Finance Books sequence

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Edinvestor
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Joined: Mon Jan 21, 2019 9:54 am

Finance Books sequence

Post by Edinvestor » Fri Mar 22, 2019 5:46 am

My quest is to manage my retirement portfolio which consists mainly of ETFs.

I've gained some finance knowledge via this forum and other online resources but now want to step it up by reading a few finance books. I purchased the following three books:

1) The Bogleheads' Guide to Investing (second Edition)
2) The Millionaire Next Door (Thomas J. Stanley and William D, Danko)
3) The Richest Man in Babylon (George S. Clason)

Hopefully someone has read all or some of these books. My question is:

Is there any logical sequence to read these books? Will reading one before the other provide a foundation to better understand the other?

Ferdinand2014
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Re: Finance Books sequence

Post by Ferdinand2014 » Fri Mar 22, 2019 6:20 am

Edinvestor wrote:
Fri Mar 22, 2019 5:46 am
My quest is to manage my retirement portfolio which consists mainly of ETFs.

I've gained some finance knowledge via this forum and other online resources but now want to step it up by reading a few finance books. I purchased the following three books:

1) The Bogleheads' Guide to Investing (second Edition)
2) The Millionaire Next Door (Thomas J. Stanley and William D, Danko)
3) The Richest Man in Babylon (George S. Clason)

Hopefully someone has read all or some of these books. My question is:

Is there any logical sequence to read these books? Will reading one before the other provide a foundation to better understand the other?
I have read all three. Number 2 and 3 won't help much with specific investing decisions. The focus will be on frugality and controlling your money. The first is the core of what to do with your investment portfolio and ETF decisions. I would start with 1. Number 2 and 3 do not have much specific advise, but help get you thinking about learning to control your money rather than it controlling you.
“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett

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elgob.bogle
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Re: Finance Books sequence

Post by elgob.bogle » Fri Mar 22, 2019 6:25 am

You didn't list "Boglehead's Guide to Retirement Planing" which is a logical follow-up to "The Boglehead's Guide to Investing". Swedroe & Grogan's "Your Complete Guide to a Successful & Secure Retirement" is well worth reading. These three will give you the background you are asking for. I've read "The Millionaire Next Door" which I found to be inspirational, but not to be a financial planning book. I have not read the third book that you listed.

Hope this helps

elgob

Strayshot
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Re: Finance Books sequence

Post by Strayshot » Fri Mar 22, 2019 6:41 am

Agee with the others, only #1 actually contains information on investing and managing investments. The others are more philosophical.

I would read:
Boglehead s guide to investing
Boglehead s guide to retirement
Bogleheads guide to the Three Fund Portfolio

Easy peasy. Another good read is the little book of common sense investing. Actually there are many more good reads, but the bogleheads will cover nearly everything.
Last edited by Strayshot on Fri Mar 22, 2019 6:45 am, edited 1 time in total.

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AtlasShrugged?
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Re: Finance Books sequence

Post by AtlasShrugged? » Fri Mar 22, 2019 6:44 am

Living off your Money, Michael McClung - this would be a good addition after you read both Boglehead guides, and Swedroe's book. There is a LOT in there to digest.
“If you don't know, the thing to do is not to get scared, but to learn.”

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vineviz
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Re: Finance Books sequence

Post by vineviz » Fri Mar 22, 2019 6:50 am

Edinvestor wrote:
Fri Mar 22, 2019 5:46 am
My quest is to manage my retirement portfolio which consists mainly of ETFs.

I've gained some finance knowledge via this forum and other online resources but now want to step it up by reading a few finance books. I purchased the following three books:

1) The Bogleheads' Guide to Investing (second Edition)
2) The Millionaire Next Door (Thomas J. Stanley and William D, Danko)
3) The Richest Man in Babylon (George S. Clason)

Hopefully someone has read all or some of these books. My question is:

Is there any logical sequence to read these books? Will reading one before the other provide a foundation to better understand the other?
If you are saving for retirement, my advice would be to start with "The Millionaire Next Door", for the simple reason that the number one driver of your financial success will be living below your means. For wealth accumulators the most important factor is their savings rate: the investment decisions are relatively unimportant (within reasonable bounds). This book will likely open your eyes to just how important lifestyle is when it comes to building wealth.

But I agree with others that the Boglehead book definitely has a lot more utility in determining HOW to invest (and why you should do it the Boglehead way).
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch

Topic Author
Edinvestor
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Joined: Mon Jan 21, 2019 9:54 am

Re: Finance Books sequence

Post by Edinvestor » Fri Mar 22, 2019 6:53 am

Thanks guys. Appreciate the feedback. I'll get hold of the books you recommend. 'Living off your Money' is on the costly side though :happy But I'm sure well worth it.

