Books for the knowledge seekers
Read your heart out, I say. I felt that my blog was looking pretty empty without books! Lo and behold! I got some great book recommendations for you. My plan is to keep this list “live”. The list holds something for everyone, from all walks of life!
Enjoy!
The ‘must-read’ classics
These are the one’s, if not read, you will definitely be left out. If you haven’t read these yet then spare the FOMO (Fear of Missing Out) and start soon!
The Intelligent Investor
The intelligent investor is one of the first books I read through a Fund Manager’s recommendation. I am yet to meet a investment professional who has not read this book. This is the most fundamental and basic way of understanding all you need to know about fundamental investing. Written by the Father of Value Investing, Benjamin Graham – Warren Buffet called this “greatest investment book of all times”. Read this and get inside the mind of Warren Buffett’s investing mentor.
Rich Dad Poor Dad
Rich Dad Poor Dad is an extremely popular book amongst people who are interested in all things ‘money’. Trust me when I say that, it is one of the most popular books that finance newcomers always boast about. This book made Robert Kiyosaki the famous person he is today. He writes about practical elements of financial literacy, independence and generational wealth creation.
Great insights into psychology of investing and the mind
Having the right mindset is one of the most important aspects of investing. It applies to both new investors and professional investors. Since humans are, by product, irrational beings – understanding how best to control and manage our “thoughts” is a winning strategy. Not just about money. But everything else too. Like, arguing with your partner 😀
Thinking Fast & Slow
This book was recommended to me by a fund manager I have huge respect for. He was speaking about this while the market was selling-off due to COVID-19 (in March 2020) while discussing the fund’s performance. It’s amazing how powerful our mind is. The book was so gripping that I finished reading it even before my next meeting with the same Fund Manager.
Atomic Habits
This book may not be 100% related to investing, however there is so much you can learn and take away from this book. The author talks about practical strategies we can use to form good habits and break the bad one. Trust me, it comes handy when the market is very volatile!
“All big things come from small beginnings. The seed of every habit is a single, tiny decision.”
Easy read for new and avid investors!
The Great Little Book of Common Sense Investing
Most of the times we overthink and overcomplicate investments. We try to forecast matters such as, which sector or investing style will outperform the market. While researching our way into niches of investing strategies are stimulating, we should not forget that sometimes just buying the whole market (through index fund investing) is ultimately the best strategy.
The Coffee House Investor
This book also focuses on keeping our investments simple and not panic about what is going on with the specifics of the market. Basically, forget about interest rates or trying to buy that next “Tesla”. This is because, most likely than not, you will not be able to outperform the market.
...for the new & emerging financial analysts
Securities Analysis
This book is like the gospel of value investing as it is written by the Father of Value Investing – Benjamin Graham. Although I am recommending this for new financial analysts – I should caution that you should only read this book after getting comfortable with the basics of investing (or after reading The Intellectual Investor). This is for the very serious ones who really wants to learn the best about fundamental investing.
A Random Walk Down Wall Street
This book narrates that the short and medium term price movements of stocks are simply “random” and so, no one is able to predict its outcome. It will open your eyes to the expected life-cycle of a typical investing journey. It has an extensive coverage across: the two main types of investing, historical irrational market behaviours & about optimal asset allocation. It has a wealth of knowledge for anyone entering the “investment” industry!
This is for the newbies
The Only Investment Guide You'll Ever Need
This book will give a complete beginner a common-sense way of understanding all things “money”. You will read about the fundamental of the stock market, the jargons, booms and busts etc. It will give you succinct explanations on important topics which will form a solid foundation for you to start accumulating more knowledge!
“The bottom line, if you want to cut straight to the chase, is that most people should do their stock-market investing through no-load index funds… If you do, you will outperform at least 90% of all your friends and neighbors—including many who work much harder at this than you.”
Books about "real" market dynamics
The Black Swan
This is one of the first books I have read about the financial market and investing. It was just before I was applying for my university place to study Economics. I even wrote about it on my personal statement. This book brings to life how random everything really is. The Black Swan is described as an event that is: (a) Highly unlikely in nature; (b) …but has a HUGE impact when it happens. The author wrote this right before the Global Financial Crisis (GFC), and so you can imagine the book’s heightened popularity back then. Everyone called GFC a Black Swan event. And now, many are calling 2020’s COVID-19 pandemic a Black Swan event too. This is a must read for those looking to work in finance… because literally “everyone” has read it.
Irrational Exuberance
This book is written by the famous American Economist Dr. Robert Shiller. I had the privilege of meeting him during a book signing event. This book was extremely well received by investment professionals. It explains why the market behaves irrationally at times, going against the basic underlying fundamentals. After reading this, you will have a better understanding of the most recent market dynamics. I am referring to talks about stock market “bubbles” and the frenzy around “GameStop” and “Tesla”.
*The link to opening an account with Trading 212 includes my referral code. If you open an account with them we will both get a free share worth up to £100
Other links in my post may also include affiliate links from Amazon. I may earn a small commission (at no extra cost to you) if you purchase a product using these links.
I know it sounds cliche, but Rich Dad Poor Dad is, without doubt, one of the top must read books if you want to be serious about money. Then follow that up with Thinking Fast And Slow for psychology. Great article!
thank you James 🙂