I try to stay well read in order to be the best investor and analyst I can be. The following three books have been impactful to me and they have all divulged important investing and saving ideologies.
“The Richest Man in Babylon” by George S. Clason
This book provides a unique and timeless way to conceptualize the core principles of financial freedom and wealth creation. Using Babylonian parables, the author helps formulate and solidify the ‘rules of money.’ From children to grandparents, this book can showcase simple to understand principles with memorable ancient tales.
“The Intelligent Investor” by Benjamin Graham
This classic is a very thick look into value investing. Graham used empirical market data along with a structured and focused fundamental approach to spot mispriced assets. Mispricing is quite common on both the high and the low side of the true fundamental intrinsic value of an investment, which (arguably) is why active management exists. Graham has provided insight on how to value investments using fundamental analysis, his teachings have influenced a large part of the equity valuation industry. As a side note, Warren Buffet subscribes to the Graham school of thought; in Buffet’s biography, “The Snowball: Warren Buffet and the Business of Life” by Alice Schroeder, Buffet spoke so fondly of Ben Graham (his former Columbia Business School professor) and “The Intelligent Investor” that I knew I had to read the book myself.
“Jim Cramer’s Get Rich Carefully” by James J. Cramer
This is a fairly easy to read introduction to starting a stock portfolio. Cramer outlines some foundational analysis techniques using modern day stock examples. Many dislike Mr. Cramer because of his loud personality on Mad Money and a perceived subpar investment record. However I respect Cramer’s insights and would encourage naysayers to read into his hedge fund performance which did amazingly well (earning annualized returns of 24% over its 14 year lifetime1). Cramer has pulled insights from his time at Goldman Sachs, his hedge fund, his research team and from his continued interviews with executives from public and private firms alike. I believe Cramer’s book Get Rich Carefully is a culmination of a lot of specialized experience and well worth the read.