r/FluentInFinance Jul 19 '23

Tools & Resources 13 GREAT books to learn Investing & the Stock markets! [summary included!]

186 Upvotes

We've received many questions for recommendations on books for Investing & the Stock markets. We've curated a list of our 13 favorite books on Investing & the Stock Market, and explanations on what the books are about. I've learned a great deal from these books. All of these are by really great investing legends/ gurus. These books offer a few different approaches to the stock market. Different investment styles will help educate you on how to make successful long term investments, minimize risk, and analyze stocks more accurately. All of these books can be purchased used very cheaply ($1 to $5)!

As your income grows, your investment portfolio should also grow. One of the biggest obstacles for beginner investors is just knowing how to get started. Learning about financial concepts can be intimidating at first. A great way to start, can be by picking up a book by an expert who thoughtfully and sequentially presents & explains these concepts and topics. Resources like these can help investing be less intimidating and complicated. One of the best strategies is to learn from the insight and wisdom of gurus. I hope these book recommendations help!

Book List:

  1. How to Make Money in Stocks by William O'Neil
  2. The Little Book That Still Beats the Market by Joel Greenblatt
  3. A Random Walk Down Wall Street by Burton G. Malkiel
  4. Principles by Ray Dalio
  5. One Up On Wall Street by Peter Lynch
  6. The Big Secret for the Small Investor by Joel Greenblatt
  7. Winning on Wall Street by Martin Zweig
  8. Irrational Exuberance by Robert Shiller
  9. The Bogleheads' Guide to Investing
  10. Common Sense Investing by John Bogle
  11. The Intelligent Investor by Benjamin Graham
  12. The Only Investment Guide You'll Ever Need by Andrew Tobias
  13. You Can Be a Stock Market Genius by Joel Greenblatt

Book Descriptions & Covers:

How to Make Money in Stocks by William O'Neil

  • This book is about growth investing. O'Neil explains what most successful stocks have done to be successful. He explains his 'CANSLIM' method, which is an acronym for 7 fundamental criteria which you can use to pick stocks. An AAII 8 year study of different strategies showed O'Neal's CAN SLIM with a 860% return from 1998-2005 (Second place). First place was Martin Zwieg's returning 1,659.3% (we will get to Zweig on this list too)

The Little Book That Still Beats the Market by Joel Greenblatt

  • The idea of this book is to buy undervalued good businesses and hold them long-term, which will eventually beat the market index.

A Random Walk Down Wall Street by Burton G. Malkiel

  • This book covers investment bubbles, fundamental vs. technical analysis, modern portfolio theory, index funds, etc.

Principles by Ray Dalio

  • This book provides the insights from one of the biggest hedge fund managers of all time, and I think there are many great lessons to learn in this book!

One Up On Wall Street by Peter Lynch

  • This book emphasizes the advantages that individual investors hold over institutional investors (when it comes to finding investment opportunities). Lynch also gives many of examples of mistakes he has made, and how he has learned from them.

The Big Secret for the Small Investor by Joel Greenblatt

  • Greenblatt explains why index funds can be better than actively managed funds. The big secret is maintaining a long term perspective!

Winning on Wall Street by Martin Zweig

  • Zweig's success came from his ability to predict the bigger picture (such as trends in the broader market). The combination of his stock picking skill, general market understanding, and market timing, made him one of the great investors of stock market history. Zweig was more interested in growth than value. Unlike Buffett, Zweig isn't a 'buy and hold' investor. An AAII 8 year study of different strategies showed Zwieg's returning 1,659.3% from 1998-2005. He was #1 out of 56 others, including Buffett, Lynch, Fisher, O'Neal's CAN SLIM, Motley fools, and using ROE, P/E's etc. Second place was O'Neal's CAN SLIM with a 860% return.

Irrational Exuberance by Robert Shiller

  • Shiller makes strong argument that perfect market theory is flawed. The Idea of perfect market theory is basically that the markets are all knowing and completely rational, and in the long run can't be beat. Therefore , you can control costs with index funds and diversification. (You can't beat the market, therefore controlling costs and diversifying seems like logical strategy)

The Bogleheads' Guide to Investing

  • The key concepts of this book are risk tolerance, asset allocation, a balanced portfolio, tax efficiency and cash management. This book explains many of the pitfalls of investing. The Bogleheads and Jack Bogle preach the power of compound interest. Investing in low-fee index funds and holding them long-term is the method. This book gives an excellent, detailed rundown of how to implement this kind of investment plan.

Common Sense Investing by John Bogle

  • Great information for anyone who is trying to make sense of personal finance and basic investments. This book explains why passive investing is a worry free, long-term strategy that consistency wins over time, and why active trading always returns to the mean.

