Below are books that have influenced my investment philosophy and methods over the years.
Please don't ask me which is the best single book - there is no such thing. Our growth as an investor requires ongoing wide reading.
I have indicated where I have reviewed the book on the Book Reviews page. I have only written reviews of books in recent years, and then not all books I have read, so don't judge a book by whether I have reviewed it.
BEHAVIOURAL FINANCE AND PSYCHOLOGY
- Charles Mackay — Extraordinary Delusions and the Madness of Crowds
Hugely influential book on the history of crowd behaviour in markets
- David Cohen — Fear Greed and Panic
Excellent discussion of market booms and busts. See Book Review page.
- Jacob Bernstein — Investor's Quotient
Best selling book on managing your own psychology in trading
- Robert Shiller — Irrational Exuberance
Behavioural finance applied to the 1990s bull market
- Roland Barach — Mindtraps
This book explains common mind traps that limit traders and investors. Written by a psychologist with practical knowledge of trading
- Gustav Le Bon — The Crowd
Analysis of crowd behaviour by one of the pioneers in that field
- Mark Douglas — The Disciplined Trader
Ground breaking book on trading psychology
- Mark Douglas — Trading in the Zone
Thorough discussion of trading psychology. See Book Review page.
- Teweles & Jones — The Futures Game
Excellent explanation of futures markets and how they work and much more
- Philip Fisher — Common Stocks and Uncommon Profits
Possibly the best book on growth investing. See Book Review page.
- Michael Kemp — Creating Real Wealth
The best book to understand what investing is all about. See Book Review page. May be purchased from the Buy Books page.
- Tom Basso — Panic-Proof Investing
Truly universal ideas from a Market Wizard. See Book Review page.
- Thomas K McCraw — Prophet of Innovation
Biography of Joseph Schumpeter and Creative Destruction. The most accessible summary of the ideas of one of the foremost economists of the twentieth century. Many of his ideas play into investing and have greatly influenced me.
- Jeremy Siegel — Stocks for the Long Run
An examination of the historical performance of asset classes and why stocks give the best return in the long term. See Book Review page.
- Jack Calhoun JR — The 12 Investment Myths
Discussion of investment philosophy centred on a series of common myths. See Book Review page.
- Niall Ferguson — The Ascent of Money
A financial history of the world. See Book Review page.
- Atul Gawande — The Checklist Manifesto
Greatly influenced my investment selection and management process. See Book Review page.
- Jeremy J Siegel — The Future for Investors
A thoroughly researched explanation of why investing in tried and true companies beats investing in new and growth companies. A central theme is the absolute power of reinvesting dividends over capital gain.
- Benjamin Graham — The Intelligent Investor
Still the best book ever written for the private investor. See Book Review page.
- Liaquat Ahamed — The Lords of Finance
The story of the failure of the gold standard. See Book Review page for lengthy summary.
- Charles Ellis — The Losers Game
Explains why active investment management fails and what to do about it. See Book Review page.
- RF Bruner and SD Carr — The Panic of 1907
The story of the financial panic of 1907 and an analysis of the causes of panics. See Book Review page.
- Alice Schroeder — The Snowball
Biography of Warren Buffett and one of the best insights into his methods. See Book Review page - includes extensive quotations.
- Andrew Leeming — The Super Analysts
Interviews with top Australian analysts. My extensive notes from the book are on the Educational Articles page.
- Robert Rotella — The Elements of Successful Trading
The second half of this book contains excellent disussion of trading psychology and money management
- Van K Tharp — Trade Your Way to Financial Freedom
Very sound book on money management and developing a trading system
- Larry McMillan — McMillan on Options
This book has been recommended to me by options traders
- William L Jiler — How Charts Can Help You in the Stock Market
Excellent introduction to classical charting
- J. Welles Wilder Jnr — New Concepts in Technical Trading Systems
The original source of important indicators including RSI, Parabolic and Directional Movement
- Alexander Wheelan — Study Helps in Point and Figure Technique
The best book to learn about point and figure charting
- Steven Achelis — Technical Analysis form A to Z
General purpose reference book on lots of indicators and concepts in technical analysis
- Edwards and Magee — Technical Analysis of Stock Trends
This book popularised charting and remains the definitive reference for traditional technical analysis. See Book Review page.
- Robert Rhea — The Dow Theory
The original source book on Dow theory.
- Dr Alexander Elder — Come Into My Trading Room
Excellent explanation of his trading methods. Now partially updated in The New Trading for a Living. See Book Review page.
- Donald Cassidy — Its When You Sell That Counts
Concentrates on explaining why selling is such an important part of trading
- Edwin Le Fevre — Reminiscences of a Stock Operator
The ideas of Jesse Livermore, one of the legendary traders. Easy to read and full of insights about trading
- Gerald Loeb — The Battle for Investment Survival
A Classic book on trading. Has been reprinted again and again for decades
- Michael Lewis — The Big Short - Inside The Doomsday Machine
This is a factual account of what led to the global finacial crisis. It is a very clear explanation of the arcane derivatives at the heart of the subprime mortgage disaster. See Book Review page.
- David Dreman — The New Contrarian Investment Strategy
Explains the value approach based on low Price Earnings ratios
- Dr Alexander Elder — The New Sell & Sell Short
Focus on three aspects of selling in trading - taking profits, cutting losses and selling short. See Book Review page.
- Dr Alexander Elder — The New Trading for a Living
Psychology – Discipline - Trading Tools and Systems - Risk Control - Trade Management. See Book Review page.
- Paul & Moynihan — What I Learned Losing a Million Dollars
Story of how one man learned the most important lesson in trading the hard way
YOUR LIFE IN GENERAL
- Jim Rogers — A Gift to My Children
His thoughts on investing and life in general. See Book Review page.
- T Harv Eker — Secrets of the Millionaire Mind
How to think like a millionaire. See Book Review page.
- Richard Koch — The 80/20 Principle
Exlains how the Pareto Principle (80/20 rule) applies to everything
- Paulo Coelho — The Alchemist
A parable about where you can find your fortune and happiness
- Max Gunther — The Luck Factor
Review and summary of main ideas. See Book Review page.
- Dr Richard Wiseman — The Luck Factor
Exploration of what is luck and how it can be changed by an academic based on research. See Book Review page.
- Stanley & Danko — The Millionaire Next Door
Remarkable insights into how millionaires became wealthy