In absolutely no particular order, below is a list of my favorite books on investing, personal finance, wealth generation, and achieving financial freedom. I strongly believe that there is no better way to get your juices flowing than by reading an financially inspiring book. Always keep learning!
The Intelligent Investor by Benjamin Graham
Recommended for: Those looking to dig deep into investing and stock selection
Yep, the tag line on the cover says it all…”The Definitive Book on Value Investing”. I’ve mentioned Benjamin Graham in a post on Warren Buffett as the “Father of Value Investing.” Many astute investors (both professional and casual alike) consider The Intelligent Investor to be a baseline from which many other investment books trace their roots. As Warren Buffett, himself, professes, “Chapters 8 and 20 have been the bedrock of my investing activities for more than 60 years…I suggest that all investors read those chapters and reread them every time the market has been especially strong or weak.”
Rich Dad, Poor Dad by Robert Kiyosaki
Recommended for: Investing beginners who need an inspirational place to start
This is a nice beginners book to personal finance and investing, as it describes the basic difference between owning assets (investments such as real estate and businesses that produce cash flow or value) and liabilities (owned debts like a car and mortgage that take cash out of your pocket). This book began my love affair with personal finance and wealth generation when I read it way back in high school.
The 4-Hour Workweek by Timothy Ferris
Recommended for: Those who want explore an alternative lifestyle from the typical day-to-day grind
Although I disagree with some of the premises of this book, Tim Ferris does a wonderful job of creating an entertaining step-by-step guide to freeing yourself from the 9 – 5 workplace rigmarole. Ferris paints an idealistic, though sometimes impractical vision of world travel, personal freedom, and individual passion all centered around the concept of doing more with less.
The Automatic Millionaire by David Bach
Recommended for: Those looking for practical steps to take in life to achieve long-term wealth
This book was given to me by my father-in-law and I absolutely loved it. David Bach lays it out quite simply: success in long-term wealth generation is made up of incremental and automatic activities to pay yourself first. Slow and steady wins the race here, and that’s what makes it ring so true to me and my personal belief system. You can increase the probability of success in life by taking practical steps such as setting up automatic contributions to a retirement account or savings account, investing at regular intervals, consolidating and refinancing your debt, and watching frivolous spending like a hawk.
The Little Book of Value Investing by Christopher H. Browne
Recommended for: Those who want to pick stocks and beat the market’s performance over time
As a value investing practitioner myself, I’m a little biased when it comes to this book. I described a lot of what this book professes in my Part 2 and Part 3 of my series on Value Investing, but please, do yourself a favor and read it. This book does a great job at simplifying a lot of relatively complex topics into a brief and easy to read format. The concepts and tools mentioned will benefit any investor looking to boost his or her portfolio returns.