“An investment in knowledge pays the best interest” Benjamin Franklin
Generating investment income is a long journey. Patience and persistence are required. Discipline is key. Mistakes along the way are unavoidable. These usually come at an expense both mental and financial. Like with anything learning by doing is key. You can start by reading this article. The good news is that achieving financial freedom is possible. It does take some time, usually longer than expected. In our age – there is so much information available often for free, as well as a lot of financial products available. Knowing how to navigate this environment is not an easy task. It often requires both time and determination. To save you some time, I decided to share my key take away’s of the most common investment books I have read and have helped me start my journey. Here is the top 5 list:
Rich Dad, Poor Dad (1997) combines autobiography with personal advice to outline the steps to becoming financially independent and wealthy. The author argues that what he teaches in this New York Times bestseller are things we’re never taught in society, and that what the upper-class passes on to its children is the necessary knowledge for getting (and staying) rich. He cites his highly successful career as an investor and his retirement at the early age of 47 as evidence in support of his claims. The key sentences that is have highlighted from the book include the following:
” Fear of society’s disapproval prevents us from leaving the “rat race” and growing wealthy”
” We receive no training in financial intelligence, despite being vital for personal and societal prosperity” – so it is our job to do that!
” To become wealthy you must learn to take risks”
” The road to wealth is long you must keep yourself motivated”
In Think and Grow Rich (1937)Napoleon Hill investigates the methods of the 500 most successful people of his time, including the world’s richest men, top politicians, famous inventors, writers and captains of industry. First published amidst the Great Depression, Think and Grow Rich has sold over 100 million copies. Napoleon Hill also used to be an adviser to President Franklin D Roosevelt. The book is very practical and includes a lot of actionable advise. Here is what I have highlighted:
” We can only accomplish our aims in life if we are driven by a burning desire”
” Goal setting and detailed planning are the basis of every achievement”
” Only the persistent will succeed ”
” Knowledge is power – but it does not have to be learned at school ”
” The workshop of the imagination is where we can turn our dreams into reality ”
The Intelligent Investor offers sound advice on investing from a trustworthy source – Benjamin Graham, an investor who flourished after the financial crash of 1929. Having learned from his own mistakes, the author lays out exactly what it takes to become a successful investor in any environment. Benjamin Graham has been source of inspiration for Warren Buffet. Great read while investing on the stock market. Here are the sentences that I highlighted in my book :
” The enterprising investor does not follow market ups and downs “
” Don’t trust the crowd of the market ”
” The enterprising investor has the chance to find real bargains ”
In The Education of a Value Investor (2014), Guy Spier recounts his transformation from greedy hedge-fund manager on Wall Street to a successful value investor. Sharing the incredible story of his career and the wisdom he acquired along the way, Spier has some surprising insights concerning, what he sees as a false choice between leading an ethical life and a financially successful one. With great admiration, Spier also names the people who were most influential to his professional life, explaining the specific effect each of them had on his mindset and career. Brilliant read to help you create the right mindset to successfully invest.
What I retained from this book is that at some point the author was recommending to have a checklist before investing in any company. His included about 80 questions that he would ask to himself in order to determine the right value of the company.
The Little Book of Common Sense Investing provides a detailed overview of two different investment options: actively managed funds and index funds. These blinks explain why it’s better to your money in a low-cost index fund instead of making risky, high-cost investments in wheeling-and-dealing mutual funds. John Bogle, the author of the book is the former CEO of one very large asset management firm – Vanguard. Here are the couple of sentences that I retained from this book.
” Few funds perform well, and there is no guarantee even those few will continue to do so.”
” Put the majority of your assets in safe low cost index funds.”
Certainly, on the topic there are many more useful books. What your list looks like? What are the key take aways for you from the books that you think have brought you most value on the subject? Let me know.