Here are some of the best books about investing in the 21st century that were not previously published:
“The Little Book That Beats the Market” by Joel Greenblatt (2005)
“The Little Book That Beats the Market” is a book written by Joel Greenblatt, a hedge fund manager and professor at Columbia Business School. The book outlines a simple and straightforward investment strategy that Greenblatt claims can beat the market.
The strategy is called the “Magic Formula,” which involves investing in companies with high earnings yield and high return on capital. The book explains the rationale behind this strategy and provides step-by-step guidance on how to implement it.
One of the key concepts of the Magic Formula is the idea of buying good companies at a bargain price. Greenblatt suggests that by focusing on companies with high earnings yield and high return on capital, investors can identify undervalued companies that have strong potential for growth.
The book has been popular among individual investors and has received praise for its clear and accessible writing style. Some critics have argued that the Magic Formula is too simplistic and does not take into account other factors that can impact a company’s performance.
Overall, “The Little Book That Beats the Market” offers a practical and straightforward approach to investing that can be useful for individual investors looking to build a long-term investment strategy.
“Fooled by Randomness” by Nassim Taleb (2001)
“Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets” is a book by Nassim Nicholas Taleb, a statistician, former options trader, and risk analyst. The book was first published in 2001.
In the book, Taleb argues that humans are prone to misinterpreting and misunderstanding randomness, particularly in the context of the financial markets. He argues that many people falsely believe that their successes and failures are solely the result of their own abilities and actions, when in fact they are heavily influenced by random chance.
Taleb suggests that many financial market participants are “fooled by randomness,” and overestimate their own abilities and the predictability of the markets. He argues that investors and traders should be more skeptical of their own beliefs and more aware of the role of randomness and uncertainty in the markets.
The book covers a wide range of topics, from the psychology of decision-making to the role of luck and chance in financial markets. It also includes examples and anecdotes from Taleb’s own experience as a trader and risk analyst.
“Fooled by Randomness” was well-received by both the general public and financial professionals, and has been credited with influencing the field of behavioral finance. Taleb has since written several other books on related topics, including “The Black Swan” and “Antifragile.”
“The Black Swan” by Nassim Taleb (2007)
“The Black Swan: The Impact of the Highly Improbable” is a book by Nassim Nicholas Taleb, a statistician, former options trader, and risk analyst. The book was first published in 2007.
In “The Black Swan,” Taleb expands on the ideas he introduced in “Fooled by Randomness,” exploring the role of rare and unpredictable events (which he calls “black swans”) in human history and in financial markets. Taleb argues that black swans are a fundamental aspect of the world, and that they have a disproportionate impact on our lives and our understanding of the world.
Taleb argues that many people are ill-equipped to deal with black swan events because they rely too heavily on models and theories that assume a stable and predictable world. He suggests that we need to be more skeptical of these models and theories, and more aware of the limits of our own knowledge and understanding.
The book covers a wide range of topics, from the history of science to the psychology of decision-making. Taleb also includes numerous examples of black swan events, including the rise of the Internet, the September 11 attacks, and the global financial crisis of 2008.
“The Black Swan” was a commercial and critical success, and has been credited with popularizing the concept of black swan events in the public consciousness. Taleb has since written several other books on related topics, including “Antifragile” and “Skin in the Game.”
“The Big Short” by Michael Lewis (2010)
“The Big Short: Inside the Doomsday Machine” is a book by Michael Lewis, a journalist and author known for his work on Wall Street and finance. The book was first published in 2010.
In “The Big Short,” Lewis tells the story of a group of investors who saw the housing bubble of the mid-2000s and bet against it, making billions of dollars in the process. The book focuses on the stories of several key players in this group, including hedge fund manager Michael Burry and trader Steve Eisman.
Lewis uses the stories of these investors to explore the causes of the housing bubble and the subsequent financial crisis of 2008. He argues that the crisis was caused by a combination of factors, including the widespread use of subprime mortgages, the complexity of financial instruments like collateralized debt obligations (CDOs), and the failure of regulators to understand or regulate these new financial instruments.
“The Big Short” was a critical and commercial success, and was later adapted into a hit movie starring Christian Bale, Ryan Gosling, Steve Carell, and Brad Pitt. The book is widely credited with popularizing the idea that the financial crisis was caused by systemic problems in the financial system, rather than just a few bad actors. It has also been praised for its engaging and accessible writing style, which makes complex financial concepts accessible to a general audience.
“Thinking, Fast and Slow” by Daniel Kahneman (2011)
“Thinking, Fast and Slow” is a bestselling book written by Nobel Prize-winning economist and psychologist Daniel Kahneman. The book explores the two different systems that drive the way we think: System 1, which is fast, instinctive, and emotional; and System 2, which is slower, more deliberative, and more logical.
Kahneman presents research that shows how our minds are often influenced by biases and heuristics that can lead to errors in judgment and decision-making. The book offers insights into how we can improve our thinking by becoming more aware of these biases and using strategies to overcome them.
