6 best books for investment bankers [+ bonus list]

Becoming a successful investment banker requires continuous self-education, and books stand as a powerful tool in this pursuit, providing essential insights from industry veterans.

In this article, we present a list of six essential books for investment bankers, complemented by a bonus reading list. 

Highlights

• Essential books for investment bankers: Investment Banking Explained by Michel Fleuriet, Investment Banks, Hedge Funds, and Private Equity by David Stowell, and Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions by Rosenbaum and Pearl.

• Books with practical insights, tips, and expertise: Financial Modeling & Valuation by Paul Pignataro and The Accidental Investment Banker by Jonathan A. Knee.

• Books with insights, wisdom, and recommendations from investment titans: The Essays of Warren Buffett by Cunningham and Principles by Dalio.

6 best investment banking books

1. The Essays of Warren Buffett: Lessons for Corporate America

Best for: anyone seeking valuable insights on corporate governance, investment strategies, and business principles

Author: Lawrence A. Cunningham, Warren E. Buffett

Price on Amazon: $20

Rating on Amazon: 4.7 out of 5

Number of reviews: 1,707 reviews

Print length: 313 pages

Publisher: The Cunningham Group

Release date: November 1, 2015

Amazon link: Get the book

Review

The book presents a thought-provoking compilation of Warren Buffett’s timeless insights, drawn from his correspondence with Berkshire Hathaway shareholders. Curated by Lawrence Cunningham, the book describes Buffett’s views on diverse subjects, from governance and investing to valuation and accounting.

In times of market turbulence and economic uncertainty, the book serves as an invaluable compass for investors, offering a grounded perspective that resonates across time.

Even though Buffett has an impressive collection of 47 books with his name in their titles, he said that his own personal favorite is The Essays, which he described as “a coherent rearrangement of ideas from my annual report letters”.

Key takeaways

1. Sticking to what you truly know. Limit investments to businesses that fall within your circle of competence — areas you thoroughly understand.
2. Investment decisions. “When investing in a company, evaluate the company’s managers and ask yourself whether this is the kind of man or woman you would want your daughter or son to marry”, says Warren Buffett.
3. A margin of safety. Buffett advocates acquiring exceptional businesses at reasonable prices, emphasizing a long-term perspective.
4. Stock market insights. Buffett reminds readers that stocks are more than just numbers — they signify ownership in real businesses. When prices detach favorably from business realities, opportunities arise, emphasizing the essence of wise investing.

About the authors

Warren Buffett is the CEO of Berkshire Hathaway, a $70+ billion diversified multinational holding company. Lawrence Cunningham is a Research Professor of Law at the George Washington University Law School, well-regarded for his contributions to legal education and scholarship.

2. Investment Banks, Hedge Funds, and Private Equity

Best for: business professionals, investors, and graduate students who want to understand alternative investments

Author: David Stowell

Price on Amazon: $34

Rating on Amazon: 4.6 out of 5

Number of reviews: 33 reviews

Print length: 732 pages

Publisher: Academic Press

Release date: September 6, 2017

Amazon link: Get the book

Review

In his book, David Stowell describes the complex businesses of private banks, hedge funds, and investment banking and how they interact in the international capital markets.

He also dwells on the regulatory environment that surrounds the three sectors and explores how the current market structure influences the future of finance. Additionally, he gives a detailed analysis of the wide range of products and services that sectors offer.

The balance of theory and case studies makes this book ideal for both an aspiring investment banker and an experienced finance professional.

Key takeaways:

1. Investment goals. One of the important things to do, according to David Stowell, is to specify your investment goals and analyze the opportunities before making any investment decisions.
2. Diversification. Learners are advised to review, rebalance, and diversify their portfolios to minimize risks and losses. 
3. Impact. David Stowell also urges readers to analyze the actions of investment banks, hedge funds, and private equity firms as they have a direct impact on the markets and the global economy.
4. Real-life examples. The author provides readers with templates for real transactions and describes the actual work that associates and vice presidents do.

About the author 

David Stowell is a professor of finance at the Kellogg School of Management and a leading expert in the area of investment banking and private equity. He has been quoted many times in leading publications like the Wall Street Journal and the Financial Times. He is also a regular speaker at events related to finance and investment banking operations. 

3. Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions

Best for: financial beginners and professionals

Author: Joshua Rosenbaum and Joshua Pearl

Price on Amazon: $62

Rating on Amazon: 4.6 out of 5

Number of reviews: 393 reviews

Print length: 464 pages

Publisher: Wiley

Release date: June 5, 2013

Amazon link: Get the book

Review

Investment Banking is a concise and informative guide to the world of finance and investing. It provides an overview of the different asset types and discusses effective portfolio management.

Additionally, the book explains the core concepts of investment, tax planning, risk management, and market timing. 

