Best investing books for beginners

10 Best Investing Books for Beginners: Start Investing Today

Ready to start your investing journey? You’re in the right place. Whether you’re chomping at the bit to begin investing or feel nervous about dipping your toe, there are plenty of books out there that will give you the knowledge you need to get started in a way that feels right for you. 

So, which books are the best investing books for beginners? We’ve rounded up 10 of the best in this list so you can find the right books for you and don’t waste your time reading a book by an author that isn’t an authority in the investing space. While you don’t need to read all of the books on this list, it is a good idea to read 2-3 of the books on this list so you can take your first investing steps with confidence. 

Ready? Here are the ten best investing books for beginners. 

10 Best Investing Books for Beginners 

Broke Millennial Takes On Investing by Erin Lowry 

If you’re a millennial, you’ll know the odds have been stacked against you from a financial standpoint, at least compared to generations passed. In this book, Erin Lowry discusses how to start investing when you feel like it’s almost impossible to do so as you battle student loan debt and think about trying to get your foot on the property ladder. 

As the title suggests, the book uses an easy-to-understand conversational tone that works for everyone. It addresses all the technology available to us today (such as investment apps), not just the principles behind making investing decisions. If you still feel like your financial foundation is shaky, read her first book in the series Broke Millennial: Stop Scraping By and Get Your Financial Life Together before you read this one. 

Pros: 

  • Easy to read
  • Help you broaden your knowledge of money management
  • She’s consulted experts on the different areas she’s talked about 

Cons: 

  • Some people find her voice a little condescending or annoying to read 
  • Some find specific topics lacking in information 
  • Only suitable for true beginners – if you already know a little, try some of the other books on this list 

Clever Girl Finance: Learn How Investing Works, Grow Your Money by Bola Sokunbi 

Financial literacy among women is lacking – for hundreds of years, women were not in control of their finances. However, in recent years women have been challenged with earning less and the perception of wasting all their money away on frivolous things. Fortunately, many of the books on this list intend to turn the tables and give women the tools to better their financial situation. 

Sokunbi founded Clever Girl Finance to do just that, and this book is the best way to digest all the information she offers. 

Pros: 

  • Very well-reviewed 
  • Very accessible and easy to read 
  • Addresses everything from where you are now, not from where you “should” be 

Cons: 

A Random Walk Down Wall Street by Burton G. Malkiel 

Most people have heard of this book. The current 12th edition has sold well over a million copies. So if you want a good overview of the entire market, this book is one of the best to pick up. You’ll pick up more than a book on safe investing. You’ll learn about different types of investments, what they can do for you, and when to consider them. 

Pros: 

  • If you read the whole thing from cover to cover, you’ll have an excellent understanding of the entire stock market 
  • Easy to comprehend 

Cons: 

  • Very in-depth – so you may learn things you never need to apply to your life (or at least won’t need for years to come)
  • It reads a little like a textbook at times  

A Beginner’s Guide to the Stock Market by Matthew R Kratter 

Kratter breaks down the stock market in his guide to its most basic principles and guides you through all the different types of stocks, how they work, and how you should use them (and if you should). One area where this book stands out is it also addresses the mistakes many new investors make and how you can avoid making those same mistakes. 

Pros: 

  • An excellent, short overview to get you started 
  • Links on to other great resources you can learn from 

Cons: 

  • Very short 
  • While it does have beneficial information, you need to go onto his other books and courses for a comprehensive view of the stock market and how you want to interact with it 

The Little Book of Common Sense Investing by John C Bogle 

If you’re worried about investing and want to make sure you’re making safe, sound decisions while taking advantage of the possible gains the stock market can offer, this is one of the best. The recently updated 10th-anniversary edition covers Bogle’s index fund investing strategy and tips and strategies for building your portfolio in the modern day. 

Pros: 

  • Very well-reviewed 
  • Beloved by experts and those who want to know what they need to know to start investing 
  • Many felt confident enough to start investing after this book alone 

Cons: 

  • If you want to build wealth through fast-paced buying and selling, this won’t be the right book for you 

A Woman Should Know Her Options by Laurie Itkin 

Laurie grew up in poverty and was determined to do things differently – something she managed to change when, at 24, she put a $1,600 inheritance into shares of Starbucks. She didn’t serendipitously build her wealth. Instead, since that first wise (and maybe lucky) decision, she carefully learned how to manage her investments to grow her portfolio to a value of $1M before she turned 40. 

In this book, she candidly shares how she and other women like her have faced wealth-building challenges and come out on the other side a success. She explains all your different options, how to generate income, how to avoid paying high fees, and how to overcome many of the obstacles women face on their journey to independence. 

