Top 10 Must-Read Investment Books - E-PersonalFinance

Top 10 Must-Read Investment Books

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Many of the top investors who have made millions and even billions on their investments have written books or have been featured in books on investing. As an investor, you should educate yourself about the strategies of these top investors. Here is a list of the top 10 must-read investment books.

 

 1     The Intelligent Investor by Benjamin Graham

Originally published in 1949, The Intelligent Investor is considered one of the most influential investing books of all time. The author, Benjamin Graham, taught the principles found in this book to his students, including the famous investor Warren Buffett, at Columbia Business School.

Graham promoted the concept of “value investing,” which means buying stocks the market has undervalued significantly. He wanted investors to look for stocks that had a wide “margin of safety” between the market price and the “intrinsic” value of the stock and to only buy if the market price was well below the intrinsic value.

The difficulty in value investing is determining the value of a stock. But Graham did that very well and taught others like Buffett, who called The Intelligent Investor, “the best book on investing ever written.”

 

 2     Security Analysis by Benjamin Graham and David Dodd

With David Dodd, Benjamin Graham authored Security Analysis in 1934. In this book, referred to as the Bible of investing, Dodd and Graham push for smart, long-term investment thinking. They introduce the idea of “value investing” and discuss how to determine a stock or bond’s value. This book is considered a classic and timeless in its opinions about investing.

 

 3     One Up on Wall Street by Peter Lynch, with John Rothchild

In the best-seller One Up on Wall Street: How to Use What You Already Know to Make Money in the Market, Wall Street stock investor Peter Lynch believes people have the knowledge from their everyday living to invest successfully in stocks. 

 

 4     Common Stocks and Uncommon Profits by Philip Fisher

Philip Fisher taught at the Stanford School of Business and wrote about investing in a number of books, including the highly acclaimed 1958 tome Common Stocks and Uncommon Profits. He valued long-term investing and continual research into a company’s prospects. He is known for his buy-and-hold strategy as evidenced by his personal purchase of Motorola stock in 1955, which he held until his death in 2004.

 

 5     Buffett by Roger Lowenstein

Warren Buffett is probably the most famous and acclaimed investor in history. He has amassed a fortune in billions from his investments. Roger Lowenstein recounts Buffett’s life and business philosophies in this 1996 biography Buffett: The Making of an American Capitalist.

 

 6     The Essays of Warren Buffett

Noted author and lecturer Lawrence Cunningham compiled the letters of Warren Buffett in 1997 in The Essays of Warren Buffett: Lessons for Corporate America. These letters present Buffett’s business and investment strategies to the shareholders of his company, Berkshire Hathaway.

 

 7     Stocks for the Long Run by Jeremy J. Siegel

In Stocks for the Long Run, Jeremy Siegel, a professor of finance at the Wharton School, is a proponent of long-term investing in stocks in this book originally published in 1998. He believes stocks outperform other investment vehicles in the long run and recommends creating a balanced portfolio.

 

 8     You Can Be a Stock Market Genius by Joel Greenblatt

Investor, teacher, and author Joel Greenblatt challenges readers of his 1997’s You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock Market Profits to look in unique places in the securities market for investment opportunities.

 

 9     The Little Book That Beats the Market by Joel Greenblatt

In 2006, Joel Greenblatt published the highly acclaimed The Little Book That Beats the Market. In this volume, Greenblatt describes a “magic formula,” rooted in the value-investing model, for success in the market. He considers a company’s return on capital and its earnings yield in the formula. You can learn more and invest using this formula on Greenblatt’s Web site at www.magicformulainvesting.com.

 

 10     Investment Fables by Aswath Damodaran

A professor of finance at the Stern School of Business at New York University, Aswath Damodaran examines what has worked and what hasn’t among various highly touted investment strategies in his 2004 Investment Fables: Exposing the Myths of “Can’t Miss” Investment Strategies.  
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