What should a new investor being reading?

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eddyphamelin
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What should a new investor being reading?

Post by eddyphamelin » Sat Dec 08, 2018 6:13 pm

Greetings All,

I am a newbie to this forum. I following the 3-Fund Portfolio strategy. I would like to get recommendations/suggestions of what journals, magazines, newspapers, online resources, (besides this awesome forum) etc. I should be reading to stay informed.

Thank you! Eddy

radiowave
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Re: What should a new investor being reading?

Post by radiowave » Sat Dec 08, 2018 6:34 pm

Eddy, welcome to the forum!

Have you read the Bogleheads wiki (see link below). That is probably the best single place to start.

Here is a short list of books by Jack Bogle: https://www.amazon.com/s/ref=nb_sb_ss_ ... XK3XL9HFI

And the classic book by Taylor Larimore: https://www.amazon.com/Bogleheads-Guide ... 9QR60KZ6
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page

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eddyphamelin
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Re: What should a new investor being reading?

Post by eddyphamelin » Sat Dec 08, 2018 7:38 pm

Thank you! I have the books either already in my library or on order. I will exploring the wiki in more depth over the weekend. Thanks again!

Random Walker
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Re: What should a new investor being reading?

Post by Random Walker » Sat Dec 08, 2018 9:18 pm

Books!
My two favorite beginner books are William Bernstein’s 4 Pillars Of Investingand Larry Swedroe’s Wise Investing Made Simple

Dave

pdavi21
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Re: What should a new investor being reading?

Post by pdavi21 » Sat Dec 08, 2018 9:24 pm

You may want to read textbooks in Economics, Finance, Accounting, Business, Statistics, etc.

They might bore you to death, but you will actually learn instead of being told how to invest.
"We spend a great deal of time studying history, which, let's face it, is mostly the history of stupidity." -Stephen Hawking

UpperNwGuy
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Re: What should a new investor being reading?

Post by UpperNwGuy » Sat Dec 08, 2018 10:47 pm

I would recommend a new investor read the posts by nisiprius, grabiner, livesoft, Kevin M, vineviz, and other knowledgeable folk who post on Bogleheads. Their posts are both informative and instructional. The more you read Bogleheads, the better you will be able to identify the folk whose posts are the most helpful to new investors.

The problem with books is that they quickly go out of date. Nevertheless, there are many excellent books on investing. Just be aware that the older books can contain outdated information.

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arcticpineapplecorp.
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Re: What should a new investor being reading?

Post by arcticpineapplecorp. » Sat Dec 08, 2018 10:58 pm

while books can go out of date, Charles Ellis and Burton Malkiel's "The Elements of Investing" and Jack Bogle's "The Little Book of Commonsense Investing" are timeless and I don't see how they can ever go "out of date". Basic principles of investing are timeless and not subject to any need to "stay informed" of daily goings on.

I find these pretty good too:
https://investingroadmap.wordpress.com/

https://paulmerriman.com/how-to-invest- ... -download/
(three free e-books)

https://www.bogleheads.org/wiki/Boglehe ... philosophy
https://www.bogleheads.org/wiki/Video:B ... philosophy
"May you live as long as you want and never want as long as you live" -- Irish Blessing | "Invest we must" -- Jack Bogle

Random Walker
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Re: What should a new investor being reading?

Post by Random Walker » Sun Dec 09, 2018 1:48 pm

UpperNwGuy wrote:
Sat Dec 08, 2018 10:47 pm

The problem with books is that they quickly go out of date. Nevertheless, there are many excellent books on investing. Just be aware that the older books can contain outdated information.
I largely disagree. Bogle’s Cost Matters Hypothesis, Gibson’s Rewards of Multi Asset Class Investing, Ellis’ Winning The Loser’s Game teach timeless principles. Specific investment vehicles change over time and investment history certainly continues to write itself, but the basic principles don’t change.

Dave

averagedude
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Re: What should a new investor being reading?

