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If you were listening to
the radio show and came here because you didn't
write down the books I recommended, they're listed
below. If you'd like to buy any of the books listed,
you can click on the book cover or title and go
straight to Amazon.com to complete your order.
Catagories:
Books for Novice Investors
The Great Mutual Fund Trap
Baer, Gregory Arthur and Gensler, Gary; Broadway Books; 2002.
If you read any book on this list, it should be this one. These guys took the words right out of my mouth. If I wrote a book, this is exactly what it would say!
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The Wealthy Barber
Chilton, David; 3rd Edition; Prima Publishing; 1998.
This is easy reading and covers the basics of personal finance in a parable or story format. This is a good book. It was required reading for a survey level course in the Certified Financial Planner program at UCLA.
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Think and Grow Rich! The Original Version, Revised and Restored
Hill, Napoleon; umpteenth edition; Aventine Press; 2004.
This, along with The Richest Man in Babylon, was one of the first books I read when I decided to get my life in order. People ask me how I went from being broke to being rich in such a short time and my answer is always, " I decided to!" I know it sounds trite - but it really came down to that. And some of the credit definitely goes to this book for putting that idea in my head. Scoff if you want to - I don't care. But better yet, read it for yourself and then do something with it.
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Rich Woman: A Book on Investing for Women
Kiyosaki, Kim; Rich Press; 2006.
Women are a financially underserved market, although that is changing as financial services firms recognize their potential. Check out these facts … Women like us influence 80% of a households decisions. 47% of women in the U.S. over the age of 50 are single - meaning most of these women have to take care of themselves financially. After a divorce, a woman's standard of living drops an average of 73%. The age of the average widow is 57! Of the elderly living in poverty, 3 out of 4 are women - yet 80% of these women were not poor when their husbands were alive. The days of women being able to abdicate responsibility for her financial security to a husband, broker or the government is long gone. Women, read this book.
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Rich Dad's Who Took My Money? : Why Slow Investors Lose and Fast Money Wins!
Kiyosaki, Robert; Warner Brothers Publications; 2004.
This book looks at the various forms of investing in light of cash flow versus capital gains. Kiyosaki's point (and mine) is that investing in cash flow investments is far less risk than gambling on capital appreciation. Kiyosaki also spends quite a lot of time on the difference between advice and a sales pitch, why lazy/uneducated investors end up with the worst investments, and a discussion of various asset classes including paper (options and hedge funds), real estate and businesses. Like most of Kiyosaki's books, this is a lot about what and not much about how. But, the concept of cash flow is investing is important enough that you should read it. If you want to know how, then you should come to a Snider Investment Method workshop.
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listen to author interview |
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The Irwin Guide to Using the Wall Street Journal
Lehmann, Michael; McGraw-Hill Trade, (sixth edition) 2000.
This book was a required text for one of my financial planning classes at UCLA. When I first saw the title I thought it would be a ridiculous book. It isn't in its sixth edition for nothing. This is a great book and contrary to the title, it really explains very simply, everything you could want to know about the Federal Reserve, interest rates, money supply, trade deficits, consumer sentiment reports and every other market moving economic report you hear about on CNBC. More to the point, it discusses how these economic numbers fit into business cycles and how and why they affect the markets. This is not nearly as boring as it sounds and I highly recommend this book.
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The Millionaire Next Door: The Surprising Secrets of America's Wealthy
Stanley, Thomas J. and Danko, William D.; MJF Books; 2003.
If one of the keys to financial success is to find people who are achieving the results you want and then do what they are doing, (and I believe it is), then this book is your shortcut. At least it was for me. It was a real eye opener. It destroyed all the myths and misconceptions I had about how people got rich. It told me two very important things: 1) How they did it; and 2) That I could do what they did. This should be near the top of your reading list.
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Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets, Second Edition
Taleb, Nassim; Texere, 2004.
This is another must read book for investors. Simple, yet elegant ... Nassim Taleb uses Russian roulette, CEOs, classical history, trading, poetry, mathematics, Sherlock Holmes and science wars in his explanation of randomness and why it is so hard for us to perceive and accept randomness where it so clearly exists.
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listen to author interview |
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Naked Economics: Undressing the Dismal Science
Wheelan, Charles; W.W. Norton & Co., 2002.
This is probably the most entertaining book you will ever read on economics. But don't let its ability to hold your interest fool you. This book will make you a sophisticated and informed citizen. According to the book cover, "It demystifies key concepts, lays bare the truths behind the numbers, and answers all of those "dumb" questions you have been too embarrassed to ask." I strongly encourage you to read this book.
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Books for People Who Need Help Saving or Getting Out of Debt
Books for Investors Retiring Soon
The Retirement Savings Time Bomb ... And How To Defuse It
Slott, Ed; Penguin USA; 2003.
