If you want to be successful in the stock market or just a sold portfolio, you must learn portfolio management. To help in the journey, we’ve made a list of the best portfolio management books in the world.
In this article, we’ll discuss portfolio management books and what makes each book great. We’ll be going into detail about what topic and part of portfolio management the book covers.
By the end of the article, you should better understand the different parts of portfolio management. Additionally, you’ll also learn which books will teach you what you need to know to build a great portfolio.
List of the 5 Best Portfolio Management Books
Here we’ve curated a list of the five best portfolio management books. The list includes complex topics like quantitative finance and easy ones like investing in ETFs and quality companies. The books have been selected in a way that everyone from the retail investor to the financial analyst can read the books.
1. Quantitative Portfolio Management By Michael Isichenko
Thousands of portfolio managers and quantitative analysts with backgrounds in maths, statistics, and other hard sciences are a part of the industry. The book strives to serve them all.
Despite common practice, the book acknowledges that there is more than one way to approach quantitative investments. The author doesn’t simply provide “solutions that work” to problems. Instead, he discusses the issues that quants encounter and the process of tackling them.
The book allows aspiring quants to understand the investment process better. For the same reason, seasoned pros can stimulate their thinking and try new problem-solving methods. The book is written in an approachable manner despite how challenging the topic it covers. Additionally, the book is packed with references to guide the reader.
2. Advanced Portfolio Management By Giuseppe A. Paleologo
We’ve found “Advanced Portfolio Management to be a welcome addition to the collection of quantitative investing. Compared to texts on the topic, the book is uncommonly well-written, concise, and beneficial. This is why we decided to add it to our short list of the best portfolio management books.
The book excels in two areas. It effectively explains quantitative principles and offers practical heuristics for applying the concepts to an essential investment strategy.
It’s also an engaging read that delves into utilizing the Information Ratio as a yardstick by which to assess the success of a portfolio manager and the soundness of the portfolio. The book also includes various mathematical formulas to complement the text.
3. The Complete Guide to ETF Portfolio Management By Scott Weiner
While the book focuses on ETF and portfolio management, it covers various topics relevant to the financial market. The author guides the reader through the ins and outs of ETFs, from their origins to the complexities involved.
Moreover, he delves into the importance of tax management and the measurement of tracking errors. In addition to that, he shows the distinction between active and passive ETFs and the performances one can expect during volatility.
We learn about representative sampling, heteroskedasticity, and other arcane concepts along the road. Such as the in-kind baskets made just for the recipient. Compared to certain finance books, the book’s title is not hyperbole; instead, it’s the whole package. So, we have decided to include the book in our list of best portfolio management books.
4. The Bogleheads’ Guide to the Three-Fund Portfolio By Taylor Larimore
Readers needing a simple guide to invest need to look at this book. It’s perfect for those looking to start a 401(k) or has other retirement plans. The three total market index funds recommended in the book form the basis of a straightforward and profitable strategy.
It instructs you on what to do, why you should do it, and why the strategy is better than others. The book makes the daunting task of choosing a portfolio of investments manageable and enjoyable.
The book explains why index funds have remained a staple of prudent portfolio management. The author provides a step-by-step guide for incorporating them into an investor’s exit strategy.
5. Quality Investing By Lawrence A. Cunningham, Torkell T. Eide, and Patrick Hargreaves
In the book, the authors explain how to evaluate companies in a novel way. They do so by tapping into their decades of experience and drawing real-world experiences.
The book explains what a moat is and how there are several kinds. Moreover, it also gets into the importance of having a moat by companies. On top of that, the book can help novice and seasoned investors update their search criteria in uncovering hidden gems that can lead to above-market returns.
Quality Investing is a book that should be mandatory reading for all MBA students. Simultaneously, we recommend the book to anyone looking to invest in the stock market. This is why we’ve added the book to our list of best portfolio management books.
You may also read: THE 5 BEST BOOKS ON CREDIT RISK
Final Words
In conclusion, portfolio management is a challenging process that calls for an in-depth understanding of multiple facets of investing. Investors may find a wealth of information in the form of books. These books cover a variety of information that can help investors in different skill levels.
Rabab Rayan is a senior year business undergrad at the Bangladesh University of Professionals with an insatiable appetite for reading. He has a particular enthusiasm for science fiction and mystery genres and can often be found exploring local bookshops and chatting with fellow bookworms about his latest reads.