Post by averagedude » Sun Dec 09, 2018 2:16 pm

eddyphamelin wrote:
Sat Dec 08, 2018 6:13 pm
Greetings All,

I am a newbie to this forum. I following the 3-Fund Portfolio strategy. I would like to get recommendations/suggestions of what journals, magazines, newspapers, online resources, (besides this awesome forum) etc. I should be reading to stay informed.

Thank you! Eddy
Since you are following the three fund strategy, i would suggest that you read nothing else about investing. Learning more will likely make you dumber and broker. If i was you, i would read resources that would help you make more money, save on taxes, increase your savings rate, or make your life happier.

FBN2014
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Re: What should a new investor being reading?

Post by FBN2014 » Sun Dec 09, 2018 6:37 pm

I highly recommend Dan Solin's books. Brief, to the point, and non technical.
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travelogue
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Re: What should a new investor being reading?

Post by travelogue » Sun Dec 09, 2018 6:44 pm

A couple I found helpful, so far:

The Little Book of Common Sense Investing (2e, 2017), by John C. Bogle
A Random Walk Down Wall Street, by Burton Malkiel

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travelogue
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Re: What should a new investor being reading?

Post by travelogue » Sun Dec 09, 2018 7:22 pm

averagedude wrote:
Sun Dec 09, 2018 2:16 pm
Since you are following the three fund strategy, i would suggest that you read nothing else about investing. Learning more will likely make you dumber and broker. If i was you, i would read resources that would help you make more money, save on taxes, increase your savings rate, or make your life happier.
Yes, however I find refreshing my recollection on why I'm using a Boglehead approach is helpful when markets are in the news or I get the urge to fiddle with my portfolio.

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arcticpineapplecorp.
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Re: What should a new investor being reading?

Post by arcticpineapplecorp. » Sun Dec 09, 2018 7:38 pm

I second Winning the loser's game by Ellis:
https://www.ifa.com/pdfs/ellis_charles_ ... e_1975.pdf

Frank Armstrong's Investment Strategies for the 21st Century:
https://investorsolutions.com/investmen ... t-century/

William Sharpe's The Arithmetic of Active Management:
https://web.stanford.edu/~wfsharpe/art/ ... active.htm

Jack Bogle's The Little Book of Commonsense Investing (older edition 2007 but still highly relevant):
http://213.55.83.214:8181/Management/01278.pdf
"May you live as long as you want and never want as long as you live" -- Irish Blessing | "Invest we must" -- Jack Bogle

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Peculiar_Investor
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Re: What should a new investor being reading?

Post by Peculiar_Investor » Sun Dec 09, 2018 7:43 pm

Another excellent and concise read by forum member William Bernstein, If You Can: How Millennials Can Get Rich Slowly (PDF).

If the OP does a search of the site they will find numerous mentions of this ebook.
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Random Walker
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Re: What should a new investor being reading?

Post by Random Walker » Sun Dec 09, 2018 7:44 pm

travelogue wrote:
Sun Dec 09, 2018 7:22 pm
averagedude wrote:
Sun Dec 09, 2018 2:16 pm
Since you are following the three fund strategy, i would suggest that you read nothing else about investing. Learning more will likely make you dumber and broker. If i was you, i would read resources that would help you make more money, save on taxes, increase your savings rate, or make your life happier.
Yes, however I find refreshing my recollection on why I'm using a Boglehead approach is helpful when markets are in the news or I get the urge to fiddle with my portfolio.
Another important read is a book on financial history. Devil Take The Hindmost: A History Of Financial Speculation is a very good book. I think knowledge of financial history helps build the strength of mind and stomach to stay disciplined.

Dave

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travelogue
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Re: What should a new investor being reading?

Post by travelogue » Sun Dec 09, 2018 8:04 pm

Random Walker wrote:
Sun Dec 09, 2018 7:44 pm

Another important read is a book on financial history. Devil Take The Hindmost: A History Of Financial Speculation is a very good book. I think knowledge of financial history helps build the strength of mind and stomach to stay disciplined.
Nice! Not available on Kindle, so I placed a hold at my public library. On the subject of financial history, I *really* liked Lords of Finance: The Bankers Who Broke the World by Liaquat Ahamed. Taleb's The Black Swan is eye opening on risk (and the admonition to not blow up!), though I didn't care for his other books. It'll have you looking at the world (not just your portfolio) in a new way.

