TOP 25 Investments Books
The Big Short — Michael Lewis
The book tells the story of four traders who outplayed leading banks and capitalized on the global financial crisis of 2007-2009. The plot is based on the stories of real hedge funds from Wall Street, which managed to earn billions of dollars, going against the market. A success story with a little bit of a fly in the ointment describes the imbalances in the mortgage bond segment and the personal tragedies of the protagonists. Note that the film is based on the book nominated for a Golden Globe and an Oscar.
Liar's Poker — Michael Lewis
The story is of investment banks during the turbulent 1980s, when the bond market, including mortgage loans, took off. Breathtakingly, the author describes his hero's dizzying journey through the trading floors of Salomon Brothers in London and New York. In the 1980s, the firm was the most influential and profitable investment bank in the world. The book is a frank and ruthless tale of greed and ambition, all the excesses of Wall Street of those times.
Little Book of Common Sense Investing — Bogle John C.
The book is by John Bogle, the creator of the world's first index fund. It was written to radically change the established understanding of investing. After all, many are accustomed to seeing investors as invariably active players who constantly update their portfolios, following all market trends. John Bogle talks about the so-called "passive investors" and the consistently winning strategy, namely investing in stocks.
A Random Walk Down Wall Street — Burton G. Malkiel
Investing money is too risky to undertake without first reading Malkiel's time-tested travel guide. The author will tell you how to build a starting portfolio and how it differs from other noteworthy financial offers, such as real estate or life insurance. You will learn how to evaluate the potential returns of stocks, bonds, investment funds, real estate, and other components of your investment portfolio.
Investments — William F. Sharpe, Gordon J. Alexander, Jeffrey V. Bailey
It's an ideal book about investments for beginners. There you'll find a thorough description of the goals, tools, stock market types, various kinds of assets, practical tasks, market and investor's analysis, and asset evaluation methods. Even if you are not familiar with finance and its laws, all explanations will be clear and exhaustive — at the end of each chapter, there are illustrative examples.
Empowered Investor — Mark Harrison
The Empowered Investor will let you manage your portfolio. The book will explain how to use techniques traditionally used only by institutional investors, how to select the information that will lead you to success, and how to become a professional private investor. Understand the flow of information in the stock market and learn to recognize the real breaking news to beat the City at its own game.
The Behaviour Gap — Carl Richards
We all make mistakes, and some of them cost us dearly in the literal sense of the word. We sell assets when there is panic in the market and buy when the situation is encouraging. This approach is logical but not at all rational. And of course, we are losing money as a result. Emotions are fatal in money matters. But unlike the world, financial crises within a personal bank account scope can be avoided. To do this, you need to identify gaps in your market strategy and draw up a plan to avoid rash decisions in the future.
Common Stocks and Uncommon Profits and Other Writings — Philip A. Fisher
The book presents a method for selecting attractive stocks in fifteen points. The author assumes the growth in the value of common shares is driven by the prospect of future earnings growth. He advises on how to correctly draw up an investment portfolio, choose the moment to buy and sell securities. One of Fischer's followers is Warren Buffett, who said that his point of view on investment is 15% Philip Fisher and 85% Benjamin Graham.
Technical Analysis — Jack D. Schwager
The book contains basic concepts, methods, indicators, trading techniques. It gives practical advice in the field of building trading systems. “When explaining various analytical techniques and methods, I tried to keep the key questions in the foreground ... How to apply the described methods in real trading? What is and is not suitable for the market? How to design and test a trading system to maximize its future, rather than retrospective, performance?" — writes Schwager in the preface.
Technical Analysis of the Futures Markets — John J. Murphy
The publication discusses the theoretical foundations of technical analysis and methods of its practical application, including the interpretation of signals in detail and an accessible form. The book focuses on the futures markets, but the basic principles outlined in the book are helpful for technical analysis and other tools, such as stocks.
How to Trade In Stocks — Jesse Livermore
The preface says, "be ready to spend the next couple of nights without sleep because you need to have a truly iron endurance to break away from this book." The book was written by the famous stock speculator Jesse Livermore back in 1940, however, its general principles are relevant to this day. During 45 years of trading in the stock market, Jesse Livermore has developed a number of unique tools that have taken the profitability of his trading system to the next level. The book contains Livermore's Market Key. Its final chapters are written by Richard Smitten, who reveals Livermore's secrets in a more modern context.
The Complete TurtleTrader — Michael W. Covel
The book is dedicated to the famous experiment organized by the legendary Chicago trader Richard Denis. Once arguing with his colleague William Eckhardt, whether it is possible to teach trading to a man on the street, he placed an advertisement in the newspaper, inviting everyone to a two-week course. As a result, only twenty-three people got admitted. It was they who became the legendary "turtle traders" who earned $ 100 million for Dennis.
Investment Fables — Aswath Damodaran
Damodaran is a renowned American specialist in investment appraisal and corporate finance. The book contains an objective analysis of 13 popular investment strategies, mainly fundamental ones. The book describes how the representations correspond to reality. At the end of each chapter, there are “lessons for investors” explaining how to apply these strategies, avoiding myths.
