r/FluentInFinance Jul 19 '23

Tools & Resources 13 GREAT books to learn Investing & the Stock markets! [summary included!]

142 Upvotes

We've received many questions for recommendations on books for Investing & the Stock markets. We've curated a list of our 13 favorite books on Investing & the Stock Market, and explanations on what the books are about. I've learned a great deal from these books. All of these are by really great investing legends/ gurus. These books offer a few different approaches to the stock market. Different investment styles will help educate you on how to make successful long term investments, minimize risk, and analyze stocks more accurately. All of these books can be purchased used very cheaply ($1 to $5)!

As your income grows, your investment portfolio should also grow. One of the biggest obstacles for beginner investors is just knowing how to get started. Learning about financial concepts can be intimidating at first. A great way to start, can be by picking up a book by an expert who thoughtfully and sequentially presents & explains these concepts and topics. Resources like these can help investing be less intimidating and complicated. One of the best strategies is to learn from the insight and wisdom of gurus. I hope these book recommendations help!

Book List:

  1. How to Make Money in Stocks by William O'Neil
  2. The Little Book That Still Beats the Market by Joel Greenblatt
  3. A Random Walk Down Wall Street by Burton G. Malkiel
  4. Principles by Ray Dalio
  5. One Up On Wall Street by Peter Lynch
  6. The Big Secret for the Small Investor by Joel Greenblatt
  7. Winning on Wall Street by Martin Zweig
  8. Irrational Exuberance by Robert Shiller
  9. The Bogleheads' Guide to Investing
  10. Common Sense Investing by John Bogle
  11. The Intelligent Investor by Benjamin Graham
  12. The Only Investment Guide You'll Ever Need by Andrew Tobias
  13. You Can Be a Stock Market Genius by Joel Greenblatt

Book Descriptions & Covers:

How to Make Money in Stocks by William O'Neil

  • This book is about growth investing. O'Neil explains what most successful stocks have done to be successful. He explains his 'CANSLIM' method, which is an acronym for 7 fundamental criteria which you can use to pick stocks. An AAII 8 year study of different strategies showed O'Neal's CAN SLIM with a 860% return from 1998-2005 (Second place). First place was Martin Zwieg's returning 1,659.3% (we will get to Zweig on this list too)

The Little Book That Still Beats the Market by Joel Greenblatt

  • The idea of this book is to buy undervalued good businesses and hold them long-term, which will eventually beat the market index.

A Random Walk Down Wall Street by Burton G. Malkiel

  • This book covers investment bubbles, fundamental vs. technical analysis, modern portfolio theory, index funds, etc.

Principles by Ray Dalio

  • This book provides the insights from one of the biggest hedge fund managers of all time, and I think there are many great lessons to learn in this book!

One Up On Wall Street by Peter Lynch

  • This book emphasizes the advantages that individual investors hold over institutional investors (when it comes to finding investment opportunities). Lynch also gives many of examples of mistakes he has made, and how he has learned from them.

The Big Secret for the Small Investor by Joel Greenblatt

  • Greenblatt explains why index funds can be better than actively managed funds. The big secret is maintaining a long term perspective!

Winning on Wall Street by Martin Zweig

  • Zweig's success came from his ability to predict the bigger picture (such as trends in the broader market). The combination of his stock picking skill, general market understanding, and market timing, made him one of the great investors of stock market history. Zweig was more interested in growth than value. Unlike Buffett, Zweig isn't a 'buy and hold' investor. An AAII 8 year study of different strategies showed Zwieg's returning 1,659.3% from 1998-2005. He was #1 out of 56 others, including Buffett, Lynch, Fisher, O'Neal's CAN SLIM, Motley fools, and using ROE, P/E's etc. Second place was O'Neal's CAN SLIM with a 860% return.

Irrational Exuberance by Robert Shiller

  • Shiller makes strong argument that perfect market theory is flawed. The Idea of perfect market theory is basically that the markets are all knowing and completely rational, and in the long run can't be beat. Therefore , you can control costs with index funds and diversification. (You can't beat the market, therefore controlling costs and diversifying seems like logical strategy)

The Bogleheads' Guide to Investing

  • The key concepts of this book are risk tolerance, asset allocation, a balanced portfolio, tax efficiency and cash management. This book explains many of the pitfalls of investing. The Bogleheads and Jack Bogle preach the power of compound interest. Investing in low-fee index funds and holding them long-term is the method. This book gives an excellent, detailed rundown of how to implement this kind of investment plan.

Common Sense Investing by John Bogle

  • Great information for anyone who is trying to make sense of personal finance and basic investments. This book explains why passive investing is a worry free, long-term strategy that consistency wins over time, and why active trading always returns to the mean.

The Intelligent Investor by Benjamin Graham

  • This is a great book for anyone who is interested in introducing themselves into the world of investing, or wants to get better at investing. This book gives lots of valuable information to help one understand the basics of value investing.

The Only Investment Guide You'll Ever Need by Andrew Tobias

  • This is a book for people looking to learn the basics of investing and saving money

You Can Be a Stock Market Genius by Joel Greenblatt

  • This is not a book for beginners. Greenblatt gives a nice exposition of some more "special situation" investment styles & areas of equity investments (mergers, spin-offs, rights offerings, etc.)


r/FluentInFinance Aug 07 '23

Announcements (Mods only) 👋Join r/FluentinFinance's weekly newsletter of 40,000 readers — where we discuss all things investing and finance!

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I am 49 and wife is 48 and we plan to work for another 5-7 years.

2 children, both in the Air Force, so no college spending.

We are both blessed with high paying secure government careers.

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My mom would like to pass some of the funds along to my sister and I.  Her concern is how to do this with the least potential downstream negative impact; her anxiety is that simply writing a check to the two of us could result in tax complications for us, compromise student loan repayments, complicate credit reviews should we pursue new mortgages, etc.

The advice we are looking for as a family seems fairly simple: what is the most practical way for a spouse to pass along life insurance funds to their children after their partner has passed?

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