My favourite books that helped me build my portfolio over time. What’s yours?
Always a popular choice on the UK finance related subreddits:
Learn from the best: Warren Buffett Way
Invest Like the Best podcast is good also
Not interesting in trading books, but keen to learn and read more on strategies and hedge funds if anyone has any recommendations?
The two that got me started in this whole thing:
Both great for getting you into the investing mindset, and the idea of ‘dollar’ cost-averaging.
Typing shares or investment into Amazon gives you dozens of books to choose from but I wanted a complete beginners book with only U.K. terms, so I spent yesterday reading this
I thought it was brilliant and if you’re completely new to all this then I highly recommend it. It didn’t mention ETFs but I got the 2nd edition and there is a 3rd edition released this year which might be more up to date.
Covers types of shares, how they’re traded, types of index, dividends, how to read a financial report, analysts, mergers etc. I’m going to use my new knowledge to say ‘dead cat bounce’ and ‘catching knives’ sagely when the need arises
I completely forgot I had this book until now.
If you’re interested in stories from the industry, as well as guides and tips on navigating the market, I’d check out:
- Black Edge - I loved this one, the story behind Steve Cohen & SAC Capital (or Bobby Axelrod, if you watch Billions)
- The Spider Network - Fascinating read into Tom Hayes and the LIBOR scandal
- Crashed - Super account of the financial crisis
- Michael Lewis has been mentioned already, but Liar’s Poker, The Big Short, Flash Boys should be on your list, to name a few
Then some others on corporate downfalls, not really as relevant to investing but still fascinating…
- Bad Blood - if you haven’t already read this one on the Theranos fraud, get it on your list
- Barbarians at the gate - one of the classics on corporate greed in the 80s
- The smartest guys in the room - ENRON!
If you’d like any more recommendations, just shout
On the story side also:
The Great Silver Bubble is very interesting; story of a pair of incredibly wealthy brothers (think original Kochs) trying to corner the world silver market. Basically own enough of the world’s silver to control the market (you’re not allowed to do this).
A few that started off as essays/articles:
The second one is genre bending and I wasn’t sure whether to even include it but here we are
I’ve just finished this one, which is really interesting, if a little dry:
Irrational Exuberance by Robert J. Shiller
Interesting that he doesn’t feel markets are efficient given he has done a lot of work in that area (attempting to prove that they are), or that EMT (efficient markets theory or hypothesis) fully or even mostly describes stock prices - the book is an overview of the other factors he thinks are in play, and in particular the psychology of bubbles, including the sort of New Era thinking that people consistently get drawn into. He also seems to believe that the majority of actors in a market are nowhere near the informed rational actors hypothesised in EMT, either singly or in aggregate.
The concept of a longer term P/E ratio known as CAPE and graphs of this are informative too - the ratio has never been this high except around 1929, 1966 and 1999. It peaked in 2018 and is starting to head down again - tends to be more reliable indicator of overpricing than PE.
Stan Weinstein’s Secrets for Profit in Bull and Bear Markets is one of my favourites too!
I’ve also read The Naked Trader by Robbie Burns, which was a good read. It was nice that it was tailored towards UK stocks and UK examples, as a lot of books are US-related.
I’ve just had One Up On Wall Street by Peter Lynch delivered, so will be giving that a read this week!
I recently finished ‘The Most Important Thing’ and feel like it was the most useful investment book I’ve read for a while. No investment specifics, just great theory on psychology and high-level investment thinking.
I’ve added Howard Marks’s new book, Mastering the Market Cycle to my reading list. Has anyone read that yet?
Ordered this after your reccomendation. I’m only half way though but I would already sing it’s praises.
It’s very insightful without bogging you down with too much detail.
10/10 for anyone new to the world of shares
How to Own the World- Adrian Craig (for a beginner)
One Up On Wall Street- Peter Lynch (for a beginner)
The Little Book of Common Sense Investing- Jack Bogle (for a beginner)
Stocks for the Long Run -Jeremy Siegel (for more advanced)
The Intelligent Investor- Benjamin Graham (for more advanced)
The Most Important Thing- Howard Marks (for more advanced)
Berkshire Hathaway Annual Shareholder Letters (for more advanced)
I’ve read many listed above but nothing comes close to this one. No b.s investing with a bit of English humour from Robbie burns; you’re guaranteed to come out as a winner after reading this book,it’s on audible too.
I once watched this guy’s interview. He said TA like cloud ichi muchi muchi moochi (He was referring to Ichimoku) is BS, lmao.
His site http://nakedtrader.co.uk/trades.htm show’s his positions and risk management (stop-losses)
I found this video on YT and as a beginner it’s give me some solid tips.
I want to get into reading more books and I’d love to hear some recommendations.
They don’t all have to be investing (But a few would be nice)