Investing Books I Recommend for Beginners
People ask me where to start with investing. Over the years I’ve sent some version of this list more than a few times, so here it is in one place. For a beginner, these are the books I’d recommend — roughly in the order I’d hand them over.
Buffett: The Making of an American Capitalist
The Lowenstein biography of Buffett describes Buffett's investing principles and their evolution — though I didn't fully appreciate this until after having read The Intelligent Investor a couple of times and then re-reading the biography. It walks through the various investments Buffett made over his lifetime and his thought processes: his evolution from "cigar butt" investing to focusing on great businesses. Excellent book.
One Up on Wall Street
The Intelligent Investor
Authored by Benjamin Graham — the "father of security analysis" and value investing, and Warren Buffett's teacher and mentor. Buffett called it "by far the best book on investing ever written." It teaches the proper investor's attitude toward the stock market. Note that it doesn't really cover how to determine exactly what to buy, but rather how to properly think about the market — which, in my opinion, is far more important. An exceptional book. Pay particular attention to (or, initially, just read) chapters 8 (Mr. Market) and 20 (Margin of Safety).
Inefficient Market Theory
My own book — an investment framework built on the foolishness of the crowd.
The Essays of Warren Buffett
Lessons for Investors and Managers
Another great book for investor education — a must-read.
The Five Rules for Successful Stock Investing
