Looking for the best investing books to start your stock market investing journey or to refine your strategy? Below, you will find a structured reading guide that outlines a step-by-step progression of must-read investing books that will help you build investing knowledge. Whether you’re a beginner or an experienced investor, this curated list provides the right books, in order, to help you succeed in the stock market.
How The List Came to Be
If there’s a popular business book, I’ve probably been its customer. The subject, the stories, the strategies, the nuances. They fascinate me.
Being an educator and writer, I channel the knowledge acquired from these books into my lessons and writing. The physical books become an indispensable resource for my students resting on the bookshelf in my classroom.
This began as a classroom decoration to set the ambiance and to demonstrate some relative knowledge on the subject I was teaching them. But over the years, it’s evolved into something more. As students developed an interest in the subjects learned in my classes, they began asking to borrow the books. This became particularly true for stock market investing. Then, some started asking for specific recommendations on the best book to start with, and then which order they should follow.
At first my recommendations were arbitrary based on my recollections from reading the books. I had not given a great deal of thought to the best order. And so, I decided to be more deliberate and structure a roadmap that anyone interested could follow to learn about the stock market.
If you can imagine, on one part of my bookshelf, these books were arranged to showcase the exact order of books I recommended to my students. It was not just “What should I read?” but, “What order should I read these in?”
While this list was relevant and useful for my students, I’d imagine it could serve as a helpful guide for all investors, regardless of where they are on their investing journey. The list’s purpose is to provide a logical progression, starting with foundational concepts, leading to advanced strategies.
On the list outlined below, you will find 15 books broken into three tiers. The tiers were designed mostly to catalog my thoughts on the progression I hoped to achieve. Each tier builds on the last to some extent, offering a journey through the subject. Along the way, readers encounter lessons from prolific investors, explore market psychology, and develop a sense of what kind of investor they want to be.
Before we get to the list (which you can jump to, if you choose), let me share a few thoughts on how I constructed the list. This is particularly to address, the big elephant in the room, why are some of the most famous investing books, like the Intelligent Investor, so far down the list?
Why The Order Matters
Too often, I’ve seen The Intelligent Investor pushed as a starting point for new investors. Now, don’t get me wrong, it’s a staple, a classic, and undoubtedly one of the most impactful investing books. But it’s dense. It’s technical. I just do not think it’s a friendly entry point for someone new to investing. That’s why this list is not just built on content, but on readability.
The first tier includes approachable reads that lay the groundwork for why to invest as well as an introduction to some basic concepts. Readers are also introduced to a few famous names in the field of money management. This foundation is helpful in progressing to the second tier, which explores more advanced ideas about stock picking and market psychology. Finally, the third tier focuses on strategy, helping readers decide what kind of investor they want to be. This tier introduces readers to a wide range of approaches from growth to value to passive index strategies.
The Philosophy Behind the List
Full disclosure: I have a bias. I have an affinity for long-term, value oriented investing strategies, and the list reflects that. If you’re looking for books on day trading or short-term speculation, you’ll find very little representation on this list. While these approaches have their place, they don’t align with the philosophy I believe serves most investors best over time. This was reflected in the curriculum of the investing courses I teach as well.
The List
Without further ado, here is the list of books. Below each book, I’ve included a brief description as well as why I felt each book deserved its spot on the list. If you are an avid reader of this genre, you will undoubtedly have your own opinion of books omitted, or the order adopted. Know that this list has evolved quite a bit and will continue to over time.
Anyway, I hope you, at very least, enjoy the spirit of the list whether you’re a total beginner, someone looking to refine your investing approach or someone just looking for an interesting read.
Tier 1: Laying the Foundation
These books aim to spark curiosity and build foundational knowledge.
1. “Rich Dad Poor Dad” by Robert Kiyosaki
Told through the story of two contrasting mindsets about money, this book introduces readers to several foundational concepts necessary to build wealth. This includes simple concepts like distinguishing between assets and liabilities. It’s an excellent introductory book to inspire a mindset focused on building long-term financial security.
2. “The Little Book of Common Sense Investing” by John C. Bogle
This book is the antidote to the constant firehose of information and noise about investing. Jack Bogle emphasizes simplicity and a low cost, index fund investing strategy. Exposure to this idea early on the list leaves readers with an impression for an alternative approach to investing to picking stocks. Since this type of investing has become so popular, it is also leaves readers with an understanding of a powerful force that impacts the markets–passive funds. At very least, readers are left with a clear understanding of why it’s best to keep things simple, which will probably win out in the long-run.
3. “One Up On Wall Street” by Peter Lynch
Learning how to identify a stock opportunity is made simple by Peter Lynch’s advice to pay attention during your everyday life. Lynch’s story telling approach provides accessibility to some of the technical aspect of stock investing discussed in this book. As perhaps the first investing book I ever read, I found that this book is practical, relatable, and gives readers straightforward strategies to find great investments even as a beginner.
4. “A Random Walk Down Wall Street” by Burton G. Malkiel
This is one of the most approachable yet comprehensive books on stock market investing. Burton Malkiel takes readers through a brief history of speculative bubbles, explains different methods for analyzing stocks, provides insight into market behavior and psychology, makes a case for long-term investing and much more. It’s a solid read for anyone looking to build a strong, foundational understanding of many concepts related to stock market investing.
