January 22, 2021
6 minutes to read
Opinions expressed by Contractor the contributors are theirs.
2020 has shown us the impossibility of predicting the future. Fortunately, protecting your assets and increasing your wealth doesn’t require foresight, just moderate foresight, good advice, and a little creativity. With ultra-low interest rates, skyrocketing stock values, and a post-pandemic recovery in sight, it’s more important than ever to think about investing in a different way.
This list of the best investing books features both proven wisdom and cutting-edge breakout author approaches you need to know in 2021.
1. The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness by Morgan Housel
In The psychology of money, Morgan Housel discusses the mental game of investing. Through a series of short stories, Housel explores how your background, your worldview, your ego, and your pride – not to mention marketing techniques and hidden incentives – influence the financial decisions you make over the course of your life. If you’re an entrepreneur used to focusing on math, this book will help you avoid the investment pitfalls that psychology can get in your way.
Best for: Recognize prejudices and minimize emotional decisions
2. The lifestyle investor: the 10 commandments of cash investing for passive income and financial freedom by Justin Donald
Quick Disclosure: I’ve known Donald for a while and he helped me turn down some potential offers that I thought were good but turned out to be horrible. An inspiring antidote to conventional investment books, The lifestyle investor aims to help investors generate positive returns in months rather than years (if ever). The book examines some of Donald’s more than 100 unconventional offerings, which have earned him an eight-figure net worth while maintaining a family-centered lifestyle. This book is a must read for anyone looking to invest in getting out of a job.
Best for: Original approaches to generate personal wealth, passive and recurring income and financial freedom without a job
3. The Path: Accelerating Your Road to Financial Freedom by Peter Mallouk and Tony Robbins
The path is the follow-up of the authors Money: master the game and Steadfast: Your Handbook to Financial Freedom. Like its predecessors, The path distills decades of financial experience into actionable wisdom. Mallouk helps the reader to think like a top financial advisor, navigate volatile markets, and control investment vehicles to craft a personalized plan. Robbins reveals why it’s the best time in history to become an investor and how to recognize your own human needs when planning financial. I watched Mallouk from afar and was impressed with the way he accelerated his growth.
Best for: Understand how to create a personal wealth plan and manage risks
Related: A five-step approach to financial planning during the coronavirus crisis
4. A Beginner’s Guide to Bitcoin by Matthew R. Kratter
A Beginner’s Guide to Bitcoin is a perfect introduction for anyone intrigued by cryptocurrency and the recent bitcoin and Ethereum surges. This short read contextualizes what bitcoin is, how it works, why it is important, how to buy and store it, where it goes, and how you can avoid beginner’s mistakes when investing. Whether you are considering accepting bitcoin as a form of payment or thinking about ways to diversify your portfolio, this crash course in crypto has you covered. With bitcoin on the rampage, this has been a good read for me.
Best for: Those new to cryptocurrency and curious about Bitcoin in particular
Related: Why Small Businesses Should Consider Bitcoin
5. Rewire for Wealth: Three Steps Any Woman Can Take to Program Her Brain for Financial Success by Barbara Huson
In Reconnect for wealth, Huson examines how neurological differences between the brains of men and women influence their investment decisions. After the men in her life left her in a financial lurch, Huson developed a proven, methodical approach to eliminating financial behaviors that prevent women from building wealth. Huson’s three-step formula – recognize, reframe and react differently – will help women entrepreneurs invest with confidence.
Best for: Women who want to become better investors
6. How I invest my money: Financial experts reveal how they save, spend and invest by Joshua Brown and Brian Portney
How do I invest my money, edited by Joshua Brown and Brian Portnoy with illustrations by Carl Richards, includes 25 essays on real-world investment decisions by leading financial advisors and editors. The strength of the book lies in the diversity of its perspectives, tackling topics such as stocks, bonds, charity, funds, real assets, and the psychology of personal financial decisions. The lesson of this book is that there is no one right way to invest – on the contrary, it guides you towards the means that are right for you.
Best for: Down-to-earth perspectives on investing
7. Warren Buffett’s Essays: Lessons for American Businesses curated by Lawrence A. Cunningham
Warren Buffett’s essays, curated by Lawrence A. Cunningham, presents 50 years of letters to famous shareholders of the Oracle of Omaha, organized by subject. In addition to Buffett’s investment wisdom and insight into business ethics, readers will appreciate his sensible approach and straightforward writing style. In these hectic days, Buffett offers entrepreneurs investment advice that has stood the test of time.
Best for: Those who want good financial wisdom without the jargon
Related: Warren Buffett’s top 3 tips for entrepreneurs
8. The Smart Investor: The Definitive Book on Value Investing by Benjamin Graham
Speaking of timeless investment advice, The smart investor by Benjamin Graham was first published in 1949 and still tops bestseller lists for a reason. Described by Warren Buffett as “the best book on investing ever written,” the lasting wisdom in The smart investor gets a modern refresh with 21st century market commentary by Silver editor-in-chief Jason Zwieg. If you are looking for advice that is both proven and up to date, The smart investor is for you.
Best for: Wise advice on portfolio management and loss minimization
9. The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Returns by John C. Bogle
First published in 2007, The Little Book of Common Sense Investing demystifies the investment world and simplifies its myriad of options into a simple low cost index fund buy and hold strategy. In the 10th Anniversary edition, mutual fund pioneer John C. Bogle adds new data and two new chapters on retirement investing and asset allocation. If KISS is your mantra, The Little Book of Common Sense Investing will be in your alley.
Best for: Those who want a simple, proven, hassle-free strategy endorsed by Warren Buffett
Regardless of your investing style, your portfolio diversification, or your net worth, the most important investment you will make is in your mindset. These books are a great way to improve your financial literacy in 2021 and beyond.