Latest posts by R.J. Weiss, CFP® (see all)
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You probably have an idea of what the best investing books of all time are.The Intelligent Investor, A Random Walk Down Wall Street, Warren Buffett’s Annual Letters…
…to name a few.
These are some of the books you’ll find on most media publications “best investing books” list.
But what books are the greatest investors of our generation recommending?
Or, that books are the institutions recommending teaching the next Warren Buffett?
Today you’re in for a treat.
Over the past 45 days, I curated a total of 24 reading lists.
I sought out the favorite books of investors such as Warren Buffett, Nassim Taleb, Seth Klarman, and Howard Marks.
Tracked down the reading lists from top finance programs such as Columbia, MIT, Florida, and New York University.
Found the recommended reading for new security analysts at investment banks like Goldman Sachs and Morgan Stanley.
All in all I curated a total of 24 books lists, which produced a total of over 575 book recommendations.
I combined every single one of those recommendations into excel. Then, sorted by count. What I got was a list of the books ranked by the number of recommendations received. Which to my surprise, was much different than most media publications, 20 books investors must read.
Here’s the top 14 books on that list (in parentheses are the number of recommendations the book received).
#1 The Intelligent Investor by Benjamin Graham (13 out of 24)
Warren Buffett has said about The Intelligent Investor, “By far the best book on investing ever written”
He continues, “Chapters 8 and 20 have been the bedrock of my investing activities for more than 60 years. I suggest that all investors read those chapters and reread them every time the market has been especially strong or weak.”
First published in 1949, Benjamin Graham’s classic The Intelligent Investor has impacted generations of investors.
Graham himself revised the book four times, with his last revision being published in 1971. In 2003, respected Wall Street Journal financial columnist Jason Zweig, updated the book with his own commentaries and footnotes.
Recommended on 13 reading lists, The Intelligent Investor comes in at #1 on the list of best investing books of all time.
# 2 – You Can Be A Stock Market Genius by Joel Greenblatt (10 out of 24)
While not a hidden gem, it’s fair to say You Can Be A Stock Market Genius has gone under the radar with a ranking of #79 in Amazon’s finance section. (Greenblatt’s second book, The Little Book That Beats The Market is #23)
You Can Be A Stock Market Genius details how individual investors can use special situation investing to beat the market.
This involves investing in:
- Merger Securities
- Rights Offerings
- Risk Arbitrage
Researching these opportunities does require work. Which maybe part of the reason the book hasn’t caught in with the individual investor. However, with 10 recommendations, You Can Be A Stock Market Genius has greatly influenced the many of the best investors of our generation.
# 3 – The Essays of Warren Buffett (9 out of 24)
Buffett has shared his wisdom and methods for over 30 years in his letters to shareholders of Berkshire Hathaway.
There are two separate books, which have curated the letters:
- The Essays of Warren Buffett edited by Lawrence Cunningham – An edited version which groups similar topics from different years together.
- Berkshire Hathaway Letters to Shareholders edited by Max Olson – A compilation of the unedited versions of Warren Buffett’s letters (Only $2.99 on Kindle).
Buffett’s unedited letters are also available for free on Berkshrie’s website.
# 4 – Security Analysis by Benjamin Graham (8 out of 24)
Benjamin Graham’s first book Security Analysis comes in at # 4 on the best investing books of all time.
Warren Buffet, who also wrote the forward, is quoted on the back cover saying, “A road map for investing that I have now been following for 57 years.”
While Benjamin Graham’s The Intelligent Investor is by no means a light read, Security Analysis is a more detailed overview of Graham’s stock picking methods. (Tip: start with The Intelligent Investor)
The newest version, published in 2008, includes insight from some of today’s top investors such as Seth Klarman, Howard Marks, Bruce Berkowitz, Bruce Greenwald and more.
# 5-7 – Reminiscences of a Stock Operator by Edwin Lefèvre (7 out of 24)
Written in 1923, Edwin Lefèvre classic Reminiscences of a Stock Operator comes in at # 5.
The book is a fictionalized biography of one of the greatest investors of the time Jesse Livermore.
Livermore made and lost millions multiple times throughout his career. His most famous move–shorting the market in 1929.
Livermore ended his own life in 1940, after losing most of what he made (reportedly over $100 million). The life story of Livermore remains relevant today for its views on investor psychology, speculating, and the nature of the market.
# 5-7 – The Money Masters by John Train (7 out of 24)
The classic The Money Masters by John Train was tied for 5th as the most recommended book.
While popular among hedge fund managers, The Money Masters is ranked only #2,584 in Amazon’s finance section.
Originally published in 1980, The Money Masters goes deep into the strategies of the most successful investors of the time. Including in-depth profiles on the strategies used by Warren Buffett, Benjamin Graham, Phil Fisher, and John Templeton.
In a day with no Internet, blogs, and 24-7 investment news, The Money Masters was one of the first books to uncover the range of strategies used by the top money managers of the day.
# 5-7 – The Warren Buffett Way by Robert Hagstrom (7 out of 24)
Having written decades of letters containing his wisdom and never one to back away from interview, Buffett’s been generous sharing his investment philosophy over the years. So it’s no wonder why his footprints are all over this list of best investing books.
What’s unique about The Warren Buffett Way is that it dives deep into the actually strategies Warren Buffett has used to succeed. It’s the definitive book on his strategies from an outsider’s point of view.
Originally written in 1997, The Warren Buffett Way was revised in 2013 to analyze Buffett’s latest investments.
