I want to give you the four best investing books for your wealth. These books are my go to for getting started and learning some of the key basics of investing.
Previously I’ve looked at the best books to develop the right mindset for wealth. The books I recommended literally changed my life, and will change yours too…
But I know you are eager to get into investing, and want some short cuts to success.
So there are four recommendations.
Depending on what part of the world you reside, you are either contemplating the warmer weather and time by the pool or at the beach…
…or you are anticipating the colder days and time by the fire with a warm comforting drink…
Either way, both are great times to dive into a book to keep you entertained and preparing to make your financial dreams a reality.
A Common Theme
Throughout this post you will note that there is a common theme…
It is in fact the main reason behind why I started The Investor’s Way.
You will note in these books that there is an anti-advisor fees mantra.
I will show you the impact that these fees can have on your outcomes and why I am suggesting books, and a process, that will enable you to manage your financial freedom yourself.
Besides the obvious financial advantages, taking control of your own money is empowering, and totally rewarding…
I don’t intend to offend financial advisors; I just believe that there is a better way that will work for you more effectively in the long term…
And let’s face it, I believe you can do it.
The Four Best Investing Books
One of the questions that I am often asked is my opinion on a particular stock, or the state of the market or property prices…
The conversation often gets difficult from that point as I try to outline my lack of opinion on any of the items they have raised.
The reason being, I am interested in teaching you about investing and not speculating…
I’m not about trying to beat the market, or beat a particular advisor or pick the next big thing.
There is a place for speculating, but it is generally for those who are risking other people’s money and not yours.
My goal is to teach you to invest in a way that you can make consistent returns that build cash flow and wealth over time.
So in recommending the following books, I am highlighting the best tools and strategies for achieving the goal of consistent returns, while at the same time demonstrating the impact of certain costs.
The Intelligent Investor: Benjamin Graham
I’ve mentioned Benjamin Graham before and for good reason…
He taught Warren Buffett, who as we know has gone on to be the world’s greatest investor. So Benjamin Graham’s methods must have some value, right?
Graham suggests that stock selection is investing, rather than speculation, only if you have an idea about the value of the company that you invest in.
The company’s true value, in turn, would depend on knowing something about the cash flows which may reasonably be expected to be generated by the company that you’re planning to invest in.
Although first published in 1949, very little of this book feels dated. I estimate that 95% of the opinions and techniques described by Graham still apply to today’s markets.
Without spoiling the plot, here are a few of Graham’s rules to whet the appetite:
- You should receive investment advice with deep scepticism. The best investment coach is one who does two things: prevents you from imprudent investment behaviour, and claims not brilliance but rather careful and conservative competence.
- New investors should almost never seek to buy new issues of stock.
- When deciding to purchase a stock, think like an owner, as that’s what you become.
- Be business-like in your investment practice. If you would not make professional decisions at work on a whim, based on emotion, or following a rumour you picked up from your gym0buddy, try to resist doing any of those when making investment decisions.
There are many more investing techniques and tips in this book.
This is likely to be the most important book you ever read when it comes to your investing success.
How to Grow a Multi-Million Dollar Property Portfolio – in your spare time: Michael Yardney
Granted this is written for the Australian property market, however the strategies and techniques described are universal and can be applied in any property market.
The main difference will be in the tax treatment of property investments in your market…
But as I say to anybody, an investment needs to stack up before you consider the tax implications.
Learn the skills of how to be a great property investor in this book from someone who has done it themselves.
I have not met Michael Yardney personally, but I have worked with some people who consider him a close friend, and they speak very highly of his strategies…
And based on their recommendations, I have read all of his books on property.
In this book you will learn everything you need to know to become a successful property investor, including where to find the information you need.
Michael’s 5 Stranded Strategic Approach to property investing has stood the test of time and the changes to property markets…
This approach is how I have built my own multi-million-dollar property portfolio. I also developed my property strategies that I teach in Investing Bootcamp after understanding and implementing these fundamentals.
Yardney also will show you how to achieve real wealth through property investment, identifying the hidden profit that most investors miss when buying properties.
His strategy to identify how to buy below market value (channelling Benjamin Graham here) and then add value for instant profit is a technique that will provide you with greater security in your investments.
A lot of people explain to me that property investing scares them due to the large amounts of money and debt involved…
The strategy to add value and instant profits provides an excellent buffer in case something goes wrong, and is worth tens of thousands of dollars to you.
There is a pyramiding strategy that shows you how to buy more properties without having to use any of your own money.
This is what I like to call leap frogging and is the technique that will super charge your progress.
He also shows you how to build a portfolio of property assets that will fund your lifestyle.
As you know, I am all about building the cash flow from your investments to fund your living expenses, true financial freedom…
The good news is that Michael understands this concept and shows you how you can do it with your property portfolio.
Where are the Customers Yachts?: Fred Schwed Jr
I was recommended this book by Christopher Tate, a mentor of mine, who has a very direct perspective of financial markets. He has no time for BS.
This story is about a visitor in New York more than a century ago…
After admiring all the yachts bought by Wall Street with money earned giving financial advice to customers, he wondered where the customers’ yachts were.
Of course, there were none.
There is far more money in providing financial advice than there is in receiving financial advice he concluded.
A simple example will show the impact:
- Financial adviser annual fee 1.5%
- Mutual Fund adviser annual fee 1.0%
- Total adviser fees 2.5%
- Fees as a percentage of 7% annual returns 36%
- Fees as a percentage of 5% annual returns 50%
Even the best loan shark would blush at these types of rates.
The financial impact of these fees on an account of $2 million over 10 years, assuming 7% returns, is a whopping $879,000 (trust me on the calculations).
Where are the customers’ yachts’ indeed?
I found this book an entertaining read and one that clearly illustrates the need for you to take control of your own money. I highly recommend it to you.
Creating Money – Attracting Abundance (S. Roman and D. Packer)
This is my current favourite. While it isn’t directly about investing, it does show you how to be in the right mindset to create and keep your money.
And let’s face it, keeping what we make is what it is all about, right?
This book has some simple meditations that you can do to get yourself in the right mindset for success with money. Just contemplating the questions that it asks of you throughout is enough to change your perspective of money and how to have a better relationship with it…
Because we all have a relationship with money. The confronting thing is, if your current money circumstances aren’t what you want, it’s because of your relationship with money.
This book can show you how to turn that around and make money flow more easily to you. Now that’s a good thing 🙂
Conclusion
The simple message from these books is that YOU have the power to control your financial destiny, your financial dreams and outcomes. Like I always say, nobody care more about your money than you do.
So do yourself a favour and do what it takes to develop the skills. I’ll let you in on a little secret, once you have these skills, they will pay you at a rate far more than you ever thought possible, and for as long you choose.
Leave me a comment below to let me know if you are going to take control of your money and go after your financial dreams. A thumbs up or yes I can is all I need, just put it out there that you are keen to proceed.