Ed Slott is widely recognized as one of the world's foremost authorities on tax and estate issues related to IRAs. This book is broken into two sections - just as the retirement game is. The first half is all about making the proper decisions about what to do with your retirement money. Should you leave it in your old employer's plan, roll it over to an IRA, or withdraw the money and pay the taxes? Part two is an easy to understand, five step plan for protecting your retirement money against taxation - both for yourself and your beneficiaries should there be anything left over when you pass away. In today's world, there are few people who will not have to understand and make the decisions explained in this book.
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listen to author interview |
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Books for Experienced Investors
Mean Markets and Lizard Brains: How to Profit From the New Science of Irrationality
Burnham, Terry; Wiley; 2005.
One of the most fundamental philosophies I have, when it comes to investing, is that investment return does not determine real life investment results, investor behavior does. A raft of data shows that we irrationally buy high and sell low, over and over again. Why do we do that? This book holds the answers. An expert in the physiology of economic decisions, Terry shows us that nature has played a cruel trick on us. by wiring our brains backward. But he doesn't stop there. He also explains how to get our around our own hard-wiring. Again, this one is a must for every investor. I quote Terry's work constantly and can't recommend this book too strongly.
buy now | more info | listen to author interview |
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Unexpected Returns: Understanding Secular Stock Market Cycles
Easterling, Ed; Cypress House; 2005.
Ed Easterling is one of the clearest thinkers I know when it comes to the critical examination of the stock market. His data is well researched and presented in an easy to understand manner - as good as there is. His central idea, one retail investors prefer to ignore, is that markets cycle up and down. More importantly, he cogently explains why it matters to you. There are several books on this list you could skip if you wanted to. This shouldn't be one of them.
buy now | more info | listen to author interview |
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A Random Walk Down Wall Street
Malkiel, Burton G.; W.W. Norton & Company; 2003.
The idea that you cannot predict stock prices is definitely a lightning rod. As you can imagine, those on Wall Street, and those who are desperate to believe that they can outsmart the market, think that Random Walk and the Efficient Market Hypothesis are heresy. For those who believe, as I do, that the markets are random, because a rational reading of the evidence is overwhelming that stock picking and market timing do not work, this book is an investment bible. But a word of warning. This book is not for the faint of heart. If your eyes glaze over at numbers and charts, try the Random Walk Guide to Investing.
buy now | more info | listen to author interview |
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Bull's Eye Investing: Targeting Real Returns in a Smoke and Mirrors Market
Mauldin, John; John Wiley & Sons; 2004.
The main premise of this book is that we are in the beginning of a long, secular bear market. Whether or not you agree, every serious investor should at least read the vast array of academic data he uses to support his conclusion. He then goes on to suggest that in a secular bear market, investor's should seek absolute returns rather than relative ones. On this point, we absolutely agree. This book is not light reading but it is highly informative and I believe all serious investors should read it.
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listen to author interview |
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Irrational Exuberance
Shiller, Robert; Broadway Books; 2001.
This book is a case study in investor psychology and the irrational decision making of investors which created the stock market bubble of the late 1990's. Professor Robert Shiller is the Stanley Resor Professor of Economics at Yale University and this book was published in March of 2000, just as the bubble was reaching its pinnacle. There are important lessons in this book for every investor about how we get carried away by the herd. He also gives a thorough treatment of the efficient market hypothesis which I used to believe in strongly, but am becoming more and more convinced is wrong, thanks in no small part to Dr. Shiller.
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listen to author interview |
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The Black Swan: The Impact of the Highly Improbable
Taleb, Nassim Nicholas; Random House; 2007.
The term "black swan" has come to mean an event or discovery whose existence was not predictable from the available data, and whose effect on society or the markets yields surprising and unexpected results. It is these improbable events, in the "fat tails" (see also (Mis)Behavior of Markets, by Dr. Benoit Mandelbrot), that cause investors untold amounts of consternation. They are the Long Term Capital Management, 9/11 or the sub-prime mess. My grandmother used to sum up Black Swan's, without knowing that was what philosophers called them, by saying, "Nothing is impossible, just highly improbable." To be a good investor, you have to REALLY know how markets work, not just think you know. You also must be able to accurately assess risk. To do that, you must understand black swans.
buy now | more info | listen to author interview |
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Other Books (Some Market Related, Some Not)
Moneyball - The Art of Winning an Unfair Game
Lewis, Michael; W.W. Norton & Company; 2003.
This is the story of the rebuilding of the Oakland A's into a playoff team, on a shoestring budget. Whether you are a baseball fan or not, you will find many lessons for investing contained within its cover - not surprising considering it is written by a former bond trader.
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Weekly PodcastOctober 23, 2007 Guest: Callers Cultivate a year-round harvest Highlights from the October 20 show on KRLD in Dallas-Fort Worth. Length: 22:25 MP3: (Hi 128k - Low 24k)
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