Anyone can come up with a list so here is my revised Top Ten Investment books. As you can see from shelf of books shown in the photograph below, it is not easy to narrow down the list to a mere ten. Be forewarned, this is not a list of books that focus on either fundamental analysis of stocks, nor is it a list of books explaining detailed technical analysis. The closest to technical material is number 10, Dual Momentum Investing, a new and important addition. In fact, the list below is the antithesis of stock picking. My recommendation of the top ten investment books focuses on by DealDropDown” href=”http://itawealthmanagement.com/category/freshman-level/books/page/2/#”>index investing and a passive to semi-passive approach to portfolio management. When I use the term passive, I do not mean that in the tightest definition of that term as several portfolios follow a management style that is closer to that explained in the Dual Momentum book.
Here is my revised recommended list.
- Four Pillars of Investing – William J. Bernstein
- The 3 Simple Rules of Investing* – Michael Edesess
- The Investor’s Manifesto – William J. Bernstein
- The Ivy Portfolio – Mebane T. Faber and Eric W. Richardson
- The Little Book of Common Sense Investing – John C. Bogle
- The Elements of Investing – Burton G. Malkiel and Charles D. Ellis
- The Intelligent Asset Allocator – William J. Bernstein
- The Power of Passive Investing – Richard A. Ferri
- Asset Allocation – Roger C. Gibson
- Dual Momentum Investing* – Gary Antonacci
There are several ways to read these books. 1) Read them from start to finish as one reads most books. This looks like a daunting task if one is going to commit to reading all ten. 2) An alternative approach is to have, say the first seven or eight on your book shelf and you pick themes to read. For example, you might check the index of each and read all about asset allocation or rebalancing. Use them as reference books. If you take this approach, I highly recommend you read Bernstein’s second book, “Four Pillars” from start to finish so you have a sound base from which to begin developing your portfolio plan and eventually a strategy for portfolio management and tracking. Another excellent starter is The Investor’s Manifesto. It may be a little easier to read, so take that into consideration. Carve out the time to read a few of these books and it will reward you over the course of your investing life.
I just completed Dual Momentum Investing and I highly recommend reading it as well as The Feynman Study and Rutherford Portfolio blogs on this site.
None of the above books go into sufficient detail about maintenance and monitoring portfolio and benchmark performance. To fill in that gap take the time to examine and learn how to use the TLH Spreadsheet, available on this blog.
* New additions
Troll Photograph: This particular troll bungee jumped 180 feet off an old logging road over the Lewis River in Washington. At the time, it was the highest legal bungee jump in North America.