5 minute read
*Updated with added books November 22, 2024
In the fast-changing world of finance, staying ahead requires continuous learning and development. And reading is one of the most powerful tools financial advisors can use to sharpen their skills, expand their market knowledge, and refine their practice.
Charlie Munger, vice chairman of Berkshire Hathaway, famously said:
“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.”
Similarly, the late Barton Biggs, a successful money manager, emphasized:
“The successful macro investor must be some magical mixture of an acute analyst, an investment scholar, a listener, a historian, a riverboat gambler, and be a voracious reader. Reading is crucial.”
At Dunham, we echo their sentiments.
Reading doesn’t just build expertise - it equips you with a mental toolbox you can draw from to better serve your clients. Whether you're a seasoned advisor or aspiring to join the industry, these books will guide you in financial planning, practice management, investment strategies, and more.
Let’s dive into the ultimate reading list for financial advisors.
Top Picks: Essential Books for Financial Advisors
If you’re short on time, here are the top 7 must-reads to elevate your knowledge and practice:
- The Excellent Investment Advisor by Nick Murray - a masterclass on building trust and delivering outstanding value to clients.
- The Speed of Trust: The One Thing That Changes Everything by Stephen M.R. Covey - discover how trust accelerates success in relationships and business.
- The Wealthy Barber: The Common Sense Guide to Successful Financial Planning by David Chilton - a fun, relatable guide to estate planning and financial literacy essentials.
- Practice Made (More) Perfect by Mark C. Tibergien - proven strategies for managing and growing a thriving financial advisory business.
- The Most Important Thing Illuminated by Howard Marks - insights into value investing, risk management, and market cycles from a legendary investor.
- Lords of Finance: The Bankers Who Broke the World by Liaquat Ahamed - an engrossing tale of the financial decisions that shaped the modern economy.
- The Black Swan: The Impact of the Highly Improbable by Nassim Taleb - understand the profound effects of rare, unpredictable events on markets and beyond.
And if you want more, here are some great books broken down by category:
Financial Planning
1. The Excellent Investment Advisor by Nick Murray
2. Advice That Sticks: How to Give Financial Advice That People Will Follow by Dr. Moira Somers
3. Delivering Massive Value by Mathew Jarvis
4. Life-Centered Financial Planning: How to Deliver Value That Will Never Be Undervalued by Paul Armson and Mitch Anthony
5. The Process of Financial Planning: Developing a Financial Plan; 2nd Edition by Ruth H. Lytton and John Grable
Sales and Marketing for Financial Advisors
1. The Speed of Trust: The One Thing That Changes Everything by Stephen M.R. Covey
2. To Sell is Human: The Surprising Truth About Moving Others by Daniel H. Pink
3. Storytelling for Financial Advisors: How Top Producers Sell by Scott West and Mitch Anthony
4. Knockout Networking for Financial Advisors and Other Sales Producers: More Prospects, More Referrals, More Business by Michael Goldberg
5. The Financial Advisor's Ultimate Stress Mastery Guide by Dr. Jack Singer
6. Getting ‘Yes’ Decisions: What Insurance Agents and Financial Advisors Can Say to Clients by Bernie De Souza and Tom Schreiter
7. The Sustainable Edge by Ron Carson & Scott Ford
Estate Planning Books
1. The Complete Book of Wills, Estates, and Trust by Alexander A. Bove, Jr.
2. The Wealthy Barber: The Common Sense Guide to Successful Financial Planning by David Chilton
3. Living Trusts for Everyone by Ronald Farrington Sharp
4. Get It Together: Organize Your Records So Your Family Won't Have To by Melanie Cullen and Shae Irving, J.D.
Practice Management
1. Practice Made (More) Perfect by Mark C. Tibergien
2. G2: The Next Generation by Philip Palaveev
3. Guerrilla Marketing for Financial Advisors (Transforming Financial Professionals through Practice Management) by Jay Conrad Levinson and Grant W. Hicks
4. Success and Succession: Unlocking Value, Power, and Potential in the Professional Services Advisory Space by Eric Hehman, Jay Hummel, Tim Kochis
5. Deena Katz's Complete Guide to Practice Management: Tips, Tools, and Templates for the Financial Adviser by Deena B. Katz
Investment and Analysis
1. Where are the Customers’ Yachts? by Fred Schwed Jr.
2. Animal Spirits: How Human Psychology Drives the Economy, and Why it Matters for Global Capitalism – by George A. Akerlof
3. A Random Walk Down Wall Street by Burton Malkiel
4. Common Sense on Mutual Funds by John C. Bogle
5. The Most Important Thing Illuminated by Howard Marks
6. Big Money Thinks Small: Biases, Blind Spots, and Smarter Investing by Joel Tillinghast
Financial History
1. When Genius Failed: Ther Rise and Fall of Long-Term Capital Management by Roger Lowenstein
2. Too Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save the Financial System by Andrew Ross Sorkin
3. The Smartest Guys in The Room: The Amazing Rise and Scandalous Fall of Enron by Bethany McLean and Peter Elkind
4. Billion Dollar Whale: The Man Who Fooled Wall Street, Hollywood, and the World by Bradley Hope and Tom Wright
5. The Money Formula: Dodgy Finance, Pseudo Science, and How Mathematicians Took Over the Markets by Paul Wilmott
6. The Rise of the Carry: The Dangerous Consequences of Volatility Suppression by Tim Lee and Jamie Lee
7. Lords of Finance: The Bankers Who Broke the World by Liaquat Ahamed
8. Anatomy of the Bear: Lessons from Wall Street’s Four Great Bottoms by Russel Napier
Complex Systems, Physics, Psychology, and More
1. Simply Complexity: A Clear Guide to Complexity Theory by N.J. Sleuth and Neil F. Johnson
2. SCALE: The Universal Laws of Life, Growth, and Death in Organisms, Cities, and Companies by Geoffrey West
3. Why Most Things Fail: Evolution, Extinction, and Economics by Paul Ormerod
4. The Rules of Contagion: How Things Spread, and Why They Stop by Adam Kucharski
5. From Bacteria to Bach and Back: The Evolution of Minds by Daniel C. Dennett
6. Linked: How Everything is Connected to Everything Else and What it Means for Business, Science, and Everyday Life by Albert-Laszlo Barabasi & Jennifer Frangos
7. The Allure of Battle: A History of How Wars have been Won and Lost by Cathal J. Nolan
8. Ubiquity: Why Catastrophes Happen by Mark Buchanan
9. Why Zebras Don’t Get Ulcers by Robert Sapolsky
10. The Black Swan: The Impact of the Highly Improbable by Nassim Taleb
FAQ
What are the best books for financial advisors just starting out?
- Start with The Excellent Investment Advisor and A Random Walk Down Wall Street for foundational knowledge.
How does reading help financial advisors improve their practice?
- Reading enhances critical thinking, communication skills, and market understanding, making advisors more effective and adaptable.
Where should I start with this list?
- Begin with the “Top Picks” section to cover key areas like financial planning, investment strategies, and history.
Disclosure:
This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax, or investment advice or an investment recommendation, or as a substitute for legal counsel. Any investment products or services named herein are for illustrative purposes only and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy, or investment product or service. Always consult a qualified professional or your own independent financial professional for personalized advice or investment recommendations tailored to your specific goals, individual situation, and risk tolerance.