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What’s the best financial book you’ve ever read?

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Seigo Tsujimoto
Seigo Tsujimoto
1 month ago

The most important thing by Howard Marks

mjflack
mjflack
1 month ago

These are the only two books you will ever need to read to be a successful investor:
1 – The Only Investment Guide You’ll Ever Need by Andrew Tobias (Brian Valentine you beat me to it). “A very basic thing to know about your money is that, over the really long run, people who buy equities—stocks—will almost surely make a lot more money (if they’re at all sensible in how they do it) than people who make “safer” investments.”
2 – The Godfather by Mario Puzo. “it’s not personal . . . it’s strictly business

Brian Valentine
Brian Valentine
1 month ago

The Only Investment Guide You’ll Ever Need by Andrew Tobias was one of the first and best I ever read.

Chris Hansen
Chris Hansen
1 month ago

The Psychology of Money by Morgan Housal. Probably the only one I’ve reread several times.

jonabelc90326bedb
jonabelc90326bedb
1 month ago

The first book to turn me onto index investing was Millionaire Expat, by Andrew Hallam. Fantastically simple and evidence based. Really highly recommend this.

Carol Klay
Carol Klay
2 months ago

By the time I realized I was getting to an age where I was looking forward to retirement, I also realized I had not paid much attention to my financial situation, other than following a detailed budget over the years, and saving what I could. The book I read that had the most influence in getting me on track was Control Your Retirement Destiny, by Dana Anspach.
Early in the book, she shows how to make an income timeline. Being a one time CPA and IT & spreadsheet nerd, I loved this idea. I have greatly enhanced my original NPV cash flow timeline, with tabs that include my spending plan (my Quicken budgets), allocation, asset location, tax projections, asset class performance, and many other things. I can see my funded ratio, my buckets, drawdown strategy, etc. It’s all populated automatically with a simple download from Fidelity. It makes keeping tabs on my finances easy and fun.
The book totally got me pointed in the right direction!

Randy Starks
Randy Starks
3 months ago

How To Make Your Money Last, Jane Bryant Quinn and The All-Weather Retirement Portfolio, Randy L. Thurman, CFP, CPA/PFS. Oh and John C. Bogle’s books (your choice).
The Bogleheads’ Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk

Tom Hyland
Tom Hyland
10 months ago

Your Money or Your Life – Vicki Robin & Joe Dominguez
One Up On Wall Street – Peter Lynch
The Millionaire Next Door series of books – Thomas Stanley
Each one was an eye opener for me.

David Hoecker
David Hoecker
11 months ago

“The Millionaire Next Door” by Stanley and Danko

John Wood
John Wood
11 months ago

I’m going to cheat by choosing the collection of shareholder letters that Warren Buffett has written in the annual Berkshire Hathaway reports. I’ve learned more about investing in those letters than in any book.

John Swan
John Swan
11 months ago

The Only Investment Guide You’ll Ever Need by Andrew Tobias. Clear, concise, interesting (humorous at times) basic guide to personal finance including investing. Eminently sensible. Recommends sources for more on investing including Malkiel.

lakggk
lakggk
11 months ago

No Brainer! Ernie Zelinski’s “Retire wild, happy and free.” Not only did I read it but bought 5 copies to give to friends and relatives.

Jerry Pinkard
Jerry Pinkard
11 months ago

I have read a number of the books cited in this thread. No one stands out as “the one”, but collectively they have provided a wealth of wisdom about finances and investments. I believe I have learned more as a frequent reader of Morningstar and Boglehead columns and now Humble Dollar.

Chris Wieser
Chris Wieser
1 year ago

Die Broke by Pollan & Levine. Spend your money when you’re on this side of the ground. If I remember correctly: “The last check you write should be for your own funeral, and it should bounce”.

Rick Thompson
Rick Thompson
1 year ago

I would include many of the books already listed here among my favorites. However, my most recent favorite Is “Richer, Wiser, Happier: How the World’s Greatest Investors Win in Markets and Life” by William Green. It was so informative and well written that I read it twice in a row! Even the footnotes and the notes on sources and additional resources at the end of the book are a must read.

Charles Soderquist
Charles Soderquist
1 year ago

The Richest Man in Babylon by George S. Clason. Introduced me to the concept of paying yourself first back in 1986. Been following that advice ever since and have reaped the rewards of doing so.

Myles Ussher.
Myles Ussher.
1 year ago

Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay

Dwain Sims
Dwain Sims
1 year ago

A Random Walk Down Wall Street — I did not read this until I was in my 40s. I just wish someone would have shoved a copy in my hands when I graduated from college. The single best book on how the financial markets work that I have read. All of my kids have received a copy when they graduate.

