I’m in the process of reading The Four Pillars of Investing (an excellent book, by the way) and I thought I’d share with you some of William Bernstein’s insights into investing. According to Bernstein, you really only need guidance in two areas: asset allocation and self-discipline. And how should you go about learning about these things?

He starts by saying:

“Whatever you do, do not watch Wall Street Week, Nightly Business Report or CNBC. With the extra hour or two you’ll gain each week from turning off the TV, I would start a regular reading program.”

He then goes on to list the books that he recommends for inclusion in your new reading program. Given that I recently put together a rundown of the best books about money based on the opinions of a handful of other bloggers, I thought I’d likewise publish a list of Bernstein’s favorites, many of which I haven’t read (and a few of which I’ve never even heard of).

First up, two classics:

» A Random Walk Down Wall Street

Author: Burton Malkiel
Length: 416 pages
Amazon rating: 4.5 stars
Bernstein says: “An excellent investment primer.”

» Common Sense on Mutual Funds

Author: John C. Bogle
Length: 496 pages
Amazon rating: 4.4 stars
Bernstein says: “More information than you ever wanted to know…”

According to Bernstein, if you read these two books, you’ll know more about finance than 99% of all stockbrokers and most other finance professionals. At that point, you’ll be ready for what he calls his “postgraduate course,” which consists of the following ten books:

» A Fool and His Money

Author: John Rothchild
Length: 272 pages
Amazon rating: 4.5 stars
Bernstein says: “Ground level trip through Wall Street in the 1980s… eye-opening.”

» Where are the Customer’s Yachts

Author: Fred Schwed
Length: 208 pages
Amazon rating: 4.6 stars
Bernstein says: “Ground level trip through Wall Street in the 1930s… eye-opening.”

» Once in Golconda

Author: John Brooks
Length: 307 pages
Amazon rating: 4.2 stars
Bernstein says: “How Uncle Sam got his hands on Wall Street.”

» Devil Take the Hindmost

Author: Edward Chancellor
Length: 400 pages
Amazon rating: 4.5 stars
Bernstein says: “A history of manias and crashes over the centuries.”

» Bernard M. Baruch: The Adventures of a Wall Street Legend

Author: James Grant
Length: 365 pages
Amazon rating: 4 stars
Bernstein says: “A better grasp of capital markets than anyone else I know.”

» Money of the Mind

Author: James Grant
Length: 528 pages
Amazon rating: 3.7 stars
Bernstein says: See above.

» Minding Mr. Market

Author: James Grant
Length: 424 pages
Amazon rating: 4.5 stars
Bernstein says: See above.

» The Trouble With Prosperity

Author: James Grant
Length: 368 pages
Amazon rating: 4.1 stars
Bernstein says: See above.

» Capital Ideas

Author: Peter Bernstein
Length: 352 pages
Amazon rating: 3.7 stars
Bernstein says: “An engaging history of modern financial theory.”

» Winning the Loser’s Game

Author: Charles Ellis
Length: 182 pages
Amazon rating: 3.8 stars
Bernstein says: “A succinct look at money management.”

According to Bernstein, all of the above titles are easily accessible to the average reader. But if you’re good with numbers and don’t mind a bit of effort, you should also consider the following:

» Global Investing

Author: Roger Ibbotson and Gary Brinson
Length: 339 pages
Amazon rating: No review yet
Bernstein says: “A… view of stocks, bonds, commodities, and inflation the world over.”

» Asset Allocation

Author: Roger Gibson and John Templeton
Length: 317 pages
Amazon rating: 4.4 stars
Bernstein says: “Excellent primer on portfolio theory and… allocations.”