# 8 & 9 – Market Wizards by Jack D. Schwager (6 out of 24)
According to Schwager, it’s discipline, capital preservation, risk management, individual responsibility, flexibility, consistency and intellectual honesty.
In Market Wizards, Jack D. Schwager interviews 16 “wizards” of the day to distill the traits which make them successful.
The format of introduction to the interviewee, the edited transcript of the interview, followed by a brief summary, makes Market Wizards a must reading lists of Goldman Sachs, Wharton, and The University of Florida.
Originally written in 1989, Market Wizards was updated in 2012, with interviews from this generation’s top traders.
# 8 & 9 – Margin of Safety by Seth Klarman (6 out of 24)
Margin of safety is the difference between the intrinsic value of a stock and its market price. Seth Klarman has used the concept to become one of the most successful hedge fund managers of the day at The Baupost Group.
Often called the “next Warren Buffett” by the media, Klarman is a classic value investor.
In his book, Klarman dives deep into the Margin of Safety philosophy, showing why it’s the most important thing for investors to understand.
As the book is out of print, used copies often go for over $1,000. The lowest price on Amazon for a used copy is $899.
# 10 – Extraordinary Popular Delusions by Charles Mackay (5 out of 24)
Originally published in 1841 (to help put that in perspective, that’s 19 years before the American Civil War) Extraordinary Popular Delusions and the Madness of Crowds shows that economic bubbles have existed long before the stock market.
With stories from the famous bubbles such as The Mississippi Company, South Sea Company, and Tulip Mania, Mackay provides plenty of insight into how humans have committed financial folly over time.
What makes this book so popular today is that history has shown to repeat itself. Whether the internet bubble of the late 90’s to the housing crash in 2008, the same principles of human behavior are around today. So, it should come as no surprise that this book is on the reading lists of Goldman Sachs and Universities like Florida and New York.
# 11 – 14 – Capital Ideas: The Improbable Origins of Modern Wall Street by Peter Bernstein (4 out of 24)
Where did the Capital Asset Pricing Model (CAPM), The Efficient Market Hypothesis, and The Black Scholes Options Model and other theories which shape our markets come from?
In Peter Bernstein’s Capital Ideas: The Improbable Origins of Modern Wall Street, you’ll learn the why and how these big ideas came about.
With it’s richness in financial history, the book is very popular among colleges and investment banks. However, doesn’t make the list of any of the top investors of today.
#11 – 14 – Common Stock, Uncommon Profits and Other Writings by Philip Fisher (4 out of 24)
Originally published in 1958, Common Stock, Uncommon Profits and Other Writings by Philip Fisher was one of the books that helped shape a young Warren Buffett’s investment philosophy.
Buffett has said about the book, “I sought out Phil Fisher after reading his Common Stocks and Uncommon Profits…A thorough understanding of the business, obtained by using Phil’s techniques…enables one to make intelligent investment commitments.”
With insight into evaluating earnings and management, it’s easy to see how Phillip Fisher’s classic Common Stock, Uncommon Profits and Other Writings helped Buffett build upon the concepts he learned from Benjamin Graham.
Common Stock, Uncommon Profits and Other Writings was updated in 2003, by Philip Fisher’s son, and popular Forbes columnist, Ken Fisher.
# 11 – 14 – One Up On Wall Street by Peter Lynch (4 out of 24)
Operating the Magellan Fund between 1977 to 1990, Peter Lynch returned an annual average return to investors of 29%. Beating the S&P Index in 11 of the 13 years.
In his book One Up On Wall Street, Peter Lynch explains how individual investors discusses his philosophy and methods, to help the individual investor succeed.
First published in 2000, making it the 2nd youngest book on the list, One Up On Wall Street has become very popular among individual investors (over 590 reviews on Amazon) for its view on how the average investor has advantages over large money managers.
For its simple approach to investing (one sentence summary: invest in products/companies you know and love), there’s no question One Up On Wall Street will continue to impact not only the individual investors but tomorrow’s top hedge fund managers as well.
#11 – 14 – When Genius Failed by Roger Lowenstein (4 out of 24)
When Genius Failed: The Rise and Fall of Long-Term Capital Management by Roger Lowenstein is a book that dives into one of the biggest financial follies of our time, the failure of Long Term Capital Management a $100 billion dollar hedge fund.
When Genius Failed: The Rise and Fall of Long-Term Capital Management was recently updated with a new after forward to discuss the similarities between the failure of LTCM in 1998 and events that took place in 2008.
Best Investing Books Of All Time: Did I Miss Anything?
I hope you enjoyed this list of the best investing books as ranked by investors, top finance programs, and financial institutions.
And now it’s time to hear from you.
What do you think of the books on the list?
Any books you surprised that didn’t make it?
Or maybe you were surprised that a book was ranked so highly.
Either way, let me know by leaving a quick comment below right now.
The Individual Book Lists
Want to check out the individual lists?
Here they are:
- Bill Ackman
- Charlie Munger
- Dan Loeb
- David Einhorn
- Dylan Grice
- Howard Marks
- James Montier
- Joel Greenblatt
- Michael Burry
- Nassim Taleb
- Seth Klarman
- Steve Kuhn
- Warren Buffett
- Carnegie Melon
- Columbia (Value Investing Program)
- Columbia (Financial Engineering Program)
- New York
Other Investing Book Lists You Might Like
- Best Real Estate Finance Books
- Best Books on Quantitative Finance
- James Altucher’s Recommended Investing Books
- Best Investing Books for Young Adults
Thanks to ESI Money for including this post in Star Money Articles of the week.