Funding Book Pdf | 6 Books Every Investor Needs To Make More Money

So to save you loads of time in trying to get started with the best Funding Books to read to help you become a better investor, I’ve picked five of my favorites here that I think are essential reads.

So let’s dive right in from the beginning with the first book here already in my hand, A Random Walk Down Wall Street by Burton Malkiel.

A Random Walk Down Wall Street	Link
John Bogle	Link
Trillions	Link
Green’s Richer Wise Happier	Link
The Psychology of Money	Link

A Random Walk Down Wall Street

Now this book was first published back in 1973, but clearly, it’s held its own because I think it remains an excellent read.

There are plenty of updated stats in here for us to enjoy as well. It’s quite hard to summarise this book because it covers so many subjects in the investing world, everything from the history of the stock market and bubbles, building a portfolio, loads on the psychology of investing, and even lots of practical steps to help you as an investor.

But I would say that a key takeaway for me was this, beating the stock market is extremely difficult and most of us will never be able to do it in the long run.

Investing is a long-term game and also there’s so much noise out there, all designed to try and take you for a ride as an investor and just take your money.

What I think is great about the book is that because it’s been around for so long, Burton can show you what would have happened if you just followed some of the steps and taken the advice when it was first published.

The second paragraph of the preface in this edition, tells you everything you need to know.

Now listen to this, an investor with $10,000 at the start of 1969 who invested in a Standard and Poor’s 500 stock index fund.

Would have a portfolio worth $1,092,489 by April 2018, assuming that all dividends were invested.A second investor who instead purchased shares in the average actively managed fund would have seen his investment grow to 817,741.

The difference is dramatic. Well, I think that’s quite an understatement, don’t you? I think you can kind of see where that one was going. Anyway, I could go on, but I don’t want to make this video too long.

There are loads more gems in this book and it really gives you so much more information about how to invest and how to build your portfolio. It’s not against picking stocks, but I would say that the message is to be a lot more careful about doing it and stick with index funds over most other investments.

Then really make sure you leave it for a very long time. Great book. Maybe not the first book you want to read if you’re new, but this has to be on your bookshelf. If you’re serious about investing right, second pick for me, which follows on pretty nicely. I’ve mentioned this one before, but this little gem here is John Bogle’s little book of Common Sense Investing.

John Bogle

And yes, it is pretty small, so there’s no excuse if you can’t find the space. And it’s easy to read too. If you don’t already know who John Bogle is, he founded the Vanguard Investment Company and also created the first index fund that regular investors like you and me could use. If you want to compare him to someone, then John Bogle would honestly be the equivalent of someone like Lionel Messi in football. Very classy, top of his game, and he’d have a few golden boots shaped like the stock market, I guess, if that’s even a thing.

Anyway, the book is all of the reasons why as an investor, you need to be using index funds and how so many investors are being let down by the financial market.

I know they might be boring to a lot of people, but you have to remember that index funds haven’t always been around. And back in John’s day, it wasn’t as easy as it is now to make investments with just a couple of clicks on your phone. It was a long process, expensive, and often kept hidden away from most people. And made to seem complicated.Now, quick tangent. I know I said five books.

Trillions

But if you are interested in the history of index funds, and where they came from, this book called Trillions by Robin Wigglesworth is really good.

You always just think index funds were inevitable or something, and they’ve been around forever. But that’s not the case. And there’s plenty of pain along the way to get them where they are today. Anyway, go get that one if you’re into your details. So back to Bogle.A couple of things I like here is that he reminds us that there will always be the next hot stock or exciting fund to chase. And I don’t know about you, but I still get tempted to invest money into the next hype stock or hot fund when they do come around.

Thankfully I don’t get excited too much with tokens with dogs on them, but you get the point. They will always be the next big thing and most people get themselves burned by trying to chase it.

This will never stop, but if you can avoid them and stick with your investing plan, you’ll probably end up doing well.

If you don’t believe him and you think you can do better because you’re the next big thing, here’s a fascinating stat that might change your mind, he says.

Of the 355 mutual funds existing in 1970, only 34 are left today. And even though that might be a few years old as a stat, how crazy is that even with all of their knowledge and skills? Most mutual funds won’t beat the returns of the index.

Anyway, great little read if you’re starting brand new. Or I’d say if you’ve been investing for a few years and you need a little refresher or a bit of a boost, this one’s also good to keep you on track.OK, Next up, let’s mix things up a bit. This one’s a lot newer.

Green’s Richer Wise Happier

William Green’s Richer, Wiser, Happier. Now First off, you might think, well, who’s this guy? I’ve never heard of him. Is he some kind of super investor or hedge fund manager? Green is a highly accomplished author, journalist,t and speaker. And he spent hundreds of hours with some of the best investors in the world.

So what you get in this book isn’t just a list of reasons why you need to invest or someone telling you to avoid hype stocks.

It’s pretty something unique. It’s almost like one of those greatest hits albums where you get all of the best bits rather than having to listen to the boring bits.

Just to give you an example, you get to hear from people like Mohnish Pabai, Joel Greenblatt, and Charlie Munger, as well as many others all about how they built their investment portfolios.

But more importantly, I think you get a much deeper insight into how these people think and what drives them. Because I think what a lot of people want to hear from books like this is just here’s how you decide on what company to buy, here’s when you sell it, and then that’s it.