On the topic of cognitive bias and behavioral finance I liked The Undoing Project (most books by Michael Lewis are good reads), Thinking: Fast and Slow, and Thaler's Misbehaving.

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Taylor Larimore
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Re: What should a new investor being reading?

Post by Taylor Larimore » Sun Dec 09, 2018 8:25 pm

eddyphamelin wrote:
Sat Dec 08, 2018 6:13 pm
Greetings All,

I am a newbie to this forum. I following the 3-Fund Portfolio strategy. I would like to get recommendations/suggestions of what journals, magazines, newspapers, online resources, (besides this awesome forum) etc. I should be reading to stay informed.

Thank you! Eddy
Eddy:

A stay-the-course investor using the 3-Fund Total Market Portfolio will have little reason to read "journals, magazines, newspapers, etc." to stay informed. Most publications receive the majority of their income from the investment industry whose primary purpose is to extract money from our returns to be used for their profit. I suggest you save your time and money and enjoy other pursuits.

You may find this link interesting:

He has read over 250 Investing Books

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

Topic Author
eddyphamelin
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Re: What should a new investor being reading?

Post by eddyphamelin » Mon Dec 10, 2018 6:16 pm

Thank you - I will! :happy

2015
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Re: What should a new investor being reading?

Post by 2015 » Mon Dec 10, 2018 11:09 pm

In my experience, the fastest way to waste time and lose money is to read the "wealth of information" contained in journals, magazines, newspapers, online resources, etc. This "wealth of information" is nothing more than marketing disguised as financial "information" whose purpose is to lead investors into thinking that investing is or should be hard, complex, and discombobulated.

The real secret is that investing, personal finance, and microeconomics is as simple as you make it. The bonus is you achieve superior long-term performance by escaping the maze of human behavioral errors. In investing, any edge one can achieve through clever strategies is dulled and blunted by the plethora of information readily available. In such an environment, the real edge is not making behavioral mistakes. To quote Buffett: "Don't do stupid stuff." A 3 fund portfolio is the perfect behavioral solution to the dilemma of investing in a complex adaptive system such as investing where inputs, agents, and influences are unknown and unknowable.

Edited to add: I also highly recommend that a new investor would be best served by reading all of Taylor's Gems found on this site.

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Taylor Larimore
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"Investment Gems"

Post by Taylor Larimore » Tue Dec 11, 2018 9:36 am

2015 wrote: I also highly recommend that a new investor would be best served by reading all of Taylor's Gems found on this site.
Thank you, 2015. I can't think of a better way for investors to get the best ideas from the best authors in the shortest amount of time.

This is the link: Investment Gems

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

livesoft
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Re: What should a new investor being reading?

Post by livesoft » Tue Dec 11, 2018 9:47 am

I have not seen mentioned some very important things for new US investors to be reading, so I will mention them here.

Lots of IRS Publications which will affect a US investor all through their life.

Please read and understand the following:

IRS Publication 550

IRS Publication 590A and 590B for all about IRAs and other retirement arrangements

IRS Publications 970 for all the education benefits

Form 1040 instructions, especially to Schedules B and D

There are some others, but the above should get one started.
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2015
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Re: What should a new investor being reading?

Post by 2015 » Tue Dec 11, 2018 2:04 pm

livesoft wrote:
Tue Dec 11, 2018 9:47 am
I have not seen mentioned some very important things for new US investors to be reading, so I will mention them here.

Lots of IRS Publications which will affect a US investor all through their life.

...
Agreed! Taxes is hard, complex, and [often] discombobulated, tax reform notwithstanding. But what a great way to Do Smart Stuff by saving money in not over paying taxes. Reducing taxes and fees is the best, most risk free way to increase overall returns. Taxes also exist in a closed (IRS) system, where inputs, outputs, and influences are known and (ultimately) knowable, so behavioral errors are muted. Doesn't get much better than that.

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Re: What should a new investor being reading?

Post by bloom2708 » Tue Dec 11, 2018 2:17 pm

Reading more about investing/finance may not do anything more than give you a tendency to do something different.

