A Random Walk Down Wall Street by Burton G. Malkiel

This is one of the classic books on investment, first published in 1973. Its 9th edition came out in 2007. Every investor should read this book at least once. This book does a very good job reconciling between market efficiency and perceived inefficiencies such as bubbles at different times. It goes on with a review of bubbles and manias throughout history, from -- tulip craze in the Netherlands, the South Sea bubble in England, the 1929 Great Crash in the U.S. -- to the stock market anomalies from the 1960s, 1970s, all the way to the late 1990s dot com bubble. The chapter on behavioral finance is new for the 9th edition. It depicts how investors often become their own worst enemy when it comes to investing. The final section of this book gives practical advice on insurance, tax deferred accounts, saving for college, different vehicles for cash reserves, bonds, real estate, and stock mutual funds. Finally the book enlists specific portfolio and fund recommendations for people in different stages of their lives. All in all it’s a must-read for every investor.