Top 5 Finance Books You Must Read Before You Die
- Felix Will
- Jan 26
- 3 min read
It is no surprise that reading is one of the most fundamental aspects of learning. As Milton Friedman, the Nobel Prize-winning economist, once said: "I am often asked what I read. I read everything. I do not restrict myself to economics. I read history, literature, and philosophy, and I read newspapers. The more you read, the more you learn." With over hundreds of thousands of economics and finance books available, choosing which ones to read can be quite overwhelming.
In this list, we’ll guide you through five essential finance books that are informative and transformative for anyone looking to broaden their understanding of the world of finance.
1. "The Intelligent Investor" by Benjamin Graham
Widely regarded as the ‘bible of value investing’, Benjamin Graham’s “The Intelligent Investor” provides priceless insights on investing, risk management, and the psychology of markets. It’s a must-read for anyone looking to build a solid financial foundation, offering strategies that have influenced investors like Warren Buffett, arguably the most famous investor ever. Throughout the entire book, Graham always emphasizes his key takeaways whilst presenting real-life examples to further strengthen proposed arguments.
This book is a must-read, and as Warren Buffet so perfectly said: "The Intelligent Investor is by far the best book on investing ever written. The principles it teaches are as relevant today as when it was first published in 1949. If you read just one book on investing, this is the one."
2. "A Random Walk Down Wall Street" by Burton G. Malkiel
This book challenges the conventional schools of thought about investing and advocates for the so-called ‘efficient market hypothesis’. Malkiel’s writing breaks down complex financial concepts and is a crucial read for understanding the stock market and the basics of portfolio theory.
"A must-read for investors, Malkiel’s book debunks common market myths and advocates for long-term, diversified investing. His argument that stock prices follow a random pattern is both compelling and influential, making this a classic in the field of personal finance." – The Wall Street Journal.
3. "Principles: Life and Work" by Ray Dalio
Ray Dalio, founder of the hedge fund Bridgewater Associates (which has over $123 billion under management as of Jan 2023), shares his professional and personal principles in this book. Dalio's insights into decision-making, economics, and risk management are invaluable for anyone wanting to navigate the complexities of the financial world as he simplifies even the most complex theories.
"Ray Dalio’s Principles is a great guide to decision-making and understanding the factors that drive success. His approach to life and business is insightful, and the book provides valuable lessons on how to think and act more effectively." – Bill Gates.
4. "The Big Short: Inside the Doomsday Machine" by Michael Lewis
Michael Lewis’s “The Big Short” (both a book and film) takes us behind the scenes of the 2008 financial meltdown. It offers clear-cut explanations of the events that led up to the crash and the role that complex financial products played in the financial crisis. This book strives to give its readers a deeper understanding of the 2008 market crash whilst educating them on risk-awareness.
"Michael Lewis’s The Big Short is an extraordinary narrative of the events leading up to the 2008 financial crisis. It brilliantly explains complex financial instruments and captures the human drama behind the catastrophe. Lewis’s storytelling makes a difficult subject accessible and compelling." – The New York Times.
5. "Flash Boys: A Wall Street Revolt" by Michael Lewis
Another incredible piece of work by Michael Lewis, this book explores the world of high frequency trading and its effect on the financial markets. It’s a book that highlights the ethical and economic effects of technology-driven finance. It is a must-read for anyone who is intrigued by high-risk trading as well as the general economy.
“Michael Lewis’s Flash Boys is an eye-opening exploration of the high-frequency trading industry and its consequences. Through detailed storytelling, Lewis unveils the hidden practices that manipulate the financial system, making it both a thrilling read and a critical look at Wall Street.” – The New York Times.
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