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Best 10 trading books: insights from Warren Buffett and Ray Dalio

As the holidays approach, these books are sure to please any investor or trader looking to broaden their knowledge, ideas and strategy in 2019. This list of stocking fillers features classics and new releases, covering everything from China’s economy to trading basics with investor legends Benjamin Graham and Warren Buffet.

 

1. Thinking, Fast and Slow by Daniel Kahneman 

As one of the fathers of cognitive biases and winner of the Nobel Prize for economics, Daniel Kahneman distils a lifetime of research into a study of the dual process model of the brain, which lends itself well to investors as he goes through the complex and spontaneous factors that weave themselves into decision-making. When it comes to trading, understanding these psychological factors can be vital. 

 

2. Financial Spread Betting Handbook by Malcolm Pryor

As one of the most popular books on the strategy of spread betting, financial analyst Malcolm Pryor has crafted an exhaustive guide. Using mountain climbing as a metaphor, Pryor outlines the benefits and pitfalls of spread betting and progresses through its complexities to help his readers reach new heights. The second edition of the book was released in 2011 and includes a few key updates.

 

3. Delivering Alpha: Lessons from 30 Years of Outperforming Investment Benchmarks by Hilda Ochoa-Brillembourg 

This is the freshest book on the list, with the latest edition published in December 2018. Written by Ochoa-Brillembourg, who spent many years managing the World Bank pension fund. Ray Dalio calls her “one of the great investors of the last 30 years” and Delivering Alpha “a one-of-a-kind insightful journey into the facts, processes, and principles of delivering sustainable value-added in investing.” 

“One of the great investors of the last 30 years” - Ray Dalio about Hilda Ochoa-Brillembourg

4. Insider Buy Superstocks by Jesse Stine 

Despite no formal training in Wall Street, Jesse Stine was able to turn $46k into a staggering $6.8m in only 28 months. Described as an “unconventional trading cowboy”, Stine’s debut book narrates his journey into swing trading and includes technical case studies that highlight strategies and metrics he used to bolster his fortune. 

 

5. Dot.Con: The Greatest Story Ever Sold by John Cassidy 

At a time when investors are wondering whether we are currently in another tech bubble, it might be worth revisiting what started the first one. John Cassidy, a renowned business journalist at the New Yorker, recounts the buildup and mania that surrounded technology stocks in a historical narrative that takes readers to the inevitable crash five years later.

 

6. The Essays of Warren Buffet by Warren Buffet and Lawrence Cunningham 

In the third edition of Warren Buffet’s annual letters to Berkshire Hathaway shareholders, Lawrence Cunningham, a professor at George Washington University, has taken Buffet’s original 1997 essays, incorporated more recent letters and arranged the rest into themes that Buffet says “best explains his investing style”. The international best seller is filled with Buffet’s principles and strategies.

“Best explains his investing style” - Warren Buffet on this third edition of his annual letters to Berkshire shareholders

7. Principles: Life and Work by Ray Dalio 

This book covers Ray Dalio’s fascinating success story, from founding Bridgewater Associates to being named one of the most influential people in the world – plus the lessons he’s learnt and refined along the way are laid out in Principles: Life and Work. The book showcases his systemised approach to investing, considering his nickname “the Steve Jobs of investing.”

 

8. The Intelligent Investor by Benjamin Graham 

Regarded as the “father of value investing”, Benjamin Graham has written countless books that have shaped the stock market, but none are more influential than The Intelligent Investor. Originally published in 1949, the strategies and philosophies outlined throughout the book have proven to be still relevant today. Warren Buffet says “this is the best book on investing in the world.”

“This is the best book on investing in the world.” - Warren Buffett on 'The Intelligent Investor'

9. China's Disruptors by Edward Tse

While China continues to grow its dominance on the global stage, investors would do well to read “China’s management guru” - Edward Tse - to get a better grasp of the major businesses that are driving the Shanghai composite. Tse looks at how Alibaba, Xiaomi, Tencent and other companies are changing the rules of business in his latest book. 

 

10. Billion Dollar Whale by Tom Wright and Bradley Hope

When two of the world’s best known business journalists team up to analyse the billion dollar 1Malaysia development Berhad scandal, it’s sure to be a gripping account. Tom Wright and Bradley Hope narrate the epic tale of how a “modern Gatsby” figure swindled billions in what they describe as “the heist of the century”. The book has been named the best book of 2018 by the Financial Times and Fortune.

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