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Ernest
29 days 17 hours ago

What is a good book for teens?
I have not started a business yet but aI am definitely going to be an entrepreneur. I’m also thinking about investing as well. I want to be financially literate.

Rena
2 years 4 months ago

I would also suggest the Richest Man in Babylon. Also check out some of these books on YouTube for Free.

adam
2 years 4 months ago

Thoughts on Value Investing: From Graham to Buffett and Beyond?

cynical investor
6 years 3 months ago

‘The Four Pillars of Investing’ is the best book and if I had read it before (and of course followed it) I would have not lost so much money.

Richard Stooker
6 years 4 months ago

For investing, I’d have to add Capital Ideas by Peter Bernstein, Fooled By Randomness by Nasim Nicholas Taleb and Common Sense on Mutual Funds by John Bogle.

I’d say people need to get over the conceit they — or hardly anyone long term — can beat the market. You mention value investing. Ah, but how do you decide when a stock is really undervalued?

My personal choice is to invest for income. I think that’s basically what Buffett does. He looks for companies that return a lot of cash. Too bad he refuses to pay dividends to Berkshire Hathaway shareholders.

I agree that Rich Dad, Poor Dad is worth reading even though it’s probably 90% — or even 100% — fake. Reporters in Hawaii have looked for “rich dad” without success. And “poor dad” eventually became the state’s superintendant of education, hardly a welfare position. Still, it’s helpful to formulate your attitude that money is not fixed, that you can go out and do something to make more of it.

Corio

6 years 4 months ago

Hi Richard,

“You mention value investing. Ah, but how do you decide when a stock is really undervalued?”

Yes I’ve mentioned this a few times on my blog. But isn’t that true with anything you purchase? Yes something may be 40% from a sale, but if you never use the product or it doesn’t work properly, what good is it? The key to value investing is know your companies inside and out. Know what they make, know their financials, know their history, know the industry. Then and only then can you determine if a company is valued right.

I agree, it’s not perfect, and is more of an art than science. IMHO though value investing is the only long term strategy that is worth trying against indexing, and proper asset allocation.

I’m a big proponent for indexing and most people should have most of their assets into it. Though I don’t believe the market is completely efficient all of the time for all stocks. The description of “Mr. Market” describes this perfectly. Like Taleb, states putting most of your money into bonds (90%) and 10% into speculative options is the best bet. In my case it’s more like 90% into proper asset allocation and 10% speculative.

With regards to Rich Dad, Poor Dad – I know this info but yet still put it up as it is a mind changer book. Just don’t get suckered into buying his other books and products. They are just a rehash of the first book. Maybe buy his second book “Cashflow Quadrant“, but that’s it. I’ve read his books after a few years of owning a business, so I’m not speaking from naivety.

6 years 4 months ago

That’s a good list. What did you think about Edward Griffin’s book on the Fed?

6 years 3 months ago

I think some of the book is a little big in conspiracy theories. I don’t know if I buy what all is said. I take some of it with a grain of salt, but it does help put things in a different light.

6 years 4 months ago

A lot of good books there! I would add “The Wealthy Barber” and “I Will Teach You to be Rich” for PF, and “Economics in one Lesson” as a primer to learning more about opportunity costs and many common economic fallacies.

Bret @ Hope to Prosper
6 years 4 months ago

I have read a lot of these books, but I still need to read The Intelligent Investor.

I also highly recommend The Richest Man in Babylon or The Wealthy Barber, for people who are new to personal finance.

6 years 4 months ago

Yea the Wealthy Barber is a good one. I never thought about including that one since it’s pretty basic, but if you know nothing about PF it’s a great start.

twentysomethingmoney
6 years 4 months ago

These are some great books — been looking at buying a couple of them for some time now. Just havent found the time to read them just yet. d’oh

6 years 4 months ago

Interesting mix between go for index and active investing….Like trying to see both sides

6 years 4 months ago

I’m a fan of indexing for most of one’s portfolio. Value investing IMHO is the only one that can beat indexing consistently.

6 years 4 months ago

Thanks for the great list of resources. I might add the “Big Short” to this list, as well as Napoleon Hill’s classic “Think and grow rich“.

6 years 4 months ago

Forgot about think and grow rich. Good one!

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