As a professor, I give book recommendations to students every semester. I decided to condense the list to the top 5 books for finance majors. The reality is that finance students are money dorks and I can recommend books that others wouldn’t find as interesting. So here is the list with more details below.
Top 5 books for finance students
- A Random Walk Down Wall Street
- Richest Man in Babylon
- Millionaire Next Door
- The Little Book of Common Sense Investing
- Money: Master the Game
Breaking Down the Choices
#1 Top choice and a must-read for finance students
A Random Walk Down Wall Street by Burton Malkiel
This book has so much need to know content and moves from topic to topic quickly, so the material doesn’t get boring. Malkiel sticks to the point, backs it with research and moves on. Some of the topics covered are controversial and go against finance textbooks or industry standards. It will make you think out of the box about finance. That is why this book is my number one recommended book for finance students.
#2 The easy, but impactful read
Richest Man in Babylon by George Clason
I had heard the hype about this book for a long time. Then when I bought it, I was blown away by how small the book was. This is a quick read but puts the power of compound interest into focus. A bonus is that the book is written as a story, not a text. So the mix of a minimum page count and the storytelling makes this an enjoyable read with lessons everyone should learn.
#3 Makes you think
Millionaire Next Door by Thomas Stanley & William Danko
When I finished reading this book, I immediately recommended it to members of my family and still quote the author’s results often. The book is a result of studies two marketing professors conducted on millionaires and should be millionaires. It made me change the way I look at wealth and those who have attained it. The millionaires aren’t driving the imported cars or living in the fancy houses. The results will surprise you.
#4 Keep it simple
The Little Book of Common Sense Investing by John Bogle
Investing shouldn’t be difficult or complicated. John Bogle is the godfather of index investing and Vanguard. His book breaks down investing in a simple and straightforward way.
#5 Includes everything about personal finance
Money: Master the Game by Tony Robbins
If you want a catch-all for personal finance, this is it. Some parts will be a review of your intro to finance course, but worth repeating. Robbins also ties in topics from the Random Walk Down Wallstreet and has a similar feel. It can feel a little sales-pitchy throughout with the discussion of money managers and advisors, but the organization, motivation, and content of the book it top notch and comprehensive. Textbook size without the textbook bore.