Common Stocks and Uncommon Profits
Common Stocks and Uncommon Profits is a classic by Philip A. Fisher on investing. This book provides you an in-depth understanding of the investment philosophies, which will help you stay in power throughout your investment journey. Common Stock and Uncommon Profits will guide you in gathering information regarding different companies before you pour your money into a specific stock. Moreover, it will guide you to find high-growth companies from several other sources. This book was first published in 1958 and was endorsed by the greatest investor himself, Warren Buffett. The second edition of this book allows you to read the inputs of Philip A. Fisher’s son, Ken Fisher, who is an investment professional.Common Stocks and Uncommon Profits and Other Writings
The Psychology of Money
The Psychology of Money is a collection of 19 short stories that primarily focus on the thinking that occurs when a person invests. Apart from financial strategies and investing, this book will help you control your emotions while investing and allow you to make a rational decision regarding your investment portfolio or budget. The author, Morgan Housel, highlights the impact of emotions and ego in investing and how to overcome them and gives the readers all the tools required for making the right investment decision. Morgan Housel’s credibility can be judged by his accomplishments. He is an award-winning financial journalist and is a partner at the Collaborative Fund. Moreover, he is a former columnist at The Wall Street Journal and The Motley Fool.The Psychology of Money: Timeless lessons on wealth, greed, and happiness
The Little Book of Value Investing
The Little Book of Value Investing is perfect for people who are interested in value investing. Value investing is a strategy that focuses on purchasing stocks undervalued and holding them for more extended periods of time. This book guides you through the process and helps you understand the importance of value investing and the profits that come with it. The author, Christopher Browne, explains how to put this strategy into action and how to hand-pick bargain stocks and grow your portfolio. The book has received many endorsements and positive reviews from The Independent, Financial Times (UK), Bloomberg, and The Wall Street Journal.The Little Book of Value Investing
Principles: Life and Work
If you are looking for some inspiration in the investment journey, then Principles: Life and Work is the perfect book to start with. This book is New York Times bestseller and is written by one of Time Magazine’s 100 most influential people in the world, Ray Dalio. This book gives you an in-depth sight of Ray Dalio’s life, who began as an average, middle-class kid growing up in Long Island. Ray Dalio started his investment firm in his New York apartment, and forty years later, fortune named his company Bridgewater Associates. Bridgewater Associates became one of the most famous and popular hedge funds in the United States.
Principles: Life and Work is a mix of autobiography and technical stuff regarding investment and will motivate you to take on challenges in the investment world. Ray Dalio shares his secrets and insights, which many businesses, individuals, and organizations use. This book perfectly balances the motivational segment and the technical segment and guides you on applying them in investing in business or life.Principles: Life and Work
One Up on Wall Street
One Up on Wall Street will help you build your skill set in the financial world. The author, Peter Lynch, explains that new investors can perform exceptionally well and be at par with experienced investors. Peter Lynch believes that there are solid investment opportunities everywhere, and the main aim should be to find and maximize those opportunities. This book further explains that we should stop looking for quick money, but we should focus on finding and being curious about the right investment opportunities. One Up on Wall Street guides you through this process and allows you to find the right opportunities to make the right investment decisions. Moreover, this book further states that if you adopt this strategy, you can beat the pros in the investment world and seize opportunities before anyone else does. One Up on Wall Street has sold more than 1 million copies since its release in 2000 and has been endorsed by many financial professionals.One Up On Wall Street: How To Use What You Already Know To Make Money In The Market