This website is not an investment primer, however I am a voracious reader. Some books are good, some bad and some indifferent. Here are some of my recommendations – and why. All these recommendations I have read at least twice, some several times.
Rich Dad, Poor Dad by Richard Kiyosaki
This is a great read for adults, but also a good book for passing on to children to teach them money management skills.
It is about Richard growing up with a friend. His dad is always a slave to the System and never seems to have money, whereas his friend’s dad always seems to do better. in essence it is a Book about money management, about investing in assets, not liabilities.
It’s an easy read and highly recommended. A book I have read more than once.
The Zulu principle by Jim Slater
Jim Slater was a Businessman, specialising in takeovers. He would spot an undervalued Business, take it over and break it up and sell off sections of the Business. His philosophy was to find Businesses where the sum of the parts was greater than its existing valuation. Whilst he was astute, this also led to his reputation as an asset stripper.
The Zulu principle is all about his philosophy of focusing on what you are good at. It stems from his wife watching a programme about Zulus – which put her high up in terms of Zulu knowledge. Jim reasoned that if she went on to take a course in Zulus she could easily become an expert. He applied that to investing – and focusing on what you are good at. Become an expert in that field.
Reminiscences of a Stock Operator by Edwin Lefèvre
This one is slightly unusual. It’s a fictionalised story of someone that bought and sold shares when it wasn’t so popular, everything was ticker tape and you had to go to an office to trade. It’s a fictionalised Biography of a famous (at the time) speculator, Jesse Livermore. It’s told in the first person and the protagonist makes and loses a few fortunes along the way as he progresses.
What I find interesting is that the book deals a lot with the psychology of the private investor and his (at the time it was a male occupation) emotions. Swept up with euphoria one minute, panicking to sell the next. It’s not heavy going, an interesting read and a book that I have read several times over.