There’s no better time to learn how to invest than now. With a predicted recession on the way, finding additional sources of income can only do you good. Investing can seem like a foreign practice if you didn’t study business or have family members who invest. The reality is that most of us don’t know where to start, how much money we need and how to seek advice on the topic. Online you’ll find a plethora of articles explaining how to invest, but the best tips can be found from expensive appointments with a financial adviser or the less expensive option: reading guides. We’ve picked 10 of the best investing books for beginners, to get you started on the right foot.
10 of the Best Investing Books for Beginners
You’ll want to pay close attention to these
1. ‘How to Buy Stocks’ by Louis Engel and Henry R. Hecht
When most people hear the term “invest” they probably think of the stock market. In How to Buy Stocks, Louis Engel and Henry R. Hecht also explore all basic investing types to give the reader options. Engel’s writing style is clear and concise, making it easier for a beginner to learn the ropes of investing. This guide will give you an overview of the financial markets and advice catered to your specific needs and goals. With hacking the capitalist system and mastering how to grow money long term, this long read will hold a place in your memory forever.
2. ‘The Little Book That Beats the Market’ by Joel Greenblatt
This user-friendly guide is perfect for anyone who doesn’t come from an investment background. Author Joel Greenblatt avoids tricky jargon and provides context on how to differentiate which stock is better than the other, why stocks matter for building an investment foundation and more. Additionally, Greenblatt provides readers with his complex but simple to follow theory of buying high performing companies at very low prices, which he swears will still be effective after popularity. Recently updated from its original 2005 version, The Little Book That Beats the Market focuses on how to choose individual stock and picking stocks that will carry the reader long term.
3. ‘How to Invest in Real Estate’ by Joshua Dorkin and Brandon Turner
Maybe you want to steer away from stocks and instead invest in real estate. Since real estate is typically uncorrelated with the stock market, this might be a good option for people that can afford to spend more money in the beginning but want to see long term cash flow. In How to Invest in Real Estate, Joshua Dorkin and Brandon Turner explore ownership, how to turn real estate investment into a business, where to find the best deals and more. While this isn’t the duo’s first book about real estate investment, it is the most in-depth for beginners who are starting from scratch.
4. ‘A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing’ by Burton G. Malkiel
A Random Walk Down Wall Street is literally a walk in the park when it comes to learning how to invest. Burton G. Malkiel teaches readers all about the lingo used on Wall Street to help them navigate situations and get a better understanding of what is being discussed. The book also features an updated chapter on tax-loss harvesting, smart-beta funds, exchange-traded funds and cryptocurrencies, making this timely read perfect for anyone wanting to learn more about the ever-changing stock market. Readers will feel educated and confident in pursuing their investments after finishing this guide that is all about fitting in and excelling in the market.
5. ‘Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor’ by John C. Bogle
This updated guide explores the different options made available to modern-day investors. Author John C. Bogle gives readers insight on a variety of topics, including, but not limited to, evaluating investment performance, asset allocation, equity styles, indexing, understanding binds and more. With a focus on simplicity and low-cost investments over complexity, Common Sense on Mutual Funds is the perfect framework guide for anyone who is down to take the ride. This book acts as the updated second edition, providing the reader with timely and updated material about the ins and outs of cracking mutual funds.
6. ‘Making the Most of Your Money’ by Jane Bryant Quinn
Making the Most of Your Money doesn’t focus on investing, but it does touch on it. In this guide about taking control of your financial situation, author Jane Bryan Quinn looks at all the pieces of the puzzle in financial gain. Readers will learn how to make smart financial decisions during every stage of life, as well as when to start investing. Unlike most books that only cover financial success, Bryant Quinn also explores financial recovery and independence. Making the Most of Your Money was named the best personal finance book on the market by Consumers Union and is an all-time bestseller.
7. ‘The Bond Book’ by Annette Thau
Maybe you’re considering buying bonds instead of stocks. If that’s the case, The Bond Book is perfect for you. Author Annette Thau effectively lays out how the bond market works and how bonds differ from stock. This book can benefit both new investors and experienced investors, as well as people planning to create long-term income for retirement. Inspired by the 2008 recession, The Bond Book is a response to investors losing their funds during a financial crisis. Touching on bond funds, individual bonds, junk bonds, municipal bonds and EFTs, this guide doesn’t miss a beat in getting you prepared for your bond investment journey.
8. ‘The Four Pillars of Investing’ by William J. Bernstein
In The Four Pillars of Investing, author William J. Bernstein focuses on four different themes that should be understood for investing successfully: investing theory, the business of investing, investing psychology and the history of investing. This guide lays out asset allocations and explains in a readable and digestible format the ins and outs of the investment strategy. Bernstein gives readers tips, advice and a framework that will simultaneously control risk and build wealth. By the end of this timely and notable read, you can expect to have a perfect portfolio without spending time or money on a financial adviser.
9. ‘The Intelligent Investor’ by Benjamin Graham
One of the oldest investing books over time and the oldest book on our list, The Intelligent Investor, aka the stock market bible, was first published in 1949. This 60-year-old easy-to-follow guide still holds weight in today’s economy. Author and renowned investment adviser of the 20th century, Benjamin Graham, lays out his ideas on value investing, a term that has transcended into 2019. With updated commentary by journalist Jason Zweig on how to apply Graham’s framework to current investments, The Intelligent Investor is no doubt a book you want to add to your library.
10. ‘The Essays of Warren Buffett: Lessons for Corporate America’ by Warren Buffett and Lawrence A. Cunningham
Could we really finish off this list without a book by business mogul and successful investor himself, Warren Buffett? Arguably the most successful investor of our time, Buffett offers his readers remarkable advice, incomparable anecdotes and smart solutions for investing in different capacities. This book consists of letters Buffett wrote to the shareholders of Berkshire Hathaway Inc., serving as an educational guide for mastering sound business practices. The Essays of Warren Buffett: Lessons for Corporate America is an international bestseller and this third edition, co-authored by Lawrence A. Cunningham, addresses the financial crisis and how to control risks and overcome debt.
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