These are the 10 best investing books to help you navigate a turbulent market
If investors have learned anything from the first few months of 2020, it’s that everything can change in the blink of an eye.
The S&P 500 index reached an all-time high in February before falling into the fastest bear market ever, ending the longest expansion on record as the coronavirus pandemic made its way to the US. Stocks have since whipsawed, bottomed in March, and rebounded into a technical bull market – all in a matter of weeks.
In addition, there’s still a lot of uncertainty around the coronavirus pandemic that may impact market movements for the foreseeable future. That can make the current environment a difficult one for any investor, from seasoned professionals to those just starting portfolios.
For investors looking for wisdom on how to navigate turbulent markets in uncertain times, here’s a list of the 10 best books to read:
1. ‘The Essays of Warren Buffett: Lessons for Corporate America’ by Warren Buffett, edited by Lawrence A. Cunningham
Warren Buffett is 89 (he turns 90 in August) and has been at the helm of Berkshire Hathaway for decades. This book is a curated collection of his annual letters to Berkshire Hathaway shareholders, which contain wisdom on investing and more.
2. ‘The Intelligent Investor’ by Benjamin Graham
This is a classic investing book, originally published in 1949. It’s about value investing – a Warren Buffett favorite – which Graham began teaching at Columbia Business School in 1928. It’s been revised many times over the years, and now editions include commentary from Buffett and Wall Street Journal columnist Jason Zweig.
3. ‘The Little Book of Common Sense Investing’ by John C. Bogle
John C. Bogle was the creator of the index fund and founder of the Vanguard Group. This book directs readers on how to use index funds to build their wealth.
4. ‘One Up on Wall Street: How to use what you already know to make money in the market’ by Peter Lynch
5. ‘The Woman’s Guide to Successful Investing’ by Nancy Tengler
Nancy Tengler’s book contains wisdom for investors of all genders. Tengler, now the chief investment officer at Laffer Tengler Investments, has decades of experience managing money.
6. “Common Stocks and Uncommon Profits” by Philip Fisher
This is another classic investing book that’s been praised by none other than Warren Buffett. Philip Fisher was a long-time investor and pioneer of growth investing, a strategy that focuses on buying young company stocks expected to grow earnings at a rate above their sectors or the broader market.
7. “Poor Charlie’s Almanack” edited by Peter Kaufman
Charlie Munger is another famous investor and Warren Buffett’s right-hand man. Munger has been a vice chairman of Berkshire Hathaway for decades.
This book is part biography, part investing advice from Munger. It also includes wisdom from talks Munger has given about investing over the years.
8. “The Investment Answer” by Daniel C. Goldie and Gordon S. Murray
This book written by a Wall Street veteran (Murray) and a financial adviser (Goldie) breaks down five key decisions each investor has to make. These decisions include whether to invest with a professional or go it alone, how to allocate assets among different classes, and when to buy and sell.
9. ‘A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing’ by Burton Malkiel
This book by Burton Malkiel has become known as a go-to guide for people starting their portfolios – the central premise of the book is that low-cost index funds will serve individual investors better than any other stock-picking strategy.
10. “Reminiscences of a Stock Operator” by Edwin Lefèvre
This book is a fictionalized biography of Jesse Livermore, a legendary trader who won and lost millions playing the stock market in the 1900s.
In between anecdotes about Livermore’s life are timeless lessons about investing in the market. In 2013, bond king Jeff Gundlach named this his favorite investment book of all time.