For aspiring investors, learning how to invest can seem like an overwhelming process at first, with so many books and blogs on the subject that it can be hard to figure out which ones are most worth your time. The good news is that we’ve done some of the legwork for you by reading dozens of stock market books, picking out our favorite five, and discussing why each one should be on every aspiring investor’s reading list. Here are five must-read stock market books for aspiring investors.
Reminiscences of a Stock Operator by Edwin Lefèvre
This classic book on stock trading and speculation is highly recommended for anyone looking to build a solid foundation of market knowledge. The book details many stories about some of America’s most prominent stock market gamblers and operators during a time when speculation was still popular in society. Additionally, it features great life lessons such as friendship, deception, and other important themes. No matter what kind of career you end up pursuing, it’s always interesting to learn more about capitalism and financial markets. Therefore, consider reading Reminiscences of a Stock Operator as part of your general knowledge. You might be surprised at how interesting finance can be!
How to Make Money in Stocks by William O'Neil
The classic must-read for beginners in investing, written by one of Wall Street's most successful gurus. The book is simple to understand and gives investors a roadmap for how to invest in stocks. It also explains strategies for buying individual stocks and mutual funds, giving investors tips on how to select stocks that are poised to go up. How to Make Money in Stocks has more than 500,000 copies in print and is available from multiple publishers, including McGraw Hill. If you want to invest wisely but don't know where to start, pick up a copy of How to Make Money in Stocks .
Poor Charlie's Almanack by Charlie Munger
This is a book that holds in its pages plenty of great life advice, and I’m not just talking about stock market advice. It’s about living your life in a better way, and it’s backed up by hard lessons from someone who has lived an interesting life full of ups and downs. This book may be old now, but it’s certainly got some timeless gems to offer. If you have time for only one, read Chapter 8—especially if you consider yourself a businessperson as opposed to strictly an investor or trader.
The Little Book That Beats the Market by Joel Greenblatt
The Little Book That Beats The Market offers a formula that will allow you to produce market-beating returns over time. It’s written in a very interesting manner, and has been incredibly successful for those who’ve taken advantage of it. While it can be difficult for an individual investor to recreate Greenblatt’s formula, using his ideas and concepts may help you identify new opportunities in your own portfolio. You should consider checking out The Little Book That Beats The Market as one of your stock market books. You won’t be disappointed.
One Up On Wall Street by Peter Lynch
The original. The one that inspired an entire generation of investors to put their money where their mouth is. Still as relevant today as it was when it was first published in 1989. No surprise, then, that it’s held up well—the book details Lynch’s adventures at Fidelity Investments and remains a must-read for any investor (or potential investor) looking to find a place in one of the most competitive fields around. If you’re thinking about going down a similar path, you should absolutely start here.
The only way to develop an intimate understanding of a market is to learn how to trade it, which is where these books come in. Pick up one (or all) of these books on stock market investing and read them cover to cover for a deeper understanding of how markets work—and why that knowledge can be useful when designing your own investment strategy. You’ll never see stocks or other financial instruments in quite the same way again.
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