From Pages to Profits: Books as Your Investment Guide
Turn your reading habit into a powerful investment tool. Find out how books can enhance your financial portfolio.
The Intelligent Investor Rev Ed.: The Definitive Book on Value Investing
The Intelligent Investor by Benjamin Graham is an indispensable masterpiece that has stood the test of time as the definitive guide to value investing. Originally published in 1949, this book continues to be revered by investors, financial experts, and business enthusiasts alike.
Graham's expertise and wisdom shine through every page as he imparts invaluable insights into the art and science of investing. His emphasis on adopting a rational and disciplined approach towards investing sets the foundation for successful long-term wealth creation.
One of the key strengths of this book lies in Graham's ability to demystify complex investment concepts and make them accessible to readers of all levels of expertise. He introduces the concept of value investing, which involves analyzing the intrinsic value of a stock and buying it when it is priced below its true worth. Graham's emphasis on the margin of safety—an important principle that helps protect investors against market fluctuations—continues to be a cornerstone of intelligent investing.
The Intelligent Investor doesn't just focus on stock selection; it also provides invaluable guidance on risk management, diversification, and avoiding common pitfalls. Graham emphasizes the importance of conducting thorough fundamental analysis, including assessing a company's financial health, earnings stability, and competitive advantage. He encourages investors to adopt a patient and long-term approach, resisting the urge to speculate or time the market.
Throughout the book, Graham shares numerous case studies and real-life examples, reinforcing his principles and illustrating how they have withstood the test of time. These anecdotes provide practical applications of his concepts and make the material relatable and actionable.
While the financial landscape has evolved significantly since the book's initial publication, Graham's principles remain highly relevant. The Intelligent Investor serves as a timeless guide, helping investors navigate the dynamic and unpredictable nature of the market.
In conclusion, The Intelligent Investor by Benjamin Graham is an essential read for anyone interested in investing. Graham's timeless principles and insightful strategies continue to shape the investment world and empower readers with the tools needed to make informed decisions. Whether you're a novice or an experienced investor, this book will equip you with the knowledge and mindset necessary to navigate the complexities of the financial markets successfully.
How to Day Trade for a Living: A Beginner’s Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology
Jack Bogle is THE best friend the average, everyday investor has ever had! This book is short, simple and to the point. You want to be the millionaire next door? Just build your portfolio with an S&P 500 ETF, maybe an Aggregate bond portfolio ETF and forget it. Nothing fancy, but you'll beat 94% of all mutual funds out there! Yeah, 94%. And you won't have to pay a financial advisor 1% of all of your portfolio's worth. It's so logical, Wall Street won't want you to read this book.
I have read a few books on investing and this one is the best. Some of the materials I read seem to more about writing a book and gaining some notoriety rather than sharing experiences and offering sincere guidance (practical guidance...as some books get a little crazy with what they expect an new investor to do). I recalled talking to one of my engineering colleagues years ago as he was pursuing his MBA. He was excited about what he was learning and wanted to share his learnings.....which I found to be sound in logic....and those very ideas are also promoted extensively in the "Little " book. The only reason I didn't give it 5 stars is that I was a bit disenchanted with some of repetition of content in the book. Even so, I recommend it without hesitation as being one of the most favorable books on investing that I have read so far.
