If you search “finance books” on Amazon, over 100,000 books appear. The world of finance is complex and is involved in almost everything in today’s world from local businesses in your neighborhood to multinational conglomerates to drama happening on Wall Street. With all the saturation in the finance niche, it may be daunting for someone who wants to break into finance but has no idea where to start. Romero Mentoring did the heavy lifting for you and compiled a list of seven must-read books you need to start with.
1. The Intelligent Investor – Benjamin Graham
Known as the philosopher of value investing, Benjamin Graham’s The Intelligent Investorprovided the mindset and key principles to buying investments when they were underpriced. Warren Buffet spoke about Mr. Graham’s book in an interview and said,
“In 1949 when I was 19 in Lincoln, Nebraska, I picked up a copy of The Intelligent Investorand not only [did] it change my investment philosophy, it really changed my whole life. I’d be a different person at a different place if I hadn’t seen that book.”
The Intelligent Investor was first published in 1949 and has been continuously updated with new editions as the finance world changes. Graham’s theories still hold value nearly 71 years later in an entirely different economy and market.
2. A Random Walk Down Wall Street – Burton Malkiel
Published in 1973, A Random Walk Down Wall Street details Burton Malkiel’s “time-tested strategy” for investing in the stock market. Malkiel believes that investing in index funds, internationally diversified index of securities, can earn a profit that exceeds portfolio returns picked by professionals. Malkiel goes into detail about his ideology behind investing in index funds, as well as his strategy that has been popularized by the finance industry today.
3.Mastering Financial Modelling in Microsoft Excel – Alastair Day
With over 20 years of experience working in the finance industry, Alastair Day provides the bedrock for finance professionals by providing basic methods, tools, and formulas for building financial models and spreadsheets in Microsoft Excel. As you progress through the book, Day details complex models and corporate finance solutions that you would encounter in the field. This book is a lifelong reference for finance professionals to hone their Microsoft Excel skill set.
4. Security Analysis – Benjamin Graham and David Dodd
Benjamin Graham and David Dodd explain the idea of value investing and what it means to them in Security Analysis.First published in 1934, this book has become a staple for any finance professional and is often referenced by industry leaders such as Warren Buffet, whom was a student of Graham’s at Columbia University and later worked with Graham for 25 years. Graham and Dodd detail the techniques of value investing in-depth and this style of investing remains popular today.
5. Understanding Corporate Finance – John Cousins
Author John Cousins explains what corporate finance is and what it involves. From how companies make decisions about projects to how, when, and where to invest money, this book will provide a framework to better understand corporate finance and make you think like a finance professional. Corporate finance is the backbone for businesses and is essential for businesses to continue operating. Cousins provides information that can benefit personal situations as well when making big decisions such as mortgages and borrowing money by using his technical analysis tools you learn throughout the book.
6. Reducing the Risk of Black Swans – Kevin Grogan and Larry Swedroe
Nassim Nicholas Taleb coined the term “black swan” that is described as an unpredictable and rare event with severe consequences that may cause catastrophic damage to an economy. Reducing the Risk of Black Swansis an investor-oriented book that details the technical knowledge of evidence-based investing paired with hard data and research to back Grogan and Swedroe’s writing. The authors go in-depth on the construction of portfolios and provides a blueprint for investors and financial advisors looking to refine their portfolios using evidence-based investing.
7. Rich Dad Poor Dad – Robert Kiyosaki
Author Robert Kiyosaki provides the mindset necessary for anyone to become successful. Kiyosaki lists key points to instill into your mind and to not think like everyone else. Rich Dad Poor Dad ignites a form of thinking that is unconventional to the traditional mindset that society places all while providing an easy read. Kiyosaki speaks on many topics in his book such as why the education system is flawed and how you can shift your mind into seeing his point of view. The principles in his book still prove true today, almost two decades later.
Conclusion
These books are only a few out of the thousands of finance books that are available today but are a good starting point for anyone interested in finance whether it be personal or corporate finance. The ideologies mentioned in these books prove to be true throughout time making each of these books a valuable resource for finance professionals. In today’s society, people spend their free time distracted with entertainment. If you use your free time to increase your financial knowledge or improve your finance strategies instead, you will be ahead of the person spending hours in front of the tv.
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