That’s the secret. Go ahead and copy it . But in reality, it’s not as simple as that. So you will get some numbers in the book about company financials, but it’s not about how to analyze a company, it’s more about what goes on inside. The minds of the greatest investors and how they think. And I think what you end up getting from the book is that there are lots of universal lessons that you can learn that almost all of the best investors share.

But anyway, saying all of this, I like the final part of the book, which is titled Beyond Rich.

And this for me gets to the heart of what the book’s all about. I won’t spoil it for you, but remember that if all we do as investors and people is chase money and we forget about the rest of our lives and what’s important, I don’t think that many people are going to care that you have the best returns in the world. On your deathbed.

I think this book’s an easy read for any investor, especially if you like to follow the industry and know what goes on in the minds of the best out there. Anyway, go pick this one up if you want more.

I think you get about 10 times the book’s value easily, which is better than any stock I’ve owned. I’ll make sure I put all the links in the book in the description below, so do check that out.Now.Next up, is a huge bestseller and a massive favorite of mine. To be honest, I need to read for a second time very soon just to get more of that great info. And that is The Psychology of Money by Morgan Hausel.

The Psychology of Money

I think this book’s done well in the investing space because, unlike a lot of others, it’s not trying to show you how to value a stock, what to look out for, or claim that it can help you find the next Tesla. It focuses on what I think at least is the most important part about investing and building wealth, and that is everything that goes on up here in our minds.

I think if you ask any investor what their two biggest regrets are, the first one is usually I wish I started earlier, and the second one is probably something like I wish I hadn’t sold a certain stock and just held on. I can relate to that one on plenty of occasions. So on that second point, what is usually the biggest factor at play?

So our psychology and controlling it as an investor is a lot easier said than done. However don’t think because the book has the word psychology in it that it means it’s going to be boring.

It’s easy to read. It’s not long at all, and it’s packed with nice short chapters, which are all lessons and stories to help explain the way we act with our own money and how we can learn to be better.

At keeping it too. There’s nothing here that says what your portfolio needs to look like, or how much money you need to have by age 30 or 40. It’s really practical advice with evidence on lots of things, from why we want to buy expensive cars and houses, why we’re terrible at predicting events in life, especially when it comes to really bad stuff, and why we feel losses a lot more than we feel the excitement of gaining.

Some of the best parts for me are the stories and anecdotes that Morgan puts together from his own experiences in life. Like, for example, he talks about that time that he used to work as a valet, parking cars for often lots of very rich people. He’d see some amazing cars, all the usual brands you’d expect, Ferrari, Porsche, you name it.

But in one of the stories, the same guy who pulls up in a Porsche one week comes back in a really old car the next week because it got repossessed. After all, he couldn’t afford it. And then in other times he remembers the cars but can’t remember who the driver was, what he looked like, or how old he was. The lesson from this is that once we’ve got wealth or lots of money, we’re expected to show it to cars, houses, clothes, and everything.

But really, it’s all just for show to prove to other people how successful we are and that we’ve got the status.

We want respect. Now, let’s be honest, the more stuff you own, the more it costs you. And it’s no surprise that many athletes and highly paid people. End up broke because saving and investing money is a lot harder than just spending it all the time.

Anyway, this book is a great one. You don’t have to be interested in the stock market, money, or anything like that. It’s short and easy to read and I think you’ll enjoy the laid-back style and lessons in it.

A 100% must-read and I’m going to get my second read-through done over the next couple of weeks.

The Simple Path

OK, last but by no means least, The Simple Path to Wealth by JL Collins. And as the name suggests, I think this book shows us that.

In the world of finance and investing, looking after our money and becoming wealthy, doesn’t have to be complicated at all.

And I think what he does well in this book is outline on a practical level what we can all do to give ourselves a secure future.

So he goes over everything from basics like getting ourselves in the habit of saving money in the 1st place, being strict with ourselves in making sure that we invest that money, and also taking all the practical steps that you need to do in order and how to do it.

So for example, the book covers everything you need to know about why you need to stay away from debt as much as you can. Why the stock market is so powerful in building wealth, but also why you need to be prepared, especially in the short term when things are looking really bad. Now I will say the book is very US-centric when it talks about practical steps.

So if you are from the US then this one’s a really useful one for you. But anyone else can take the lessons but maybe not the exact advice.

So the sections on Roth IRAs, 401 Ks, and HSAs are just a word salad for anyone here in the UK.

And also there’s a section on the specific kinds of index funds and bond funds that you might want to use if you were based in the US.

But again, if you’re outside the US like me, take the lessons and the principles and then apply them to where you are.

So take advantage of your tax-advantaged accounts and also use broadly diversified index funds for most of your investing.

Always sounds so simple, doesn’t it? And that is exactly what this book is trying to do. Now, if you’ve made it this far, I’ve got a little treat for you. I want to do a small giveaway to get one of you any of the books on this list. You can pretty much pick what you want. I’ll either order it for you or I’ll send you the money on Amazon as a voucher. So don’t worry, we’ll figure it out together.

I’ll then do a draw using a random comment-picking tool in two weeks and I’ll post that on my community tab and then the commenter.

Can get in touch and don’t worry, I will be making sure it’s the right person. We don’t get scammed. Now the rest is up to you.

If you have enjoyed these books, you might like my video that I did recently looking at more lessons from the 40 or so books in my current collection. Or if you’re thinking about starting investing, I do have a complete beginner’s guide here which you can follow along to. That’s got everything you need to know to start building your wealth.

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