It’s a great idea to begin investing as soon as you start earning a paycheck—whether you’re looking to start a retirement savings plan or earn a little extra income passively.
When you’re just starting out, it’s important to understand the basics of investing and the different options available to you, so you can choose the smartest path for your financial future. As your income grows, your investment portfolio can also expand.
Best investing books for beginners
It doesn’t matter if you’re fresh out of college or a teenager who’s realized how significant investing can be—these picks of the best books for young investors will help you succeed.
1. The Intelligent Investor – Benjamin Graham
Written in 1949, one of the best investing books – The intelligent investor is still considered as the best one-stop destination for someone who wants to become a mature investor. It gives a clear-cut insight into the stock market, tools to analyze stocks, problems investors might encounter in the process, and their possible solutions.
Owing to its simple language, this book is appropriate for both amateur and experienced investors. Due to these reasons, The Intelligent Investor is considered to be the “Holy-Book” of investors.
2. One Up On Wall Street – Peter Lynch
The book focuses on how with simple research and discipline, an amateur investor can get great returns in the stock market and is one of the best investing books.
Lynch describes the key qualities required for a successful investor, the idea of being an opportunist, and the drill to be used before buying stocks, with the central idea of the book being, “Great investors don’t invest in what they don’t understand.”
3. Common Stocks And Uncommon Profits – Philip Fisher
In the book, Fisher described ‘What to buy’, 15 points to look for in common stock, ‘When to buy’ and ‘When to sell’, in order to get uncommon returns on investments.
“Investors have been so oversold on diversification that fear of having too many eggs in one basket has caused them to put too little into companies that thoroughly know about, and too much in others they know nothing about.”
4. The Dhandho Investor – Mohnish Pabrai
‘Dhandho‘ is a Gujarati word, which means “endeavors that create wealth” or simply ‘business’.
The central idea of this book is “Low risk, high return”, which is explained through a few case studies. Further on, the key principles for the idea are proposed.
The book is written in a rather simplified and reader-friendly way with included stories of some investors to support his idea, which makes the book fun to read and informative at the same time.
5. The Little Book That Beats The Market – Joel Greenblatt
This book is a rather small book with vast ideas about stock market investing. It discusses the concept of ‘value investing’, the importance of margin and safety while investing, and gives the famous ‘magic formula investing strategy”. Which, if practiced efficiently, promises profits in the long run.
“Choosing individual stocks without any idea of what you are looking for is like running through a dynamite factory with a burning match. You may live, but you are still an idiot.”
Final Thoughts on best stock investing books for beginners
If there’s only one book young investors need to learn about the stock market, retirement investing strategies, and real estate investment opportunities, we recommend “The Little Book of Common Sense Investing” by John C. Bogle. This guide provides the core framework young investors need to begin their investing journeys, while also offering updated advice about investing in the modern marketplace and some of them are best investing books for beginners reddit.