What Should Young Investors Read?

One of the first investment books I ever read was The Intelligent Investor. At the time I didn’t know anything about accounting or business or economics, but I understood the simple concept behind Mr. Market.

I set out on a path to learn all about value investing, but I didn’t make it very far.

In order to value a stock, you must know hot to to value a business, and in order to value a business you must understand how to analyze financial statements.

Sooo I went looking for other ways to invest.

Then I found Reminiscences of a Stock Operator. Yes, this is what I’m talking about. And then I found Market Wizards. Ahh, this is the good stuff. I didn’t know who Michael Marcus was, but I wanted to trade just like him. Spoiler, that didn’t work either.

I strongly believe that the experiences you have early on in the markets can leave a permanent impression on you, which is why what new investors read really matters.

When young people reach out to me asking for some direction, I always recommend the following books:

I Will Teach You to Be Rich, Your Money & Your Brain, and A Wealth of Common Sense.

I now have something else to add to this list. The Psychology of Money by my friend Morgan Housel is the perfect place to start.

The best part about this book is how easy it is to read. One chapter starts out with this gem:

Money has many ironies. Here’s an important one. Wealth is what you don’t see.

And it ends here:

If wealth is what you don’t spend, what good is it? Well, let me convince you to save money.

The chapter is 4 pages. That’s it. And boy does it pack a punch. Books don’t need to be long to make their point and in fact, the opposite is usually true.

If there is a young person in your life that wants to learn about investing, or if you yourself are looking for something to read, I cannot recommend this book highly enough.

Further reading:

The best kind of learning