Required Reading
What follows is a list of absolutely-must-reads for anyone interested in investing and personal finance.
For Retail Investors & Advisors Alike
Unconventional Success: A Fundamental Approach to Personal Investment
Affectionately referred to as “The Bible,” this is a must-read for anyone with a deep interest in investing. It’s by no means a light read. But, if you want to do anything fancier beyond buying an index-based target-date retirement fund, you should read this book.
A Case for Index Fund Portfolios
See the chart on page 11. It’s pretty much all you need to know.
Every time someone (mostly advisors) tells me that they use Morningstar to research funds picks, I think of this paper.
For Institutional Investors and/or Active Managers
Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment
If you’re serious about active management (including alternative assets), you should read this book.
Organizational Alpha: How to Add Value in Institutional Asset Management
Consider this the cliff notes on the books above. It’s a simpler read – but makes very good points about investing.
For Anyone Interested in the Shiller CAPE Ratio
The Shiller CAPE Ratio: A New Look by Jeremy J. Siegel
More studies than I can recall referenced Shiller’s CAPE as a metric for implementing particular strategies. New research shows that may no longer be applicable.
For Retirement Tax Planning
Income Strategies: How to create a tax-efficient withdrawal strategy to generate retirement income
Great insight into how complicated the tax code is – and how one decision (such as Roth conversions or when to claim Social Security) can multiple tax consequences.
For Financial Advisors
This book stresses the importance of having systemized processes in a financial planning firm. I couldn’t possibly agree more.
For All Humans
The ONE Thing: The Surprisingly Simple Truth Behind Extraordinary Results
Focusing on a single goal can drive productivity. Multi-tasking doesn’t work.
- Success – often attributed to hard work – may be unknowingly attributable to luck.
- Since the future is entirely unknowable (take COVID), it’s best to save money for those unpredictable events.
- Likely most enjoyable to read one chapter at a time – instead of binging – since a lot of the content stands on its own.
Thinking in Bets: Making Smarter Decisions When You Don’t Have All the Facts
A great resource for recognizing – and combating – your own biases.
The Millionaire Next Door: The Surprising Secrets of America’s Wealthy
Honorable Mentions
Some good reads – though if I had to pick – I’d say tackle the above section of Required Reading first.
Money: The True Story of a Made-Up Thing
Interesting history, including the story of the transition away from the gold standard. Neat insights as to what can drive economies.
The first section explained how institutions may use ETFs, such as for liquidity for management transitions. The second part of the book was a dated list of ETFs and their potential uses.