Wanting more investment know-how than I can put out?
Or are you just looking to get offline while still developing your investing know-how?
Whatever the reason, this list of investment books will keep your thirst for investor-knowledge satisfied until you don’t want to read anymore.
I’ve personally read every book on this list and I’m confident you’ll learn something valuable from each one that’ll help in your investor journey.
1. The Millionaire Teacher
One of the best introductions to ETF / Index investing out there. This is the first book I recommend to friends or family who want to learn more after hearing me go on about the benefits of index investing.
2. I Will Teach You To Be Rich
I know I said this was a list of investment books but I personally believe that in order to invest well you need to have a strong financial foundation. Also, Ramit drives home the point that building wealth isn’t meant to be sexy, so it’s up to you to choose if you’d rather be rich, or just look rich.
3. The Intelligent Investor
One of the most iconic investment books out there. I will admit, it took me a few read-throughs to feel like I caught it all. You could even benefit from skipping the original text and just reading the commentary after each chapter which does a good job bringing the material to a more modern-day voice.
4. Financial Statements
If you have any interest in exploring individual stocks you will no doubt need to understand financial statements. This book is my favourite on the topic, taking you through the startup and operation of a fictitious company and showing you the effect of each step on the statements. It also has a ratios tutorial at the back and some tidbits of what they may signal in terms of business health.
5. One Up On Wall Street
Another one if you want to branch off outside of index funds. Peter’s main point is to invest in what you know. As a consumer, you have an advantage over institutional investors as you get first-hand experience interacting with the companies you could invest in.
6. The New Trading For a Living
Why on earth is there a trading book here? I don’t condone trading but I do believe Alexander’s thoughts on psychology really enforce the fact that you yourself may be the biggest obstacle you face as an investor. He also stresses that trading, unlike investing, is a hard and most likely devastating gamble, which I think is important for investors to understand.
7. The Millionaire Next Door
This one may be more of personal interest, but I do think investors can benefit from learning how the real rich actually act and spend. When you start to think you could be the millionaire next door, just as much as your modest neighbour could be, you might be able to ignore the Joneses long enough to actually become rich. As Ramit likes to say, “Rich isn’t sexy.”
What do you think?
Have you read anything on this list? Anything I should add?
Let me know in the comments below!