9 of the best investing books for beginners and intermediates

If you like curling up with a good book, you might as well buy one that will make you richer.

Start with one or more titles from our list of the best investment books for beginners. Of course, “better” is subjective here, but the ones featured in this report were selected to contain tips that we have found to be specific, helpful, and easy to understand.

If you want to start building wealth and don’t know where to start, yes it could be on the couch. Check out these exceptional books for newbie investors.

9 of the best investing books for beginners

As avid readers of personal finance books, we recommend the following nine titles (in no particular order), based on quality of advice and accessibility of writing:

1. Unconscious investment
2. The Little Book of Sense Investing
3. The four pillars of investing
4. Everything about asset allocation
5. Your money and your brain
6. The Smart Investor, Rev. Ed
7. Buffettology
8. A Random Walk on Wall Street
9. Think, fast and slow

1. Unconscious investment

  • Author: Mike piper
  • Best for: Getting started with indexing
  • Amazon Customer Rating: 3.7 out of 5 stars (12 ratings) as of September 22, 2020.

One of the best investing books for beginners, it explains the ins and outs of indexing strategy in an accessible and relevant way.

If you want to invest but are paralyzed by fear, this book will give you the confidence to get started, while limiting some of your risk.

Piper might not be a famous investor, but as a passionate CPA and indexer, he walks the walk.

Also check out: The Coffeehouse Investor by Bill Schultheis, who encourages you to “ignore Wall Street” while building wealth.

2. The Little Book of Sense Investing

  • Author: John C. Bogle
  • Best for: Take indexing to the next level
  • Amazon Customer Rating: 4.6 out of 5 stars (770 ratings) as of September 22, 2020.

When you’re ready to take your indexing strategy to the next level, move on to The Little Book of Common Sense Investing from the guy who invented index funds.

Bogle explains why it is folly to think about beating the market. Instead, it offers practical advice on how to use indexing to generate long-term gains without worrying about what the market is doing today.

Also check out: The Bogleheads’ Guide to Investing for how to use common sense and apply it.

3. The four pillars of investing

  • Author: William J. Bernstein
  • Best for: Building your investment philosophy
  • Amazon Customer Rating: 4.6 out of 5 stars (244 ratings) as of September 22, 2020.

Once you have started your investing strategy, you can learn about the principles of making money in the markets with the Four Pillars of Investing. This book introduces you to concepts such as risk and reward, market history, and market psychology.

This is one of the best investing books for beginners looking to build a solid working theory of the market. The down-to-earth approach is hands-on, and Bernstein uses his knowledge as a neurologist to help you lay a solid foundation for investing.

Also check out: You could do much worse than emulate the philosophy of Philip A. Fisher, described in his book, Common Stocks and Uncommon Profits.

4. Everything about asset allocation

  • Author: Richard A. Ferri
  • Best for: Learn to diversify
  • Amazon Customer Rating: 4.4 out of 5 stars (141 ratings) as of September 22, 2020.

One of the key principles of long-term investing is making the right choices about the types of investments you hold.

All About Asset Allocation is a basic guide to using stocks, bonds, real estate, and other types of investments to build the right portfolio for you. This overview will give you the knowledge you need to refine your strategy and secure long-term gains.

5. Your money and your brain

  • Author: Jason zweig
  • Best for: Improve your “mental” investment skills
  • Amazon Customer Rating: 4.3 out of 5 stars (146 ratings) as of Sep 22, 2020.

Longtime Wall Street Journal financial reporter Jason Zweig takes you on a journey of how your brain can mess you up as an investor. By examining the scientific research on psychology, economics, and investor behavior, Your Money and Your Brain is the perfect read to start building confidence in your investment ability.

Beginner investors can learn about the pitfalls of overconfidence in their planning and discover practical tips for avoiding mistakes that can drag you down.

Also check out: Daniel Crosby’s The Behavioral Investor for more on the intersection of psychology and investment management.

6. The Smart Investor, Rev. Ed

  • Authors: Benjamin Graham, Jason Zweig and Warren E. Buffett
  • Best for: Value investing study
  • Amazon Customer Rating: 4.6 out of 5 stars (11,309 ratings) as of September 22, 2020.

Graham’s classic book was revised with the help of Zweig and Buffett and remains among the best books for beginning investors. This is because this book explains value investing strategy in a way that anyone can understand.

If you are interested in choosing individual investments, it is a good idea to read this book first. The new edition includes modern examples and titles, and it offers a practical guide to applying proven principles to today’s market.

Also check out: Graham’s Interpreting Financial Statements Before You Start Choosing Stocks.

7. Buffettology

  • Authors: Mary Buffett and David Clark
  • Best for: Take value investing to the next level
  • Amazon Customer Rating: 4.5 out of 5 stars (234 ratings) as of September 22, 2020.

Once you have the basics, learn from the master: Warren Buffett, the world’s most famous value investor.

Written by those who have seen Buffett up close and personally, Buffettology examines the mathematical calculations used by the “Oracle of Omaha” to select its investments.

Not only does this book offer information that can help you apply Buffett’s decision-making process to your own portfolio, but it also introduces 54 “Buffett Firms” to get you started.

Also check out: As long as you learn from the best, also read The Essays of Warren Buffett.

8. A Random Walk on Wall Street

  • Author: Burton G. Malkiel
  • Best for: Getting started with portfolio building
  • Amazon Customer Rating: 4.7 out of 5 stars (973 ratings) as of September 22, 2020.

One of the best investment books for beginners, A Random Walk Down Wall Street introduces novices to the concepts of portfolio building. It includes beginner to intermediate level material on how to choose stocks.

Additionally, the updated version shares useful information about investing using exchange-traded funds and emerging market securities. This is perfect for a slightly more advanced beginner who is ready to try and expand their horizons.

Also check out: Long-term actions to refine your long-term investment strategy.

9. Think, fast and slow

  • Author: Daniel Kahneman
  • Best for: Ensure informed decision-making
  • Amazon Customer Rating: 4.6 out of 5 stars (11,021 ratings) as of September 22, 2020.

At first glance, this book doesn’t seem to be about investing. However, this is how we thought – and this can have a profound effect on the way we manage our investments.

Kahneman, Nobel Prize-winning economist, presents a captivating look at how cognitive biases can lead to disastrous decisions, including market errors. This how-to guide can help you learn how to harness your “slow-thinking” abilities to make better decisions about how you invest, how you manage your money, and even how you live your life.

Also check out: While less focused on behavioral economics, Napoleon Hill’s Think and Grow Rich should at least put you in a positive frame of mind.

Learn and apply lessons from some of the best investing books for beginners

Not all investment strategies are suitable for everyone. However, these books will put you on the path to figuring out what works best for you.

Beginner investors can learn about psychology, proven strategies, and even discover simple ways to limit risk while building wealth for the future.

Use these best books for newbie investors to learn more about how the market works, gain some experience, and then decide for yourself if it’s time to move on to more advanced strategies.

If you’re in debt as you start saving, check out our guide to investing while paying off your student loans.

André Pentis contributed to this report.

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