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Recommended Reading

Here are the top 5 investment books that are most frequently recommended by experienced private investors, value investors, fund managers, and wealth advisors — a mix of timeless classics and a couple of more recent (but already proven) ones. These are the ones that consistently show up on “must-read” lists from people who actually manage money successfully.

Burton G. Malkeil
1973 (latest edition 2023)

Explains why most active investors (and funds) underperform indexes over time. This book argues that financial markets are largely efficient, making it difficult to consistently outperform them through stock picking or market timing. He explains the “random walk” theory, showing that asset prices move unpredictably. Malkiel advocates low-cost index investing, disciplined diversification, and long-term strategies as the most reliable path to building wealth.

This collection of Munger’s speeches and wisdom teaches mental models, multidisciplinary thinking, inversion, and the psychology of misjudgment — arguably more useful than pure investing books for lifelong decision-making.

This roman à clef (a very thinly veiled biography of legendary trader Jesse Livermore) is widely considered the greatest book ever written on trading psychology and real-world speculation. Written as a first-person narrative by “Larry Livingston” (Livermore), it reads like a gripping adventure novel full of booms, busts, cornering markets, and spectacular blow-ups.

If you only have time for two books, start with The Intelligent Investor (for the investing philosophy) and The Psychology of Money (for the behavioral side). Almost every successful private investor you’ll ever meet has internalized the core lessons from both.