I’ve decided to share some of my favorite finance related books so far! I’ve read many over the years and these are the ones that stand out as being the most useful by carrying a real life application. In my opinion, these books are cornerstones to having a better/easier financial life. As such, they are an investment and their yield is potentially sky high!
The list will be edited from time to time to include recently read books that I think add value. At the bottom, you can see what I’ll read next! [Updated 08/09/2017]
The Intelligent Investor – Benjamin Graham
A classic. While a little longer than the others on this list, it is fundamental to understanding the mentality you need when evaluating stocks. You want to be like Buffett? Go to the source of his knowledge. This book was written by one of his most – if the THE most – favorite teachers.
Get Rich with Dividends – Marc Lichtenfeld
This book was definitely enlightening for me. It introduced me to the power of compounding by reinvesting dividends. The metrics taught in this books are the one I use every single time I pick apart stocks. I must say, up to now, it has enabled me to make some phenomenal returns! The 10-11-12 method is based on said metrics and is illustrated many times using real-life compounding scenarios. A must have for every new dividend growth investor.
The Neatest Little Guide to Stock Market Investing – Jason Kelly
This is my go to pocket financial dictionary, it’s the kind of book that suffers a lot of wear and tear! A must-have for any serious investors. I keep this on my desk at all times.
The Wealthy Barber – David Chilton
A very easy read for any individual desiring to get a grip on their personal finances. From budgeting, to real estate, mortgages, wills, investment strategies. This covers it all, broadly enough not to bore you, but in-depth enough so you don’t waste your time. I think of this book as a first step to personal finances, a sort of door frame you need to walk through when taking the decision of taking your PF game up a notch.
Thinking, Fast and Slow – Daniel Kahneman
It might seem off topic, but you couldn’t be more wrong! Cognitive biases? Really? Yep. Numbers don’t lie, but your brain sometimes does. Let me give you an example straight out of the book (this is from the very early pages so no big spoiler): “Steve is very shy, and withdrawn, invariably helpful but with little interest in people or in the world of reality. A meek and tidy soul, he has a need for order and structure, and a passion for detail” Now tell me, is Steve more likely to be a librarian or a farmer? Sounds like a librarian right!? That’s a cognitive bias. If you look at the numbers: Steve = male, there’s a 20:1 male Farmer:Librarian ratio in the US. So all that fluff doesn’t change the fact that Steve is statistically more likely to be a Farmer. The relevant statistical facts here are ignored by your brain because of the ‘resemblance’ your brain created! Fascinating isn’t it… This applies to finances as well, specifically when looking at stocks and evaluating your own choices/actions. Knowing you’ve made a mistake is one thing, knowing WHY you made it is another.