Whether you dream of becoming the next Warren Buffett, retiring early, or simply increasing your cash flow, you’ve probably considered investing your money in some way.
The problem for many of us is that the world of investing can be incredibly intimidating—even the language seems completely foreign if you aren’t already familiar with some of the most basic concepts.
Luckily, we don’t have to start from scratch—some of the most successful investors are happy to share their strategies to help even an Average Joe talk Wall Street.
The Best Books for Investing
We’ve compiled a list of 12 of the best books on investing for beginners. These great reads break down the scary trade lingo so you can finally understand what it takes to get in the game and invest with confidence.
1. The Little Book of Common Sense Investing by John C. Bogle
Mutual fund pioneer John Bogle used The Little Book of Common Sense Investing to share his strategy for investing with low-cost index funds. Identified by Warren Buffett as “the person who has done the most for American investors,” Bogle was not only an expert investor, but also a business magnate and philanthropist.
This book explains the most simple and effective way to build wealth over the long term: to buy and hold, at a very low cost, a mutual fund that tracks a broad stock market Index.
2. One Hour Investor by Vishal Reddy
In One Hour Investor, Vishal Reddy simplifies the complicated lingo of the stock market so even complete beginners can learn how to invest wisely in stocks, mutual funds, and bonds without the need for a foreign language interpreter.
In just one hour, you can bring yourself up to speed on all the tricks of the trade that others have spent years trying to master. Whether you want to learn about stocks, bonds, IRA’s, or 401(k)s, all of the foundational keys to successful investing can be found in this little book.
3. A Random Walk Down Wall Street by Burton G. Malkiel
Burton Malkiel’s A Random Walk Down Wall Street popularized the random walk hypothesis, which states that stock market prices changes are random and cannot be predicted.
In this updated version, Malkiel includes helpful definitions of key investment terms for beginners and applies them to various strategies. Malkiel promotes long-term investment strategies and teaches readers how to avoid some of the most common mistakes made by investors.
4. One Up on Wall Street by Peter Lynch
In One Up on Wall Street, Peter Lynch argues that investment beginners can experience the same success—if not more—than the professionals.
According to Lynch, by paying attention to the best investment opportunities (even the ones we encounter every day, like at the supermarket or the workplace), the average investor can find companies in which to invest before the pros discover them.
One Up on Wall Street offers easy-to-follow advice and guidelines for investing in cyclical, turnaround, and fast-growing companies.
5. The Falcon Method by David Solyomi
The Falcon Method is based on structured decision-making principles that will force you to make good investment decisions—even when you get emotional.
David Solyomi knows that the biggest risks in investing are psychological and emotional, which is why he’s sharing strategies that will help you to create and maintain real wealth through stock investing. This step-by-step guide can be a helpful tool for beginners and every level of investor.
6. Rich Dad Poor Dad by Robert Kiyosaki
Since its release in 1997, Rich Dad Poor Dad has become a classic staple among personal finance books. Robert Kiyosaki turns the myth that earning a high income will make you rich on its head by explaining the difference between working for money and having your money work for you.
The book also challenges the common belief that your house is an asset and explains to parents why they can’t trust the school system to teach their kids about money.
7. The Coffeehouse Investor by Bill Schultheis
Bill Schultheis’s The Coffehouse Investor was written for everyday people who feel overwhelmed by the stock market. The book explains why it’s actually better for investors to stop obsessing over shifts in interest rates, predictions for the economy, and top-rated mutual funds.
According to Schultheis, very few “experts” ever beat the stock market average anyway, so investors are better off focusing on just a few simple principles, like saving for a rainy day and not putting all of their eggs in one basket.
8. Making the Most of Your Money Now by Jane Bryant Quinn
Jane Byrant Quinn’s comprehensive guidebook aims to steer readers around the risks of investing and help them to make smart, informed decisions, regardless of where they are in life.
From getting the most out of your bank to talking money before marriage, Quinn covers nearly every issue imaginable and discusses the pros and cons of every decision. Her clear, practical advice can serve as a valuable resource for families and individuals of all backgrounds.
9. Big Mistakes by Michael Batnick
Sure, it’s great to know the strategies of the most successful investors, but learning from their biggest mistakes is just as important. Big Mistakes explores how even the biggest names have failed and reveals the lessons we can all learn from them.
Featuring stories from Warren Buffett, Bill Ackman, and many more, this book teaches readers how to anticipate challenges, develop advance plans, and take only the smart risks.
10. Mastering the Market Cycle by Howard Marks
In Mastering the Market Cycle, Howard Marks shows investors how they can become keenly attuned to the investment environment by understanding the origins of market cycles and staying alert for the next one.
As a result, they will be able to make well-informed decisions with confidence and avoid falling victim to their emotions, like fear and greed. This book offers insightful tips that can help anyone understand and learnt to master the market cycle.
11. How to Invest in Real Estate by Joshua Dorkin and Brandon Turner
Eager to start investing in real estate but don’t know where to begin? This comprehensive guide is an excellent start. How to Invest in Real Estate offers a deep look at the many different strategies that exist so you can choose the one that best suits your goals and resources.
This book covers all of the basics and many specifics, including how to get your spouse on the real estate train, eight unique property types that you can invest in today, and so much more.
12. The Consistent Trader by Sam Eder
If you never master the fundamentals of successful trading, you are almost guaranteed to fail long-term. The Consistent Trader will save you both time and money by teaching you how to trade Forex based on the practices of some of history’s greatest traders.
Author Sam Eder explores the 25 beliefs of highly successful traders and how to model them, how to set simple objectives before trading so you can risk less, and many other strategies that will help you to invest smartly and confidently.
Learn to Invest Like a Pro
Smart investing strategies are more accessible than you may think. Start by studying the experiences and advice of those who have already mastered the winning methods.
You can also download investment apps that allow you to join the game right from your phone, or try practicing some of the reading habits of the world’s most successful investors.
Is there an awesome finance book out there that’s helped you become a stronger investor? Tell us about it in the comments below!
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