Investing Book List

Go beyond finance courses with the best books on investing. Gain practical investment skills relevant in today's markets.

Investment Strategies

Jack Schwager

Hedge Fund Market Wizards is the latest in Schwager’s well-known series on learning investing lessons through conversations. This latest volume contains 15 probing interviews with top hedge fund managers on their investment strategies, successes, and mistakes.

Investing Career

Barton Biggs

The late Barton Biggs was the Founder of Morgan Stanley Asset Management and of own commodities hedge fund, Traxis Partners. Hedgehogging is the diary of his journey through the eccentricities of the hedge fund culture. A particularly good read for those with the ultimate aspiration of starting one’s own fund.

Value Investing

Bruce Greenwald, Paul Sonkin

Columbia professor Greenwald and Gabelli portfolio manager Sonkin assumed the value mantle from Buffett and Klarman in the 21st century. The book Value Investing is applicable in today’s markets with more efficient asset prices, and is a key read in the Value Investing Program at Columbia Business School.

GARP Investing

Peter Lynch

Growth at a Reasonable Price (GARP) is arguably the most common investment style among hedge and mutual funds today. Many credit Peter Lynch, the legendary manager of Fidelity’s Magellan Fund, as the chief evangelist of the GARP style. One Up on Wall Street emphasizes the importance of investing based on a company’s quality and consistent earnings growth. The investment goal is to hold investments for the long-term and generate “multi-bagger” returns.

Growth Investing

Philip Fisher

Warren Buffett once said, “I’m 15% Philip Fisher and 85% Benjamin Graham.” Fisher emphasizes earnings growth over valuation, particularly for secular industries such as technology and healthcare. The book is a must read to lay the groundwork for investing in companies based on earnings momentum.

Special Situations Investing

Joel Greenblatt

You Can Be a Stock Market Genius is widely regarded as the seminal text on special situations investing. The book details the process and nuances of spin-offs, merger & risk arbitrage, restructurings, rights offerings, bankruptcies, liquidations, and asset sales. The investment processes laid out in the book are widely employed by hedge funds.

Distressed Debt Investing

Stephen Moyer

I was a distressed analyst in J.P. Morgan’s Special Situations Group, and Moyer’s book is the gold standard in the distressed investment community. Distressed investing is a complex subject and are oftentimes taught from a theoretical, academic approach. Moyer breaks down the investment process in very practical terms and provides concrete examples of each step.

Macro Trading

Greg Gliner

Gliner, a former analyst at AQR Capital and Tudor Investment, filled a void in investment education with Global Macro Trading. There’s a severe lack of good practical guides on macro investing, and this book gives you hands-on tutorials on foreign exchange, equities, fixed income, and commodities. It takes you from having no prior knowledge in macro trading to understanding specific systematic strategies. A must-read for those interested in macro and commodities hedge funds.

Activist Investing

Tobias Carlisle

Carlisle is the author of the Greenback’d blog and an ex-lawyer specialized in shareholder activism. In Deep Value, Carlisle takes the reader through the evolution of the deep value investment strategy, which has evolved from Buffett’s “buying cigar-butt” approach to today’s activism in the boardroom. It’s an engaging learning experience with well-written stories and examples.

Quantitative Trading

Earnest Chan

Chan’s book is a practical guide to algorithmic investing, with explanations of key algorithms and programming code examples. He dives into techniques for back-testing, statistical regressions, algorithmic strategies, and code implementations. It’s written by a practitioner for those interested in joining al quant fund or becoming an individual quant trader.

Fundamental Analysis

Joel Greenblatt

This book is the updated version of Greenblatt’s original book on fundamental analysis. Greenblatt’s emphasis on return on capital and earnings yield form the foundation of company quality analysis in today’s markets. It’s an essential piece of your value investing book collection.

Contrarian Research

Howard Marks

Oaktree Capital founder Howard Marks is best known for his emphasis on “second-level thinking”. First-level thinking says, “it’s a good company, let’s buy the stock”. Second-level thinking says, “everyone thinks it’s a great company. That makes it overpriced — sell.” This is the foundation for developing contrarian investing views.

Valuation

McKinsey & Company

There are many valuation textbooks out there. However, McKinsey’s Valuation is geared towards how Wall Street approaches the practice of valuing businesses. This is a great handbook for concrete examples for investment practitioners.
Short Selling

Howard Schilit

Forensic accounting is an important aspect of shorting stocks. It’s not just about uncovering outright frauds, but oftentimes forensic accounting would lead you to inflated financial metrics that hide deteriorating company fundamentals. Schilit built his career as a forensic accountant, and Financial Shenanigans is the gold standard on the topic that should be on every analyst’s bookshelf.
Credit Analysis

Robert Kricheff

This book sets theories aside and is geared towards aspiring analysts entering leveraged finance groups and credit funds on Wall Street. Kricheff does a great job breaking down credit analysis and the leveraged buy-out process for bond analysts.
Technical Analysis

John Murphy

Technical analysis is a subject not taught in school but oftentimes an important consideration in analyzing investments. Murphy’s book is a great reference of common technical methods used by investment analysts who include technical analysis as part of their investment process.
Behavioral Science

Daniel Kahneman

Kahneman’s New York Times Bestseller is more than just an investing book. It’s a reassessment on our mental systems on decision making. The fast system is largely unconscious and generates intuition, while the slow system processes fact-checking. Emotion affects the former while logic dictates the latter. This directly translates to short-term vs. long-term market behaviors.
Financial History

Niall Ferguson

Ascent of Money is the definitive history book from the perspective of money. Ferguson makes a compelling case that economic considerations have been root pillars in political and societal decision-making. It’s an engaging read for the history buffs on Wall Street.
Recessions

Carmen Reinhart, Kenneth Rogoff

Understanding tail-risks is an important aspect of making calculated market bets, and the best way to do it is to learn from past recessions. Reinhart and Rogoff have put together an impression compilation of past financial follies and extract important lessons. This book would significantly boost your knowledge of financial history as will as your understanding of macroeconomics.
Note: Each book was carefully chosen with practicality and relevance in today’s markets mind.
Which is why seminal books such as Security Analysis, the Intelligent Investor, and Margin of Safety are not included due to their practicality, print date, or price.