7 books that every aspiring investor should have in their collection

In these times of anxiety and uncertainty, reading and educating yourself is not only a great way to take your mind off things but also an opportunity to grow. If you’ve been wondering what to do with your money for a while now, but you don’t know where to start, these books about investing will help you familiarize yourself with the basic notions and give you some insights into how the big players manage their wealth.

If you’re also wondering about the economic aftermath of the COVID-19 pandemic and how you can protect yourself in the event of a recession, you’ll also love these insights from experienced investors and finance magnates.

It’s never too late to learn something new, so here are 7 titles that definitely deserve a spot in your non-fiction collection.

1. The Essays of Warren Buffett: Lessons for Corporate America

It’s hard to find a more successful contemporary investor than Warren Buffet, and it’s even harder to find someone who can explain in plain English complicated financial concepts. This collection of essays published in 2015 is one of the essential reads for aspiring investors, and even if the title says “lessons for corporate America”, everyone can take away something from it, especially beginners. Although it only has 200 pages and reads fast, this collection of essays is one of those works that you can come to time and time again and learn something new.

From lessons about finance and the economy to the basic principles of corporate governance and the impact of human psychology on investment, Warren Buffet is one of the most comprehensive sources of inspiration. Although his essays aren’t exactly intended to make you rich, they offer rare insights into Berkshire Hathaway and the philosophy of successful managers.

2. Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger

Charles T. Munger is Warren Buffet’s long-time friend and investment partner at Berkshire Hathaway. He’s also worth $1.8 billion and built most of his wealth by investing in traditional industries. Poor Charlie’s Almanack is a collection of his talks, lectures, speeches, and public commentaries, compiled after Warren Buffet encouraged him to share his wisdom with ambitious investors. Charles T. Munger’s investment philosophy focuses on the importance of ethics in business and the sets of mental models you need to develop to overcome business problems.

3. A Random Walk Down Wall Street – Burton Malkiel

This little book sold more than 1.5 million copies, and experts consider it one of the best reads for beginner investors who don’t fully understand the basic principles of portfolio development. If you want to familiarize yourself with popular investment theories and understand the factors that influence the stock market, this book will explain them to you in easy to understand words. Another thing that makes it special is that it doesn’t focus so much on trends and instead wants to help readers understand the basic principles of the stock market and share time-tested strategies.

4. The Internet of Money: Talks by Andreas M. Antonopoulos

Nothing more than a trend at first, cryptocurrency has become one of the most popular forms of alternative investments, especially among tech-savvy Millennials. If you’re one of them, chances are you already own some crypto, or you’re otherwise interested in Bitcoins, altcoins and various tokens. In The Internet of Money, IT security expert Andreas M. Antonopoulos talks about the impact of digital currencies, explaining how the current economic and social context favours them.

According to Andreas Antonopoulos, bitcoin and other decentralized currencies have had an impact comparable to that of electricity and the Internet, and they’ve changed the way people think of money. This book is a collection of talks compiled together, so it’s very easy to read when you’re on the go.

5. The Richest Man in Babylon – George S. Clason

If you don’t know anything about investments, you shouldn’t start your journey by learning about today’s market. On the contrary, you should first get to know the foundation of personal finance, which is timeless. This is where The Richest Man in Babylon comes in. This modern-day classic written by George S. Clason is a collection of Babylonian parables, written in a simple language. Every wealthy investor started out by setting money aside and thinking of ways to multiply them.

Without going into technical details such as investment strategies and market trends, this book teaches you how to manage your finances using simple analogies and real-life examples that are just as valuable today as they were three decades ago. The Richest Man in Babylon is very easy to read, so if you want to instill the first money management notions in your children, this one is a must for the family reading night.

6. The Little Book of Common Sense Investing – John C. Bogle

This might sound obvious but, many times, the secret to making a lucrative investment is just that – common sense. And if you want to develop that common sense, who better to learn from than John C. Bogle, the creator of the first index fund and founder of the Vanguard Group? By reading this guide, you’ll learn that successful investors don’t want to beat the stock market.

Instead, they’re all about building a diversified portfolio, holding it in the long run, and being disciplined when it comes to following market fads. Unlike the other books on this list, which focus on examples and explaining simple notions, The Little Book of Common Sense also includes a fair share of graphs and charts that illustrate how the market works. Each chapter ends with a “Don’t Take My Word For It” – because two of the most critical skills of a savvy investor are scepticism and critical thinking.

7. Thinking, Fast and Slow – Daniel Kahneman

If investing was as simple as applying a set of instructions, anyone could do it. Investing, however, also has a human component to it, and understanding how your brain works is key in controlling your negative instincts and making smart decisions.

In Thinking, Fast and Slow, famous psychologist and Nobel prize laureate Daniel Kahneman explains how the human mind works, how we take risks, respond to challenges, and make business choices. Although you won’t find any investment strategies in this one, Thinking, Fast and Slow is a must-read because it teaches you how to understand trading psychology and prevent your negative instincts from becoming your biggest obstacle.

Author Bio

Cynthia Madison has a degree in finance and administration and is passionate about all things forex, stocks, and investments. As an online trader herself, Cynthia loves providing her readers with expert tips and advice on how to make informed economic choices, helping them understand market trends and how to manage their finances like a pro.