Top 10 Best Investing Books For Beginners To Read This 2020

I partner with some companies (only the good ones!) that I think will be beneficial to my readers. If you purchase through my links, I'll get a small commission at no extra cost to you! To know more please read my disclaimer.

If you find the post helpful, please share it around!

The best investing books for beginners are the ones that make complex ideas and turn them into something simple.

Wherein even though you don’t have any knowledge of investing, you will still understand the contents of the book.

In my earlier days of being an investing noob, I didn’t know where to start or what books to read. There are hundreds of investing books out there and it can be confusing on which ones you should read first.

But don’t worry, I’ll make sure to guide you to the right authors and books. So, in this post, I’ll be listing the best investing books for beginners. Books that are top of every best investing book list!

At least, in my opinion.

If you’re ready then let’s get right to it! 🙂

More From Me:

Top 10 Best Investing Books For Beginners To Read This 2020

best investing books-min

If there’s one thing that I wish I knew earlier in my life, that would be knowing how to invest in stocks.

Sometimes I wished my parents set aside an investment fund when I was still a kid and just surprised me with a portfolio that’s profitable already ? (Am I the only one here though? Lol)

But since we don’t live in a fantasy world, we need to do things ourselves!

You should know by now that the investing space is a whole different world. They have their own terms, they have charts that only they can read, they have financial statements that only they can interpret.

But that shouldn’t stop you from learning more about the financial markets. I was once in your shoes too, I was outside looking in. Now, I’m part of that world! I now understand their terminologies, their charts, and numbers. 

At least more fluently than before.

And the list of books below is what made my newbie experience in the investing world much easier. I know they’ve helped me a lot so I’m pretty confident that these resources will help you too!

1. Rich Dad Poor Dad – Robert Kiyosaki

Hardcover $42.77
Paperback: $11.29
Kindle: $7.19
Where To Buy: Amazon
Rating: 4.7 out of 5 stars

Yes, I know you’ve heard of this book before.

Anyone who has looked into personal finance and investing has read this book once or twice. It’s already considered a classic!

Rich Dad Poor by Robert Kiyosaki has been a staple in the financial world because he has perfectly written how the “rich and poor” think.

It was actually an eye-opener for me when I first read it. It made me think about where am I spending my money. Do I spend it on things that increase in value? Will these purchases make me money over time or will I lose some?

Obviously, the rich place the majority of their wealth into something that’s increasing in value and will give them monetary returns over time. 

The first edition of this book was released in 1997! And even in the year 2020, it’s still being talked about! That’s how influential this book is. 

It was also because of this book that made me want to learn more about the stock market. As I read through the book. there’s a line that struck me. Robert wrote that most people work for money while the rich have money work for them.

When I read that line, it was Aha! moment for me. 

That line coincides with what I observed in different articles on being rich! I’ve noticed from every article, post, or interview I’ve read from rich people, they always have some type of investment under their name. And when Robert wrote that line, it all made sense!

If you make money work for you, not only do you earn on your main hustle but you also earn money from the side. 

That’s just one of the gems that Robert wrote in that book. There are several valuable pieces of information written there that might even change your financial situation.

2. The Intelligent Investor – Benjamin Graham

Paperback: $14.29
Kindle: $9.49
Where To Buy: Amazon
Rating: 4.7 out of 5 stars

When you think about a person that made it in the investing world, who would pop out in your mind? Most of us will say it’s Warren Buffet.

Warren Buffet has been the face of investing for a loooong time already. It’s because of his investments which made him one of the wealthiest men in the world. 

But did you know that Warren had a mentor?

Benjamin Graham is the college professor and mentor of Warren Buffet. Warren considers Benjamin as his mentor and hero. In this CNBC article, Benjamin was part of  Warren Buffet’s list of people who he credits his success to!

Wouldn’t it be great if you were mentored by the late Benjamin Graham as well?

Think about it.

I bet you would pay great money for that. But for only around $15, you can purchase a book authored by him! It’s also the same book that introduced Warren to Benjamin! 