The Bogleheads' Guide to Investing 2nd Edition
I read investing books too. These are not on the normal diet, but these books are valuable for a minister. I really like Vanguard for investments, and you can invest much cheaper through this investment house. You can have a adviser, but if you are mostly doing mutual funds, it makes little sense to pay someone 3-4 percent for long term investments. If you have no knowledge at all, you can invest in a target fund with Vanguard, and you will be in good shape. As a minister, you have to mostly look after your retirement. There is no pension, company match, and often no money set aside for your retirement. You could stop preaching, and have only Social Security, unless you got out. I feel this is a mistake because as a minister you never know what will happen. You can invest the money and make more, but if something happens to your health, you are in terrible shape. This book is simple, and for the average investment. The principles are tried and true. It goes into stocks, bonds, saving bonds, and T-Notes. It talks about having a long term perspective, and mostly to avoid trying to time the market, but no minister really has the time or talent to accomplish. It is about simple index investment styles, and even provides portfolios for you. You will enjoy it, and it is a good read for this type of writing. At the end of the day, we believe this, but in investing, we are average. Here is a quote. " Despite the statistical impossibility, at least 70 percent of Americans believe they are above average. The vast majority of us think we are above average drivers, above average in intelligence, above average in appearance, and so on." As a preacher, you better educate yourself on 401K, Roth, or Tradition IRA's, and Funds, or Stocks, because rarely will anyone else do this for you. And this is the book to help you. I like the fund family too, and if you have questions, I would be happy to help.
My husband recently retired from the military and we've been discussing investing in rental properties now that he has a bit more time. We've put it off over the past year because it seems overwhelming to even get started.
As I read through this book, the questions I had about how to even get started were answered clearly, and with facts and anecdotal evidence. I love how Brandon walks you through every step of the rental property process from how to analyze a rental property (best chapter I read on this topic ever- no detail is left out!) to how to find one when you are ready to buy.
My only regret is that I didn't read this book through the first time with a pen and paper in hand. I'm now going back through it a second time making notes and beginning to outline a plan for my own investment plans.
Brandon simplifies the entire process and while he clearly states this is not a get rich quick book (thank goodness- there are enough of those these days) he does explain how investing in rental properties can help build wealth, allow you to eventually quit your day job, or just add to your investment portfolio.
This book is easy to read and filled with funny stories and real life examples from Brandon's experiences. I wouldn't have imagined a book on investing could be informative and entertaining, but this one is.
I've been doing a lot of research over the past year and this book is by far the most comprehensive, well written book on rental properties I've read.
The Book on Rental Property Investing: How to Create Wealth With Intelligent Buy and Hold Real Estate Investing
Rich Dad's Guide to Investing: What the Rich Invest In That the Poor and Middle Class Do Not!
As being the third and final book in the original Rich Dad's series, this book has done an exceptional job of both summarizing Robert's Rich dad's financial concepts AND deepening the essential knowledge to become a successful investor as well as to achieve the ultimate financial freedom.
For that same reason, the first half of the book can seem to be simply repeating the previous books' lessons, such as the cash flow quadrants, the true differences between assets and liabilities, the rich dad vs. poor dad stories; however, the second half of the book went into the extreme details of how to intelligently invest (e.g. how to calculate financial ratios to value a business and an investment opportunity, how to effectively operate your own business, or how to create passive income streams from investment).
You need to be patient when reading this book, especially if you have read the first two books in the serie. You will be able to gain a lot of new knowledge if you keep your mind opened and curious to learn. While I agree with some other negative comments that the book can be much more concise, I personally believe that the repetition of some critical lessons really help them stay much longer and deeper in my head. This book is thick and contains lots of financial advices, so I highly recommend it to people who have been following this serie and are debating if this book is worth it.
No, Robert will not give you the exact answers on which specific stocks to buy or what locations to build a house on. This book is not about that, and it should NOT be. Your investment portfolio should be built on the foundation of your financial needs and vision, not others' vision for your financial needs. Instead, Robert gave you rock-solid knowledge and foundation on financial literacy and investments so that you can build your OWN investment and business empire. Go for it, read this book, finish the serie, absorb the knowledge, and you will become a much better version of yourself. That is exactly what I have been able to get out from this serie, and I hope you will, too. Again, I highly recommend this book.
Investing for Kids: How to Save, Invest, and Grow Money
I find that even adults can get some knowledge out of this book it is very useful and practical. My only issue is getting my daughter to read it when she has so many other wonderful books to read! I know that she will eventually finish reading it as she is a great reader but I really want her to understand all the methodology in this book because she will become a millionaire when she gets older! She will become a strong successful self-sufficient woman!