Gauntlet
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Re: Finance Books sequence

Post by Gauntlet » Fri Mar 22, 2019 8:16 am

"The Four Pillars of Investing" by William Bernstein is the best finance book I have read. All the other books people listed are also good.

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Taj_Mahalo
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Re: Finance Books sequence

Post by Taj_Mahalo » Fri Mar 22, 2019 8:33 am

vineviz wrote:
Fri Mar 22, 2019 6:50 am

If you are saving for retirement, my advice would be to start with "The Millionaire Next Door", for the simple reason that the number one driver of your financial success will be living below your means. For wealth accumulators the most important factor is their savings rate: the investment decisions are relatively unimportant (within reasonable bounds). This book will likely open your eyes to just how important lifestyle is when it comes to building wealth.
^ Agreed - start with this one. The investment knowledge you'll gain from the other books may not do you any good until the importance of lifestyle, frugality and saving have been ingrained in your mind. Sounds like you already purchased the original but I was going to recommend you skip that and read The Next Millionaire Next Door - the 2018 release which includes more recent data.
Income is not wealth. Wealth is not income. Both are equally as important and either is capable of producing the other.

larryswedroe
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Re: Finance Books sequence

Post by larryswedroe » Fri Mar 22, 2019 8:44 am

FWIW, I've read dozens of investment (as opposed to behavioral or personal) finance books,
You can find my list of the best here https://www.etf.com/sections/index-inve ... ence-books
And here is the list of best personal finance books https://www.etf.com/sections/index-inve ... ance-books
And here is the list of best behavioral finance books, https://www.etf.com/sections/index-inve ... ance-books
I would add Daniel Crosby's The Behavioral Investor to that list
Hope you find the lists helpful
Larry

oldlongbeard
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Re: Finance Books sequence

Post by oldlongbeard » Fri Mar 22, 2019 10:28 am

Taj_Mahalo wrote:
Fri Mar 22, 2019 8:33 am
vineviz wrote:
Fri Mar 22, 2019 6:50 am

If you are saving for retirement, my advice would be to start with "The Millionaire Next Door", for the simple reason that the number one driver of your financial success will be living below your means. For wealth accumulators the most important factor is their savings rate: the investment decisions are relatively unimportant (within reasonable bounds). This book will likely open your eyes to just how important lifestyle is when it comes to building wealth.
^ Agreed - start with this one. The investment knowledge you'll gain from the other books may not do you any good until the importance of lifestyle, frugality and saving have been ingrained in your mind. Sounds like you already purchased the original but I was going to recommend you skip that and read The Next Millionaire Next Door - the 2018 release which includes more recent data.
+2 now.

David Althaus
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Re: Finance Books sequence

Post by David Althaus » Fri Mar 22, 2019 2:36 pm

Charles Ellis "Winning the Loser's Game" is well worth a Saturday afternoon (scotch in hand). Helps people who, from time to time, think "I can buy individual stocks and do better."

All the best

DesertDiva
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Re: Finance Books sequence

Post by DesertDiva » Fri Mar 22, 2019 5:59 pm

oldlongbeard wrote:
Fri Mar 22, 2019 10:28 am
Taj_Mahalo wrote:
Fri Mar 22, 2019 8:33 am
vineviz wrote:
Fri Mar 22, 2019 6:50 am

If you are saving for retirement, my advice would be to start with "The Millionaire Next Door", for the simple reason that the number one driver of your financial success will be living below your means. For wealth accumulators the most important factor is their savings rate: the investment decisions are relatively unimportant (within reasonable bounds). This book will likely open your eyes to just how important lifestyle is when it comes to building wealth.
^ Agreed - start with this one. The investment knowledge you'll gain from the other books may not do you any good until the importance of lifestyle, frugality and saving have been ingrained in your mind. Sounds like you already purchased the original but I was going to recommend you skip that and read The Next Millionaire Next Door - the 2018 release which includes more recent data.
+2 now.
Agreed. It doesn’t deal with strategy or actionable steps, so then recommended reading includes “If You Can” by William Bernstein, and books in the recommended reading list by Jack Bogle, Taylor Larimore and Mel Lindauer.

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DanMahowny
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Re: Finance Books sequence

Post by DanMahowny » Fri Mar 22, 2019 6:06 pm

You have 3 great books there.

Order doesn't matter, but all 3 are worthy of your time.
Funding secured

mega317
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Re: Finance Books sequence

Post by mega317 » Fri Mar 22, 2019 7:19 pm

I have a theory that the person who posts a question like this is also at risk of being handcuffed by decisions like should I go 75% or 76% stocks? Vanguard or fidelity? Ally or Cap one? OP I recommend you practice making decisions by starting any one of these or others in the thread today.

(I recommend the little book of common sense investing)
https://www.bogleheads.org/forum/viewtopic.php?t=6212

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