You should know that this book was released in 1949. So the style of writing might need some getting used to. But that’s okay because if you want to learn from someone of this caliber on investing, he shouldn’t be the one that’s adjusting, it should be you.

The book teaches the readers on what to look out for when you’re investing and what your principles in the market should be. This book has stood the test of time. Warren even calls it “the best book about investing ever written”.

Benjamin Graham has been such an icon in investing that people have named him as the Father of Value Investing.

Value investing is a style of investing that teaches you to buy companies that are undervalued compared to its stock price.

3. How To Make Money In Stocks – William O’Neil

Paperback: $17.58
Kindle: $12.91
Where To Buy: Amazon
Rating: 4.5 out of 5 stars

This book has been recommended by traders and investors alike. Even the top investors give credit to this book written by William O’Neil.

Many people consider this as a classic as well.

The book teaches you a filtering system on how to pick the right stocks. William has put that strategy on the mnemonics, CAN SLIM.

The CAN SLIM system has been used by many investors already to filter out the high-growth stocks in the market.

High-growth companies are the ones that have a positive cash flow year in and year out. The investors here expect these companies to have a faster rate of earnings compared to its peers in the same industry.

Even intermediate traders or investors still read this book because it dishes out valuable information that you can’t get anywhere else. It’s like you’re getting something new every time you read it. The book doesn’t just teach you about investing, it also dips into the topic of reading charts! 

For me personally, I believe in combining both understanding the company and its stock chart. Because it gives you the best of both worlds.

When you study the company, you’ll know how well is it doing, how is it comparing to its peers, is it making money or burning through cash? Combine it with reading charts, you’ll know the sentiment of the people about the company.

And this book makes you utilize both styles of investing! 🙂

If you’re scanning thousands of companies in the US, which one of them is the best investment? This book can teach you a system on how to do just that. That’s the reason why CANSLIM is a strategy that is globally used by people in the financial markets.

4. One Up On Wall Street – Peter Lynch

Paperback: $13.79
Kindle: $13.10
Where To Buy: Amazon
Rating: 4.6 out of 5 stars

Another classic book on this list. Peter Lynch is one of the most successful and well-known investors of all time.

He’s the former money manager of the Magellan Fund of the major investment brokerage, Fidelity.

When Peter Lynch managed the said fund, its annual average return was at a whopping 29%. Seemed like an investment scam but it wasn’t!

The fund started at $20 million and it grew to $14 billion during the time of Peter. The fund was able to reach such an amount because of his leadership and decision making skills. That’s why he was considered a legend in the investing world.

His success made him retire at the age of 46.

In his book, he divided it into three sections: Preparing To Invest, Picking Winners, and The Long Term View. He then subdivided these topics to further discuss the ins and outs of the market. 

Peter rejects the idea that one individual can’t go toe to toe with people on wall street. Many people believe that it’s impossible to outperform people who are professionals and have a team of researchers and analysts.

Peter REJECTS that notion.

He believes that the retail investors (you and me) have an advantage because we know more about the companies listed for we are consumers of their products. 

This book carries a ton of investing wisdom that you’ll pass on to several generations. I mean what do you expect from a legendary investor, right? 

5. The Four Pillars of Investing – William J. Bernstein

Hardcover: $23.38
Kindle: $17.60
Where To Buy: Amazon
Rating: 4.6 out of 5 stars

This book written by William J. Bernstein doesn’t immediately flood you with the information on how to invest and where to put your money.

He wrote that you should understand previous movements of the market, the theories within it, and the role of psychology in investing. 

Unlike the books above, William believes that stock picking and trying to beat the market yearly is a difficult task to do.

That’s why he suggests investing in indexes. 

William is an advocate of diversification. He doesn’t subscribe to the idea of putting all your eggs in one basket. That’s why he tells the readers that it’s a wiser decision to go for passively managed index funds.

Not only do you get to diversify your investments but you all lessen the volatility of your portfolio. 