Philip Stein
Philip Stein
11 months ago
Reply to  Dwain Sims

Every time Professor Malkiel publishes a new edition of A Random Walk Down Wall Street, I purchase a copy to both re-read it and keep up with his latest thinking.

Purple Rain
Purple Rain
1 year ago
Jack Hannam
Jack Hannam
2 years ago

For me, the choice of “best” or “most influential” book is related in large part to when I first read it. I started investing in 1988 by simply contributing to my 401-k along with investing in a taxable account. I did not know what I was doing. The first useful books I remember reading were “The Millionaire Next Door” by the late Stanley and Danko in 1996, and the late John Bogle’s “Common Sense on Mutual Funds” in 1999. Bogle, more than any other, probably had the greatest influence on my investing behavior. “The Intelligent Asset Allocator” by Bernstein was a classic work published in 2001, especially for me, a fellow neurologist, who sadly lacks his gift for financial and historical analysis. I have since read more or less everything Bogle and Bernstein have written, as well as most of the other authors cited by contributors to this blog. Warren Buffett’s annual letters are filled with wisdom. I retired three years ago and still learn something every day, and while I will never be a financial expert, I have the tools to make appropriate decisions to manage my portfolio. The one book which I find to be the best now is the Humble Dollar’s “Money Guide”, by Clements, because of its comprehensiveness, lucid writing, continuous updating, and the fact that it is enriched by an endless stream of comments by contributors and readers.

Jackie
Jackie
2 years ago

Unconventional Success by David Swensen.

His advice kept me out of bonds (except for TIPS) and for that I am grateful.

Roboticus Aquarius
Roboticus Aquarius
2 years ago
Reply to  Jackie

This is definitely in my top 5.

Last edited 2 years ago by Roboticus Aquarius
Scrooge_McDuck88
Scrooge_McDuck88
2 years ago

A Simple Path to Wealth

billehart
billehart
2 years ago

Mostly great comments so far, but I have to put one above the others: Stocks for the Long Run by Jeremy Siegel. Exhaustively researched. Great charts. I refer back to it sometimes to remind myself of certain data points. Makes the case for buying and holding stocks over other asset classes better than any other author.

Juan Fourneau
Juan Fourneau
2 years ago

Buffett The Making of an American Capitalist by Roger Lowenstein because it introduced me to Buffett as a young man. This led me to read more from others and began my self education. Cash Flow Quadrant was great for helping me see concepts I had never heard discussed in high school or among my circle of friends and family.

Richard Gore
Richard Gore
2 years ago
Reply to  Juan Fourneau

I also really enjoyed the Buffett book by Lowenstein. I just might re-read it now.

Ben Rodriguez
Ben Rodriguez
2 years ago

A Random Walk Down Wall Street by Burton Malkiel.

Andrew F.
Andrew F.
2 years ago

It was long ago, but a book that really opened my eyes and changed the way I thought about money and investing was The Millionaire Next Door (echoing Stan Wolf). And, while not a book, I’ll also echo Philip Stein regarding Jonathan’s columns in the WSJ. I appreciated the fact that they were were written in such straighforward and non-technical language that a rookie like me could understand and learn from them.

Sanjib Saha
Sanjib Saha
2 years ago

“Seven Habits of Highly Effective People” is still my favorite – not a financial book but helpful for most things in life including finances. I enjoy reading “Your Money or Your Life” (Joe Dominguez / Vicky Robin) every now and then. “How to think about money” is another favorite one. I gave copies to some of my daughter’s friends and also a few young coworkers. They all loved it.

Edwin Belen
Edwin Belen
2 years ago

”I Will Teach You To Be Rich” by Ramit Sethi. Book based on common sense (IMHO) but with a focus that only certain things matter such as your housing and transportation costs and that avocado toast or a latte will not stop you from being rich.

BMORE
BMORE
2 years ago

Agree with all of the above. Surprisingly Warren Buffett isn’t on my list: he has access to so many private investment deals that aren’t available to regular investors that I felt these were not helpful to read about. I enjoyed reading The Intelligent Investor by Benjamin Graham for principles of value investing; Jason Zweig’s The Little Book of Safe Money has great advice on balanced investing and planning.

Harold Tynes
Harold Tynes
2 years ago

I’ve been reading the WSJ daily for 40 years. I started reading it at the college library and it has been a great resource. How else would I have been able to learn from Jonathan? I remember he used to respond to my emails back in the day. Still appreciate that.

