For anyone looking to explore the whims and magical lands of the Stock Market, here are some of the books that initially helped me the most in lighting the path toward castles, moats, and a compounded rate of return.

The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns
By, John C. Bogle

This was one of the very first books I read when I became interested in investing. At the time, I had absolutely no concept of what the stock market did, or how to invest, or even what types of investments existed. I was a complete noob to the financial world, and this book was my foray into the terminology, and common investing practices used by both experienced and inexperienced investors.

This book was also my first foray into the wild lands of self-education. To me, learning about finances seemed like a massive undertaking. I was pretty certain the stock market would be too hard for me to touch, let alone grasp hold of. I was also certain that I wouldn’t be able to teach myself. I mean sure, I can teach myself how to bake a cake, but invest all my hard-earned savings into some made up, number-fueled, confusing, human fault led machine? Yeah, that seemed impossible.

I figured, if I couldn’t understand what Bogle was talking about, then I likely wouldn’t be able to teach myself how to invest. The stakes were high for this book, but luckily, Bogle made it easy. He has a very simple way of explaining things, and rather quick hand when it comes to summarizing big concepts. Rest assured, reading this book did not result in a termination of my short lived, Wall Street career. Instead, Bogle motivated me to keep going, and hey, if stock picking didn’t work out, Bogle taught me that investing in low expense index funds was by far the next best thing.

By the end of this book, I had a firm grasp of how the market worked, along with a brief education of general investing terms, methods, and details to look out for as it pertains to investing and throwing cash into an index.

Invested: How I Learned to Master My Mind, My Fears, and My Money to Achieve Financial Freedom and Live a More Authentic Life (with a Little Help From Warren Buffett, Charlie Munger, and My Dad)
By, Danielle Town with Phil Town

This was my next read in my endeavor to understand investing, and I have to say, this book really took my hand, gave it a pat, and led me on the most comforting, educational journey of my life.

This is not your normal stocks, finances, and investing book. Sure, Danielle, and her dad, Phil talk a lot about stocks and finances and investing, but they do so in such an interesting way. Rather than spew a bunch of terms and concepts page after page, Danielle uses her own voice, (not one saturated by Wall Street lingo) to talk about her personal experience learning about this stuff. It’s not easy, and Danielle allows the reader some liberty by describing her own struggle to understand and find motivation within all the numbers and uncertainty.

Invested is both an entertaining and informative read, instilling priceless lessons along with realistic quips and supportive conjectures as it relates to investing like one of the Greats. Danielle’s writing and her Dad’s teaching help to bridge the gap between the stuff you need to know, and the emotional turmoil investing can have, especially when you’re first starting out. It’s a fantastic read, and a great confidence booster for all those new to the world of stock investing.

Rule #1 Investing: The Simple Strategy for Successful Investing in Only 15 Minutes a Week!
By, Phil Town

Another great read from the Town family library, Rule #1 Investing provides a different point of view to the methods discussed in Danielle Town’s, Invested.

When I first read Rule #1 Investing, I was pretty far along in my investing journey, and in need of a confidence boost. It had been about a year since I had first begun combing the market for companies on sale, and so far, the market had been uncompromising in it’s bull stability. I had invested in a few companies at sticker value, but those companies hadn’t made any real sizable returns yet. I felt like I was just treading water, waiting for something to happen.

I started reading Phil Town’s first book in an attempt to find a different point of view, and to possibly discover a missing piece of the puzzle, something that would help me better find great companies on sale.

If nothing else, Rule #1 Investing, taught me to be patient, and to do the research now so that when the opportunity comes, I’ll be ready to invest. After reading Town’s book, I changed my investing strategy somewhat. Rather than look for companies that were on sale now, I looked for great companies, confirmed their greatness by researching their numbers, their competitive advantage, and their management, then I added them to my wishlist. The more companies I researched and added to my wishlist, the greater the likelihood one of them would encounter some kind of event that would knock their stock price down to a margin of safety. Given their story didn’t change, I would be ready to throw a bunch of money into the pot.

This book reminded me of the most important aspect of value investing which is, be patient. I also learned some handy-dandy calculating techniques which helped me to quickly comb through companies without wasting time with a calculator and pen.

Get Reading

There are plenty more books out there written by some prolific investors, economists, and market movers that would be a great addition to this list. However, for the novice investor and the optimistic noob, these are the books that helped me the most, and which I still refer back to from time to time.

Above all else, the most important thing a value investor can do is READ. Read about the world, about companies, about investments, and other investors. I read constantly, and I think everyone should to.

Hell, reading pairs excellently with a good cup of coffee.