3 Must-Read Investing Books For Everyone
Warning: we're leaving the G.O.A.T. out, and here's why.
The Intelligent Investor is one of the greatest finance books out there, but it won't be included in this list because it's an extremely difficult read for someone who's either:
A) Recently started their investing journey, and/or
B) Not used to reading 700+ page books.
It's got incredible insights that I'll summarize for you at some point, but for now, these 3 other recommendations will likely be a much better fit.
Let's get straight into the best books that'll help you invest.
Author(s): Tony Robbins & Peter Mallouk.
Net Worth(s): $500+ million.
Page count: 193.
Unshakeable is one of my favorite investing books because it takes a top-down angle to the art of investing: in other words, it explains how markets work, why people do the things they do, and when stocks are likely to crash —
All through the eyes of the best players in the game.
Robbins interviewed 50 of the brightest minds in finance (including Warren Buffet, Ray Dalio, Jack Bogle, etc.) and then compiled all their thoughts into less than 200 pages for us to digest.
The biggest takeaway for me? Be prepared because "winter is coming".
Every investor loses when they panic sell after markets begin crashing: this book changes that mindset completely. It teaches you how often stocks will crash and to therefore never be surprised by it — and never being surprised by it indirectly prevents you from panic selling.
In other words:
Stocks crash ➡️ You expected it ➡️ You were prepared for it beforehand ➡️ You don't panic sell ➡️ You come out on top.
A great, easy read for those of you looking to understand more about how the market works and how the best tend to invest.
If you don't feel like reading the full thing, check out a summary of the key ideas over at Blinkist.
The Little Book That Still Beats The Market
Author: Joel Greenblatt
Net Worth: $500 million.
Page count: 155
If you've not taken the investing plunge because you're worried about not understanding all the weird, technical stuff that gets thrown around — this is the book for you.
Greenblatt writes The Little Book with the aim that his 5-10-year-old children could understand it: i.e. it's just simple language and a large number of dad-jokes throughout the whole experience.
Additionally, whilst Unshakeable teaches you about the broader mechanisms of the market (the macro level), this book streamlines everything and looks at how to actually pick certain stocks (i.e. the micro level).
In other words, the first recommendation would help you understand when to buy stocks whilst this one would teach you how to choose them.
The perfect combination of insights that can easily be read over a weekend or two.
One Up On Wall Street
Author: Peter Lynch.
Net Worth: $300 million.
Page count: ~300
This book is a recent read for me, but it's probably the most impactful out of all the ones here today. Why?
Because it solved my biggest problem.
Over the last few years, I've developed a scathingly annoying habit of closing trades early because I wanted to lock in my profits as soon as possible —
I.e. I wanted to close my positions before that green profit amount would become lower, or worse, before it could turn red.
In this book, Peter Lynch torpedoes that mindset by saying:
If the things that attracted you to a stock in the first place are still there, there's absolutely no reason for you to sell.
And he's completely right.
We're so infatuated with the idea of booking our profits early and feeling like we're a lot wealthier when in fact, the reality is twofold:
Most of the time, we could've made a lot more money by leaving a good investment open.
Leaving your trade open and then watching your profits reduce slightly still feels better than closing your trade and then seeing this:
In other words, power through the temptation to close a trade early unless you really need the cash to buy a different stock or you really think the market's too high and you want to reduce your risk.
Other than those situations, thinking like this will help us become much better, long-term investors that don't succumb to ephemeral market noise.
That's just my biggest takeaway from One Up but there's a lot more where that came from - it's definitely worth a read!
I'll see you next week for some content on another stock I've recently been buying —
Until then, have a gander at these 3 recommendations and let me know what you think 👋
If you'd like to start investing in stocks, here's a link to the platform I use ⬇️
*Real Stocks are offered through eToro Service ARSN 637 489 466, operated by Gleneagle Asset Management Limited ABN 29 103 162 278, AFSL 226199, and promoted by eToro Australia Pty Ltd. CAR 001281634.