If you want to get rich, the single most effective way to do it is to invest.
“On average, millionaires invest 20% of their household income each year. Their wealth isn’t measured by the amount they make each year, but by how they’ve saved and invested over time,” writes Ramit Sethi in his New York Times bestseller, “I Will Teach You To Be Rich.”
To help you get started, we compiled some of the greatest books out there on investing by sorting through legendary investor Warren Buffett’s favorites, and adding a few of our own top picks.
No guarantees, of course — but if you want to get rich, it can’t hurt to get reading.
‘The Intelligent Investor,’ by Benjamin Graham
Warren Buffett first picked up a copy of legendary Wall Streeter Benjamin Graham’s “The Intelligent Investor” when he was 19. It was one of the luckiest moments of his life, he said, because it gave him the intellectual framework for investing.
Buffett is not the only fan: Billionaire investor Bill Ackman, among countless other Wall Street power players, cite this in-depth introduction to value investing as life-changing.
Even if the industry you work in is far removed from finance, Graham’s advice will help you make the most of your money in the long term.
‘The Little Book of Common Sense Investing,’ by Jack Bogle
Endorsed by Buffett in his 2014 Berkshire Hathaway shareholder letter, “The Little Book of Common Sense Investing” tells you how to use index funds to build wealth.
Bogle, founder of the Vanguard Group and creator of the world’s first index fund, explains why these relatively straightforward vehicles can be so effective — and warns against investment fads and fashions.
Fans say it’s far from boring, and the stats and charts are balanced with anecdotes and advice.
‘The Investment Answer,’ by Daniel C. Goldie and Gordon S. Murray
In “The Investment Answer,” Goldie and Murray provide a general guide to investing by focusing on five decisions every investor has to make. These include whether to invest alone or with a professional; how to allocate among stocks, bonds, and cash; and when to sell or buy assets.
Murray, a Wall Street veteran, and Goldie, a financial adviser, keep their guide brief and jargon-free for any investor — experienced, beginner, and everyone in between.