“Books are a uniquely portable magic.”
― Stephen King
We were thinking of what should be the topic for this very article which puts itself forward to tell you what we love talking about. Three things popped up straight to mind: Investment, Business, and Books. So, we’ll tell you about a few books that have proved to best suit for the Investors and Entrepreneurs in both of us.
“Outside of a dog, a book is a man’s best friend. Inside of a dog, it’s too dark to read”
This wise quote is given by Groucho Marx emphasizing on the importance of books in one’s life. When books on money matters are read, people understand that nothing could become a better friend of an investor than a Finance Book.
We read a lot of books and share knowledge with each other. Very often it happens that we’re asked for recommendations for the same. As when you enter a search on Amazon for finance books, you’ll get around thousands of search results coming up. This will certainly make you confused as to where in the world do you begin from.
We’re trying to list down some of the books that have a really good influence on our lives in terms of investments and businesses that we’re carrying on. We’ll keep updating this list whenever we find a must-read, make sure to come by in the future and check what’s new has been added for you to explore.
The Dhandho Investor: This is a small book which lays out the framework for value investing very strongly. This book explains a comprehensive guide on how the Patels of India are doing the asset allocation into their businesses and how the same guidelines can be successfully applied in the stock market as well. The Patel community, which is proven to be the best businesses men of all in India have some real good sense of conducting businesses and allocating funds in them.
This quality is a lot crucial to an investor as well while investing in the stock market because value investing is about seeing things everywhere in life as risks vs rewards. When the reward of taking action is much greater than the risk, it makes sense to do it. Heads you win, Tail you don’t lose much. It is true in investing. It is true in entrepreneurship. It is true in business.
Rich Dad Poor Dad: The first feeling you’ll have after reading this book is, “I’m Inspired”. Rich Dad, Poor Dad makes you completely rethink of how money works. For example, instead of seeing an asset as something with value, this book describes an asset as something that generates cash flow in turn. In short according to this book, your home can not be considered as an asset. This book basically talks of a child who have had great influence of two men in his life. The lessons he learns from his idols are as follows:
Also Read: 5 of Our Favourite Money Hacks
Lesson 1: The Rich Don’t Work For Money
Lesson 2: Why Teach Financial Literacy?
Lesson 3: Mind Your Own Business
Lesson 4: The History of Taxes and the Power of Corporations
Lesson 5: The Rich Invent Money
Lesson 6: Work to Learn – Don’t Work For Money
7 Habits of Highly Effective People: This is one such book which leaves a great impact on one’s mind and soul as to identify their own vision, principles and values of life and how does it affect our life once it has been made a part of our habits. This books of seven great habits that make anyone successful in their lives and these are:
- Being Proactive
- Begin with the end in mind and behave/react
- Put first things first
- Think of Win/Win
- Seek to Understand first and then to be Understood
- Sharpen the ‘Saw’
The One Thing: FOCUS, what do you understand by this word? We believe you’ll all say determination to do something. Yes, it’s determination to do that “One Thing” so nicely and precisely that you become a master of the same. You don’t see Mark Zuckerberg busting through his shirt because if he dedicated his daily hours and focus to his workouts, he just would not be Mark Zuckerberg. This book forces you to find that “One Thing” of your life and just hammer on it. We personally like few lines of this book, these are:
- “It’s not that we have too little time to do all the things we need to do, it’s that we feel the need to do too many things in the time we have.”
- “When I first began to time block, the most effective thing I did was to put up a sheet of paper that said, “Until My ONE Thing Is Done—Everything Else Is a Distraction!”
- “FOUR THIEVES OF PRODUCTIVITY Inability to Say “No,” Fear of Chaos, Poor Health Habits, Environment Doesn’t Support Your Goals”
The Intelligent Investor: When Sir Warren Buffet describes a book as “by far the best book ever written on investing”, it is probably the most important and influential value investing book ever written by Benjamin Graham. Benjamin Graham via this book has tried putting hard core concepts of investing in simple terms that can be understood and more importantly can be implemented as well by an average investor. This book talks on six key principles of intelligent investing as Graham details six key ideologies of “intelligent investing”:
- Know the business you’re investing in
- Know who runs the business
- Invest for profits over time, not for quick buy-and-sell transaction profits
- Choose investments for their fundamental value, not their popularity
- Always invest with a margin of safety
- Have confidence in your own analysis and observations
The Richest Man in Babylon: This book takes you through different stories in the Babylonian days, which are full of learning as to how a man grows in life with their right investment decisions. There is a story of a young man who is seeking to learn how to become rich from a millionaire, in the process he learns of some timeless and ever applying rules to wealth which anyone can learn and apply to theirs as well. The young boy actually gets rich at a point in life and thanks the rich guy for his lessons. We would like to share some lessons learnt with you all too:
- Spend Less Than You Make. Save and Invest The Difference.
- Use Saved Money To Make More Money
- Only Take Advice From People Skilled In That Field
- Only Invest Your Money In Industries and Skills You Are Very Familiar With Or You’ll Lose Your Money
- Don’t Wish For A Lump Sum of Cash. Work To Achieve A Consistent Cash Flow Instead.
- You Will Lose Money If You Put It To Foolish Use
- Put Away 10% of your Earnings and You Won’t Even Notice A Difference in Quality of Living
- Invest in Your Ability To Earn More
The One Minute Millionaire: This book when you start reading at first may get you confused because of its two sides: one fictional and one non-fictional. Both the sides have a similar motive for the readers to acquire a clear mind-set of an enlightened millionaire in order to achieve wealth and financial freedom.
The story takes you through the journey of a woman who at the moment starts feeling good about her decisions begins to make one. The book talks primarily about the importance of ‘generics’ for example personal attitude, influence, networks and marketing. The phrase “Attitude Matters” is the shortest summary for this book and is a must possessed quality for everyone who wants to become successful in life. This book has personally altered both of ours attitude towards life and success in life.
One up on Wall Street: The ultimate knowledge that I could receive from this book is the basis of practically every big investor. All of them recommend for focusing on what you know. Look for investment in companies and industries that you’re familiar with. Listen to every body’s recommendation but follow your own beliefs and knowledge.
This book written by Peter Lynch provides a fair knowledge on investment for people who don’t know the ABC of business or investing. As he always emphasises on the daily observations of life for selecting a good stock. The book focuses on observing the companies that look promising to surge in areas of products widely used. And, eventually investing in those companies’ stock only.
Peter Lynch’s book also believes on the idea of “ten baggers”. This represents those stock which increased tenfold from the time of their investment. He recommends an investor to look for such ten bagger stocks.
Common Stocks & Uncommon Profits: Philip A Fisher is the writer of this book on the topic of investment. He believes in buying the quality stocks, and does not mind paying a fair price for them. He holds the stocks for several years (sometimes decades) and relishes the benefits of compounding.
Fisher’s approach to investment is known as ‘scuttlebutt’. This means applying detailed interviews with shareholders, the suppliers, customers, investors and employees, and competitors about a company’s forecast. The author in this book, explicitly mentions “What to Buy” and “When to Sell” chapter wise.
Hoping this write up shall surely bring some positivity in its reader. If you’re an investor or a business personnel, you should consider having these books in your bookshelf. Sometimes these books become the driving force for us to do something good with our business and investments. Sometimes, a learning from the book touches your heart and soul so deeply that you want to change the way you’ve been living till the time. Books are life-changing. Experience them by embracing them in life.