The 9 Best Investing Books of 2020
It's important as young adults to start investing your money early. Investing early will allow you to harness the power of compound interest. Which is basically what causes your investments to grow exponentially over time.
By investing just a few years earlier than you planned, you could have tens of thousands if not hundreds of thousands of additional funds for your retirement.
Not only is it important that you start investing early, but you also need to know what you're doing. It's a good idea to understand how the stock market works before you invest—and what better way to learn than from the best.
The books that I've listed (the best investing books of 2020) offer invaluable investment advice that you can use to invest your money wisely for years to come.
Best Overall: The Intelligent Investor
This book was originally published in 1949 and has been praised by Warren Buffett as “By far the best book on investing ever written.”
Before his death, Ben Graham, author of The Intelligent Investor was an acclaimed professor and was considered “the father of value investing”.
The book also features commentary by Wall Street Journalist Jason Zweig in this revised edition.
Graham believed in his margin of safety principle, which meant to buy a stock for less than you believed it was worth.
The authors will explore nearly everything you need to know about stock market investing, including stock market history, how to interpret market fluctuations (and stay calm during them), comparing stocks and bonds, and more.
He even explains in-depth how he beat the market for twenty years—and how you can apply these principles and techniques towards your own investment portfolio.
This is why The Intelligent Investor made it onto the list of the best investing books of 2020.
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Second Best Overall: The Little Book on Common Sense Investing
“The Little Book on Common Sense Investing” author John C. Bogle reveals his secret to get more out of investing—buying into low-cost index funds.
In fact, Bogle was credited with creating the first index fund.
Bogle describes a simple and effective investment strategy for building wealth over the long term. His fund bought and held, at very low cost, all of the stocks that made up a broad index like the S&P 500.
Bogle describes the simplest and most effective investment strategy for building wealth over the long term: buy and hold, at very low cost, a mutual fund that tracks a broad stock market Index such as the S&P 500.
This is one the best investing books on index funds.
His strategy is even favoured by Warren Buffett, who said: “Jack did more for American investors as a whole than any individual I’ve known”.
Bogle offers invaluable guidance that you can use to get your fair share of stock market returns in a relatively short read.
Best on Real Estate Investing: The Book on Rental Property Investing
If you want to make money in real estate, you need to read “The Book on Rental Property Investing: How to Create Wealth With Intelligent Buy and Hold Real Estate Investing”.
In under 400 pages, best-selling author Brandon Turner will teach you the tricks, and help you avoid the pitfalls of becoming a successful real estate investor.
Brandon explores four unique strategies you can start implementing today.
As a new or experienced investor, you will learn how to build an achievable plan, find great deals, analyze properties, and more. Brandon includes everything you need to become a real estate millionaire.
As the co-host of the BiggerPockets real estate podcast, and having sold over 350,000 copies—Brandon Turner is certainly an authority on real estate investing.
This makes it one of the best books on real estate investing.
Best on Financial Literacy: Rich Dad Poor Dad
The book “Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!” is one of the most influential and best-selling personal finance books of all time—having sold over 32 million copies!
Kiyosaki explores his story of growing up with “two dads”, his real dad, and his best friend's dad and how their values influenced his views on money, investing, and success.
The author believes that the middle class works for money while the rich work to learn. This eye-opening memoir challenges typically household beliefs like you need to have a high salary to get rich, your house is an asset, and more.
Best for Beginners: A Random Walk Down Wall Street
Author of “A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing” Burton Malkiel knows that you don't need to devote hours every week to manage a successful investment portfolio.
He advocates for low-cost index funds that grow your money on autopilot.
As a Harvard MBA graduate and economics professor at Princeton University, Malkiel knows a thing or two about investing.
This book popularized the term “random walk hypothesis“. This theory suggests that you cannot consistently beat the market and that you're better off investing in low-cost index funds to match the market.
This updated version (published in 2019) also explores the bitcoin bubble, tax management, automated investment advisors, and more.
Malkiel has sold over 1.5 million copies of the book and has established it as the first book to purchase before starting a portfolio or 401(k).
This is one of the best investing books for beginners.
Best Essay Collection: The Essays of Warren Buffett
The fourth edition of “The Essays of Warren Buffett: Lessons for Corporate America” offers invaluable stock market guidance and a look into the mind of one of the greatest stock market investors of all time.
This is the definitive book on Warren Buffett's views on everything from stock market investing to proper management. This is a curated collection of his famous annual shareholder letters arranged by Lawrence Cunningham in 2015.
Warren Edward Buffett is an American business magnate, philanthropist, and economics graduate at Colombia University. He is known for his impressive stock market returns throughout his investment career and is known as the Oracle of Omaha.
The book states that it features “lessons for corporate America”, but this includes shareholders as well.
Best on Behavioural Finance: Thinking, Fast and Slow
Author of “Thinking, Fast and Slow” Daniel Kahneman is a world-famous psychologist and winner of the Nobel Prize in Economics.
Kahneman takes us on a “tour of the mind” and explains the two systems that drive the way we think. He explores everything from biases that affect our stock market investment decisions to planning our next vacation.
Kahneman shows us how to tap into the benefits of slow thinking and offers practical insights into how we make decisions in business and in our personal lives.
“Thinking, Fast and Slow” has topped best-seller lists for years and is essential for any serious investor.
This is one of the best investing books that explores the psychology of investing.
Best Classic: Security Analysis
The book “Security Analysis” is considered the bible of investing. It was in this book that authors Benjamin Graham and David Dodd coined the terms “margin of safety” and “value investing”.
Although first published in 1934, the book's principles are still relevant today. Now in its sixth edition, Security Analysis is enhanced with 200 pages of commentary from some of Wall Street's top money managers.
Featuring a foreword by Warren Buffett, he mentions that he has read this book “at least four times”.
While it is a long and dense book, Security Analysis will bring you up to speed on value investing and prepare you to invest in today's volatile markets.
Best on Beating Wall Street: One Up On Wall Street
In “One Up on Wall Street: How to Use What You Already Know to Make Money in the Market” Wharton MBA graduate and author Peter Lynch explores how there are opportunities everywhere to make money in the stock market. And that anyone “can pick stocks just as well if not better, than the average Wall Street expert.”
In his outspoken way—Lynch covers everything you need to know about stock market investing in these three parts: Preparing to Invest, Picking Winners, and The Long-term View.
Lynch believes it is personal preparation, as much as knowledge and research that separates “the successful stockpicker from the chronic loser.” He explores how he beat the market consistently and provides insights on when to buy, when to sell, what to do when the market collapses—among other invaluable insights.
One Up on Wall Street has sold more than one million copies and was originally published in 1989.
The Best Investing Books of 2020 (Summary)
These are nine of the best investing books of 2020 and any serious investor should have these books on their shelf.
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