Make a plan, put it in place. It sounds like you have done that.

I would suggest reading anything by Lee Child (Jack Reacher series) or anything by Michael Connelly (Harry Bosch series). John Irving for a change of pace.

Find a hobby other than investing. :wink: Pop in here and help others at Bogleheads to get your investing fix.
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Re: What should a new investor being reading?

Post by DesertDiva » Tue Dec 11, 2018 2:24 pm

After consuming the Bogleheads recommended reading list, also read books by the late Thomas J. Stanley. I like:
  • The Millionaire Next Door
  • Stop Acting Rich... and Start Living Like a Real Millionaire
♫ Stocks go up ♫ Stocks go down ♫ Stocks go up ♫ Stocks go down ♫

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Re: What should a new investor being reading?

Post by asif408 » Tue Dec 11, 2018 2:31 pm

eddy,

I would suggest (if you are not terribly interested in finance or get bored easily by financial books) to start with 'A Random Walk Down Wall Street'. That's the one I started with, and it kept my attention starting out because it is not as dry as some of the other books on investing are.

If you like that and want to read more then go to 'Four Pillars of Investing'. These two books will teach you pretty much everything you need to know, and provide the historical perspective for why investing doesn't need to be complicated and the simple portfolios recommended here, such as the 3 fund, are perfectly good choices for most investors. I find myself re-reading passages from both of these books from time to time to give myself some historical context. As another poster mentioned, most of the useful investing information hasn't changed in the last several decades, so most of these historical books will stand the test of time.

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Re: What should a new investor being reading?

Post by willthrill81 » Tue Dec 11, 2018 2:59 pm

Start reading the Bogleheads Wiki. It's free and available to all.
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Re: What should a new investor being reading?

Post by Fallible » Tue Dec 11, 2018 3:13 pm

\
Random Walker wrote:
Sun Dec 09, 2018 1:48 pm
UpperNwGuy wrote:
Sat Dec 08, 2018 10:47 pm

The problem with books is that they quickly go out of date. Nevertheless, there are many excellent books on investing. Just be aware that the older books can contain outdated information.
I largely disagree. Bogle’s Cost Matters Hypothesis, Gibson’s Rewards of Multi Asset Class Investing, Ellis’ Winning The Loser’s Game teach timeless principles. Specific investment vehicles change over time and investment history certainly continues to write itself, but the basic principles don’t change.
Dave
Agree on those basic principles not changing. And that's largely because good investing is very much about the Bogleheads' principles, beginning with having a plan and, underlying the rest, having self-discipline and control over the powerful emotions of fear and greed. The basic principles are repeated in the best books and other writings and they always will be because we tend to forget them and need reminding. It also all gets back to John Bogle's The Little Book of Common Sense Investing in which he quotes Warren Buffett: "Investing is simple, but it's not easy." The "not easy" part is largely about investor behavior and that is a most important lesson not only for new investors such as our OP, but for all investors always.
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Re: What should a new investor being reading?

Post by rich126 » Tue Dec 11, 2018 3:18 pm

This doesn't fit with this forum but most stock investors would say:

The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel by Benjamin Graham
You Can Be a Stock Market Genius: Joel Greenblatt
One Up On Wall Street: Peter Lynch

This one is less about investing in stocks but just a good read.
Reminiscences of a Stock Operator: Edwin Lefèvre

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travelogue
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Re: What should a new investor being reading?

Post by travelogue » Wed Dec 12, 2018 12:50 pm

DesertDiva wrote:
Tue Dec 11, 2018 2:24 pm
After consuming the Bogleheads recommended reading list, also read books by the late Thomas J. Stanley. I like:
  • The Millionaire Next Door
  • Stop Acting Rich... and Start Living Like a Real Millionaire
If folks get value out of these books, great. However, I think they really suffer from survivorship bias in terms of what “millionaires” do (which cars they buy, etc.) and a fetishism for Scrooge-like stinginess and frugality, which drives me crazy. If they inspire you to save and invest, that’s great, but I think they fall down in the specifics.

