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Top 10 Books That Every Investor Should Read in 2021
Investing in the financial markets can be a highly rewarding activity. Over the years, several investors have created huge fortunes by investing in the right stocks. In recent years, investing in the stock market has become quite popular. This is due to the fact that everyone loves the idea of making money by doing absolutely nothing! However, before starting your journey in the financial markets, it is crucial that you understand and learn how this market works. While it may seem exciting to go ahead and purchase your first stock right away, without proper knowledge, you may make random investments which can lead to huge financial losses. That is why it is necessary to learn and understand how the stock market works and how you can find the best investment opportunities. While this may seem like a challenging task, it is not that difficult in reality.
With proper guidance, anybody can succeed in the financial markets and create huge wealth. One of the best ways to learn more about the stock market is to read books written on investing and finance. Reading books is a great way to increase your financial knowledge in an interesting and exciting way. This also gives you the benefit of learning from industry experts who have spent years studying and understanding the financial markets. Additionally, you also gain the author’s experience by reading their book, as they share everything that they’ve learned in the financial markets. Reading these books can help you become a better investor and make better investment decisions. In this article, we are going to share the top 10 books that every investor should read. So, let’s get started!
Book 1 – The Intelligent Investor by Benjamin Graham
The Intelligent Investor by Benjamin Graham is one of the best books you can read on investing. Often called “by far the best book on investing ever written” by legendary investor Warren Buffett, this book has everything on value investing that you need in order to become better at investing. First published in 1949, The Intelligent Investor is a widely acclaimed book on value investing.
This classic book on value investing has been revised four times, with the last revision being published in 1971. This book teaches people how to successfully use value investing in the stock market and find the best investment opportunities. Historically, The Intelligent Investor remains one of the most popular books on investing and Benjamin Graham’s legacy remains to this day.
Book 2 – One Up On Wall Street by Peter Lynch
One Up On Wall Street is an excellent book on investing written by author Peter Lynch. Peter Lynch has been one of the most successful mutual fund managers with an average of 30% return on his portfolio for well over 13 years, beating the S&P 500 Index in 11 of his 13 years managing the fund. This classic book takes the reader on a journey that explains everything like how to start investing, what to consider, why wealth is created in long-term investing, and much more.
Peter Lynch also describes and explains his stock-picking approach to help readers select winning stocks. Written in a simple and easy-to-understand format, this is one of the best books on the stock market that every investor should read before starting their journey in the financial markets.
Book 3 – A Random Walk Down Wall Street by Burton Malkiel
A Random Walk Down Wall Street is a wonderful book written by Burton Malkiel that popularized the “random walk hypotheses.” This classic book is a perfect blend of history, economics, market theory, and behavioral finance that offers practical and actionable advice to investors. This helps in making better investing decisions and achieving financial freedom.
The message that is highlighted throughout the book and is emphasized by the author is; begin a consistent savings plan as early as possible and invest the core of your portfolio in low-cost, broad-based index funds. Overall, the book provides insightful information that sets the reader on a well-informed path to making their investment decisions. As of 2020, there have been twelve editions and over 1.5 million copies sold.
Book 4 – You Can Be a Stock Market Genius by Joel Greenblatt
You Can Be a Stock Market Genius by Joel Greenblatt is a comprehensive and detailed guide on the stock market from a successful fund manager. The book offers great insights into how people can invest in special situations to achieve above-market returns and generate huge wealth. His teachings include subjects such as merger securities, recapitalization, risk arbitrage, bankruptcies, spin-offs, and more. The author highlights the importance of having a basic set of rules that one needs while investing in special situations.
Joel Greenblatt encourages readers to believe in their own work, not to trust news and other people, and have faith in their own analysis. Overall, this is a great book that offers the readers the ability to take a look at special situations in the market from a whole new perspective. Additionally, the book is filled with case studies, important background information, and all that’s needed to succeed in the markets.
