10 books every investor should read, even if only briefly

Literature and Economics, both with capital letters, have also been good companions throughout contemporary history. This synergy often occurs under the umbrella of fiction and pseudonyms. Nearly fifty years ago, a classic was born. In 1978, a certain Marshall Jevons published Murder on the Margin. This novel mixes elements of the detective genre—a luxury hotel, an exotic location, unsolved crimes—with an economically tinted plot, allowing readers to inadvertently grasp the law of supply and demand, monopolies, the theory of capital, and other economic principles. Behind the pseudonym Jevons are American economics professors William L. Breit and Kenneth G. Elzinga. 

Now that we are celebrating the International Book Day—an initiative promoted by UNESCO—we could cite dozens of examples of economics and investment experts who have turned to writing novels and essays. From The Invisible Heart: An Economic Romance, a love story by Russell Roberts, an economist and researcher at Stanford University, to Animal Spirits, an essay on emotions and psychology by Nobel laureates in Economics George A. Akerlof and Robert J. Shiller, the connections between literature and the economic ecosystem could fill a hefty book.

Not to mention the universal works that offer valuable lessons on strategy, decision-making, or patience—essential qualities for any investor. The Art of War (Sun Tzu), The Prince (Machiavelli), Alice in Wonderland (Lewis Carroll), and Moby Dick (Herman Melville) are just a few examples.

In such a significant week, we are committed to recommending a handful of titles that every investor should read, even if only briefly.

The second title—The untold techniques that have made Warren Buffett the world's most famous investor—suggests this book is a must-read. The renowned investor, with a net worth nearing 150 billion dollars, will be turning 95 this year and continues to serve as an inspiration for investors globally. The authors promise to unveil the formulas of the sage of Omaha through case studies, mathematical models, and other foundational concepts for achieving investment success. Published in 1997, the book remains in the top ten.

We revisit Warren Buffett, who declared that The Intelligent Investor “is the best book on investment ever written”, despite its original publication in 1949. Written by the financial analyst, economist, and professor Benjamin Graham, this study differentiates between investment and speculation, emphasizing the business aspect of investing. Previously, along similar lines, he co-authored Security Analysis with David Dodd.

The US fund manager is noted on Wikipedia for achieving an annual return on his investments exceeding 29%. In this book, Lynch shares the key concepts that have established him as a guru of investment funds. Notably, he admits that his understanding of philosophy and logic has been more beneficial than traditional finance and mathematics.

Another book that highlights concepts already discussed by Lynch is Value Investing for Dummies. This simple and accessible guide explains how to incorporate value investing into your investment strategy. The authors acknowledge that buying shares in companies trading below their intrinsic value to achieve long-term profits requires “discipline and patience”. 

Paul Pignataro, Executive Director of the New York School of Finance, aims to precisely analyze the soundness of a stock investment with this manual. Using Amazon as a case study, he demonstrates how to construct the three basic financial statements: the income statement, cash flow statement, and balance sheet.

The best approach is to learn from the experts. From Benjamin Graham to Philip Fisher, Warren Buffett to Ken Fisher, and Joel Greenblatt to Francisco García Paramés, this practical guide reviews the theories of these great investors. To understand their thinking, boldness, and strategies, the authors offer nearly 300 pages to turn you into a specialist in stock market investing.

Howard Marks is renowned as a leading investor in distressed securities—assets belonging to companies or institutions facing financial hardship or on the brink of bankruptcy. He is also one of the most recognized billionaires in the investment world. In this book, Marks explores the factors that most significantly influence investment decisions. He argues that a sound investment philosophy is rooted in experiencing, and enduring, the various lessons and fluctuations life presents. As the publisher describes it, “an investment process is more art than science, requiring intuition and adaptability over rigidity and mechanical approaches”. 

Alejandro Estebaranz's YouTube channel, sharing the title of his book, boasts over a million followers and continues to grow. Estebaranz is among a distinguished group of young investment managers and securities investors who excel in navigating social media As president of the investment fund True Value Investments, he has crafted The Art of Investing as a reflection on his journey to success, detailing how he achieved financial freedom and the challenges and opportunities investors face.

Published in the 1990s in the USA, this book quickly became a bestseller. Experts regard it as the most comprehensive study ever conducted on American millionaires. Besides profiling wealthy individuals who don't appear affluent, it provides insights into whether investors are making sound decisions in building their wealth.

An American neurologist and financial theorist, Bernstein is known for his essays aimed at private investors focusing on equity portfolios. In The Four Pillars of Investing, he outlines four key principles for profitable investing: understanding investment theory, the history of investing, the psychology of investment, and the workings of investment-based businesses.