- 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.
- 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.
- 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.