There are a plethora of books available on the internet to learn finance. To make your work a bit simpler, I have done in-depth research and have brought to you the 9 most popular and best finance books ever written, which will sure shot help you in increasing your financial knowledge, self-growth, and personal finance.
It’s been said that "You are the average of five people you spend most of your time with". Thus surround yourself with the best books written by most successful people on this planet.
Book reading is the most powerful and magical thing that ever happened to me. "Investment in books gives you the best returns"
Below I have compiled a list of best finance book that will give you invaluable knowledge and financial freedom. Lots of learning ahead….Let's dive in!
The Warren Buffett Way: (Written by Robert Hagstrom in 1994)
If you are a newbie in the stock market and if you have no idea what stock market is then this book can be a great help for you. Warren Buffet is one of the renowned investors who is been admired by every investor. This book gives detailed knowledge about the stock market, the questions related to it and everything will be clear once you read the book. It talks about the background of Warren Buffet, his journey of becoming worlds renowned investor, his criteria for choosing companies, what things are very important for a company to have, why should we look from a long-term perspective. The author talks about all his (Mr. Buffet) companies in which he has invested and holds a major stake like Coca-cola and many more. He beliefs in Value Investing. This book is for those people who want to understand the basics of the stock market and create a good passive source of income or to make a career in the stock market.
Link to buy the book: The Warren Buffett Way
If you are new or have recently started investing in the stock market then you can refer one of our most popular articles, Beginners journey in the stock market
The Intelligent Investor: (Written by Benjamin Graham in 1949)
This book is considered as a bible in the world of investing. The author Benjamin Graham, was a great economist, professor, and investor, he was also the mentor of Warren buffet. This book speaks about how an aspiring investor can ignore the market and still be able to earn steady returns by just focusing on the company he wants to invest in. The entire focus of the book is on the concept of value investing and its principles. It’s is said that don’t invest in the stock, invest in the business, act as if you own the business, and analyze the company based on your financial goals. Warren Buffet describes "The Intelligent Investor" as the best book ever written on investing.
Link to buy the book: The Intelligent Investor
The Richest Man in Babylon: (Written by George S. Clason in 1926)
This book is about a fictional story of a king in the city of Babylon. The king wanted to make the entire population of Babylon financially independent and make them as rich as the richest man in Babylon, so he called the richest man in Babylon and asked him to teach everyone how they can be financially wealthy and how can everyone achieve success like him. This book speaks a lot about personal finance and how people should manage their money by way of an interesting fictional story of the richest man in Babylon who discloses his secrets and principles of getting rich. The best part of the book is that even though the story is fictional yet very relatable. One of the best books on financial management written by Mr. Clason.
Link to buy the book: The Richest Man in Babylon
Refer our interesting article on the personal finance principles in the simplistic yet knowledgeable manner: Some Unknown Personal Finance Thumb Rules.
Think and Grow Rich: (Written by Napoleon Hill in 1937)
This book is a compilation of 13 common habits shared by wealthy and successful peoples. The authors studied around 500 individuals over the course of 20 years and found out the 13 most common habits of those individuals which let them live a successful life. This book is for people who are looking to change their mindset and leave a stress free life. This will help you, stick to your decisions, and how to be stubborn enough to achieve it. One of the important takeaways from this book is that desire, faith and persistence can push one to great heights if one can surpass negative thoughts and focus on his goals.
Link to buy the book: Think and Grow Rich
Rich Dad Poor Dad: (Written by Robert Kiyosaki in 1997)
This is one of the most popular and oldest books which has been translated in many languages. It is one of the most selling books and I am probably hoping that you have heard of it. The story is about a kid growing up who has two fathers, one his own and another father of his friend. So basically one is the rich dad and one is the poor dad. Where the poor dad is well educated, hard-working, goes office 9-5, and has a traditional dream of owning a house. While the rich dad is opposite he believes in building assets instead of creating liabilities. Common man always purchases things that are not required on credit and creates liabilities Like purchasing expensive cars, clothes, mobile phones etcetera. Assets are the one which brings money and liabilities are the ones which take away money. This book speaks about how creating an asset will make a permanent source of passive income, For example, investing in stocks or real estate are some of the sources to generate passive income. Creating assets will eventually lead to making you wealthy and gives you financial freedom.
Link to buy the book: Rich Dad Poor Dad
Learn to Earn: (Written by Peter Lynch in 1995)
The author believes that anyone can achieve financial freedom by investing in companies they use in their day to day life. The author has made this book so simple that even a school going guy can easily understand what he is trying to convey. He has explained terms such as a stock table, company annual report, why one should pay attention to the stock market, and many more in the most simplistic way possible.
One of the key takeaways from this book is how to invest in the stock market and how to think like an investor.
Link to buy the book: Learn to Earn
Common Stocks and Uncommon Profits: (Written by Philip Fisher in 1958)
The book is a comprehensive guide on how to look for Growth businesses. This book was written by Philip Fisher, he was a pioneer in the world of financial analysis. The author has mentioned in this book that an investor should not invest in the stock without doing proper research and without getting adequate financial information for the last few years. His philosophy is "Purchase and hold for the long term a concentrated portfolio of outstanding companies with compelling growth prospects that you understand very well". Mr. Buffet has used some of Fisher's investing techniques from this book while investing in the company "Coca-Cola". He claims to be 85%, Mr. Graham, and 15%, Mr. Fisher.
Link to buy the book: Common Stocks and Uncommon Profits
Ratio Analysis Fundamentals: (Written by Axel Tracy in 2005)
This book contains 17 financial ratios that help you to analyze any business on the planet. It helps you to understand ratio analysis in a very detailed way and improve your business and investment decisions. It is a clear and concise book to improve your fundamental analysis. This book helps you with the application of ratio analysis by taking data from the financial statements and evaluating business performance.
A highly recommended book for someone willing to enter into the finance industry. A must-read for all the finance enthusiasts especially MBA finance candidates.
Link to buy the book: Ratio Analysis Fundamentals
Security Analysis: (Written by Benjamin Graham and David Dodd in 1934)
This book is one of the oldest books that has ever been written on the stock market, immediately after the Wall Street crash and before the start of the Great Depression. It’s a comprehensive guide into the world of investing. The language used in the book is quite complex and definitely, this book is not for someone who is a beginner. This is one of the favorite books of Mr. Warren buffet, he repeatedly praises Benjamin grams for the knowledge and investment success he achieved from reading his book. The book talks about the three key concepts:
- What is the difference between speculating and investing?
- How much money is the company really making?
- How can the balance sheet reveal the truth about the company?
Security analysis is one of my favorite books and I would recommend everyone to read just once, the knowledge in these books does not have any substitute.
Link to buy the book: Security Analysis
This was all about the best and most popular recommendation by many great personalities to achieve financial freedom and gain vast knowledge. compiled in one single article "9 Best Finance Book Ever Written"
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