Reading List for New Investors

I started my investing journey solely by reading a few select books recommended by people on the Internet. I would use to read them during rest time or the long waiting in the firing range. Army mates used to ridicule me for reading investment books instead of playing PSP or cards. Some gave snide remarks like, "You have the money to invest meh?". Looking back, those are time well spent!

Below is the list of books I've read and I will also TRY to recall some of the key concepts covered in each book and the usefulness of it. Please pardon if it is somewhat erroneous because these are books I read between 1 - 3 years ago! 

A Random Walk Down Wall Street: The Time Tested Strategy for Successful Investing by Burton G. Malkiel
This lengthy-titled book gives readers a general guide to navigating the financial market. For instance, he advises that investors use four basic determinants to help estimate proper values of companies.

1. Expected rate of growth. Larger growth rate of earnings and dividends, higher the price.
2. Expected dividend payout. Higher percentage of dividend payout, higher the price. However, other factors are not considered. Poor prospect company may pay good dividend while expanding company may hold back dividend like Apple. 
3. Degree of risk. Naturally, higher risk, lower price.
4. Level of market interest rate. Lower interest rates, increase in stock price expected. 

In addition, the author recognises that an average investor will find it hard to beat the market. Hence he has a few recommendations for us. These include saving to invest, buying your own house, understanding your own investment objectives before investing

The Intelligent Investor by Benjamin Graham
Benjamin Graham is one of the "founding fathers" of value investing. Warren Buffet, himself, was mentored by Graham. While the book does not impart techniques to specifically select stocks, it discusses a wide range of topics. Eg. Investment vs Speculation, Portfolio Allocation, Dividend Policy.
The book provides an excellent foundation for beginners to learn investing; the principles of investing. Personally the book had convinced me to go for investing compared to trading. Though many use these terms synonymously, there is a big difference between these two which I will discuss some other day.

The Warren Buffet Stock Portfolio: Warren Buffet Stock Picks: Why and When by Mary Buffet, David Clark
This was the latest book I had read during the free time in reservist. In this book, we are introduced to how Warren Buffet chooses companies to invest in. Basic concept is to have the company possess a reasonable economic moat and increasing EPS (earnings per share).
Using the increment EPS, the book further teaches us how to project the stock's future price and see whether it's "potential" gain might warrant a buy now.
Ever since reading this book, I had only exclusively used this method to value a stock. I would say the method was fairly accurate because the screening of economic moat and increasing EPS had already ensure that the company is very strong.


Winning the Loser's Game by Charles D. Ellis
Along the same line as the above-mentioned  books, Charles aims to tell readers how to behave rationally in the stock market. Also, how to balance their portfolio of companies. The mix is determined partly your purpose of investing purposes (for growth, passive income or inflation?). He also advises investor to diversify within each asset class and between asset class.
This book covers what in already in Benjamin Graham's and Burton's books. So if you are not keen in reading, you can skip this book for the other two.


Books are the first step towards the world of investing and it is imperative that one read at least one or two books. This ensures that the person knows what is his investment objectives and can work gradually towards them.