Book 5 – The Essays of Warren Buffet by Lawrence A. Cunningham
The Essays of Warren Buffet by Lawrence A. Cunningham is a great book for people who want to learn how the world’s most successful investor made his fortune in the stock market. The Essays of Warren Buffet is a book that focuses on the best parts from the letters that Warren Buffet has been sharing with his shareholders of Berkshire Hathaway, which he has been doing for the past half-century.
The book contains the best extracts from those letters in which Buffet shares his views and findings on the market and investing. Reading this book will give you a look inside the mind of one of the best investors on the planet. Overall, the book acts as a wonderfully distilled version of Warren Buffett’s value investment philosophy.
Book 6 – Reminiscences of a Stock Operator by Edwin Lefèvre
Reminiscences of a Stock Operator by Edwin Lefèvre is a must-read for every investor who is passionate about the stock markets. This book is a chronicle of Jesse Livermore’s life, who was one of the most famous investors of the 19th century. During his time in the market, he made millions, however, he, later on, became bankrupt.
Nonetheless, this book is an indulging read that takes the reader on a journey through the life of one of the most famous investors of the 19th century. Written in 1923, Reminiscences of a Stock Operator is not a traditional investment or stock market book, but it is a fictionalized biography of one of the greatest investors of the 19th century.
Book 7 – Common Stocks and Uncommon Profits by Philip Fisher
Common Stocks and Uncommon Profits by Philip Fisher is an excellent book on how investors can hunt for high-quality stocks. The book highlights how investors can take advantage of the growth stock investment approach and also explains key areas like; what to buy, where to buy, and when to sell. In the book, Philip Fisher also explains and discusses the 15 points to look for in common stocks.
Fisher has outlined the essence of his approach of hunting for quality stocks in the book. He calls it “Scuttlebutt” and has explained the entire process in an easy-to-understand manner. Originally published in 1958, Common Stocks and Uncommon Profits has been one of the books that helped shape a young Warren Buffett’s investment philosophy.
Book 8 – The Little Book of Common Sense Investing by John C. Bogle
The Little Book of Common Sense Investing by John C. Bogle is a wonderful book written on index investing. John C. Bogle, the founder and former CEO of the Vanguard Group, primarily focuses on index funds in the book and shares his philosophy on how investors can generate high returns via investing in index funds. The book goes in-depth on why an index-based approach to investing is a wiser approach for the non-professional investor.
Trying to beat the markets is “a loser’s game” according to Bogle, and he explains how “the more the managers and brokers take, the less investors make”. Overall, this is a must-read for every investor who wants to succeed in the financial markets.
Book 9 – Beating The Streer by Peter Lynch
Beating The Street is another classic book written by Peter Lynch. This is a wonderful book for investors who wish to understand and master the art of creating long-term wealth from the stock market. The book goes over and explains the basics of how one should fundamentally analyze a stock. As per the book, investing money in any company isn’t a matter of luck but more of a strategized plan that should be executed with proper due diligence.
Beating The Street is a rich knowledge bank on how the world of finance and investment works in reality. Written in an easy-to-understand and interesting way, you will definitely gain a lot of valuable knowledge from this book that will help you make better investment decisions.
Book 10 – Rich Dad Poor Dad by Robert Kiyosaki
The final book on our list of the top 10 books that every investor should read is Robert Kiyosaki’s Rich Dad Poor Dad. Although this book is not directly related to investing and the stock market, it offers excellent advice on how one should plan their future and educates people about financial literally and financial planning.
The book advocates the importance of financial independence and building wealth through investing in assets, real estate investing, and much more. Rich Dad Poor Dad is written in the style of parables, ostensibly based on Robert Kiyosaki’s life. Overall, this is a must-read book for everyone who wants to attain financial independence and succeed in life.
We hope that you liked our list of the top 10 books that every investor should read. While we may have missed out on many other incredible books, these are a few of our favorites that we believe will help you in your journey towards financial independence. If you are considering investing your hard-earned money into the financial markets, then we highly recommend you go through these books in order to achieve the best possible results. We hope that this article provided you with valuable and interesting content. If you would like to learn more about the stock market and investing, then do check out Jeremy’s YouTube Channel “Financial Education”. Happy investing!