Despite the fact that the Internet stores a lot of practical information from specialists of our time who are perfectly versed in the features of modern investing, reading the immortal classics will allow the user to understand the sphere even deeper. We have collected the five best books about investing that contain a lot of useful information for both beginners and advanced users.
“Thinking, Fast and Slow” by Daniel Kahneman
The author is the winner of the 2002 Nobel Prize in Economics for research on the effectiveness of psychological methods in economics. His work is often included in the top books on investment because it contains a lot of nuances about:
- Do people consciously and autonomously make choices and judgments?
- Do people always make rational decisions?
- Can we always think objectively and not fall into the traps of thinking?
All of these features affect the effectiveness of investing, so reading this book will help you figure out how to prevent situations where intuitive thinking muffles rational thoughts and actions.
“Black Swan” by Nassim Nicholas Taleb
Most of these Lebanese-American author’s works deal with themes of probability, uncertainty, and chance. The very notion of a “black swan,” which gave the title to this book, is a specific situation where an incredibly rare event with the lowest probability has a huge impact on both the whole world and the environment.
The author’s work tells how to respond to such phenomena correctly, how to change your type of thinking and develop “immunity” to “black swans”. Now the book is considered almost prophetic because it remained relevant after the financial crises and after the covid pandemic, so it’s a surefire hit on our list of best books on investing.
“Technical analysis. The Complete Course” by Jack Schwager
One of the most requested best investment books is Jack Schwager’s “Technical Analysis…”, which provides the reader with an overview of all relevant technical analysis methods, including working with charts of all models, familiar and simple, as well as complex and rather rare ones.
The big advantage of the book among other books on investing is that it contains a lot of practical examples so that the reader can more substantively represent certain cases. In addition, it is written in very accessible language and is suitable even for rookies who want to understand the topic of investing from the very basics: how to choose a market, how to choose an investment tool, how to behave in difficult situations, and so on.
“The Intelligent Investor” by Benjamin Graham
In his book Benjamin Graham makes very important conclusions about what it takes for a person to be a successful and effective investor. In his opinion, learning analytical tools and mastering their use is not enough, because the personality of the investor will play a much more essential role in success.
Interestingly, this one is considered one of the best books to learn investing, because it was released in 1949 and is still actively sold. In the course of the development of the stock market for many decades, all of Graham’s assumptions were confirmed: despite the unpredictability of most conditions, there are general investment principles that must be followed in order to make a profit.
“Warren Buffett’s Rules for Investing” by Jeremy Miller
It’s rare when the best investment books to read list doesn’t include Jeremy Miller’s “Warren Buffett’s Rules for Investing”! The work describes the specific path of a professional person and his biography, the author seems to take the reader on weakly, whether he can, having other output data, repeat such a success.
Fun fact: Warren Buffett’s teacher was Benjamin Graham, whose book was mentioned in the paragraph above. It so happened that both the teacher and the student engraved their names in the history of investing.
The book itself is based on Buffer’s letters to his associates. They contain a seemingly endless number of interesting ideas that have already once played into the hands of people and will probably help hundreds and thousands more investors in the future. Here, readers will find some interesting non-traditional diversification strategies focusing on long-term returns, performance testing principles, and analysis of conservative decision making.