Perfect Book to Learn About Investing for Kids!! My child is really excited to invest thanks to how the book explains the concepts.
The book was billed for children BUT it is advanced. However, the book presents an excellent overall view of investing. If you want to spend time with your children going through the concepts presented, it is worth the time. It has a conflict with the images (cartoon like) versus the advanced material. This book could be a first textbook for high school level and beyond. It is extremely well presented for older children and adults. My husband will use it to teach our Grandboys about investing. They are 7 and 10 and it would be too hard for this age level without adult help.
A Beginner's Guide to the Stock Market: Everything You Need to Start Making Money Today
If you are looking for tips that will give you explosive growth and the ability to spot calls and shorts to beat the system and create huge wealth in the short term..........you are better off going buy a lottery ticket!!
If you are looking for solid advice that helps you play against a massively stacked deck......this is a good start. Make no mistake, every time you click Buy or Sell you are competing against advanced mathematics, algorithms and some of the most powerful computing systems ever imagined. The chances of finding that one trade like in the 'Big Short' are virtually nil. But, if you are patient and develop the discipline outlined in these methods, you have a solid chance of getting ahead of most other traders outside Wall Street and hedge funds. It's a great book to learn fundamentals and at least get you thinking beyond "buy low, sell high".
As it stands right now, this is the first book I'm going to recommend to friends to read about investing. It's all very simple and easy to read. It's also a great book to go back over, as there are a lot of little tidbits about the philosophy of investing in every chapter worth remembering. I particularly liked the section on the things you DON'T do when investing. It actually helped me make a decision about a stock in my portfolio (Ford) and I'm happy with the decision.
I'd give it 5 stars but there was a proofreading error that should have been caught in a book this short, and the section on calls and puts could be clarified a bit more for new people. To be fair though, I've never read or watched anything that made it make perfect sense, and he even says you will learn more by doing it than by trying to learn about it.
Another reason for the 4-star rating is there's not much on technical or fundamental analysis. I understand that it's a bit beyond the scope of a beginner's book, but I think dipping our toes into concepts like how to read a candlestick chart and what the most important parts of a fundamental analysis is would be VERY useful in a book like this.
I would also love for there to be questions in every chapter for him to ask and for us to recall.
Overall though, it's a solid short read that anyone can absorb within a day to get their bearings straight right from the get-go of investing. Some people have said it's not as good as YouTube videos or other things but I personally disagree. If you're new to investing, a book like this is essential. It goes over the main components of investing and further reinforces what you need to be learning, and he does so with this book in a simple, easy way to understand. I think of it as a very nice/distilled version of a bunch of different YouTube videos and articles that are all beneficial.
Buffett’s 2-Step Stock Market Strategy: Know When to Buy A Stock, Become a Millionaire, Get The Highest Returns
I am new to the stock market - and am taking a finance class in college for my BAS. I already have some investments that are doing well. I would say that are too safe. I bought this book because everyone talks about Warren Buffet and his money.
The 2 step process the author describes is legit. He lengthens the steps out clearly so he answers your questions before you think about it. I really like the author's style and tone. I would like any class that he is teaching.
That said, the book is not a get-rich quick book. I wasn't looking for that. I know some readers will think that you just "buy this stock" and overnight you will be rich. But that is not the case. The author shows you how to be prepared and make good decisions.
I passed my book along to my colleague who is also new to the stock market.
This is a great intro to value investing. What differentiates this book is that the author takes us through how he analyzes companies - what metrics he looks at, how he analyzes income statements, etc - and he provides very actionable insights on how to evaluate companies based on your investment goals.
This book is great for anyone looking to make intelligent investment decisions based on long term company fundamentals, instead of speculative buys or making decisions based on stock prices.