He also recommends having a portion of your fund to bonds and not having to exceed 80% of your portfolio to stocks. He then further explains how much of your portfolio should be exposed to different kinds of investments.

It’s a great book to read especially when you’re also looking to diversify your portfolio.

6. The Little Book Of Common Sense Investing – John Bogle

Hardcover: $16.49
Kindle: $13.00
Where To Buy: Amazon
Rating: 4.7 out of 5 stars

This book by John Bogle has the right amount of empirical evidence that won’t make you sleepy when you read it.

He makes use of charts, graphs, and statistics to back up his claims on the book.

John Bogle is the founder of The Vanguard Group and is said to be the first guy who created the very first index fund. John being both an investor and a fund manager recommends the idea of long-term investing over speculating on one stock.

In this book of his, he’s trying to relay the information that the best investing strategy is to buy and hold.

Which are the style of Warren Buffet and his mentor.

He doesn’t believe in the idea of choosing one specific stock and hope that it performs well and beats the market over time. Instead, he believes in investing in a bunch of companies – which an index fund can do.

What do you expect from the guy who holds a ton of index funds? ?‍♀️

But he doesn’t recommend any other index fund, he mentioned that it’s wise to go for the low-cost ones which Vanguard offers. With this strategy, you don’t go over the process of manually picking a single stock. He wrote that “don’t look for the needle in the haystack, just buy the haystack!”

7. Stock Investing for Dummies – Paul Mladjenovic

Paperback: $22.49
Where To Buy: Amazon
Rating: 4.5 out of 5 stars

This book really does a good job of slowly introducing the world of finance to a person that has zero knowledge about it. Whenever Paul introduces a concept in the book, he clearly explains it so that the readers won’t be left guessing.

Just as the title says, the book has “dumbed down” the basics of stock investing – which isn’t done by other authors. 

The book is easy to read and brings a ton of valuable information especially for a newbie.

The intermediate-level investors might not appreciate it but the newbies will be ecstatic about the new information that they will be reading.

Paul goes further than the classic concept of “buy high and sell low”. He talks about what to do if the market is falling, and how do you minimize the loss.

8. The Only Investment Guide You’ll Ever Need – Andrew Tobias

Paperback: $14.39
Kindle: $9.99
Where To Buy: Amazon
Rating: 4.5 out of 5 stars

If you ever want to read a book about investing that’s kinda laid back and chill, this one is for you!

It will give you a good overview of personal finance and different investment vehicles that you can venture into.

The book doesn’t flood you with data, charts, and graphs. It’s simple and it puts things into perspective.

It doesn’t just talk about investing specifically, it also dabbles on how to effectively save money and not carelessly spend it. It also talks about why you should match your employer’s 401(k), why index funds are the way to go, and why it is important for you to know what kind of investor you are.

This is an excellent book for beginners that don’t know much about the financial space. Not only do the readers know about investing, but they also get tips on how to improve their finances.

9. The Behavioral Investor – Daniel Crosby

Hardcover: $24.96
Paperback: $15.43
Kindle: $14.73
Where To Buy: Amazon
Rating: 4.4 out of 5 stars

This book talks about one of the most underrated factors when it comes to investing and trading.

Daniel Crosby talks about psychology and the different influences that affect our investing decisions.

Newbies in the market want to learn more immediately on how to make money, what are the different systems, which company to invest in, how much will it appreciate in 5 years, etc. Some of those are the right questions to ask but it’s important to also know how to recognize emotions and other external influences.

And this book addresses that.

If you ask a market veteran on what’s the most important thing in investing or trading, he’ll likely answer that it’s your psychology.  Some of the top individuals who are famous in the financial markets believe that you need to divide your focus on these three things: system, money management, and psychology.

10. Market Wizards – Jack D. Schwager

Hardcover: $24.95
Paperback: $20.45
Kindle: $14.39
Where To Buy: Amazon
Rating: 4.6 out of 5 stars

I only recommend this book once you’ve read two to three books above. ?

