Five classical books on personal finance and investing
These five books cover a wide range of topics related to personal finance and investing. "Rich Dad Poor Dad" and "The Millionaire Next Door" offer practical advice on building wealth through real estate investing and smart saving habits, respectively, while "Common Stocks and Uncommon Profits" and "The Intelligent Investor" provide detailed frameworks for analyzing companies and making informed investment decisions. "Psychology of Money" explores the emotional and psychological factors that influence our financial decisions, offering insights into the way we think about money and how we can develop healthy financial habits.
Rich Dad Poor Dad¶
"Rich Dad Poor Dad" is a personal finance book that emphasizes the importance of financial education, as opposed to relying on traditional education to secure a comfortable lifestyle. The book is written as a series of anecdotes from the author's life, describing the financial teachings of his "rich dad" (a family friend who was financially successful) and comparing them to those of his "poor dad" (his actual father, who had a stable job but struggled with money). The book offers practical advice on how to become financially literate and build wealth through real estate investing and starting a business. "Rich Dad Poor Dad" is an inspiring and informative book that challenges readers to think differently about their finances and take control of their financial futures.
Written by Robert Kiyosaki and Sharon L. Lechter in 1997.
Common Stocks and Uncommon Profits¶
"Common Stocks and Uncommon Profits" is a classic investment book that provides a detailed framework for analyzing companies and making informed investment decisions. The author, Philip Fisher, stresses the importance of thoroughly researching a company before investing in its stock, and offers a range of techniques for evaluating a company's management, financials, and growth prospects. The book also includes case studies of successful investments, providing real-world examples of the principles outlined in the text. "Common Stocks and Uncommon Profits" is a must-read for anyone interested in stock market investing, offering a wealth of information and insights that are still relevant today.
Written by Philip A. Fisher in 1958.
The Intelligent Investor¶
"The Intelligent Investor" is another classic investment book, written by Benjamin Graham, who is widely regarded as the father of value investing. The book is aimed at the individual investor, offering practical advice on how to analyze stocks and bonds and build a diversified portfolio. Graham stresses the importance of investing in companies that are undervalued by the market, and offers a range of techniques for identifying such opportunities. The book also covers the psychological aspects of investing, emphasizing the importance of discipline and rationality in making investment decisions. "The Intelligent Investor" is a timeless classic that has influenced generations of investors and is still widely read today.
Written by Benjamin Graham in 1949.
Psychology of Money¶
"Psychology of Money" is a personal finance book that explores the emotional and psychological factors that influence our financial decisions. The author, Morgan Housel, draws on his experience as a financial journalist and investor to offer a range of insights into the way we think about money, and how we can develop healthy financial habits. The book covers topics such as the importance of patience and humility in investing, the role of luck in financial success, and the dangers of short-term thinking. "Psychology of Money" is a thought-provoking and informative book that challenges readers to reflect on their own attitudes towards money and make positive changes in their financial lives.
Written by Morgan Housel in 2020.
The Millionaire Next Door¶
"The Millionaire Next Door" is a personal finance book that challenges the stereotype of wealthy individuals as flashy and extravagant. The authors, Thomas J. Stanley and William D. Danko, conducted extensive research on millionaires in the United States and found that the majority of them were frugal and lived modestly. The book offers practical advice on how to build wealth through savings and smart investing, and emphasizes the importance of living below one's means. "The Millionaire Next Door" is an eye-opening book that provides a refreshing perspective on what it means to be wealthy, and offers actionable advice for anyone looking to improve their financial situation.
Written by Thomas J. Stanley and William D. Danko in 1996.