5. “The Essays of Warren Buffett: Lessons for Corporate America” by Warren Buffett (compiled by Lawrence A. Cunningham)
Through his writing, readers gain unparalleled insights into how Warren Buffett think about stocks and business. From corporate governance to long-term thinking and value investing, Buffett’s witty, humble style makes so many complex concepts understandable. I would argue that this book is an indispensable resource for anyone trying to understand the mindset and strategies of one of the greatest investors of all time.
Tier 2: Advanced Knowledge and Understanding Markets
These books provide insights into stock picking and market psychology.
6. “Stocks for the Long Run” by Jeremy Siegel
Jeremy Siegel uses a data-driven approach in this book to illustrate why stocks are one of the most effective tools for building long-term wealth. While long and somewhat dense, Siegal’s comprehensive look at the stock market’s performance demonstrates the power of stock investing and their role in a successful investment portfolio.
7. “The Interpretation of Financial Statements” by Benjamin Graham
If accounting is the language of business, financial statements are its grammar and punctuation. Benjamin Graham’s clear and concise approach in this book makes the intimidating world of financial analysis understandable. As you can imagine, it is included on this list because understanding financial statements is a necessary skill for making informed investment decisions, and Graham did well to present this in an accessible manner.
8. “Common Stocks and Uncommon Profits” by Philip A. Fisher
Phillip Fisher’s book highlights important factors for evaluating quality stocks, including management’s capabilities, the company’s market position, and its growth potential. Readers learn that picking great companies should involve understanding their stories, not just their numbers. This ends up being a foundational perspective for investors focused on long-term investing.
9. “Irrational Exuberance” by Robert J. Shiller
This book explores the emotions that drive markets to irrational highs and devastating lows by providing a look at why bubbles form and how they burst. It is so important for investors to recognize the role of psychology in investing and to control emotions. Readers are equipped with the knowledge to avoid common investing mistakes and to make rational decisions when the market inevitably experiences volatility.
10. “The Most Important Thing” by Howard Marks
Howard Marks takes readers through the “most important things” investors need to understand about investing such as recognizing market patterns and managing risk. At its heart, Marks emphasizes the need to think, and synthesizes the forces that shape risk and opportunity. This book finds its way on the list as it provides readers with insights that empower them to make smarter, more disciplined decisions.
Tier 3: Strategy, Portfolio Construction, and Advanced Ideas
These books detail investment philosophy and strategies to pick stocks and develop a portfolio.
11. “The Intelligent Investor” by Benjamin Graham
A staple on most investing book lists, Benjamin Graham’s classic is the definitive guide to value investing. While dense, it delivers timeless principles like margin of safety, the concept of “Mr. Market,” and distinctions between investment and speculation. In the end, readers can expect to gain a deeper understanding of value investing while approaching the market with a somewhat risk adverse perspective to drive rational investment decisions.
12. “Market Wizards” by Jack D. Schwager
Imagine sitting down with some of the most successful traders in history and learning their secrets. That’s exactly what this book does offering insights like the importance of discipline, patience, and finding a strategy that fits your personality. For the first time on this list, readers are exposed to different styles of successful trading. This also gives readers a better understanding of how markets work.
13. “The Single Best Investment: Creating Wealth with Dividend Growth” by Lowell Miller
In this book, Lowell Miller makes the case for a dividend growth investing strategy. Readers gain exposure to creating an income generating portfolio that rewards investors with both price appreciation and dividend income over time. By combining growth and income strategies, readers learn a balanced, long-term approach to wealth creation.
14. “Trade Like a Stock Market Wizard” by Mark Minervini
Mark Minervini’s book introduces readers to his “proven” growth investing strategy. It offers a step-by-step guide to spotting trends, timing entries and exits, and managing risk. The book blends technique and actionable insights to bridges the gap between traditional investing and active trading. Similar to other books in this section, readers once again gain exposure to a different perspective on how to approach the stock market.
15. “The Art of Asset Allocation” by David Darst
In the last book on the list, David Darst provides a comprehensive guide to building and balancing a portfolio. In a way, this book brings everything together focusing on the importance of diversification and aligning investments with financial goals. This book emphasizes the art of balancing risk and return through asset allocation. In doing so, readers have a valuable resource for developing a disciplined and strategic approach to portfolio management.
Notable Mentions
There it is! The completed list. As you can hopefully tell, it is a list that gives relatively broad exposure to stock market investing. As I mentioned, over the years, the list has changed. It grew to be 15 books with some changes over time to make improvements and avoid redundancies. I would be remiss not to mention a few of them.
“The Four Pillars of Investing” by William Bernstein
A comprehensive exploration of investing history, psychology, and strategy.
“The Snowball: Warren Buffett and the Business of Life” by Alice Schroeder
A detailed biography offering insights into Warren Buffett’s life and investment philosophy.
“Beating the Street” by Peter Lynch
A practical guide filled with anecdotes and insights for spotting great stocks.
“If You Can: How Millennials Can Get Rich Slowly” by William Bernstein
A short, but powerful guide perfect for younger investors starting their financial lives. I have gifted this book to quite a few people including students.
Final Thoughts
Learning about stock market investing takes effort, but the right resources can make the journey much easier. This structured reading guide of the best investing books provides a step-by-step progression from foundational concepts to advanced strategies. By following this approach, you’ll gain a deeper understanding of why to invest, how markets work, and how to develop a successful investing strategy.
Ultimately, these books provide a solid foundation that can be utilized to become a more confident and informed investor. Whether you’re a beginner or refining your skills, this curated list ensures you’re reading the best investing books in the right order. And, at very least, each book makes for an enjoyable read for those interested.
