Today we’re going to talk about the 20 essential books that all beginners and continuing investors should read. These books will allow you to feel confident in the financial field and to form the vision of a long-term investor.
I have divided this list of books into three categories, and I will start with the main topic that will serve as the basis for investing – this is personal finance. Without knowledge in this area, it makes absolutely no sense to invest.
1 "The Richest Man in Babylon" by George S. Clason
I recommend reading it to anyone who is just starting to be interested in financial issues. This book describes the laws of money in a very simple, easy and fascinating way, in the format of parables. If these laws are adhered to, I assure you it will turn your life upside down.
2 "Money, or the ABC of Money" by Bodo Schaefer
Schaefer has many books on this subject, but I will single out this particular book because it is written in the most simple language, and is aimed at a teenage reader. But despite this, it will also suit an adult reader, since this book is the real ABC of financial literacy.
3 "Money Master Game" Anthony Robbins.
If you are about to start investing and you have some internal problems in order to deal with personal finance, then Tony Robbins is a very good solution. This book touches on the topics of personal finance and investing, the author motivates you to deal with your financial problems (debts, loans) and after solving these issues, move on to the world of investment.
The next step we will move on to the second category of books – these are books that allow you to get sufficient fundamental knowledge in microeconomics, macroeconomics, finance and credit, econometrics and banking.
4 "Hooligan Economics" Alexey Markov.
The beauty of this book is that it is written in a conversational way. At the same time, all the foundations of the world economy, the financial system and the exchange business are perfectly described there.
5 "MONEY unofficial biography of money" Felix Martin
This book describes 3,000 years of financial history. This book helps to understand the essence and purpose of money, and also seriously changes the general perception.
6 "Naked Economics" Charles Whelan
Another book that talks about the complex in simple language. It answers such questions as why maternity capital is not very useful for mothers and why the collapse of the USSR was predictable by economic models.
7 "How the economy works" Ha-Jun Chang
The author offers us an overview of economic theories with his commentary, and also helps to form his own opinion. It seems to me that the main message is that today the economy is very global and it is difficult to fit it into the framework of any one school.
8 The New Behavioral Economics by Richard Thaler
This book shows that it’s not just the numbers that matter and the classical theories don’t work. Man is irrational, and the crowd is even more irrational. The market, the exchange is the opinion of a crowd of people whose decisions defy logic and simple analysis.
9 "The Age of Upheaval" Alan Greenspan
Greenspan headed the US Federal Reserve. The author conducts a large-scale and wise analysis of the financial system of the world economy and tries to show what kind of economy, for example, will be in 2030.
Now we move on to the third category of books – books about investments. Most of them are written by recognized authorities.
10 The Investor Manifesto by William Bernstein
It is notable for the fact that the author of the book is not an economist or an investor, but a doctor. Despite this, he became the idol of independent investors. The author himself understood how the world of investments works and is able to convey in simple words why it is so important to invest for the long term and what principles should be followed.
11 "Top 10 Rules for the New Investor" by Burton Malkiel
The book was written 30 years ago and offers simple and step-by-step recommendations for a novice investor.
12 "Notes on investing" management company ARSAGERA
A textbook that will help you start immersing yourself in the world of finance. The book allows you to form the correct representation of the financial market. Who earns on it and how not to be the one who earns.
13 Warren Buffett’s Investing Rules by Jeremy Miller
Warren Buffett himself does not write books or even sell online courses. But he does write letters to his Berkshire Hathaway shareholders. It was these letters that Miller collected, analyzed and wrote this wonderful book. Recommended reading if you want to know how the greatest investor of our day thinks.
14 "Strategy and Tactics of the Individual Investor" by Peter Lynch
The book is very cool, written from the height of great experience and all this is done very witty. It describes practical advice on how to select promising investment ideas, how to evaluate companies, when to enter and exit financial assets. In general, the bible for the stock market.
15 "Don’t Believe the Numbers" by John Bogle
This book proves investing is much cooler than short-term speculation. Bogle provides ample evidence, with specific figures, in favor of the investment.
16 The Smart Investor Benjamin Graham
This is a complex book, written long ago and hard to read. Be sure that you will have to return to this book more than once. From the first reading, not everything becomes clear. However, Graham is considered my teacher by many gurus of the financial world, including Warren Buffett. After reading this book, you will in any case feel confident in the financial world.
17 "Principles" by Ray Dalio
The book is written about life, and about work, and about investing, all that remains is to enjoy the excellent sense of humor of one of the most media personalities of our time.
18 "How to play and win on the stock exchange" Alexander Elder
Elder is a trader and this affects the information in the book. I do not promote speculation, I am for long-term investment. But still I recommend the book for reading, it is well written about the psychology of financial markets, there is also introductory information about technical analysis and there is a section about risk management. I think it will be useful.
19 "How to evaluate a business by analogy" Elena Chernova
The book describes materials about the comparative analysis of companies, especially in developing markets, including many companies. The book is written in an accessible language and will be very useful to you.
20 Antifragility by Nassim Nicholas Taleb
Philosophical book Taleb gives advice on how to behave in the face of uncertainty. He is sure that 90% of the information that is described in the previous 19 books does not work in real life and gives his reasoned examples. Believe it or not believe it, you will understand after reading this book.
And that’s all for me, read good books.