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Recommended Financial Readings

as listed in Rich Dad, Poor Dad by Robert Kiyosaki

Overview.

I have included reviews (courtesy of Amazon.com) of all the books on this list that I have read.  I have also listed the author's main points - when they are easily accessible.  This information is given for two purposes.  1.) It is a reminder to me of what I have read and what I was supposed to have learned.  2.)  The descriptions are such that you can decide if each book interests you.

Rich Dad, Poor Dad. - Top

Amazon.com
Personal-finance author and lecturer Robert Kiyosaki developed his unique economic perspective through exposure to a pair of disparate influences: his own highly educated but fiscally unstable father, and the multimillionaire eighth-grade dropout father of his closest friend. The lifelong monetary problems experienced by his "poor dad" (whose weekly paychecks, while respectable, were never quite sufficient to meet family needs) pounded home the counterpoint communicated by his "rich dad" (that "the poor and the middle class work for money," but "the rich have money work for them"). Taking that message to heart, Kiyosaki was able to retire at 47. Rich Dad, Poor Dad, written with consultant and CPA Sharon L. Lechter, lays out his the philosophy behind his relationship with money. Although Kiyosaki can take a frustratingly long time to make his points, his book nonetheless compellingly advocates for the type of "financial literacy" that's never taught in schools. Based on the principle that income-generating assets always provide healthier bottom-line results than even the best of traditional jobs, it explains how those assets might be acquired so that the jobs can eventually be shed. --Howard Rothman

Lessons:

1. The poor and the middle class work for money.  The rich have money work for them.
2. Why teach financial literacy.
3. Mind your own business.
4. The history of taxes and the power of corporations.
5. The rich invent money.
6. Work to learn - don't work for money.

Ten Steps to success:

1. I need a reason greater than reality.
2. I choose daily.
3. Choose friends daily.
4. Master a formula and then learn a new one.
5. Pay yourself first.
6. Pay your brokers well.
7. Be an "Indian" giver.
8. Assets buy luxuries.
9. The need for heroes.
10. Teach and you shall receive.

Lessons from the Cash Flow cassette on real estate.

1. Make a plan.
2. Form an investment team.
3. Determine where you want to implement your plan.
4. Decide how to finance your plan.
5. Go out and buy something (but start small).

Beating the Street. - Top

The Motley Fool, Randy Befumo
Beating the Street was Peter Lynch's follow-up to his bestselling book, One Up on Wall Street. Although many have accused him of writing the same book twice, his second time at bat allows him to add even more clarity to his basic message. Lynch, for those unfamiliar with the pantheon of investment gods, managed Fidelity's flagship Magellan fund for more than 20 years, compounding one of the most fantastic performance records ever. Although Lynch did not invent the "growth at a reasonable price" (GARP) approach to buying stocks, his unique spin on it allowed him to become one of the most successful portfolio managers ever.

Lynch's basic message in Beating the Street is quite Foolish--you, an individual, can actually find great stocks before Wall Street does. Using a combination of intelligence, reflection, perseverance and discipline, it is possible for the average person to uncover great investments. Although many mistakenly boil Lynch down to "buy what you like," his real point of view is that products and services you use and enjoy are often provided by excellent companies. If you research these companies and find out whether or not the stock that corresponds to them is priced favorably, you have an outstanding chance at compounding market-beating returns. Although much is made of Lynch's connection to Magellan, I found the most helpful parts of the book were Lynch's lucid descriptions of various companies with superior products or services and what happened to the stock. Like little morality plays, these small dramas of stock picking are rich with useful details applicable to anyone's style of portfolio management. Also, Lynch's description of how he turned his wife's IRA into a million-dollar account by focused investing in the undervalued shares of Federal National Mortgage Association (NYSE: FNM) serves as an example of how a focused portfolio of only a few stocks can create fantastic wealth.

Peter's Principles:

1. When the operas outnumber the football games three to zero, you know there is something wrong with your life.
2. Gentlemen who prefer bonds don't know what they are talking about.
3. Never invest in any idea you can't illustrate with a crayon.
4. You can't see the future through a rearview mirror.
5. There is no point in paying Yo-Yo Ma to play a radio. [on no-loads]
6. As long as you're picking a fund, you might as well pick a good one.
7. The extravagance of any corporate office is directly proportional to management's reluctance to reward the shareholders.
8. When yields on long-term government bonds exceed the dividend yield of the S&P 500 by 6 percent or more, sell your stocks and buy bonds.
9. Not all common stacks are equally common.
10. Never look back when you're driving on the autobahn.
11. The best stock to buy may be the one you already own.
12. A sure cure for taking a stock for granted is a big drop in the price.
13. Never bet on a comeback while they are playing "Taps."
14. If you like the store, chances are you'll love the stock.
15. When insiders are buying, it's a good sign - unless they happen to be New England bankers.
16. In business, competition is never as healthy as total domination.
17. All else being equal, invest in the company with the fewest color photographs in the annual report.
18. When even the analysts are bored, it's time to start buying.
19. Unless you're a short seller or a poet looking for a wealthy spouse, it never pays to be pessimistic.
20. Corporations, like people, change their names of one of two reasons: either they've gotten married, or they've been involved in some fiasco that they hope the public will forget.
21. Whatever the queen is selling, buy it.

Chaos - Making a New Science. - Top

Amazon.com
Few writers distinguish themselves by their ability to write about complicated, even obscure topics clearly and engagingly. James Gleick, a former science writer for the New York Times, resides in this exclusive category. In Chaos, he takes on the job of depicting the first years of the study of chaos--the seemingly random patterns that characterize many natural phenomena.

Over the Top. - Top

Book Description
Drawing on his forty plus years as a world-class motivated speaker, Ziglar shows precisely how to achieve what people desire most from life -- to be happy, healthy, reasonably prosperous and secure, and to have friends, peace of mind, good family relationships and hope.

Other Financial Readings

1. Free to Choose by Milton Friedman
   
   Reviewer: Craig Matteson (see more about me) from Ann Arbor, MI USA
   This is a book I have recommended to people for many years and still urge people to read. I urge you to read it. Especially now when there are many forces rising who dream that if only the good hearted could let government fix things for us all the evils in the world would be done away. This is an ignorance that failed during the last century and has simply bought a new suit and is trying to take the stage again.

   If you want to see more clearly the kinds of things we will be facing if we go that route again this book is an excellent primer. The authors show us the unintended consequences of government action. Most helpfully, they help expose the mischaracterizations of the arguments for market economies and free trade.

   The sad thing is that the present generation has not lived under the government foolishness of the New Deal through the seventies and so the siren song of the socialists (now once again hiding behind the noun Progressive) is appealing. It would be so simple if there were just one bad guy (and given today's politics it is always a guy or Margaret Thatcher) whom we could denounce and ring in Paradise.

   It isn't that simple.

   But it helps to have a foundation on which to build a good intellectual framework. The work of Milton Friedman is a great place to start. This book is a nice introduction to his work. His wife Rose is such a nice writer and herself a good thinker and explainer that this book is a delight to read. Really, this is fun stuff. Really...

  last modified February 06, 2024