Tuesday, November 23, 2010

Investment Books to Recommend

Every now and then, I get queries from readers on what books do I recommend that they read.

It is really hard to recommend books to read. After all, there are tons of investment books out there and they all cover a wide range of topics. Some teach you how to invest in stocks, some commodities, some real estate, some forex, etc, etc.

Basically, whoever has made money in a certain trade is sure to start writing a book and recommending to everyone to follow in his footsteps. And that is why Warren Buffet writes about stocks and Jim Rogers writes about commodities. I am sure some other real estate tycoon has made his money from real estate and will write about investing in real estate.

Are these good books? Some are, some are not. You have to discern for yourself whether the rules apply and whether you need to contextualise it to suit our environment.

Nonetheless, here are some of the books that I have read:

1. Capital Ideas
2. Random Walk Down Wall Street
3. Millionaire Next Door
4. Rich Dad Poor Dad
5. Retire Young, Retire Rich
6. Hot Commodities

Of course the books written by Warren Buffet and other investment greats are also worth reading.

But reading is one thing...............applying it in real life is a whole different playing field.


14 comments:

  1. Ya. Reading and doing it is quite different.

    "For the things we have to learn before we can do them, we learn by doing them." - Aristotle

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  2. Hi FF,

    As far as I know, Warren Buffet didn't write any books at all. The closest one to that is Buffettology by his ex daughter in law and an autobiography (sort of), Snowball, by Alice Schroeder.

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  3. I am still reading investment books whenever I discover them as every author does have one or two pointers that are new; otherwise they can't be writing. Right? That new pointers might change my own thinking and to revise new strategies or methods.

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  4. I recommend "What color is your parachute? For Retirement" published 2010. Succinct and to the point about retirement, if there is one for our generation. Retire Happy, Retire reasonably Wealthy and retire Healthy. Retire with pleasure but stay engaged and still lead a meaningful life. That is about the gist.

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  5. Of all the inspirational investment/financial freedom books I read, my preference is The Richest Man in Babylon.

    Nicely told tales I felt.

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  6. The R2A2 formula

    R2: Recognize, Relate
    A2: Assimilate, Apply

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  7. Hi FF, I don't think Warren Buffett written any books. But there are numerous books written about him.

    Some books to recommend:
    1. Secrets of millionaire investors by Adam Khoo - For people with zero knowledge in stock investments.
    2. How to make money in stocks by William O'neil
    -slightly more advance
    3. Think and grow rich by napoleon hill - mindset and inspiration book

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  8. Hi FF,

    I think no matter how many books you have read and going to read, the most important "investment principle" to remember is a saying by Warren Buffet, "Temperament is more important then high IQ".
    I have read a book (Lizard Brain) and this author describe "temperament in investing" as a person's EQ.
    Now, just like everyone's IQ is different, so is EQ.
    So it seems we are back to square one.
    isn't it?
    The real question is I think is your temperament suitable for stock market investing?
    Maybe it's suitable for other type of investing.
    And no one but only you can tell.

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  9. HI FF,
    I like the "Millionaire Next Door" very much.
    I think the basic principle from "rag" to at least a millionaire $$$ start with this type of
    "mentality".

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  10. HI,
    We can keep on reading to improve FQ and I believe even a little of IQ.
    But how to improve EQ.
    Can anyone share.
    Can anyone gives some practical examples

    From my observation a person EQ on money matters is very difficult to change.

    Except I have witnessed usually very timid pre-teenager who were usually bullied by other more "fierce" boys would be able to turn into very ruthless and violence young man after recruited by gangsters.
    But this has nothing to do with a person's EQ on money matters.

    Let us ask the question will these timid pre-teenagers remain timid for life if they were not recruited by gangsters?

    In actual fact how much can a person change his EQ?
    I suppose not very much especially on the matters of money.

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  11. Hi all,

    Thanks for the comments.

    I guess reading is definitely not a way to "get rich". It only gives u knowledge which might or might not be useful at all.

    I personally like Millionaire next door as it shows that everyone can more or less become a millionaire even if they are just a normal Joe.

    But sometimes I feel that the approach is way too slow. Do i really have to live a life of 9 to 5 jobs to get there? Is there a faster way? I am sure this kind of questions are in people's heads. And that is why there is a whole universe of books out there that wants to show ppl how to get rich fast when they are still young.

    Personally, i think the only way to be rich when you are young is to start a business. It is nearly impossible to be rich when u are young if you are working for someone. Unless u are working in the banks that is..

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  12. Hi ff,

    You are right, owning a successful business is one of the fastest way to be rich.

    Next are the professionals.
    My wife's eldest sister's family has 3 doctors( all specialist) and marry 3 doctors (also specialist).

    The doctor couple who have their own private practice in Mount E. or Glen-eagles get to be millionaires in the fastest time. I believe they are in their late 30s only.

    Next come a "special kind of business men".
    These are people who can buy and sell businesses in the stock markets without running them.

    I being not very smart have to become the "special kind of business men".
    And yes it is very "slow".
    It takes me about 18 to 20 years.
    But like the millionaire next door, I got no complain.
    Besides, my "special business" has become my life-time hobby.
    The above scenario is what I have been telling my son.
    You have to be good at, at least one of them.
    If not you just have to be an ordinary 9 - 5 workers for your whole life.
    Shalom to you.

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  13. financialray, thank for recommending the book:"What color is your parachute? For Retirement" published 2010

    ReplyDelete

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