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The Only Investment Guide You'll Ever Need
by Andrew Tobias. It contains the basics and definitions of things nobody else ever defined (difference between T Notes, T Bills and T Bonds, for example). I read it 15 years ago, so I imagine the newest edition would also discuss things like ETFs that weren't common then. Tobias correctly describes how fees weigh down performance.

Since you asked "What is your favourite investment book?" and didn't ask about a favorite "money book," I didn't answer The Millionaire Next Door.
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