Books

Investment Book Suggestions:

Click on the books’ titles or covers for more information and prices. Feel free to share titles of books that have helped you, and add the titles to the comments section at the bottom of the page.

 

For Beginners

These are the books I’d recommend for people who have never read an investment book before. But don’t mistake simplicity for something substandard. Following the strategies espoused in these books will, after all taxes and costs, have you beating at least 90% of professional money managers over your investment lifetime. That’s a fact.

 

In this book, I explain some essential financial rules that should be taught in schools… but aren’t…

Millionaire Teacher espouses the same investment philosophy as the books below, but there’s a significant difference:

it explains how investment theory was actually put into practice. Just three weeks after being released, it ranked number 2 on Amazon’s hottest new personal finance books. 

By November 2011, it was the #1 ranked Personal Finance book on Amazon. I think you’ll like it.

Read the reviews by the people who’ve purchased it.

 

Share these Amazon links with your friends:

 


In an easy-to-read conversational voice, financial planner Bill Schultheis proves why he’s considered one of the heroes of the financial service industry.

Promoting a low cost, index fund solution to investing, he guides his readers as if he’s your affable neighbour, explaining the process over coffee.

You can enjoy this book from cover to cover in a single afternoon.

I’ve gifted many copies of this book at my index fund seminars. You’ll like this book.

 


Paul Farrell ably introduces this book as something his wife encouraged him to write.

As a women “whose eyes usually glaze over” when he starts to talk finance, you get the idea, right away, that Dr. Farrell’s book is aimed at a broad audience, peppered with a fun writing style that’s missing in the vast majority of personal finance books.

His message is the same as Bill Schultheis’ but his voice is a tad cheekier.

This could be the first and only investment book you’ll ever have to read.

 


Cheekier still, but every bit as good, is Daniel Solin’s book, The Smartest Investment Book You’ll Ever Read.

This immodestly titled book is comprised of only 154 pages, and this leading securities arbitration lawyer guides readers to see that again, index fund investing gives the highest statistical chances of success.

With a spacious format, it’s another book you can read in an afternoon while learning how the industry of actively managed mutual fund investing is rigged against the average investor.

Like The Lazy Person’s Guide to Investing and The New Coffeehouse Investor, it’s going to make you smile from time to time, if you don’t chuckle out loud.

 


Perhaps the shortest book of them all, The Elements of Investing was written by investment legends Burton Malkiel and Charles Ellis.

As the bestselling authors of A Random Walk Down Wall Street (Malkiel) and Winning the Loser’s Game (Ellis) they’ve teamed together to produce an investment book that’s far simpler to understand than either of their former masterpieces.

From what I’ve learned, giving financial seminars, the average person has difficulty understanding terms and jargon that most financial writers take for granted.

As great as both of these gentlemen’s other books are, this one is far easier for the average reader to understand.

 


I bought this book as a gift, initially, but then I had to buy two.

I simply couldn’t give the original book away and be left without a copy myself.

It’s a fabulous read for new investors.

The author, Allan S. Roth, does his readers a wonderful service.

 


For Intermediate Investment Readers

 These are my favorite intermediate level  investment books.

 

I enjoyed Larry Swedroe’s book, The Only Guide to an Investment Strategy You’ll Ever Need and as the title suggests, I think he’s right, although it’s slightly more academic than the previous four books I mentioned.

After reading one of the four books I listed above, if you’re still not convinced, and/or you want more meat, then this could be the book for you.

Written in 2005, it has the qualities of a great book—because it’s timeless. Read this book twenty years from now, and the theory behind it will remain the same: solid, academically rigorous, relevant and accessible to the average reader.

 


Swedroe’s new book, The Quest For Alpha: The Holy Grail of Investing is a fabulously convincing read.

If you’re still not convinced that index funds offer much higher statistical chances of success, compared to the expensive products peddled by most financial advisors, then this book will very likely change your mind.

 

 

 


Written by a man named by Fortune Magazine as one of the four investment giants of the 20th century, Bogle packs a powerful punch with this little 214 page book.

Showing how index funds are superior investment vehicles, he loads the book with evidence and experience drawn from more than 50 years in the investment field.

I’ve gifted more than 40 copies of this little book to my colleagues, but I’ve listed it under “intermediate” as a reader, because it has terms that many of my college educated colleagues couldn’t understand, and it had my dad (a fairly well-read fella) running for the dictionary a number of times.

Bogle is an academic. But he’s brilliant, a clear writer, and he’s definitely fighting for the little guy.

 


Written by the legendary finance writer, William Bernstein, both these books both give an extremely solid investment foundation.

If we were to ask Mr. Bernstein himself, he’d probably suggest that we read The Four Pillars of Investing first, and The Investor’s Manifesto second.

In the first book, he thoroughly discusses how people madly become euphoric when fad-like investments rise in value without solid fundamentals to back them up.

 

 

 


In Bernstein’s second book, The Investor’s Manifesto, he shows how the same emotional madness can sabotage investor’s accounts when the markets drop in value. What’s more, he does it with an ever-improving flair for imagery and humour:

“Your primary training tool is the rebalancing process, which forces you to sell high in the good years and to buy low when there is blood in the streets. In the really bad years, such as 2008-2009, this will mean pouring large amounts into falling equities, when your friends and family are running around like decapitated poultry.”

Both of these books, of course, promote indexed investing as well.

 

 


 Probably best for intermediate investors, this book assumes somes basic financial knowledge. 

But it’s an impressive read by a couple of millionaire senior citizens who are leaving a useful legacy.

