Investing Books

Money Master the Game

This was the book that started it all for me. It's a lengthy 689 pages, but it reads at a high school level. Tony Robbins makes it very clear the only reason managing your finances seems complicated is because Wall Street purposely makes it that way. He explains all the ways you're exposed to unnecessary fees in simple language. This book will give you the confidence to start taking control of your own finances and want to read more books on investing.

Thinking, Fast and Slow

Most of the things you're influenced by happen subconsciously.  It was interesting to read how and why. One very applicable concept to investing touched on in the book is we typically fear loss twice as much as we enjoy success. Losing a sum of money is twice as painful than the joy in gaining the exact same amount. Which explains why we are so reluctant to let go of our losses in our portfolios. There's even a section in the book on stocks that directly relates to this blog and why you should just play it safe with index funds.

The 4-Hour Workweek

This book makes you think differently about the ways you can make money. It shows you, you don't have to be stuck in a cubicle at a 9-5 job if you really put your mind to it. Tim Ferriss also provides a hell of a lot of recommendations ranging from virtual assistants to the types of businesses that run itself. Inadvertently, this is how my blog started. I always wanted to create a side hustle, and after I read all of these books, I realized I could give this blogging thing a try. The book isn't about literally having a four-hour workweek, it's about creating the life you want on your own terms. It includes a lot of case studies from successful people which is pretty cool.

Tap Dancing to Work 

This is a collection of Fortune articles written about Warren Buffett over his life and career. You get insights on his investment strategies, his thoughts on management and even his personal life-like parenting and his philanthropic efforts. What's unique about this is the author, Carol Loomis, became a great friend of Buffett's, so she was able to write in great, personal detail that very few books on him can.

The Power of Habit

The premise is based on the idea that creating powerful habits help you achieve the goals you want. You are walked through all the research and the techniques Duhigg uses to identify cues, routines and rewards, and then replacing old routines with new ones, to pick up the pace to speed you up to your goals. I used what I read in this book to find time to get up early and exercise every day when I lived at home and now to find the energy to exercise after work now that I moved out.  It also helped me to find time in the day to work on my blog. It's extremely effective, and I couldn't recommend it more.

Tools of Titans

This is a compilation of interviews from Tim Ferriss' podcast, which I have listed below.  It's a book with tips from extremely successful people in their respective fields.  Sometimes it has more of an effect to read the interviews instead of listening to them.  The podcast episodes run at least an hour in most cases, so these are a bunch of excerpts Ferriss thought were most important from the episodes he chose.  It's very helpful getting different perspectives on how people manage their day and how they got to where they are. You begin to see patterns.  These people can act as mentors for you.

Charles Schwab's Guide to Financial Independence

At first, it was very difficult for me to read this going in cold without any previous knowledge of personal finance. After reading Money Master the Game, this book was a breeze. I understood every term and topic discussed. This book is great for going slightly deeper into investments and is perfect as an introduction for beginners. Index funds are highly recommended, which I'm a huge fan of, so it's definitely a must read.

Uninvested: How Wall Street Hijacks Your Money and How to Fight Back

It calls out Wall Street and all advisors not acting in their client's best interest. Bobby Monks exposes the industry on how we're all being scammed on our retirement money and what to do about it. He explains how the industry works against us and how the industry as a whole got to this point.

A Random Walk Down Wall Street

Burton Malkiel shows how flawed financial advisors are in A Random Walk Down Wall Street. He goes over technical analysis and fundamental analysis showing actively managed funds severely underperform the average market performance over the long-term. The book does a really great job showing you that you are just as likely to get the same performance throwing darts at a dartboard with stocks listed on it than you are with mutual funds that are actively managed. It does however also talk about how efficient the market is, but since I tend to follow the principles of Warren Buffet and the advice he dishes out (like this), I'm not a believer in that argument. Overall, the book does a great job showing you money managers are no more successful than the next person.

The Intelligent Investor

The classic book on value investing that Warren Buffett deems, “by far the best book on investing ever written.” It was written by the father of value investing, Ben Graham (the originator behind the idea of the CFA).  This book made everything click for me. Graham talks about how irrational “Mr. Market” is at times and when it's best to take advantage of him. Graham talks about how crucial it is to give yourself a “margin of safety”, or a buffer in the event the worst case scenario happens to the stock you invested in. He explains the calculations he uses to determine whether a stock is cheap and safe enough to own. Surprisingly, the calculations are extremely easy to follow. The Intelligent Investor perfectly explains how to invest in the stock market without taking big risks. For me, this is also the best book I've read on investing.

The Little Book of Common Sense Investing

This is basically the bible of index funds. Jack Bogle, the founder of the index fund shows in clear, concise language, why investing in index funds is the best investment for the majority of people who want to put their money to work. The argument is that trying to beat the stock market, along with all the fees and costs deducted that come from investing, is a lose-sum game. I do know people who have consistently beaten the market, but this is because they took the time to invest in learning the basics and beyond, and spend their time researching and reading reports on companies. For the average investor, this book should always be on your nightstand.

The Essays of Warren Buffett: Lessons for Corporate America

It shows you how well Warren Buffett understands human behavior, what motivates people and why some business choices are good and bad for your personal holdings. It's a tough read for a beginner, but if you're patient with it, it's a phenomenal read. I came out with a much better, well-rounded understanding of the financial world and how it all comes together through my own personal investments.

Common Stocks and Uncommon Profits

Warren Buffett says he's 85% Ben Graham and 15% Phil Fisher. Fisher's strategy is finding growth at a reasonable price. He explains what qualities to look for in a business and how to get the information you need to make an informed decision whether to invest in a company or not. Although the book does give advice on how to speak with top-level executives, which may not be as practical these days, pairing this book with the Intelligent Investor gives you great insight on how to make the best possible investment decisions.

The Snowball: Warren Buffett and the Business of Life

It's an inside look at Warren Buffett's life.  Reading what he was like as a child, how he was raised and his early interests show you how dedicated he is to his practice. Alice Schroeder gives great insight into how he became the best investor of our day and one of the most powerful and respected people in America.

The Innovator's Dilemma

I always refer to this book when reading about a company I might be interested in.  Without a doubt, this is the best book to read in helping you understand why big companies fail, while newer, more nimble companies thrive.

The Inevitable: Understanding the 12 Technological Forces That Will Shape Our Future

If you couple this book with The Innovator's Dilemma, you'll have great insight into what you should look for in a company.  For example, between these two books, I feel very comfortable in my investment in Apple, and truly believe the Apple Watch has the potential to be even bigger than the iPhone.  Kevin Kelly's reference to the future of tracking shows how big the wearable market will be in the near future.