The Intelligent Investor

This is the book Warren Buffett calls "by far the best book on investing ever written" — and Jim is not about to argue with the Oracle of Omaha. Graham invented value investing and the concept of "Mr. Market," the manic-depressive business partner who quotes you wildly different prices every day. Once you internalize that mental model, half of investing becomes obvious. The Jason Zweig commentary in this edition is what makes it modern. Graham wrote in the 1940s; Zweig updates every chapter with examples from the dot-com bust, 2008, and beyond. The "margin of safety" chapter alone is worth the price of admission. Five worms — required reading before you put a single dollar in an individual stock.