The book has been widely praised for its accessible writing style and its ability to make complex psychological concepts understandable to a general audience. It has been included on numerous “best of” lists, and has been translated into over 30 languages. “Thinking, Fast and Slow” is considered a must-read for anyone interested in improving their decision-making skills, whether in personal or professional contexts.
“Flash Boys” by Michael Lewis (2014)
“Flash Boys” is a bestselling book written by Michael Lewis, who is known for his work on finance and economics. The book explores the world of high-frequency trading (HFT), a practice in which traders use complex algorithms to buy and sell stocks at lightning-fast speeds.
Lewis argues that HFT has created an unfair advantage for certain traders and exchanges, allowing them to make large profits at the expense of other investors. He also suggests that the financial markets have become increasingly rigged in favor of HFT firms, and that this has led to a loss of trust in the markets.
The book is based on interviews with traders, regulators, and others involved in the financial industry, as well as extensive research into the workings of HFT. It has been praised for its engaging storytelling and its ability to make complex financial concepts accessible to a general audience.
“Flash Boys” has been a controversial book, with some critics accusing Lewis of oversimplifying the issue and others defending his portrayal of the financial industry. Despite the controversy, the book has been widely read and has had a significant impact on discussions around the role of technology in finance.
“The Only Investment Guide You’ll Ever Need” by Andrew Tobias (2016 edition)
“The Only Investment Guide You’ll Ever Need” is a popular book on personal finance and investing written by Andrew Tobias. The book has been updated several times since its initial publication in 1978, with the most recent edition being released in 2016.
The book covers a range of topics related to personal finance, including budgeting, saving, investing, retirement planning, and more. It is written in a humorous and approachable style, with plenty of anecdotes and examples to help readers understand the concepts being discussed.
Tobias emphasizes the importance of long-term investing and the benefits of a diversified portfolio. He also provides practical advice on topics like choosing a financial advisor, navigating the world of mutual funds, and avoiding common investment pitfalls.
Despite its somewhat irreverent tone, “The Only Investment Guide You’ll Ever Need” is considered by many to be a comprehensive and valuable resource for anyone looking to improve their financial literacy and take control of their financial future.
“The Simple Path to Wealth” by JL Collins (2016)
“The Simple Path to Wealth” is a personal finance and investing book written by JL Collins and published in 2016. The book offers a straightforward and accessible approach to financial independence and wealth building.
Collins promotes a low-cost, long-term investment strategy, focusing on the benefits of investing in index funds and avoiding high fees and unnecessary complexity. He emphasizes the importance of staying the course, sticking to a plan, and avoiding common investing mistakes.
The book covers a range of topics, from the basics of budgeting and saving to more advanced investing strategies, such as tax optimization and asset allocation. It also offers practical advice on topics like retirement planning, insurance, and estate planning.
“The Simple Path to Wealth” has been well-received by readers and critics alike, with many praising its clear and concise writing style and its practical, actionable advice. It is often recommended as a must-read for anyone looking to improve their financial literacy and build a solid foundation for long-term wealth.
“The Bogleheads’ Guide to Investing” by Taylor Larimore, Mel Lindauer, and Michael LeBoeuf (2006)
“The Bogleheads’ Guide to Investing” is a book written by Taylor Larimore, Mel Lindauer, and Michael LeBoeuf and was first published in 2006. The book is a guide to investing based on the principles of John C. Bogle, founder of the Vanguard Group and creator of the first index mutual fund. The book emphasizes a simple, low-cost, and passive approach to investing that aims to minimize risk and maximize returns over the long term.
The book covers a range of topics, including how to set investment goals, how to build a diversified portfolio, and how to minimize taxes and expenses. The authors stress the importance of investing in low-cost index funds and avoiding high-cost actively managed funds that often underperform. The book also includes advice on asset allocation, rebalancing, and staying the course during market downturns.
Since its publication, “The Bogleheads’ Guide to Investing” has become a popular resource for investors looking to adopt a passive investment strategy. The book has been updated multiple times, with the most recent edition published in 2018, and has sold over 300,000 copies.
“Your Money or Your Life” by Vicki Robin and Joe Dominguez (2008 edition)
“Your Money or Your Life” is a book by Vicki Robin and Joe Dominguez that was first published in 1992 and revised and updated in 2008. The book is focused on helping readers transform their relationship with money and achieve financial independence.
The authors introduce the concept of the “crossover point,” which is the point at which the income from a person’s investments exceeds their expenses. The book outlines a nine-step program that aims to help readers reach their crossover point by reducing expenses, increasing income, and investing for the long-term.
The book also emphasizes the importance of understanding the true cost of one’s job, including the cost of commuting, work-related expenses, and time spent working. It encourages readers to consider alternative forms of work that may be more fulfilling and aligned with their values.
“Your Money or Your Life” has been widely acclaimed for its practical advice and approach to personal finance, and is considered a classic in the genre.
These books cover a range of topics related to investing, from understanding market trends to building a long-term investment strategy. They have become popular for their engaging writing styles and unique perspectives on investing in the modern era.