Unfortunately, I don’t have a lot of time for reading — and I’m damn slow at it. So when I do I like to spend my reading time as effectively as possible.
Here are three money, finance or investing books all Aussie investors should try:
1. The Outsiders, Will Thorndike (LINK)
This book is not for beginners but for investors and business people (who are one in the same).
Thorndike does an excellent job of conveying the unique tendencies of exceptional CEOs like Warren Buffett, John Malone, Katherine Graham and many more. The book reveals how these CEOs produced eye-watering track records via capital allocation. It also concisely revealed the personal and professional traits that led to those decisions. The name The Outsiders is very apt. Many of these CEOs favoured share buybacks over dividends, took big bets infrequently (except Malone) and did their own analytical work, often in their head or on one sheet of paper.
2. Rich Dad, Poor Dad, Robert Kiyosaki
(LINK)
In my opinion, Kiyosaki’s book is half-sales, half-financial education. What made his book so great is his ability to deliver important lessons through the eyes of his boyhood self. It’s a very quotable book. And although some of his opinion and strategies are highly risky or inappropriate (in my view) at the very least it challenges our ideals and the values that money can instil on young people. In particular his writings on recognising the difference between assets and liabilities was profound.
3. Value Investing, Greenwald, Kahn, Sonkin & van Biema (LINK)
Value Investing is a great book for anyone that is an investing nerd like me. It is broken into three parts: an intro to value investing; the three sources of value (assets, earnings power value, growth); and the profiles of eight value investors. It is eye-opening and easy to follow, so long as you have a basic understanding of accounting like balance sheets, income, and cash flow statements. I think you will enjoy it far more if you have experience investing in shares or businesses.
Value Investing is a such a great book that I incorporated many of the investment valuation techniques into my free value investing video course: “The Value of Everything”.
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