It has been used as a reference for important investment banking and finance textbooks, such as the CFA Institute’s Investment Banking Professional Certification Program and the CFA Institute’s Investment Banking: Theory and Practice.

Key takeaways

1. Valuation. The authors describe three methodologies that are based on comparable companies, precedent transactions, and discounted cash flow and teach the reader how to implement the various valuation methods from a practical point of view.
2. LBOs. Cases, examples, and step-by-step instructions give readers an understanding of the intricacies of modeling leveraged buyout transactions and help them implement most of what the authors suggest.
3. Hands-on experience. The authors highlight the importance of finding internships, part-time jobs, and other projects that can help learners expand their knowledge and acquire the necessary skills.
4. Investment decisions. The significance of making long-term investment decisions and not falling for short-term gains is also emphasized by Joshua Rosenbaum and Joshua Pearl.

About the authors

Joshua Rosenbaum is a Harvard Business School graduate, managing director, and head of the Industrials & Diversified Services Group. Joshua Pearl is the founder and CEO of Hickory Lane Capital Management LP, an equity investment management firm. Both authors are leading experts in finance and boast impressive investment banking careers, having worked for leading banks like Goldman Sachs and Morgan Stanley.

4. Financial Modeling & Valuation: A Practical Guide to Investment Banking and Private Equity

Best for: finance professionals, practitioners, students, and anyone interested in learning financial modeling and valuation

Author: Paul Pignataro

Price on Amazon: $55

Rating on Amazon: 4.6 out of 5

Number of reviews: 141 reviews

Print length: 432 pages

Publisher: Wiley

Release date: July 10, 2013

Amazon link: Get the book

Review

Financial Modeling & Valuation is a comprehensive guide to financial modeling and valuation, written in a clear, easy-to-understand manner. The book covers a wide range of topics, including equity and debt valuation, budgeting, forecasting, mergers and acquisitions, private equity, venture capital, and leveraged buyouts.

The author also discusses the fundamentals of financial statement analysis, accounting principles, and accounting theory.

In general, Financial Modeling & Valuation is a great resource for learning how to apply key financial concepts and enterprise valuation methods, build financial models, and perform sensitivity analysis.

Key takeaways

1. Step-by-step financial modeling. The author teaches to construct the financial model using downloadable Wall Street models, Excel instructions, and concepts.
2. Valuation techniques. Readers learn how to apply valuation techniques used by Wall Street professionals and analysts at the world’s top investment banks.
3. The dynamics. Smart and rational investment decisions can be made only if investors understand the underlying business strategies, trends, and assumptions used in the financial model, according to the author.
4. The model testing. Paul Pignataro advises readers to validate their models by testing them on different sets of data.

About the author

Paul Pignataro is the founder and CEO of the New York School of Finance (NYSF), with over 13 years of expertise in the private equity and investment banking industry. His extensive background encompasses a wide array of industries, including oil, gas, power, technology, real estate, and more.

5. The Accidental Investment Banker: Inside the Decade That Transformed Wall Street

Best for: anyone interested in learning how it all works on Wall Street and those who want to make an investment banking career

Author: Jonathan A. Knee

Price on Amazon: $17

Rating on Amazon: 4.3 out of 5

Number of reviews: 170 reviews

Print length: 288 pages

Publisher: Random House Trade Paperbacks

Release date: July 31, 2007

Amazon link: Get the book

Review

The Accidental Investment Banker is among the best investment banking books. It provides an insider’s perspective on the events that shaped the investment banking world during the 1990s and led to the rise and eventual fall of Wall Street’s dot-com bubble. 

The author shares his experience from the standpoint of an analyst and an investment banker, illustrating conversations with Wall Street traders and commenting on the methods used in deal-making. 

Knee tells the story with humor and honesty, giving a vivid picture of the culture and activities of the investment banking world during the time when fortunes were made and reputations were lost. 

Key takeaways

1. Jonathan Knee’s career. The author describes his internship in London and work at Morgan Stanley in New York, what his responsibilities were, what he succeeded and failed at, and what people he worked with.
2. History of Goldman Sachs. A portion of the book is devoted to the history of the Goldman Sachs Group, a leading global investment banking firm, that many readers find full of insight.
3. Advice. Throughout the book, there are tips that investors can follow, like developing relationships with senior leaders, coming up with creative solutions, taking the initiative, and standing up to criticism.
4. Real examples. Jonathan A. Knee tells the story of how investment banking worked in full detail, with real names and real stories, and that’s what readers really appreciate. 

About the author

Jonathan A. Knee is an American businessman and a senior advisor at Evercore Partners, a global investment banking advisory firm. He is also a lecturer at Columbia Business School, Stern School of Business, and The Wharton School. Knee has been featured in numerous renowned publications, including the Wall Street Journal, New York Times, Fortune, Bloomberg, and Forbes. 

