Whether you’re an experienced investor or you’re thinking about wading in and just learning the trade, it always pays to have a good understanding of the rules and best practices of investing. Read up to find out what we think are some of the top books on investing.
1. The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns – John C Bogle
- Build a broadly diversified, low-cost portfolio without the risks of individual stocks, manager selection, or sector rotation. Diversification is key to success in investing.
- Forget the fads and marketing hype, and focus on what works in the real world. Don’t invest money in something you don’t understand.
- Avoid high fee mutual funds and stay away from fund managers who charge a premium to manage your hard earned money.
- Stock returns are generated by three sources – dividend yield, earnings growth, and change in market valuation. In order to establish rational expectations for stock returns over the coming decade.
- Recognize that in the long run, business reality trumps market expectations.
- Learn how to harness the magic of compounding returns while avoiding the tyranny of compounding costs.
2. Simple Path To Wealth – J L Collins
- Think long-term. In the long run, the stock market always rises. Don’t sell low and buy high.
- Live below your means. Being frugal without being cheap helps you achieve your dreams sooner.
- Plan ahead with a fully diversified portfolio (except international stocks, more on this below). He talks about it in great detail about why he personally doesn’t invest in internal stocks any more.
- Invest in Vanguards low-cost index funds. They have some of the lowest fees on the funds in the market. Although Fidelity has recently announced zero cost funds to compete with Vanguard.
- You can find a ton of useful articles on his site.
Bonus – Check out JL Collins do John Goodman’s version of The Gambler here.
3. Money Master The Game – Tony Robins
- Compound interest is awesome. So start investing early.
- Tax and fees efficiency is critical to growth.
- Seek the unicorns and learn from them.
- Don’t try to beat the masters in their own game.
- Define a plan for your money before you receive it to avoid temptation to spend it all.
- Asset allocation is a hugely important decision for investing.
- Have different buckets to save money like Fun Money or Charity. This will help you make the most out of it.
- Be fearful when others are greedy, and be greedy when others are fearful. This advice will save you from yourself and help you not only build wealth but protect it.
- Dollar cost averaging is your best friend.
- Keep an eye on the taxes you may have accrued in your investments. Make sure you rebalance your portfolio at least every 6 months.
- Top investors are obsessed with not losing money.
- Provide value and think from your customer’s point of view.
Disclaimer – This page doesn’t contain any affiliate links and I don’t receive any money from Amazon if you decide to make a purchase after reading this review.