 

 

 

 


For Advanced Finance Readers

These are my favorite advanced level  investment books, but unlike some of the books above, they aren’t entertaining for the average investor. And that’s fine. Investing isn’t meant to be fun. The same message is here that you can read about in Millionaire Teacher, but the evidence here is simply awe-inspiring.

 

For the most extensively researched books on indexed investing, nothing really compares with John Bogle’s updated 10th anniversary edition of Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor and…

 

 

 

 


What’s interesting is that David Swensen, Yale University’s endowment fund manager, didn’t intend to write his book, Unconventional Success, about indexed investing.

But the more he researched, the more he realized that the financial service industry exploited individual investors. His book offers a fabulous solution to that problem.

 

 

 

 


For advanced investment readers, The Essays of Warren Buffett is a compilation of essays written by the Oracle of Omaha and arranged by Lawrence Cunningham.

If you want to know how the great Berkshire Hathaway chairman thinks, Cunningham has arranged Buffett’s essays beautifully.

 

 

 

 


And what about the books you’ve read ? Are there any books that have helped you?

Please add your comments below


InstaForex




Recent Comments

  • User AvatarMr. Adames Sep 27, 9:16 PM
    I cant believe some of things I have read here. The guy passing the Series 7 with an 80% only studying for two weeks is...
    (14 Comments)
  • User AvatarPatrick Sep 27, 6:54 PM
    Beautiful stuff Andrew. Thanks a million. I'll be sure to have this response ready. Cheers Patrick
    (3 Comments)
  • Andrew HallamAndrew Hallam Sep 27, 3:24 PM
    Hi Patrick, The answer lies in the Stanford published paper by Nobel Prize winner, William F. Sharpe. It's called the Arithmetic of Active Management. If...
    (3 Comments)
  • User AvatarPatrick Sep 27, 1:19 PM
    Hi again Andrew I had an interesting challenge the other day. As a Couch Potato convert I've managed to convince a few people to pull...
    (3 Comments)
  • User AvatarKelly Wilson Sep 25, 9:08 PM
    Hi Andrew, I am an Aussie expat who set up a brokerage account with DBS Vickers a few years ago based on the knowledge I...
    (50 Comments)
  • User Avatar Sep 24, 11:33 PM
    Andrew, These investment firms for international expats sound usurious! I mean, who takes 4% fees these days?!! At a time when we are optimizing portfolio...
    (1 Comments)
  • User AvatarBen Sep 24, 11:03 PM
    I've been with Interactive Brokers for almost a year and its been wonderful. Learning their trading platform isn't hard if you watch the tutorial and...
    (1 Comments)
  • User AvatarKajorn Sep 24, 5:47 PM
    THAILAND PP Hello Andrew know you are busy please could you suggest on my earlier post i would really welcome your or other index investor...
    (548 Comments)
  • User AvatarKarl Wilcox Sep 24, 5:07 PM
    Hi Andrew In Millionaire Teacher you talk about the epiphany that you had when you met the mechanic who told you about compound interest and...
    (12 Comments)
  • Andrew HallamAndrew Hallam Sep 24, 4:44 AM
    I recommend a short term bond market index, something like VSB. It will beat inflation over time, no matter what happens to bond prices because...
    (548 Comments)
  • User AvatarConservative Investor Sep 24, 1:33 AM
    Andrew, I read Millionaire teacher in 2012 and was hooked. It made sense to me on every level. I immediately switched to a 60/40 equity/bond...
    (548 Comments)
  • User AvatarRob Sep 23, 7:03 PM
    I am a British expat in Dubai and am definitely only looking at passive investments so in this case index funds. Thanks very much
    (548 Comments)
  • User AvatarRob Sep 23, 3:55 PM
    Oh and that would be 1 ETF per transaction in order to reduce costs??
    (548 Comments)
  • Andrew HallamAndrew Hallam Sep 23, 2:51 PM
    Hi Rob, Which mutual funds are you referring to? What's your nationality? The answer depends on these two factors. Even an index mutual fund will...
    (548 Comments)
  • User AvatarRob Sep 23, 2:50 PM
    Great, thank you. Just difficult to judge how much you need to invest so the fees don't have a to much of a negative impact.
    (548 Comments)
  • User AvatarRob Sep 23, 2:44 PM
    Hi Andrew, where would say the cut off would be to make it more cost effective to place regular savings into the mutual fund rather...
    (548 Comments)
  • Andrew HallamAndrew Hallam Sep 23, 2:01 PM
    Hi JT, I believe that my latest article will answer your question. You can contact either Robert Wasilewski or Mark Zoril. Here's that post: https://assetbuilder.com/knowledge-center/articles/interactive-brokers-allows-us-expats-to-invest-with-index-funds...
    (21 Comments)
  • Andrew HallamAndrew Hallam Sep 23, 1:58 PM
    Hi Mark, Most investors don't do well because they look for how a "policy de jour" or a "current political climate" will affect stocks or...
    (548 Comments)
  • User AvatarMark Sep 23, 1:25 PM
    Hi Andrew, thank for the great book "The Global Expats" I just wish I had read it a few years ago when you released your...
    (548 Comments)
  • User AvatarJT Sep 23, 12:02 PM
    Hi Andrew, After reading your book (loved it BTW) I attempted to open a Schwab account, but do not qualify. I am in the process...
    (21 Comments)
  • Andrew HallamAndrew Hallam Sep 23, 12:47 AM
    Cary, Raymond James will let you build a portfolio of index funds. They'll charge you 1% to do it. They promised me they could do...
    (111 Comments)
  • User AvatarJonathon Sep 23, 12:24 AM
    Thank you all for responding, I will definitely get my hands on Andrews book and I'll hopefully become a successful investor.
    (6 Comments)
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