That way you’ll fully appreciate the contents of this book. Market Wizards by Jack Schwager is a compilation of his interviews with the best of best in the investing world.

He has interviewed legends in the game and “wizards” in the industry. This a must-read for people who aspire to make big money in the stock market.

The people interviewed here are the ones who made it but the most interesting stories for me would be knowing how they did it. Because anyone can be an investor but not everyone can make a killing in the market!

The book carries a ton of valuable information from how to grow your money, how to respect risk, the psychology that comes with investing, what makes a great investor, and how you should view the market.

There’s a reason why this book is classic literature in the investing world.

This is a must-read for any serious investor. It’s a fun and inspirational book to read from start to finish! For just $20, you’re already buying into a set of interviews that you won’t get anywhere. 

These are the 10 best investing books for beginners. I have purposefully picked these books because they tackle every side of investing. You should understand that when it comes to investing in the stock market, you have different ways to do that. You can individually pick stocks or invest in a passive or actively managed fund.

Which One Is For You? Individual Stock Picking Or Indexing? Here’s My Take:

Stock Picking

  • Pros of Individual Stock Picking

One of the benefits of individual stock picking is you don’t have to pay a fee to someone that’s managing your money. When doing this option, you do your own research and study. 

It’s important to note that this option requires time, effort, and patience from your part. You’ll have to read several news, posts, and articles about a certain stock because you want to invest in a sound and profitable company.

But other retail investors don’t look at these factors. As long as they love the products of the company, they’ll invest in it. Nothing wrong with that, a common recommendation by pros is to invest in something you know and believe in.

  • Cons of Individual Stock Picking

Cons of individual stock picking could be your lack of expertise. Most investors fail and lose money in the stock market because they believe in hearsay and pump and dumps. 

Hearsay isn’t a good strategy but that’s a sure way to lose money in the market. Pump and dumps aren’t a good indicator to invest as well. 

Regardless of what option you choose, it’s important to remember that when you’re investing in companies, you should have a long term outlook.

You don’t expect to have gains on your portfolio right after you bought stocks of a company. Remember that big money is made on the sitting and not constantly buying and selling.

The books above tell you to buy and hold which means you buy a stock and hold on to it for several years. That’s how great investing is done and that’s how big money is made. Warren Buffet didn’t reach that status for a year or two, he compounded his wealth year on year for over a decade.

And that’s how you should look at your investments as well.

Passive Investing

  • Pros of Passive Investing

One of the major benefits of passive investing is it doesn’t require much effort from your end. You just enter a fund and the investment team and fund manager will take care of the rest.

This is what some of the authors above mean when they say you can invest in an index fund rather than picking one stock.

That idea has some truth to it since being individual stock picking is really hard. It might look easy on paper but in reality, there’s a lot of understanding that needs to be done. Just think about the fact that professionals make mistakes, what more from retail investors?

  • Cons of Passive Investing

The cons of passive investing or putting money in a fund would be the fees you need to pay. Letting a team of professionals handle money from different investors isn’t free. They need to be paid for their efforts and expertise. 

So my final verdict on whether you should go for passive investing or individual stock picking would be to try out individual stock picking first.

Just see if it works for you. If it didn’t work out for some, it doesn’t mean that it won’t work out for you as well. You’ll never know until you try it!

However, this will ONLY be if you’re doing your research FIRST.

If you think the task is too much for you to handle or you don’t have that much time to learn a whole new world, then go for passive investing. Search for index funds that will satisfy your investing needs.

What Book To Start?

Now that you’ve reached this part of the post, I’m sure you’re thinking about what book should you read first. And I’m here to tell you just pick one and go from there. Once you get the ball rolling, you’ll be thirsty for more investing knowledge.

To convince you more to start investing, here are 12 Benefits Of Investing In Stocks that you should know about.

Well if you’ve read some of the books above, comment down below what’s your opinion about it? 😀

If you find the post helpful, please share it around!

Leave a Comment