The Top 8 Must Read Investing Books

Aug 17, 2021

The average return an investor gets in the stock market is around 10%. Beating the average index is extremely hard, challenging and almost down right impossible. But if you are up for the challenge and plan to dedicate your professional life to the markets, learning how the greats did it is one of the first steps.

So whether you are a market professional or just a retail investor looking to invest in the markets, reading as many book as you can about investing will give you that incremental leg-up to generating outsized returns. Here is a list of the best investing books that have helped me through my career on Wall Street and in life.

The Intelligent Investor

The Intelligent Investor is probably one of the best investing books ever written hands down. Written By Ben Graham in 1949, it has become the bible for value investors across the globe. Even Warren Buffett claimed The Intelligent Investor as the best investment he ever made. “Whatever the cost, it would underscore the truth of Ben’s adage: Price is what you pay, value is what you get. Of all the investments I ever made, buying Ben’s book was the best (except for my purchase of two marriage licenses).”

I have read The Intelligent Investor three times and should probably pick it up for a fourth read. My personal favorite chapters are Mr. Market & Fluctuations (Chapter 8) and The Margin of Safety (Chapter 20). Both of the principles taught in those chapters have served me well and profitably in the public markets.

Red Notice: A True Story of High Finance, Murder, and One Man's Fight for Justice

I recently picked up Red Notice and read the 416 page book in less than 3 days. Red Notice was written by Bill Browder, the CEO and founder of Hermitage Capital Management. Browder was the single largest investor in Russia until 2005 where he invested in illiquid Russian value stocks while delivering outsized returns.

Browder explains how he did on the ground due diligence in Russia, finding stocks that were trading at a 99% discount to any normal peer. While employing an activist strategy combined with a deep value approach, Browder achieved returns in excess of 1,500%.

However, while making a fortune, Browder exposed corrupt Russian Oligarchs, while barley escaping Russia with his life. Others working for Browder were not so lucky. Sergei Magnitsky, Browder’s lawyer ended up getting tortured to death in a Russian prison.

I thoroughly enjoyed Red Notice given the thriller type read and Browder’s focus on extremely undervalued illiquid stocks. Red Notice is a must read for anyone who is interested in global investing in illiquid markets.

Invest in Psychedelic Medicine – A $35 Billion Market (Sponsor)

The global mental health crisis is a huge problem... and the chance to help turn the tide is big. This could be good news for early-stage investors.

For example, nearly 300 million people suffer from depression worldwide and yet… modern-day psychiatric drugs are falling short.

50-66% of those taking antidepressants never make a full recovery.

33% of adults with Major Depression are “treatment-resistant”.

The COVID-19 pandemic has made the problem much worse.

Psychedelic medicine continues to show great promise to help those who suffer from mental illness.... and that’s where Ei.Ventures comes in.

Their flagship product “Psilly” (derived from the Psilocybin Mushroom) is a potential game-changer for the millions who struggle with mental illness.

Ei.Ventures is the first Psychedelic Medicine to launch a qualified Reg A+ Tier II public offering. Both accredited and non-accredited investors can purchase shares during this round.

There’s no better time to get in on the next big growth trend.

Click here for more and to invest in Ei.Ventures.

A Land Remembered

A Land Remembered is one of the best books I have ever read, hands down. In the best-selling novel, Patrick Smith tells the tale of a poor Florida family who rises through the hardship of poverty into one of the wealthiest real estate tycoons in the state.

Despite the novel being a fictional tale, the story provides an excellent history on Florida and mixes real life characters into the story. A tale from rags to riches with deep rooted history, A Land Remembered is not a book you will want to skip out on.

Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor

One of the most famous books on value investing but extremely hard to get your hands on. Margin of Safety, written by legendary investor Seth Klarman is a blueprint for successful value investing.

Seth Klarman is one of the greatest investors to ever live and Margin of Safety has gone down as an investing classic. The key lessons learned from Margin of Safety are:

Focus in minimizing risk as opposed to returns
The importance of bottom-up fundamental analysis
The need for discipline to avoid the next hot speculative trend
Emotions and behavioral biases
Confusing speculation with investing

In addition, Klarman explains that investors need to focus on free cash flow and not EPS or EBITDA as depreciation is a real expense and capital expenditures are also extremely real despite them not hitting the income statement.

Despite Margin of Safety selling for over $800/copy, if you are enterprising enough, you might be able to find a PDF copy somewhere on the internet.

The Sleuth Investor: Uncover the Best Stocks Before They make Their Move

Despite being relatively unknown to many investors, The Sleuth Investor is one of the most interesting and compelling investing books I have read. Written by Avner Mandelman the founder and CEO of Giraffe Capital, one of the most successful Canadian investors.

