Our Top 10 Investing Books: Stock Unlock’s Favorites
"In my whole life, I have known no wise people (over a broad subject matter area) who didn't read all the time -- none, zero. You'd be amazed at how much Warren reads--and at how much I read. My children laugh at me. They think I'm a book with a couple of legs sticking out" - Charlie Munger
With the holiday season coming up, a good book is one of the best gifts to receive to set yourself up for success in 2025. At best, it can help establish an investment philosophy and learn from many of the world’s best investors. And even if a book is not particularly a good read, you will likely still pick up one or two things that can help you along the way.
Here are some of Stock Unlock’s favorite investing books:
Bought to you by: Stock Unlock.?
1) Warren Buffett and the Interpretation of Financial Statements by David Clark, Mary Buffett
This book, co-authored by Warren Buffett’s daughter-in-law, tells readers how Buffett reads and interprets financial statements to find the best companies. The book provides plenty of examples from some of Buffett’s best investments, such as Wrigley’s and Coca-Cola, and shows what Buffett looks for to identify a durable competitive advantage.?
The book discusses the most important things to look for in the income statement, balance sheet, and cash flow statement and what connects the numbers (e.g., returns on capital) that are essential to understand when evaluating a business. This makes it especially helpful for investors who do not have a background in accounting or finance.?
2) Sam Walton: Made in America
Biographies of successful founders offer a different perspective on some of the biggest and most famous companies in the world today.?
Walmart, a $700 billion business, was once a one-store retailer in rural Arkansas that Sam Walton opened relatively late in his life. He writes about how he fiercely fought to offer the lowest prices and most value for customers, which includes flying around the Midwest in his small airplane and looking for the best deals from manufacturers.?
Reading a biography like this one can also help investors identify a great business in its early stages. Founder-led companies that intensely work to build a moat and offer a differentiated product will also create a lot of shareholder value in the growth face. For example, Walmart returned an insane ~45% CAGR between the 1970 and 1990. That would turn a $1650 initial investment into $3 million over two decades.?
3) One Up on Wall Street by Peter Lynch
A must-read. Peter Lynch is not only one of the best investors of all time, but also a fantastic writer. This book tells retail investors how to use their advantages to outperform the pros and avoid the classic pitfalls that lead amateurs to buy the wrong stocks and sell at the wrong time.?
4) Richer, Wiser, Happier by William Green
William Green, one of the best financial journalists and podcast interviewers of our time, shares the most essential lessons from some of the world’s best investors. The lessons are extracted from several decades of interviews, some of which included Green spending several weeks with the interview subjects to learn what sets them apart.?
5) Poor Charlie’s Almanack by Charlie Munger
Munger is known for his vast amount of knowledge across several disciplines, including economics, psychology, philosophy and law. Munger also famously described himself as a “learning machine” who remained intellectually curious until his last day. This book provides lessons and mental models that will help you that will help you in investing and, more broadly, make better decisions in your everyday life.?
Or, as Shane Perrish described it, “There is a billion-dollar education inside this book.”
6) The Investment Checklist by Michael Shearn?
This book aims to help investors in the research process by creating a process that includes asking questions and creating checklists to thoroughly understand the business. Properly understanding the companies behind the stock tickers is important to avoid mistakes and selling at the wrong times.??
The checklists include assessing the quality of management, financial health, valuation, and forming an investment thesis, which is so important to prevent emotions from dominating investment decisions.
7) The Fundamentals of Investing by Daniel Pronk
Stock Unlock’s co-founder is also a #1 Best-Seller on Amazon. His book discusses the most important lessons from legendary investors such as Warren Buffett and Peter Lynch, as well as from Daniel’s own investing journey.?
Daniel is extremely good at explaining investment concepts in an easy-to-understand way, making the book ideal for investors looking to improve their process and build wealth through investing.?
8) The Genie Within: Your Subconscious Mind by Harry Carpenter
This book on the subconscious mind has important applications to investing. Learning about your innate biases will help you make better, more rational decisions - and more importantly, avoid letting your subconscious mind and emotions control your behavior.?
With the extreme volatility in financial markets over the past five years, behavioral finance is becoming ever more relevant. Mastering your psychology has always been an edge in the stock market, and it will likely to become increasingly important going forward.?
9) The Intelligent Investor by Ben Graham
The Investing Bible. While some will claim that Graham’s lessons are outdated (which could be fair, especially the cigar-butt approach), some are timeless.?
The chapter on “margin of safety” is a must-read for any investor, regardless of experience. Graham also introduced the famous “Mr. Market” allegory that Buffett often refers to. Graham’s lessons are often forgotten during times of euphoria in the markets, which gives investors who pay attention to these things the ability to take advantage of Mr. Market’s mood swings and buy the right businesses.?
10) ?100 Baggers by Chris Mayer
Inspired by Thomas Phelps’ 100 to 1 In the Stock Market, Chris Mayer’s book reviews the common characteristics of “100 baggers”—stocks that return $100 for $1 invested. Some of the examples include Amazon, Apple, and AutoZone, and the book discusses how investors can recognize these companies in the early innings.??
One of the most memorable lessons from the book is that amateur investors are just as capable as professionals of spotting potential 100 baggers. Look for earnings growth and a long runway to reinvest, plus the potential for multiple expansion - this combination is often found in smaller companies that professional investors frequently avoid for various reasons. Once you find a good business, you must hold on through the volatility - another step professionals rarely follow.?
Extra: Berkshire Hathaway’s Letters to Shareholders
There are plenty of books summarizing Warren Buffett’s Letters to Shareholders over the years, but each letter from 1977 to 2023 is available for free here. These letters give a fantastic insight into Buffett’s investment philosophy and his behavior across different market cycles, and certainly provide investors with an education few books and courses can match.??
Finally - Happy Thanksgiving to our readers in the United States from the entire Stock Unlock team!
Author
This Newsletter's Author
This newsletter was written by J?rgen Pettersen. You can find him on?Twitter/X.
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Stock Unlock's newsletter is not a recommendation to buy or sell stocks. Stock Unlock does not provide financial advice, and we are writing this newsletter to help share ideas and teach you more about stock analysis. Please do not buy or sell stocks we discuss without doing your own research and/or consulting with a professional.
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