Here is a comprehensive list of the best investing books we’ve used to learn more about the stock market and to think like an investor.
Best Investing Book: ‘One Up On Wall Street’ by Peter Lynch
This book is the cornerstone of our investment strategy here at MyWallSt, and one that our staff practices in their personal portfolios as well. The three main tenets of the book are: investing opportunities are everywhere, buy what you know, hold for the long term. Lynch writes from his own personal experience, having gone from an intern at Fidelity Investments to growing a small mutual fund called the Magellan Fund from $18 million to $14 billion over the course of 23 years. Averaging almost 30% annual return, the Magellan Fund was the most successful mutual fund in the world.
‘One Up On Wall Street’ is a must for anyone thinking of getting started in buying stocks. Lynch’s narrative gives a perspective that is devoid of intimidation and trepidation. His demystification of the stock market for the small retail investor is something we try to emulate here at MyWallSt. We truly feel it is the best investing book to begin your journey.
Favorite Quote: “Know what you own, and know why you own it”
Where Can You Buy it: ‘One Up On Wall Street’
Best Value Investing Book: ‘The Intelligent Investor’ by Benjamin Graham
The great Warren Buffett christened ‘The Intelligent Investor’ as “the best book on investing ever written”, but what does that guy know? I’m sure you’re much more interested in hearing my two cents on the matter.
With such grandiose monikers as ‘the father of value investing’ and ‘the dean of Wall Street’, Benjamin Graham’s name holds quite a bit of weight in investment circles, as is seen by the Oracle of Omaha’s glowing review. ‘The Intelligent Investor’ applies a common-sense approach to the stock market which still holds true today, 70 years after it was first published. Updated for modern times by Jason Zweig of the Wall Street Journal, ‘The Intelligent Investor’ is an excellent first investing book for anyone who wants to start their investment journey.
To give you a taste, here are Graham’s Six Key Principles of Intelligent Investing:
- Know the business you’re investing in.
- Know who runs the business.
- Invest for profits over time, not for quick buy-and-sell transaction profits.
- Choose investments for their fundamental value, not their popularity.
- Always invest with a margin of safety.
- Have confidence in your own analysis and observations.
Favorite Quote: “People who invest make money for themselves; people who speculate make money for their brokers.”
Where Can You Buy it: ‘The Intelligent Investor’
Best Book on Big Tech: ‘The Four: The Hidden DNA of Amazon, Apple, Facebook, and Google’ by Scott Galloway
Scott Galloway is a professor of marketing at NYU, one of the most prominent tech writers out there, and arguably, one of the best investing Twitter accounts to follow for anyone interested in the stock market.
His book ‘The Four’ revolves around Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB) and Google (NASDAQ:GOOG)(NASDAQ:GOOGL) and how the companies became such an integral part of modern life, their seeming infallibility and their ability to recover from their ever-growing series of missteps along the way. Far from a love story, Galloway asks the tough questions about the so-called “Four Horsemen” and how they are viewed in today’s society.
As someone who writes about these companies every week, I found this book an eye-opening account of the true power held by such a select few at the head of these conglomerates. One insight I particularly liked was Galloway’s contrast of “normal business thinking” v “Amazon business thinking.” For anyone with skin in the game on Wall Street, this book is a must.
Favorite Quote: “Expect that a certain amount of failure is out of your control, and recognize you may need to endure it or move on.”
Where Can You Buy It: ‘The Four: The Hidden DNA of Amazon, Apple, Facebook, and Google’
Check out the rest of our Think Like an Investor Series:
Best Beginner Investing Book: ‘A Random Walk Down Wall Street’ by Burton Malkiel
Self-titled as the “time-tested strategy for successful investing”, Malkiel’s book is slated by many as a necessity before starting your 401k or managing your own portfolio. The title of the book is in reference to the Random Walk Hypothesis, which essentially states that changes in the stock market are random and can’t be predicted. Malkiel expands on the point, portraying the futility in trying to exploit the inefficiencies of the stock mark, hammering home the benefit of a long-term strategy.
‘A Random Walk’ has been meticulously maintained to keep up with changes in the stock market. I certainly wasn’t expecting to read about Bitcoin in a book first published in 1973. However, the necessity for continuous updates is a testament to the book’s popularity and how evergreen the content remains, almost 50 years after pen was first put to paper. While some chapters may seem tough to digest for those starting out, the lessons one can glean from Malkiel’s prose will provide vital weapons in the arsenal of any beginner investor.
Favorite Quote: “A blindfolded chimpanzee throwing darts at the stock listings can select a portfolio that performs as well as those managed by the experts.”
Where Can You Buy It: ‘A Random Walk Down Wall Street’
Best Book on the Investing Brain: ‘Blink: The Power of Thinking Without Thinking’ by Malcolm Gladwell
I really couldn’t write a list like this without mentioning Malcolm Gladwell. You could arguably have a separate list dedicated solely to Gladwell, all of which would make you a better investor. I’ve narrowed it down to ‘Blink’ because I think it’s the most relevant to the investor’s mindset. How many companies have you looked at, before conducting any serious due diligence, and just had a gut feeling about them? How many of these gut feelings turned out to be right? ‘Blink’ goes about to explain this phenomenon.
While I’ll leave the explanations of “thin-slicing” and “the adaptive unconscious” to Gladwell himself, what ‘Blink’ does is examine closely the power of instincts, hunches, and those aforementioned gut feelings. Through his eye-opening case studies and what must have been a mountain of background research, he succeeds in informing us of the power of human judgment, as well as its pitfalls. It’s a fascinating book that makes the reader examine their own decision-making process.
Favorite Quote: “The power of knowing, in that first two seconds, is not a gift given magically to a fortunate few. It is an ability that we can all cultivate for ourselves.”
Where Can You Buy It: ‘Blink: The Power of Thinking Without Thinking’
Best Silicon Valley Thriller: ‘Bad Blood’ by John Carreyrou
As investing books go, ‘Bad Blood’ does not conform to the norm. It reads more like a detective thriller than a book about investing. However, that doesn’t make it any less educational than the other books on this list.
Anyone interested in the stock market will know the ill-fated Theranos story. It’s a tale of fraud and deceit surrounding the inexhaustible search for the next unicorn that will cause the reader to constantly return to the question: “How do they keep getting away with this?” Giving a detailed examination of the Silicon Valley startup scene and its ability to be manipulated, John Carreyrou’s bestseller is tough to put down.
I highly recommend ‘Bad Blood’ to anyone with the slightest interest in investing, tech companies, Silicon Valley, or investigative journalism. The Wall Street Journal alum paints a fascinating portrayal of greed which will make any investor introspective about their own investing strategy. The main takeaways we can take from this book are: invest in what you know and don’t believe the hype.
Favorite Quote: “The way Theranos is operating is like trying to build a bus while you’re driving the bus. Someone is going to get killed.”
Where Can You Buy it: ‘Bad Blood’
MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in Facebook, Amazon, Google and Apple. Read our full disclosure policy here.