Here’s a bit of what I’m talking about: https://www.latimes.com/business/hiltzi ... olumn.html

This is not a criticism of anyone who reads them and gets value from them (and I do think there are good lessons in them), I just have bones to pick with some of the findings and prescriptions of the books themselves.

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Re: What should a new investor being reading?

Post by Counterpoint » Sat Dec 15, 2018 2:02 pm

Oddly, I had just put together a list and detailed recommendations for a few people who had asked me the same question, and in fact read a whole bunch of them in the last month to help them out.

If you have the time and interest, I’d highly suggest spending the money to buy a few books. Yes, you can find everything online, but having a couple of reference books with all the info in one place is useful - and especially at the beginning. The cost is trivial compared to the benefit. You can then use the online info to fill in and deepen your knowledge.

In general, for new investors I like the books by Burt Malkiel (and his book with Charles Ellis), Dave Swensen, Jack Brennan, Jeremy Siegel and the Bogleheads Guides. I love Jack Bogle and enjoy reading his stuff, but in my opinion his books are not organized and crisp enough for a new investor, compared to the others. I have the same problem with Ellis’ Winning the Loser’s Game (like the Bogle books, I think it’s better to read it after you’ve got some background). If you see what books some of these authors recommend, they often recommend the others on this list.

But each has its pros and cons and it depends on how much detail you’re looking for. There’s also a distinction between books that are more basic, versus those that are more sophisticated and provide more context (and are still suitable for newbies), and that’s how I’d organized my take on these books:

Basic Books that I’d Recommend

Elements of Investing by Burton Malkiel & Charles Ellis
Very concise - can read be read in a couple of hours, so good for someone with very limited time
An excellent choice overall as a primer that won’t get people bogged down

Straight Talk on Investing by Jack Brennan
More detail than the small Malkiel/Ellis book, but not as much detail or coverage as in the Bogleheads Guides
A good book to reinforce the main messages of investing (importance of asset allocation, index funds, buy-and-hold, mistakes to avoid) without clutter and detail
Very well organized and easy to read (although pretty humorless)

Bogleheads Guide to Retirement Planning
An excellent primer, with good breadth of coverage.
Although focused on investment for retirement, it seems more up-to-date than the Bogleheads Guide to Investing.

Bogleheads Guide to Investing
Covers all the basics, and has enough on the key topics to serve as a book with more coverage than the Jack Brennan book (e.g. it has more on taxes, info on TIPS or i-Bonds, table with LT estimated return by asset class in order to estimate savings needed).
But: Even the 2014 edition was largely written in 2006; some stories and jokes may seem quaintly old-fashioned to a millennial reader

More sophisticated books (but still for a new investor)

Random Walk down Wall Street by Burton Malkiel
Excellent combination of history, some theoretical considerations and practical issues in investing.
I disagree with some of his specific recommendations (e.g. 25% allocation to emerging markets), but this is still the most thorough book I've read for a new investor and that operates at the more sophisticated level.

Stocks for the Long Run by Jeremy Siegel
Book is mostly about markets rather than the details of investing
Chapters 5 & esp Chp 6 are a fantastic take on historical stock market performance compared to other investments such as bonds and bills, and are worth the price of the book.
Very bullish on stocks for the long term

Unconventional Success by David Swensen
(this is for personal investors; he has another book for institutional investors which is tremendous)
It is a more detailed discussion of the most important aspects of investing (such as asset allocation and diversification).

I have yet to read Bernstein's Four Pillars or Gibson’s Asset Allocation among the other classics, but they're waiting for me at the library.

Good luck!

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Re: What should a new investor being reading?

Post by harvestbook » Sat Dec 15, 2018 2:49 pm

If anyone I know personally asks me (and what I will give to my daughter when/if she gets interested in investing), I recommend "Your Money and Your Brain" by Jason Zweig. I think understanding our emotional reactions and cognitive biases and all the tricks money plays on us are actually a more important foundation than worrying about which AA is the best. Emotional mistakes and bad habits are likely to be far more damaging than any slight miscalculation of asset classes. There are hundreds of portfolios that work well enough, but none of them work if you are irrational.
I'm not smart enough to know, and I can't afford to guess.

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