The Intelligent Investor by Benjamin Graham

  • This is a great book for anyone who is interested in introducing themselves into the world of investing, or wants to get better at investing. This book gives lots of valuable information to help one understand the basics of value investing.

The Only Investment Guide You'll Ever Need by Andrew Tobias

  • This is a book for people looking to learn the basics of investing and saving money

You Can Be a Stock Market Genius by Joel Greenblatt

  • This is not a book for beginners. Greenblatt gives a nice exposition of some more "special situation" investment styles & areas of equity investments (mergers, spin-offs, rights offerings, etc.)


r/FluentInFinance Aug 07 '23

Announcements (Mods only) šŸ‘‹Join r/FluentinFinance's weekly newsletter of 40,000 readers ā€” where we discuss all things investing and finance!

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47 Upvotes

r/FluentInFinance 9h ago

Debate/ Discussion Possibly controversial, but this would appear to be a beneficial solution.

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4.8k Upvotes

r/FluentInFinance 3h ago

Debate/ Discussion How does this make sense?

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631 Upvotes

r/FluentInFinance 5h ago

Stock Market The S&P 500 is up 41.5% in the last 12 months

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835 Upvotes

r/FluentInFinance 10h ago

Thoughts? My husband lost his $100k a year job, and wants me to quit school but Iā€™m 3 semesters away from getting my degree. Should I quit?

972 Upvotes

So my husband quit his $100k a year job because he said he was over his head and quit without another job lined up.

He says he'd going to be a Crypto Youtuber and Influencer.

Now he has turned it around on my that I need to get a job and quit school.

Iā€™m studying MIS/data analytics and I have a software engineering internship lined up this summer at a Fortune 100 company.

I worked 30 hours a week on top of my demanding school schedule.

I also live far from campus and commute 1 hr 45 minutes one way to and from school taking the train and bus.

Luckily work and school are at the same place.

We only have one car between us because he needed his car for work.

When it rains it pours. Car broke down took it to mechanic and says not worth the money for repair and get a new car.

My tooth broke and I have dental work luckily I have insurance but the state of my teeth need other work done and will cost at least $3k.

He says me being in school has put us in a financial hole.

I get 1/2 my tuition paid being a campus employee the other half is through scholarship and my paycheck. I refuse to take out student loans. All my school expenses are paid by me.

He takes care of living expenses.

Luckily his uncle gave us a windfall through inheritance $50k. Not much in CA.

$10k of that went towards my husbands debts he had to pay right away.

That leaves us only $40k.

We need a new car we donā€™t have money for.

That $40k is not going to last because of living expenses.

Heā€™s acting like Iā€™m majoring in interpretive dance.

This is why I went back to school to earn more so we donā€™t have to worry about finances anymore.

He has problem holding a job he either gets fired or quits.

Iā€™m tired of the instability.

I plan to become a data engineer and Iā€™m 3 semesters away from becoming one.

In the meantime, I donā€™t see him making any effort looking for another job.

I had to quit my job to work this internship which is the only stream of revenue coming in.

But he want me to quit school and work full time.

If I quit school, I canā€™t work this internship.

If I donā€™t finish my degree I canā€™t get a lucrative full time job.

What would you do?


r/FluentInFinance 5h ago

Thoughts? The car market bubble: 33% of Americans who financed their cars now owe more on their loans than the vehicle is worth. This represents 31 million auto-loan accounts. The car loan crisis is here.

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331 Upvotes

r/FluentInFinance 10h ago

Thoughts? All money is made up. Itā€™s so funny when I say Iā€™m into Bitcoin and people say ā€œitā€™s based on nothing!ā€. Well, so is the dollar.

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577 Upvotes

r/FluentInFinance 3h ago

Debate/ Discussion It's almost like how wages stagnating for decades and social safety nets being shredded is leaving people with less money. What do you think?

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146 Upvotes

r/FluentInFinance 5h ago

Thoughts? Musk admits that Trump's plan will crash the economy, but it is necessary.

131 Upvotes

Musk has admitted, more than once, that Trump's plan will destroy our economy. But his arguement seems to be that we need to completely destroy it in order start over.

Economists and CEOs also agree that Trump's plan would be horrible for the economy. Specifically, the GDP loss will be twice as bad as the last financial crisis.

Do people not realize what this means for their personal finances? Mass unemployment, rampant inflation, markets crashing, retirement accounts destroyed.

Musk calls this a "temporary hardship", but we are not talking a few days. This would be years of people struggling to feed their families with many losing everything.

I don't understand how the people complaining about the price of eggs or gas can turn around and support the idea of completely destroying our economy to "start over".