A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing
A fairly long (and technical) read - but worth it. Primarily, the message is that individual stock picking and actively managed funds can not beat the market; regardless of whether one uses technical analysis or fundamental analysis. This message might be hard to accept; however, many of the principles covered can still be applied to one’s unique perspective. I was really impressed with the detailed evaluation of all of the competing investment models and strategies; developed over several decades. In addition, the book does a great job of exploring tax strategies, risk models, market psychology, diversification, portfolio rebalancing and the benefits of dollar cost averaging. This book packs in an amazing amount of detail that is extremely informative. Burton’s main advice is to buy ETFs and broad-based Market Index Funds and hold them for the long term. I recommend this book to well read, young adults, who have time on their side.
The reputation of this being one of the "classics" in investment "how to" books is well deserved. This is a great premise for D.I.Y. investors (and it's safe to assume that the "has it done" crowd will not be reading this book anyway and is not concerned with fees eating into their returns). Most importantly, Malkiel is an engaging, articulate writer. If this was difficult to read, very few would get through it, and what good would that be?
The chapter on the history of market bubbles is a joy to read. Granted, there is some very technical analysis in Part II but it's worth it (do your homework!). Part III picks up the pace with modern portfolio theory, risk and behavioral finance. Part Four is about execution and easy to follow. The chapter on asset allocation is illuminating. An often overlooked factor in a lot of the financial press.
If you are an active trader, or saddled with a mutual funds that generate taxes and eat returns via fees, I highly recommend this book. If you are already in the index & asset allocation camp I think there's still a lot to get out of this book.
One Up On Wall Street: How To Use What You Already Know To Make Money In The Market
I enjoyed reading it and learned a great deal from it. Although the book was written over 25 years ago, the fundamentals should not change. Peter Lynch did an excellent job of explaining the basics of investing in stock market. I particularly liked the point he makes, that one does not have to a professional or even listen to pros to be successful in the market. According to him, odds may be in your favor, because you may have an edge from your personal experience in a certain field, or simply from your daily life. Professional fund managers, on the other hand, have too many restrictions and limits which make it difficult to maximize the gains. Furthermore, you can identify winners even before a stock gets overpriced because of its recommendations by analysts.
One of the most important things is to have a good understanding of the business of the company that you want to invest in. As he puts it, he would invest in pantyhose rather than communication satellites, or in motel chains than in fiber optics. The simpler the business, better it is, because those companies are perhaps easier to run and follow. According to him, some of the desirable attributes may be that it sounds dull or even better, ridiculous or has something depressing about it. Just to be ridiculous about it. If that is the case, the chances are that many stock analysts may not be following. Other attributes that can be of particular interest are following: it’s a spin-off; institutions don’t own it, and analysts don’t follow it, it has got a niche, people have to keep buying it, insiders are buyers, or the company is buying back shares. I think there is a lot of wisdom right there.
Equally interesting is the chapter on stocks to avoid. He would avoid one that is hottest in the hottest industry or touted as the next big thing or those whispered in your ears. They usually don’t pan out. His examples and illustrations are bit outdated because of the time the book was originally written, but the points are well driven.
Then he goes on say that it is important to classify the company that you have picked in one of the following six general categories: slow growers, stalwarts, fast grower, cyclical, assets play and turnaround. It would not only allow you to set your expectations, but also help you to make decisions along the way by bench marking other companies in the same category. The second step after picking a company is to check the company fundamentals such as, earnings, cash flow and fact-checking the story. He also described in detail how to get most out of company’s annual reports.
This book has a wealth of valuable information that is presented with simplicity and humor. The thing I liked about Peter Lynch is that he highlights his mistake, not his successes. I guess being a stalwart of the industry; he does not need to beat his own drums. I would recommend this book highly. It’s a classic.
The Psychology of Money: Timeless lessons on wealth, greed, and happiness
Housel is an award winning business writer with investing experience. He covers a number of topics in investing with a slightly different slant. He makes a good argument that many of us would be happier or more satisfied if we spend more time in pursuit of small, personally appealing adventures and interests instead of pursuing more money.
