TSI #23: 3 Investing Books everyone must read

Hello Stoic Investors,

Today I want to focus on the best financial books you absolutely must read.

But before I reveal their titles and lessons, I’d like to make sure you fully understand the importance of reading.

Here are a few quotes from legendary investors.

"I just sit in my office and read all day." Warren Buffett 

"I have learned more from reading than from formal education." Roy Neuberger

“If it is wisdom you’re after, you’re going to spend a lot of time on your ass reading.” Charlie Munger

"If you want to get good at investing, read a lot and practice a lot." Joel Greenblatt

That being said, let's look into three books everyone must read.

Book number 1: The Richest Man in Babylon

This 96-year-old book is by far one of the best books to adjust your mindset. 

George Samuel Clason’s work is regarded as a classic of personal finance. Perhaps personal finance even started here.

Here are the key lessons from this timeless piece of art:

1. Invest in yourself

2. Make your money work for you

3. Protect your future income

4. Don’t spend more than you make

5. Invest in what you know 

Book number 2: The Intelligent Investor

There is a good reason why most financial enthusiasts recommend this book.

This book was written in 1949, which is 73 years ago.

And it is still one of the most respected books on investing out there. Fun fact. The author, Ben Graham, was Warren Buffett’s mentor.

One would think that the lessons would by far be obsolete by now. Wrong.

Actually, most successful investors follow these outlined principles:

1. Understand the value of the business you are investing in

2. Make investments objectively

3. Prioritize research over impulses

4. Steer clear of the herd

5. The past matters — but not too much

Book number 3: The Psychology of Money

The emotional aspects that influence how financial decisions are made should not be ignored.

Investing is 90% psychology and 10% intellect.

The Psychology of Money was written by Morgan Housel, a former columnist with the “Wall Street Journal”.

Here are the key lessons:

1. Getting and staying wealthy are two different things

2. Compound interest is a mighty force

3. Include room for error

4. Stick to your plan

5. Freedom is the highest dividend

So, note down these points and start investing today:

1. The more you read the more you know

2. The most useful money skills can be found in great books

Make your Christmas different and gift yourself the best thing to become wealthy: knowledge!