In the book Mandelman explains that an investor cannot just rely on SEC filings, annual reports and press releases. To uncover the best investing opportunities, an investor has to hit the road and perform on the ground due diligence to find a company’s real value.

Using Mandelman's strategies and techniques, you'll learn how to:

Follow the physical movement of a product, either directly or indirectly, and connect it to financial results
Obtain exclusive information from low-level employees to make nearly sure bets
Collect information from a company's clients and suppliers-and use it to make lucrative investments
Integrate legal precautions into your sleuthing

There’s Always Something To Do: The Peter Cundill Investment Approach

Averaging 15.2% annualized returns through his 33 year career, an investor in Peter Cundill’s fund would have turned a $10,000 investment to over $1 million.

There’s Always Something To Do is a great book for any investor interested in global value investing as the search for stocks in unglamorous areas of the market is where value typically hides.

The books also talks about what makes a successful investor including insatiable curiosity, patience, concentration, attention to detail, independence of thought, humility and skepticism.

“Be prepared to put money into anything, anywhere, provided that the downside is measurable and acceptable and the chances of a good profit appear to be better than 50%. I will not take gambles, but it is part of my job description to be ready to take very carefully calculated risks.” - Peter Cundill

Protect the downside first and the upside will usually take care of itself.

Andrew Carnegie

Written by Joseph Frazier Wall, the biography of Andrew Carnegie is a story of rags to richest untold.

From living in poverty in Ireland to becoming one of the richest men in the world, Andrew Carnegie was not only a brilliant industrialist, but a savvy investor who made an untold fortune in the market buying public and private securities.

Recommended first by Charlie Munger, the biography of Andrew Carnegie is an excellent read that explores the mind of of one the greatest businessmen to ever live. Reader beware, this book is massive at over 1,000 pages.

The Downfall of Money: Germany’s Hyperinflation and the Destruction of the Middle Class

A haunting tale how Germany went into a massive state of hyperinflation that the world has never seen. From being one of the most trusted currencies in the world to the total destruction of the Mark, The Downfall of Money tells the dramatic story of hyperinflation seen over 100 years ago.

This book resonated well with me given the current state of the world including rising inflation, massive debt and federal spending that is frankly out of control. The Downfall of Money is a haunting and chilling lesson on the history of monetary and fiscal policy gone wrong.

Disclosure: This post contains affiliate links

Disclaimer: The publisher does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.

Alpha Letter is a publisher of financial information, not an investment advisor. We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient.

THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN.

No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.

Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and the publisher undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.

The publisher, its affiliates, and clients of the a publisher or its affiliates may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.

Neither the publisher nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.

By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.

For Full Terms of Use Click HERE. For the Privacy Policy Click HERE.

alphaletter.co (“Alpha”) is a website owned and operated by Substack. Alpha is paid fees by the companies that make investment offerings on this website. Be aware that payment of these fees may put Alpha in a conflict of interest with the investor. By accessing this website or any page thereof, you agree to be bound by the Terms of Use and Privacy Policy, in effect at the time you access this website or any page thereof. The Terms of Use and Privacy Policy may be amended from time to time. Nothing on this website shall constitute an offer to sell, or a solicitation of an offer to buy or subscribe for, any securities to any person in any jurisdiction where such an offer or solicitation is against the law or to anyone to whom it is unlawful to make such offer or solicitation. Alpha is not an underwriter, broker-dealer, Title III crowdfunding portal or a valuation service and does not engage in any activities requiring any such registration. Alpha does not provide advice on investments or structure transactions. Offerings made under Regulation A under the U.S. Securities Act of 1933, as amended (the "Securities Act") are available to U.S. investors who are “accredited investors” as defined by Rule 501 of Regulation D under the Securities Act well as non-accredited investors, who are subject to certain investment limitations as set forth in Regulation A under the Securities Act. In order to invest in Regulation A offerings, investors may be asked to fill out a certification and provide necessary documentation as proof of your income and/or net worth to verify that you are qualified to invest in offerings posted on this website. All securities listed on this site are being offered by, and all information included on this site is the responsibility of, the applicable issuer of such securities. Alpha does not verify the adequacy, accuracy or completeness of any information. Neither Alpha nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy, valuations of securities or completeness of any information on this site or the use of information on this site. Neither Alpha nor any of its directors, officers, employees, representatives, affiliates or agents shall have any liability whatsoever arising from any error or incompleteness of fact, or lack of care in the preparation of, any of the materials posted on this website. Investing in securities, especially those issued by start-up companies, involves substantial risk. investors should be able to bear the loss of their entire investment and should make their own determination of whether or not to make any investment based on their own independent evaluation and analysis