Brian Baker, CFA, Bankrate.com
Navigating the world of investment can be difficult, especially if you’re just starting out. There are many confusing terms and complex acronyms that can turn off those who want to learn more about the concept of finance.
Luckily there’s no shortage of investing in books that will help you learn what you need to know to become a savvy investor. Books can be read at your own pace and are usually written by experts who have spent years studying investment in the industry.
Below are some of the best investment books for beginners to consider adding to their reading list.
1. “The Only Investment Guide You Need” by Andrew Tobias
If you’re really just starting your investment journey, this book is the perfect place to start. You will learn tips on how to save and invest for your future and get great advice on what to avoid in the financial world. Tobias has a sense of humor, so even if finance and investment aren’t your favorite theme, this book is fun to read.
“The Only Investment Guide to Ever” was first published in the 1970s, but has recently been updated and stands the test of time. It is a great first step on your journey to being a knowledgeable investor.
2. “A small book investment with common sense: the only way to guarantee fair share of stock market returns”
John Bogle, founder of Vanguard Group, who passed away in 2019, spent his career advocating and providing products and services that benefit everyday investors. Legendary investor Warren Buffett wrote in 2017 that if a statue was constructed to honor those who did the most for US investors, the choice should be swampy.
Bogle is a large proponent of investing and minimizing costs in index funds, allowing more market returns to be put into shareholder pockets in place of fund managers. His book shows why it is so important to keep costs low when investing and touching taxes, average reversal, bonds, and exchange trade funds (ETFs).
3. “Great, Smarter, Happier: How the world’s biggest investors win in the market and in the lives”
Written in 2021, the book by William Green quickly gained a reputation as one of the best books on investment. In it, Greene profiles several legendary investors, including Mornish Pavli, Howard Marks, Charlie Munger and Nick Sleep, and presents readers with lessons they can learn from each.
Many investors shared common traits, such as independence, resilience, simplicity, and clarity of thinking. Reading about these great investors’ journeys and the different paths they took to achieve great wealth inspires and fulfills lessons on how to invest and live a success.
4. “Warren Buffett’s Essay: Lessons for Corporate America” Warren Buffett and Lawrence Cunningham
Warren Buffett was one of the clearest thinkers on the subject of investing the world ever seen, and he was not graceful enough to write many of his ideas in the form of letters to shareholders of Berkshire Hathaway. Lawrence Cunningham, a former professor at George Washington University’s Law School, organized letters on subject matter, including corporate governance, mergers and acquisitions, valuations, and accounting.
Despite the complex topics, this book is not difficult to read. Buffett says he is writing a letter thinking about his sister. He is smart and interested in business, but not as well as he is in trouble. Readers run away with valuable education in business and investment.
If you’re a Berkshire fan, you can also enjoy “Scripting Buffett & Munger.” The book, arranged by Alex Morris and published in 2025, uses the same concepts as Cunningham’s book, but this material comes from comments made by Buffett and his late partner Charlie Munger at the Berkshire Annual Meeting for 30 years.
5. “A Little Book That Breaked the Market” by Joel Greenblatt
As a hedge fund manager in the 1980s and 90s, Joel Greenblatt generated approximately 50% of his annual revenue. Since then, he has spent time teaching books and writing books, wanting to help others generate better investment returns.
In “A Little Book to Defeat the Market,” Greenblat sets out a magical formula for identifying great underrated businesses. The book uses simple mathematics and is written to help anyone understand the concepts being discussed. Whether you adopt your own formula or not, this book is one of the best books to show how and why simple strategies can generate unresolved returns over time.
6. “One on Wall Street” by Peter Lynch
Peter Lynch managed Fidelity’s famous Magellan Fund in the 1980s. For 13 years, Lynch managed the fund, with its assets increasing from $18 million to $14 billion, significantly surpassing the S&P 500.
“One Up on Wall Street” sets out Lynch’s investment philosophy and how he can outweigh professional investors by sticking to what they know and holding his eyes for stock ideas. He believes his readers will be able to find their next great inventory by paying attention when he is in a grocery store or mall (or maybe he shop online today). Lynch tips can help you identify “10 baggers” or stocks that return 10 times the purchase price.
7. “Money Psychology: Timeless Lessons on Wealth, Greed and Happiness”
While it’s not just focused on investment, “The Psychology of Money” is a great practical book that focuses on the many ways consumers make decisions about money. Many economists and financial experts assume that when people make decisions about their finances, they are completely rational, but they know that they cannot be far from the truth.
Using 19 short stories, Haussel explains how people behave when making money decisions and shows you how to think more clearly about your financial journey. By understanding the many traps that prevent you from reaching your financial goals, you hope you will avoid them and learn how to make wise decisions throughout your financial life.
Housel’s latest book is “The Same: A Guide to Things Never Changed,” and is filled with insights that apply to your investments. Investors often focus on what they think they will change and how they can position themselves for that change, but understanding the same thing is often a better approach.
8. “The Most Important: An Unusual Sense for Thoughtful Investors” Howard Marks
Howard Marks is co-chair of Oaktree Capital Management, and his quarterly letters have long been widely read in the investment community. The book uses those letters to identify important ways that great investors think to generate outstanding returns.
Marks focuses on topics such as risk, bargains, identifying cycles and assessing the role of luck in investment outcomes. This book is likely to stand the test of time and you may find investors coming back frequently.
9. “A book on rental property investment: How to create wealth with intelligent purchases and real estate investments” Brandon Turner
Most people think about stock markets when it comes to investing their money, but that’s not the only game in town. Real estate investment can also build wealth, and its physical nature can be easier for people to understand than the stock market.
In this book, Brandon Turner sets out how to make money through rental properties and introduces the entire process of purchasing your first unit and collecting payments for those rents. If you’ve ever wondered how to make money through real estate, this book is the perfect place to start.
10. “The Simple Path to Wealth: Roadmap to Economic Independence and a Rich and Free Life” JL Collins
If you’re tired of the complicated and confusing explanations of financial issues from so-called experts, this book is for you. Born from a series of letters to Collins’ daughter, the book addresses most of the financial problems of life in a simple and easy-to-understand way. New and experienced readers will likewise benefit from the clarity of the book on issues such as debt, stock markets, and how to build wealth.
Collins emphasizes the importance of understanding your financial life so that you don’t get used to “charlatan of the financial world.” Reading this book will make you more likely to save money and achieve your financial goals.
11. “Smart Girls’ Finance: Learn How Investment Works and Grow Money” Bola Sukunbi
Women are one of the least-served groups in the financial industry, and the book seeks to address that problem with simple and understandable nature. Rather than trying to impress your readers with complex topics, you stick to what you need to know to get started with your investment.
Learn about the workings of the stock market and key concepts such as inflation, compound interest and the 72 rules. Once the basics are down, this book focuses on how to research your investments and where to buy when you’re ready. Perfect for recent graduates and early career alumni.
12. “Outsiders: 8 unconventional CEOs and their fundamentally reasonable blueprint for success” William N. Thorndeek Jr.
While many investors believe that in order to be successful as investors, they need to identify companies with game-changing innovations and hyperbolic growth, this book shows how solid companies run by reasonable CEOs have led to the prominent long-term returns of corporate shareholders.
Thorndike profiles eight CEOs and companies who have significantly outperformed their shares during their tenure by focusing on stock buybacks, careful acquisitions, and increased shareholder value.
Conclusion
Knowledge is power, especially when it comes to investment. If you want to expand your financial know-how, or if you’re trying to pick up some tips from some of the industry’s top thought leaders, you won’t go wrong with one of the picks on this list.
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Original issue: March 9, 2025 9am Edit