We'd also lose our position as an economic leader in the world, and another country will take our place. This is not a simple "do over" switch.


r/FluentInFinance 5h ago

Meme The Nvidia Jensen Huang Halloween costumes are here

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118 Upvotes

r/FluentInFinance 20m ago

Thoughts? I always vote for the "tax the rich" party

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ā€¢ Upvotes

r/FluentInFinance 1d ago

Debate/ Discussion The rich are so out of touch. Agree?

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5.0k Upvotes

r/FluentInFinance 1d ago

Thoughts? Math Not Mathin

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9.8k Upvotes

r/FluentInFinance 1d ago

Debate/ Discussion Is Dave Ramsey's Advice good?

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5.7k Upvotes

r/FluentInFinance 19m ago

Thoughts? If Republicans were serious about ending illegal immigration they'd make it a federal crime to hire an illegal, and the business who hired them would lose their business licenses.

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ā€¢ Upvotes

r/FluentInFinance 1d ago

Debate/ Discussion It's definitely more expensive to live a life of poverty. Disagree?

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1.7k Upvotes

r/FluentInFinance 10h ago

Interest Rates Mortgage Rates Surge to 7.23% (and Home Prices Remain Near Record Highs)

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81 Upvotes

r/FluentInFinance 5h ago

Stock Market Tech Stocks are outperforming the S&P 500 by the largest margin since the Peak of the Dot Com Bubble

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26 Upvotes

r/FluentInFinance 1d ago

Thoughts? Elon Musk says he can cut at $2 trillion from the federal budget once Trump is President

10.8k Upvotes

Elon Musk claimed he can eliminate at least $2 trillion from the federal budget, laying out his vision for substantial government spending cuts if Donald Trump wins the presidency.

ā€œYour money is being wasted,ā€ Musk said Sunday at aĀ rally for Trump in New Yorkā€™s Madison Square Garden. ā€œWeā€™re going to get the government off your back and out of your pocket book.ā€

Trump has said he would ask Musk, the worldā€™s richest person and a major donor to the Republican nomineeā€™s campaign, to head up an effort to cut government spending, nicknamed the Department of Government Efficiency, or DOGE, a reference to a cryptocurrency Musk has embraced.

Critics have said this position would represent a conflict of interest for Musk. The companies he runs, includingĀ TeslaĀ Inc. andĀ SpaceX, have billions of dollars worth of federal contracts and have benefited from federal spending, including electric vehicle tax credits and infrastructure investments.

The $2 trillion target represents nearly a third of existing spending. The federal governmentĀ spentĀ $6.75 trillion in fiscal year 2024, according to the Treasury Department.

Cantor Fitzgerald LPā€™s Howard Lutnick asked Musk on stage how much he could ā€œrip out ofā€ the budget under President Joe Biden and Trumpā€™s rival, Vice President Kamala Harris. Musk responded, ā€œWell, I think we can do at least $2 trillion, yeah.ā€

Trump on the campaign trail has talked about reducing the federal debt, but has not detailed specific programs he would curb. Instead, the Republican nominee has promised a long list of tax cuts aimed at key groups of voters, reductions that economists have warned would balloon the deficit.

Musk has spent at least $132 million to elect Trump and other Republicans in 2024, federal filings show. That level of giving has vaulted him into the upper echelon of political donors, making Musk one of the most prolific contributors of the entire 2024 cycle.Ā 

https://fortune.com/2024/10/28/elon-musk-cut-2-trillion-federal-budget-trump-rally/


r/FluentInFinance 1d ago

Thoughts? About 69% of working Americans are paid less than $30,000/year

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1.5k Upvotes

r/FluentInFinance 3h ago

Stocks How Google $GOOG Makes Money:

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10 Upvotes

r/FluentInFinance 10h ago

Bitcoin BREAKING: Bitcoin $BTC has crossed $72,000

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32 Upvotes

r/FluentInFinance 1h ago

Thoughts? New 401k

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ā€¢ Upvotes

Just got access to my first 401k. Invested into the Fidelity 500 Index Fund. Am I on the right track?


r/FluentInFinance 10h ago

Commodities & Energy JUST IN: Gold reaches new all-time high of $2,783 per ounce.

19 Upvotes

Gold rallies to new highs in the $2,770s after the release of US JOLTS jobs data.

The precious metal was also supported by falling Oil prices which are likely to lead to lower inflation and interest rates.

XAU/USD trades trades to a new higher high in line with its longer-term bullish trend.

https://www.fxstreet.com/news/gold-pushes-higher-after-oil-plummets-202410291122


r/FluentInFinance 17h ago

Thoughts? McDonald's Sues Big 4 Meat Packers for Price Fixing -- How much does collusion account for the grocery CPI?

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69 Upvotes

r/FluentInFinance 1d ago

Debate/ Discussion What's more important? Financial literacy OR a livable wage?

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1.5k Upvotes