He quotes successful people on how they achieve balance. For instance Harry Moskowitz, Nobel prize winner in economics for his work on risk and reward, said that deciding how much of his funds to put into the stock market he visualized his grief if the stock market went way up and he wasn't in it, or if it went way down and he was completely in it. So he split his contributions 50-50 between bonds and in equities.
Examples of other famous investors such as Warren Buffett who has one of the best investment records available. He points out that one of the reasons for his great wealth is that he invested very early and has kept the money compounding over a very long period of time -close to 80 years. Besides being very, very wealthy Buffett still tap dances to work, and has shown he still has the ability to learn new tricks in investing.
Part of the way he did this was to hang onto investments for long periods of time, even with his exceptional skill at picking stocks and businesses it turns out that only about 10 of 3-400 hundred of investments resulted in very large profits. It takes special ability to have large profits in a given investment and to continue to hold it even while it goes up and down. The author doesn't give you much help in how to accomplish this feat.
Another point is you get wealthy not by spending most of your money, but by saving most of your money and letting it compound over long periods of time. How much do you invest and how much risk do you take with most of the money depends on knowing yourself. Do you want to be in a position where you have enough cash so if the market goes down heavily and you have the courage, you can invest that money in the investment you're interested in? This is contrary to what most people do who are relatively fully invested near the top and then sell investments as the market goes down. They are losing too much and sell usually at a substantially lower price than they bought the investment. So you have to have enough money invested so that over the long term that it goes up enough to make you wealthier, but not so much that you decide that you've lost too much and sell at a big loss. Added to the problem is the fact that just because a company has bounced up and down before doesn't necessarily guarantee that it's going to bounce back again. Using low cost index funds generally evens out the ups and downs to some degree.
Knowledge of the history of economic investment results is helpful, but fails to predict what is actually going to happen in the future. Part of being an investor is being able to predict how you are going to react to the worst and the best things that can happen to your investments. One of the most important attributes is the ability to change your mind as the world around you changes. The author includes many examples of how famous investors have coped with various problems and are quite informative.
Perhaps the most valuable lesson or example is the author and his wife decided early in their careers that economic freedom, that is enough money to make their own choices later in life was worth doing. They could live comfortably without the joy of doing everything you want immediately. Instead they saved all of the raises they've gotten over the years of their income. He doesn't give actual numbers or even percentages for savings, but they are well towards their goal of complete financial independence. A great feeling if you can do it without sacrificing things that you really enjoy. Like the author perhaps you enjoy reading, walking, and podcasts- it's a good start.
His method is to invest in low cost index funds, Vanguard, and basically hold forever or until his family retires. A large part of my own portfolio follows the same plan and this has worked very well. Hope you all achieve it.
The Simple Path to Wealth: Your road map to financial independence and a rich, free life
To summarize the advice in this book (which I've seen similar advice given in other books), readers are encouraged to start saving early in their career, live below their means, avoid debt, and invest most (if not all) of their retirement savings in Vanguard stock index funds b/c over long periods of time index funds like this one tends to outperform 99% of professionally managed mutual funds and retirement funds managed by financial advisors. I totally agree with this advice. However, some of the author's other advice seems impractical for most folks, including the following:
-live on 50% of your take-home pay and sock away the rest in savings - which he says is "perfectly doable" if you have no debt (that's easier said than done!)
-save up large amounts of savings early in your career so you can have what he calls "F-you money," which the author has used during his career to quit jobs that he didn't like and stay home for upto a few years at a time (this might be fun, but doesn't strike me as good advice for building a successful career)
-"avoid fiscally irresponsible people and certainly don't marry one." (kinda hard to follow this advice if a person already has a spouse/close family who fall into this category)
Bottom line is that this book is a nice reminder of retirement basics and gives more than a few compelling reasons why stock index funds (like the Vanguard VTSAX) are better bets for long-term savings performance. But read it with a grain of salt as the author seems to gush over the Vanguard backstory and also offers some extreme advice that may not fit most people's lifestyle. 👍