We both walk into an elevator, and my name tag says, “Yvette Owo.” Suddenly, you’re excited! You love Financially Fab and meeting me is 2nd only to meeting Lady Gaga. (Okay, maybe this is a fantasy of mine. 😉 A girl’s gotta have dreams.) After you get an autograph for yourself, best friend, and future children, you ask for book recommendations. I recommend the following:
On Personal Finance
If you only read one book on Personal Finance in the next few years, choose one of these:
- Personal Finance for Dummies, by Eric Tyson
- Provides everything you need to know
- I Will Teach You To be Rich, by Ramit Sethi
- Is an interesting read because of Ramit’s in-your-face attitude
On Long-Term Investing / Mutual Funds
If you only read one book, choose any of these:
- The New Coffee House Investor, Bill Schultheis
- Provides solid advice for your whole financial life in simple language
- Mutual Funds for Dummies, by Eric Tyson
- Provides everything you need to know
- The Little Book of Common Sense Investing, by John Bogle
- Explains why you get more return with long-term investing than trying to beat the market
On Beating the Market
If you want to beat the market, read all of these books before making the first trade, opening up a brokerage account, or otherwise throwing your cash into a crapshoot. If you’re not willing to read just 4 books, you should get out of the game. If you still want to beat the market after reading, go for it! Track all your trading costs, losses, and gains. In 10 years, if made any money, let me know! I’ll be surprised and happy for you!
- Random Walk Down Wall Street, by Burton Malkiel
- Explains efficient market theory, which is required knowledge for any serious investor
- The New Coffee House Investor, Bill Schultheis
- Provides holistic investment advice in easy-to-understand language
- Unconventional Success: A Fundamental Approach to Personal Investment, by David Swensen
- Explains his successful asset allocation model
- The Little Book of Common Sense Investing, by John Bogle
- Explains why you get more return with long-term investing than trying to beat the market