6. Investment Banking Explained: An Insider’s Guide to the Industry

Best for: experienced and aspiring investment bankers, financial analysts, and fund managers

Author: Michel Fleuriet

Price on Amazon: $18

Rating on Amazon: 3.9 out of 5

Number of reviews: 41 reviews

Print length: 368 pages

Publisher: McGraw-Hill Education

Release date: July 17, 2008

Amazon link: Get the book

Review

The book provides a comprehensive overview of modern investment banking, explains the differences between M&A and corporate finance, and highlights the role of investment banks and private equity.

Readers describe the book as a friendly guide through the mysterious world of investment banks. No matter if you’re new to this or already familiar, Fleuriet’s clear writing makes everything easy to understand. Besides, with his extensive expertise in the field, the author’s insights carry substantial weight, adding credibility to the book.

Notably, the author doesn’t take sides, neither glorifying nor vilifying its subject matter, so readers can form their own opinions.

Key takeaways

1. Role of investment bankers. Readers gain a deep insight into the multifaceted role of investment bankers. The book delves into their responsibilities, from advising clients on financial strategies and mergers to facilitating capital raising and trading activities.
2. Mergers and acquisitions (M&A). A significant portion of the book is dedicated to M&A activities, due diligence, valuation, and negotiation. Readers gain insights into the strategic considerations behind successful mergers and acquisitions.
3. Client relationships and communication. Effective communication and building strong client relationships are crucial in investment banking. The book emphasizes the art of client interaction, presentation skills, and the ability to tailor financial solutions to meet clients’ unique needs.
4. Capital markets and fundraising. The book delves into the workings of capital markets, detailing how investment bankers assist companies in raising capital through initial public offerings (IPOs) and debt issuance.

About the author 

Michel Fleuriet is a distinguished finance professional, currently a board member of the French private equity fund Xerys. He’s renowned for founding the University of Paris-Dauphine’s master’s program in investment banking and his professorship at the Wharton School of Finance.

A bonus recommended reading list on investment banking

Here are seven more investment banking books worth your attention.

1. The Business of Investment Banking: A Comprehensive Overview by K. Thomas Liaw

Best for: Students and anyone who wants to learn how the investment banking industry works

Amazon link: Get the book

The book explains the changes that happened since the global crisis in 2008. It also explores new opportunities for students and professionals who want to advance their careers in the competitive investment banking industry.

2. Liar’s Poker: Rising Through the Wreckage on Wall Street by Michael Lewis

Best for: Anyone interested in the culture and history of Wall Street in the 1980s

Amazon link: Get the book

The book is about the author’s experience of working on Wall Street during the 1980s. Lewis shares the stories of his colleagues and peers and depicts a culture of greed and corruption.

3. Middle Market M&A: Handbook for Investment Banking and Business Consulting by Kenneth H. Marks

Best for: Private equity professionals, venture capitalists, advisors, and consultants who want to expand their knowledge of the middle market

Amazon link: Get the book

The book covers the entire M&A lifecycle and provides expert information on topics such as valuations and due diligence. It also examines the risks and rewards of private equity investments.

4. A Pragmatist’s Guide to Leveraged Finance: Credit Analysis for Bonds and Bank Debt by Robert Kricheff

Best for: Financial professionals and investors seeking to master the facets of modern leveraged finance analysis

Amazon link: Get the book

With practical examples, Excel worksheets, and comprehensive coverage of crucial topics, this book equips investment and underwriting experts, money managers, and advisors with essential credit analysis skills. It covers a variety of topics, including yields, spreads, ratio analysis, business analysis, modeling, and credit risk.

5. Buffet: The Making of an American Capitalist by Roger Lowenstein 

Best for: Anyone interested in gaining insights into the life, investment strategies, and character of Warren Buffett

Amazon link: Get the book

The book provides an insightful portrait of Warren Buffett’s remarkable journey, uncovering the genius behind his successful investment philosophy. Drawing from extensive access to Buffett’s inner circle, Lowenstein portrays the life and career of this legendary figure, showcasing how Buffett’s approach mirrors his inner values.

6. Vault Career Guide to Investment Banking by Tom Lott, Derek Loosvelt, and William Jarvis

Best for: Aspiring bankers seeking a general overview of the investment banking industry

Amazon link: Get the book

The book is a helpful resource offering a clear overview of the investment banking industry’s divisions, positions, salaries, and more. However, to explore the industry specifics deeper, readers should complement this guide with further research and more advanced literature.

7. Principles by Ray Dalio Dalio

Best for: Anyone seeking practical tips and insights about life, work, and decision-making from the founder of one of the world’s most successful hedge funds

Amazon link: Get the book

Principles, while not directly focused on investment banking, remains a great read for investment bankers due to Dalio’s ability to turn his failures into successes. With “radical truth” and “radical transparency” as guiding principles, the book gives practical lessons, tools, and a clear approach to tackling challenges and building effective teams.

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