Financial Management: Theory & Practice — Eugene F. Brigham, Michael C. Ehrhardt
It is one of the most popular textbooks in modern financial management. It covers a lot of questions and contains precise classical principles of economics and finance. Investors may be interested in chapters on the analysis of financial statements, valuation of stocks and bonds, the ratio of risk, and return on investment.
Security Analysis — Benjamin Graham, David Dodd
One of Graham's followers is Warren Buffett, who said that his point of view on investment is 85% Benjamin Graham and 15% Philip Fisher. Most of the book is devoted to the analysis of financial statements, stocks, and bonds. There are specific examples of company appraisals typical for the first half of the 20th century. However, the general principles are relevant to the present day.
Secrets of Economic Indicators — Bernard Baumohl
The book's subtitle identifies "hidden clues to future economic trends and investment opportunities." The publication is devoted to macro indicators. It's no secret that macro statistics often drive markets. The publication describes what this or that indicator means, how it is calculated, and to what extent it affects the dynamics of financial assets. This is a kind of reference book. And although it is mainly about American indicators, this is often enough, because it is on the statistics of the States that financial markets, as a rule, rely on their movements.
Intermarket Analysis — John J. Murphy
The book is devoted to the principles of interaction of financial markets. These are the relationships between stocks, bonds, currencies, and commodity assets. The progenitor of the publication was the Intermarket Technical Analysis, dedicated to the situation in the 1980s. The current book is supplemented with a description of the picture of the early 2000s. There are many graphical examples, but this is not a fully technical analysis.
The Money Game — Adam Smith
The book was written by a completely different Adam Smith — a professor at Princeton University, in a relaxed, sometimes even humorous manner, talking about the behind-the-scenes games of stock exchange traders. The Money Game is written with a great sense of humor and contains real stories from players. The book will allow you to relax while reading and help you understand the psychology of investing.
The Black Swan — Nassim Taleb
Mankind periodically faces the most severe disasters and shocks that do not fit into the framework of the most fantastic predictions. Nassim Taleb calls such unpredictable events “black swans”. To succeed, you have to be prepared for them. The book is not a textbook on economics and finance. It is more a reflection on life and how to find your place in it. It is noteworthy that Taleb brilliantly demonstrated his ideas in practice: during the financial crisis of 2008, his fund, specializing in out-of-the-money options, made half a billion dollars.
Irrational Exuberance — Robert J. Schiller
The book highlights the psychological factors underlying the behavior of markets, refutes their "efficiency" in the presence of "rational" participants. The irrationality of human thinking is described, which leads to the emergence of inadequate pricing of assets, the appearance of bubbles, and collapses. The first edition of the book, published in 2000, drew attention to the serious overheating of the American stock market, and the collapse of the NASDAQ was not long in coming. In the second edition of the book in 2005, the author drew attention to the overheating of the American real estate market, which was followed by the mortgage crisis of 2007-2008.
The Essays of Warren Buffett — Warren E. Buffett, Lawrence A. Cunningham
The book includes Buffett's annual messages to shareholders of his investment company Berkshire Hathaway, written over the past decades. They provide engaging teaching material and reflect the deep investment philosophy of a financial guru. The laconic and easy-to-read book contains helpful aphoristic statements about the nature of investments, revealing the most crucial problems for managers and investors.
The Warren Buffett Way — Robert G. Hagstrom
The book analyzes the principles that make up the essence of Warren Buffett's approach. This book is a set of rules for doing business, financial management, and determining the fair value of a company. The book is distinguished by an analytical approach and in-depth analysis of the simple rules of a great investor.
Options, Futures, and Other Derivatives — John C. Hull
The book focuses on derivatives markets and risk management. The book includes data on how various derivatives markets function, derivatives pricing, trading, and hedging strategies. The balanced combination of rigor and accessibility of the publication does not require the reader to have any prior knowledge of options, futures contracts, swaps, etc. For successful mastering, basic knowledge of finance and mathematical statistics is sufficient.
Options: Trading Strategy and Risk Management — Simon Vine
The book of the Board Member and Co-Head of the Corporate Investment Banking Unit of AlfaBank serves as a source of information for specialists in derivatives operations in the stock and foreign exchange markets. It contains unique solutions. The first edition of Options was published in the United States and was included in the Recommended Reading List of several Western universities, including Cambridge. An important feature of the book is its practical orientation. In addition, exercises are provided for each topic to help consolidate the material covered.
Traders, Guns and Money — Satyajit Das
The book is a lively and engaging tale of the glittering world of derivatives. The author cleverly shows the mechanisms behind the cryptic terms of yield curves, option pricing, etc. The author provides a rather detailed description of the mechanisms of operation of derivatives and structured products created on their basis. The book contains many real and often disastrous examples of the use of structured products by large companies (notably Procter & Gamble and Walt Disney).
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