I have found that most highly successful people share one common habit – they READ a lot. There is no substitute to knowledge if you want to excel in any field, Warren Buffett reads 6 hours per day and Bill Gates reads a book every week.
Will 2018 to be your transformational year ? I’m sure the answer is YES but let’s make reading a habit and read at least one book a month.
Below is a quick summary of 10 life changing books. The knowledge in each of these books can significantly improve your financial life if applied with persistence. However, knowledge is only a “potential power” but knowledge followed by actions is the “Full power”.
Happy reading and please send your feedback to firstname.lastname@example.org after you read each book.
1- “Think and Grow Rich” by Napoleon Hill
Think and Grow Rich was written in 1937 by Napoleon Hill, promoted as a personal development and self-improvement book. While the book’s title and much of the text concerns increased income, the author insists that the philosophy taught in the book can help people succeed in any line of work, to do and be anything they can imagine. First published during the Great Depression, Think and Grow Rich sold over 100 million copies worldwide. Think and Grow Rich is the result of more than 25 years of study of more than 500 ultra successful individuals who had amassed personal fortunes.
Hill studied their habits and evolved 16 “laws” to be applied to achieve success. Think and Grow Rich condenses them, providing the reader with 13 principles in the form of a “Philosophy of Achievement”. The book asserts that desire, faith and persistence can propel one to great heights if one can suppress negative thoughts and focus on long-term goals.
2- “Rich Dad Poor Dad” by Robert Kiyosaki
This book is all about the lessons the rich teach their kids about money, which, according to the author, poor and middle-class parents neglect. Robert Kiyosaki’s message is simple, but it holds an important financial lesson that may motivate you to start investing: the poor make money by working for it, while the rich make money by having their assets work for them. We can’t think of a better financial book to buy for your kids.
3- “The Intelligent Investor” by Benjamin Graham
Benjamin Graham is undisputedly the father of value investing. His ideas about security analysis laid the foundation for a generation of investors, including his most famous student, Warren Buffett. Published in 1949, “The Intelligent Investor” is much more readable than Graham’s 1934 work entitled “Security Analysis”, which is probably the most quoted, but least read, investing book. “The Intelligent Investor” won’t tell you how to pick stocks, but it does teach sound, time-tested principles that every investor can use. Plus, it’s worth a read based solely on Warren Buffett’s testimonial: “By far the best book on investing ever written.”
4- “A Random walk down wall street” by Burton Malkiel
This book popularized the ideas that the stock market is efficient and that its prices follow a random walk. Essentially, this means that you can’t beat the market. That’s right – according to Malkiel, no amount of research, whether fundamental or technical, will help you in the least. Like any good academic, Malkiel backs up his argument with piles of research and statistics. It would be an understatement to say that these ideas are controversial, and many consider them just short of blasphemy. But whether you agree with Malkiel’s ideas or not, it is not a bad idea to take a look at how he arrives at his theories.
5- “Real Estate Riches” by Dolf de Roos
Self-made real estate mogul Dolf de Roos reveals why investing in property is so simple and lucrative as he gives insider secrets for getting ahead in this high-profit business. He brilliantly explains the key advantages of Real Estate investment vs. stocks , bonds or commodities. A very comprehensive book that explains many basic, important principles to real estate investing that are applicable to all types of investors getting a start.
6- “Common Stocks and Uncommon Profits” by Philip Fisher
Another pioneer in the world of financial analysis, Philip Fisher has had a major influence on modern investment theory. The basic idea of analyzing a stock based on growth potential is largely attributed to Fisher. “Common Stocks And Uncommon Profits” teaches investors to analyze the quality of a business and its ability to produce profits. First published in the 1950s, Fisher’s lessons are just as applicable half a century later.
7- “Beating the Street” by Peter Lynch
Peter Lynch came into prominence in the 1980s as the manager of the spectacularly performing Fidelity Magellan Fund. “Beating The Street” focuses on how Peter Lynch went about choosing winning stocks (or how he missed them) while running the famed Magellan Fund. The book follows Lynch’s common sense approach, which insists that individual investors, if they take the time to do their homework, can perform just as well or even better than experts.
8- “How to make money in stocks” by William O’Neil
William O’Neil is the founder of Investor’s Business Daily, a financial daily newspaper, and the creator of the CANSLIM system. If you are interested in stock picking, this is a great place to start. Many other books are big on generalities with little substance, but “How To Make Money In Stocks” doesn’t make the same mistake. Reading this book will provide you with a tangible system that you can implement right away in your research.
9- “The Richest Man in Babylon “ by George S. Clason
This book dates back to the 1920s and teaches finance through parables that have appealed to new and experienced investors alike. Rich Arzaga, Founder and CEO of Cornerstone Wealth Management in San Ramon, Calif., says it teaches the basics of financial planning through modified spending. “This control starts with some very simple principals of living within your means, keeping reserves, and having a strategy to invest savings,” says Arzaga. A good read for anyone who wants to retire well, this book does a good job outlining the framework of how families can make good choices. Clason makes it easy for readers to readily absorb the principles as they’re stated with a sort of “financial bible-speak.” These include “make thy gold multiply” (i.e., use powerful investments) and “guard thy treasures from loss” (i.e., watch for brokers with their hot tips).
10- “The Little Book of Common Sense Investing” by Jack Bogle
Jack Bogle is the founder of The Vanguard Group, known for providing the lowest cost funds in industry. Vanguard is also the largest asset management house in the world with over $3 trillion in total assets under management. Jack’s message is simple, keep costs low and invest in market indexes for the long run. Jack’s other book, Common Sense on Mutual Funds, is another best seller and breaks down mutual fund investing.