All About Asset Allocation by Rick Ferri – This short and easy to read book is a great starting point for a DIY investor that is beginning their investment journey. The author writes in an easy to understand way and attempts to guide investors toward the two very important principles of diversification and low fee investing. He even lays out ETFs that are likely to meet different investors’ needs.

The Intelligent Investor by Benjamin Graham – Many would consider this one as the value investors’ bible. From the man who literally wrote the book on Security Analysis and the mentor of none other than Warren Buffett, this book should be on every investors’ list of must-reads. It can have some dry spots but overall The Intelligent Investor is an easy-enough read to get through in short order.

A Random Walk Down Wall-Street by Burton Malkiel – Much like the intelligent investor is the value investing bible, A Random Walk Down Wall Street is akin to the passive investors bible. The book covers various strategies and the pros and cons of using them and really helps to put a feather in the passive investors cap. Regardless of whether you are in the passive or active camp, this is still a must-read investment book.

What Works on Wall Street by James O’Shaughnessy – Another investing classic, What Works on Wall Street takes wisdom that many investors simply accept to be true (Such as buying low P/E, momentum stocks, etc.) and puts a large amount of data behind the claims to either corroborate general wisdom or dispel myths. Admittedly, this is probably the hardest book to get through as it hurls data table after data table at the reader but that is also sort of the point of this one as it proves the efficacy of strategies through a lot of historical data. This book can be great to allow an investor to perfect their investment strategy or maybe see that some factors they are using are not all that helpful. It is also an interesting contrast to A Random Walk Down Wall Street. 

The Wealthy Barber by David Chilton – While more of a personal finance book than an ‘investment’ book per se, we felt this was nonetheless an important read and can really help to round out an investors toolbox. The author takes a unique approach to talking about personal finance that should make it easier to get through for readers that do not get overly excited about reading books on finance and investing.

The discerning reader may notice that the books above do not follow any consistent theme. The options range from books that support passive investing and the importance of asset allocation to ones that stand by active investing and stock picking but that is the point. Investors should not decide they are a certain type of investor and close themselves off to the other areas of the investment universe. As in life, it is important to be open to other views and opinions as valid points are made in all books that should not be outright ignored.  Reading the above five books and taking some time to think critically about what each one is saying is a great step in polishing off an investors knowledge base and can help provide the confidence needed to believe in ones self as they continue along their investing journey.