4 Best Books for Beginning Investors

Written By Jeff Hindenach
Last updated November 9, 2017

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November 5, 2016

Simple. Thrifty. Living.

One of the most successful ways to make extra money is by investing, but the thought of investing makes most people’s head spin. Yes, investing can be a very complicated process, especially if you’ve never done it before and don’t know what you are doing. Luckily, there are a lot of resources out there for people who are new to investing. Whether it be playing the stock market or just investing in an IRA for retirement, you can find the best option for you by doing your research.

The best place to start that research is with one of these books, which are all geared toward people who are new to investing:

1. “The Intelligent Investor” by Benjamin Graham

41UBQMp2B6L._SL160_Consistently ranked as the top investment book for any level of investor, The Intelligent Investor starts at the beginning and gives you a great background of the stock market as well as a deep explanation of various ways to manage your portfolio. He focuses on how to limit risk and make the most out of your investment. The book was written in 1934, but most investing experts concur that the principles discussed in the book hold up in today’s investing world. In fact, Warren Buffett, the most successful modern-day investor, says this is the best book on investment hands down.


2. “A Random Walk Down Wall Street” by Burton Malkiel

51l1pFs-dQL._SL160_If you truly know nothing about investing, this is the best book for you. Burton Malkiel writes an investment book for the everyday person, so anyone can understand the complicated workings of investing. However, if you are looking to make a quick buck off of investing, this might not be the book for you. Malkiel talks about buying stock for the long term and goes over the best ways to invest to receive gains over time. If you are looking to focus on retirement and investing for your future, this is probably the best book for you.


3. “The Essays of Warren Buffett” by Warren Buffett

41RwgwEOgGL._SL160_Getting your advice on investing from the most successful modern-day investor and the richest man in the country is probably a good bet. Warren Buffett is one of the smartest investors of our time and his collection of essays gives you insight into how he invests and what he specifically looks for when choosing companies to invest in. These essays give you an insight into how companies and shareholders interact, which can give you greater insight on which companies might be successful to invest in. It also focuses in part on alternatives to common stock, which could be good for newbie investors who want to steer clear of common stock.

4. “The Little Book of Common Sense Investing” by John Bogle

51sG24JXwCL._SL160_If you just want the nuts and bolts of investing, this is a great book. It is written by Jon Bogle, the founder of Vanguard, which is one of the top investment companies. This book’s title says it all; this book is about using common sense when investing. Many books can get into too much detail about investing and focus on things you really don’t need to know. Bogle focuses instead on the investing in the most straightforward way. If you want a book that cuts through all the bull, this is the book for you.

If you need more advice, here are some great investing sites for beginners.

About the Author

Jeff Hindenach

Jeff Hindenach is the co-founder of Simple. Thrifty. Living. He graduated from Bowling Green State University with a Bachelor's Degree in Journalism. He has a long history of financial journalism, with a background writing for newspapers such as the San Jose Mercury News and San Francisco Examiner, as well as writing on personal finance for The Huffington Post, New York Times, Business Insider, CNBC, Newsday and The Street. He believes in giving readers the tools they need to get out of debt.

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