Cindy Schreiber
Cindy Schreiber
2 years ago

RICH DAD, POOR DAD by Robert Kiosaki. Learned to identify assets from liabilities. Changed my thinking on spending & what I was spending on. Also by him, CASHFLOW QUADRANT. Drove home more invaluable points. I was also impressed with THE MILLIONAIRE NEXT DOOR. Very interesting book. Taught me to not believe everything I assumed about others.

SCao
SCao
2 years ago

I enjoy John Bogle’s “The Little Book of Common Sense Investing”. Beautifully written and really help set the right mindset and framework for being a long term small investor.

SanLouisKid
SanLouisKid
2 years ago

I have several favorites but always encourage people to read a variety to get a broader perspective. After reading How To Get Rich and Stay Rich by Fred J. Young, I wrote Mr. Young and he invited me to have lunch. It turns out he married a girl from my hometown of Fort Scott, Kansas. It also turned out that Fred had spent time with Warren Buffett in 1958 and afterwards had lunch with him several times. He never mentioned that in his book. I was fascinated. If I wrote a book about getting rich and knew Warren Buffet, I’d find a way to include that in my book.

Philip Stein
Philip Stein
2 years ago

I think most readers would agree that becoming a better investor through self-education requires you to read widely. Therefore, it’s hard to identify one great financial book. There are many good ones available from authors like John Bogle, William Bernstein, Burton Malkiel, and, of course, Jonathan Clements.

Having said this, I experienced my greatest education and inspiration from the series of Getting Going columns Jonathan wrote for the Wall Street Journal. I’ve been a long-term subscriber to the Journal and was fortunate to discover Jonathan and his weekly columns when I began trying to educate myself those many years ago. I found his weekly columns to be particularly effective because they were extremely well-written (of course) and were delivered in small doses which made it easier for me to absorb the lessons that needed to be learned. I dutifully cut out the column each week and collected them in a manila folder which eventually grew to about two inches thick. I still peruse these articles from time to time.

One of my most important epiphanies came from one of Jonathan’s earlier columns where he stated that you didn’t have to beat the market to reach your financial goals. This one insight primed me to absorb other important lessons like the need for diversification, the importance of minimizing investment costs, and the advantages of index funds over actively managed funds.

I often thought that it would be wonderful if Jonathan could cherry-pick his best columns from his Wall Street Journal years and assemble them into a book for the benefit of newer generations of investors. My suggested title for such a book: Jonathan Clements Greatest Hits.

Gene Simmons
Gene Simmons
2 years ago

Winning the Loser’s Game, by Charlie Ellis. It’s not about winning, but about avoiding mistakes or “forced errors.” It makes a great argument about why trying to beat the markets usually ends up making us poorer.

Richard Gore
Richard Gore
2 years ago

My favorite investment book is Where are the Customer Yachts by Fred Schwed. It is both funny and profound.

Bob Wilmes
Bob Wilmes
2 years ago

The best financial book I ever read was The Money Masters by John Train. It’s an old book that I learned about Warren Buffett from before he was very famous.

Berkshire Hathaway was then traded “by appointment” on the Pink Sheets under the symbol BKHT at the outrageous price of $2000 per share.

I did the math and his 16 per cent compound return was unbelievable.

Juan Fourneau
Juan Fourneau
2 years ago
Reply to  Bob Wilmes

I’ll have to check this book out.

David Powell
David Powell
2 years ago

So many good ones I’ve learned from but if I had to pick ONE book, it would be How to Think About Money by Jonathan Clements.

Last edited 2 years ago by David Powell
Marc Bisbal Arias
Marc Bisbal Arias
2 years ago
Reply to  David Powell

I completely agree. Hands down to the best book. It covers 99% of what one needs to know about finance, is practical, based on factual research and written clearly in just ~150 pages.

It’s the book I find myself recommending the most to those asking me about money and investing.

Michael1
Michael1
1 year ago

I’m glad I read through all the comments before replying. The first book that cam e to my mind was also How to Think About Money. The comments reminded me of several others that were also good to great, including The Millionaire Next Door which was influential on me years ago, but the question was about the “best.” That’s still How to Think About Money.

Stan Wolf
Stan Wolf
2 years ago

The Millionaire Next Door

Roboticus Aquarius
Roboticus Aquarius
2 years ago

I’m a huge fan of William Bernstein’s The Four Pillars of Investing.

I also like David Swenson’s The Ivy Portfolio, especially the breakdown he does on various asset classes and their suitability for individual investors.

There are many good books out there, a couple that come to mind are How to Make Your Money Last and The Bogleheads Guide to Investing. Much depends on where you are in your investing journey, the right book at the right time can be magic.

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