Editor’s note: This article was first published in August 2014. References to this summer mean summer 2014. The note that Fooled by Randomness was only available in English was written for Spanish readers and may not hold, since a Spanish edition appears to have existed already.
Summer is a great time to set aside some time for reading. A while ago we recommended what are considered the 5 best books on financial education. This time we have gathered some titles I did not know before, which the Farnam Street site has selected with good judgement.
Of course, the famous and highly recommended The Intelligent Investor, by Benjamin Graham, could not be left out.
1. The Intelligent Investor (Benjamin Graham)
Warren Buffett thinks it is the best book about investing ever written, with chapters 8 and 20 having been the cornerstone of investing for more than 60 years, which makes it required reading for any investor.
2. The Little Book That Beats the Market (Joel Greenblatt)
Investing is simple, but it is not easy. In this book Joel Greenblatt focuses on the simplicity of investing. The author claims he has achieved astronomical returns using sixth-grade maths and plain language, steering clear of the complicated concepts investors should not spend too long on.
3. Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets (Nassim Taleb)
This one was only available in English when we wrote this, but it must be very interesting, since it deals with probability. Even with a casino roulette wheel, chance stops mattering so much once we analyse the probabilities. It was written by Nassim Taleb.
4. The Most Important Thing (Howard Marks)
I like Howard Marks. Warren Buffett describes this book as “that rarity, a useful book”, because rather than teaching you the keys to investment success, it teaches you to use critical thinking.
5. Common Stocks and Uncommon Profits (Philip A. Fisher)
Philip Fisher began his career as a securities analyst in 1928. Three years later he founded his first investment advisory firm, in the middle of the economic depression. He quickly earned an excellent reputation around the world.
Buffett acknowledged that his investment method was 85% Benjamin Graham and 15% Fisher. The book covers topics such as when to buy, when to sell and when not to sell, as well as how to build a solid investment philosophy suited to any economic context or investor profile. One of the most recommended books.
See also: 3 books every business owner and leader should read
Featured image: kellywritershouse, CC BY 2.0, via Wikimedia Commons.