Pros: 

  • Personal and easy to connect with 
  • It lays out everything you need to know in a way that’s easy to understand 
  • Never condescending or assuming that you already know or do something 
  • Relatively short, without being lacking, so easy to learn and move on 

Cons: 

  • You’ll likely want or need to read further to learn more – it’s not an all-in-one solution 
  • Too simple for those who already know a bit about what they should be doing 
  • It doesn’t provide strategies but does open up the world of investing to women 

The Simple Path to Wealth by JL Collins 

If you want a book that will lead you by the hand like a parent, this is it. JL Collins first wrote this book for his daughter in a collection of letters, but it has grown over time and is now a comprehensive guide that’s a perfect place to start for any beginner. It covers how the stock market works, how to deal with any debt you have, how to invest in different types of markets, and why it’s essential to have F-you money put aside, so you aren’t ever trapped due to a lack of funds. 

Pros: 

  • Very easy to read (the audiobook version is just as good) 
  • Relatable and great for everyday people 
  • It gives sound investment advice and a path to wealth 

Cons: 

  • If you come from an impoverished background, you may feel a little jaded while reading this book 
  • Narrow view – if you want more than a sound investment strategy that will allow you to secure your future and go on with your life without really thinking about it, other books on this list may be a better fit for you 

The Behavioral Investor by Daniel Crosby 

If you’ve started learning about investing, you’ll know that you only really lose money for good when you panic and pull out what money you have when the market takes a dip – especially if you’re investing in bonds, ETFs, and Index Funds. (Don’t worry if you don’t know this terminology yet – that’s what these books will teach you!) 

That’s what this book addresses – Daniel Crosby is a psychologist and behavioral finance expert has spent years studying investor behavior and why people make the decisions they do. This book will teach you to analyze how you think and feel to ensure you aren’t your most significant barrier to investing success. 

Pros: 

  • Offers practical advice on how you address your behavioral biases 
  • Easy to read 
  • It will make you more self-aware, so you don’t make a mistake you later regret 

Cons: 

  • You may not agree with everything he says 
  • You don’t need to read this book if you’ve already read his other book, the Laws of Wealth, as much of the content is the same

The Coffeehouse Investor: How to Build Wealth, Ignore Wall Street, and Get on With Your Life by Bill Schultheis 

If you want to learn what you need to know, get started, and then get on with living your life, this is one of the best books for you. One of the barriers to entry for so many when it comes to investing is they think they need to invest in individual companies, learn how to buy and sell at the best times, and spend a lot of time managing their money. 

For most people, however, that’s not the case. Schultheis shares what you need to make sound investment decisions to manage your investments with a simple process. It’s as straightforward as moving your money into your savings account once a week/month and then going about your life knowing you’re doing what you can to secure your future. 

Pros: 

  • A great option if you want to learn enough to start investing soundly, so you can get on with things you’re more interested in doing
  • Simplifies investing 

Cons: 

  • Some people felt there was not enough information on how to pick investments 

The Intelligent Investor by Benjamin Graham 

The final book on our list is one for those who want to know everything about investing. The Intelligent Investor was called “the best book about investing ever written” by Warren Buffet, and at 640 pages, it’s practically a bible on investing. This book covers everything investment principles, investment options, and more. It’s everything you could need to know. 

Pros: 

  • It will teach you almost everything you need to know about investing 
  • If you want to dive more in-depth into your investment knowledge – this is the book for you 

Cons: 

  • Quite dry and challenging to get through at times 
  • The book was published in 1949, so you need to apply the information to today’s world 

Bonus

Rich Dad Poor Dad isn’t a book for investors. It’s a book for anyone wanting to build generational wealth and it sets the foundation for your financial success. The book highlights the differences between people who make a lot of money versus those who build wealth. It talks about owning a business and growing your money in the stock market.

Pros:

  • It’s easy to read
  • It’s relatable

Cons:

  • Talks a lot about building a business which may not work for everyone.
  • Presents everything through two lenses (the rich dad and the poor dad). However, life’s not so black and white.

The Bottom Line

If you read just one book from this list, you’ll be well equipped to start your investing journey. If you read a handful, you’ll be able to move forward confidently, knowing you’re making the best investment decisions you can without needing to rely on a financial advisor. Nobody will care more about your money than you.

Website | + posts

Theresa is a personal finance blogger. She writes content for busy professional women to take control of their money and investments. She enjoys reading, traveling, cooking, and writing. Her work has been featured on GoBanking Rates, Your Money Geek, Savoteur, the Corporate Quitter, Thirty Eight Investing, and more.