Book Reviews

I read finance books all the time. Actually, I don't really read... I listen to books on CD that I check out from the public library. Because I go through so many of these I though I'd start keeping track via book reviews. So here is what I've got so far.

Books I've reviewed so far (click on the title for actual review and book details)

	Good to Great is a business classic, written in 2001, that explains with substantial research the characteristics that move good fortune 500 companies (those beating the market) to great ones (those beating the market by at least 3 times over a sustained 15 year period). I almost consider the book a “must read” for everyone, even those with no interest in business, investments and the like, because it is essentially a book about how to be extraordinary.
	The Elements of Investing - Burton G. Malkiel & Charles D. Ellis (2009) is a quick read that gives sound financial advice. It is, however, difficult to understand who the intended audience is. Malkiel and Ellis discuss the very basic elements of investing in stocks, but the writing is somewhat jargony and not well suited to novices or young adults. Also, while they write knowledgeably about the investment vehicles they are most familiar with (stocks and bonds), they don’t make any real effort to address other investment vehicles (real estate, small business ownership, etc.). Overall this is a good book that reviews sound financial principles, but it isn’t the classic it was intended to be.
	Stop acting Rich.. and Start Living like a real Millionaire - Thomas J. Stanley (2009). If you want to live like the millionaire next door, live in a house that is within your means and is the nicest house on the block. This book builds off Stanley's excellent book "The Millionaire Next Door" by restating what he said in that book--most of the wealthy in America are people who don't look rich but drive sensible cars, where modest clothing, and save a lot of money. These are usually entrepreneurs, not doctors, lawyers, and mid-level managers. So you "live like a real millionaire" by making modest purchases and saving the rest.
	Automatic Wealth for Grads... and anyone else just starting out - Michael Masterson (2006). Reviewed July 2009. This is a great little book on how to be a more productive employee, invest in stocks, real estate, and small businesses, and how to get your dream job. At least 50% of this book is copy and pasted from his earlier book “Automatic Wealth” with additions including a great chapter on job hunting (picking the right job, interview and resume tips, etc), a short section on stock picking and taxes, and a chapter on wine tasting (a complete waste of space to me).
	Automatic Wealth: Six Steps to Financial Independence - Michael Masterson (2005). Reviewed June 2009. This is a book that I re-read every year or two. While I don’t agree with many of his ideas, one of the two BIG IDEAs that he emphasizes over and over is one I do agree with. That is the importance of having multiple streams of income (consequently, the other BIG IDEA is radically increasing your income). He gives a lot of practical advice for ways you can actually start increasing your net worth through side businesses, real estate (rentals & flipping), and “more risky” investments like stocks and bonds.
	Think and Grow Rich - Napoleon Hill (1937). Think and grow rich is a great starting point for anyone who cares about accumulating riches. It focuses on the attainment of riches through an obsessive desire to achieve them using autosuggestion, faith, and knowing people who are smarter than you.
	The Richest Man in Babylon - George S. Clason (1926). This book advocates sound financial principles. While it gives very few specifics on how to manage your money it does teach general concepts that, if applied, will assuredly help you on your road to riches. Another reason this book has been so successful is that it doesn't waste your time trying to sell you anything—it simply tells a story and gives financial advice in a clear concise way. This is a book you can easily read in a day or a weekend and is one you will want to return to periodically to review.
	The 4-Hour work Week - Timothy Ferris (2007). Timothy describes the New Rich, a new way at looking at how you make and spend your time and money. This books claims to be able to guide through the process of whittling your work week down to 4 hours by becoming more efficient in the office, and creating mobility for yourself. This is accomplished by selling a product online that requires little to no management and then playing off the proceeds.
	Rule #1 Investing - Phil Town. (2005). This is a book about stock picking. Another book that makes grand claims about "investing in 15 minutes per week" yet it is apparent that understanding his system will take you dozens of hours and then implementing will take much more than 15 minutes a week. That said, he has some really great advice about picking stocks (what to look for), and while it certainly isn't a fun read it is a worthwhile one.
	Raising the Bar - Gary Erickson (2004). Author Gary Erickson describes his journey in creating the company Clifbar, a nutrition bar with a unique business model and clientele, and why he decided against selling the company (taking it public) in 2000 when there was great pressure by his business partner and others to do so. This book doesn't delve deeply into the specifics of building and running a company but uses a cycling metaphor of riding on "white roads" to describe how he feels a business should be run
	How Come that Idiot's Rich and I'm Not - Robert Shemin (2008). This book teaches financial principles that can lead to wealth. It has several good ideas. However, it wastes your time in getting to those good ideas. More time is spent trying to sell the Robert Shemin brand (now called “Rich Idiot”) than in giving actual advice that can lead to wealth. I'm sure this is done by Shemin in an attempt to make more money through selling more books and other products.

A note about my reviews

As you read through some of my reviews you might get the impression that I am not actually recommending any of them. That is not true, but I have read these books with a critical eye... I want to be able to recommend the books that will be most useful to you. Most of the authors write to a specific audience yet market the book to a much wider group--I want to save you the hastle of wasting time on books that were written for other people.

I love reading books about personal finance, real estate investing, stock picking, and web design. I've only read a few that I thought were a complete waste of time. Most, even those that I really disliked, have some value in them. If nothing else you can learn what not to do, or what to do when you are in a different stage in your life.

As I mentioned earlier, I don't really read many books at all. I listen to books on tape. This has worked amazingly well for me and saved me a lot of time and money. Here's what I do... I periodically do a search at my local library for books on CD on financial topics. If they have one I haven't read, or one I haven't read in a while, I put it on reserve and then check it out. I then rip the CDs onto my mp3 player (a $35 sandisk). I listen to the books on my morning jogs and when I ride the bus to and from school. This way I am able to listen to 10-20 hours or one entire book each week. It is great. I don't just listen to financial books but my fair share of fiction and biographies as well.

One thing that I've recently started doing is taking notes on what I read and this is especially useful for personal finance books. I'll always leave the last mile of my jog or last 10 minutes of my ride to turn of the mp3 player and think about what I've learned that session. Then, when I arrive home or at school, I jot down my notes, ideas, plans, etc. Sometime later that day I will type up those notes. This is extremely useful as it allows me to be a little more critical about what I am reading and come up with action steps for my own life. I recommending adopting a similar approach to your reading.

What I haven't reviewed

There are a few kinds of books that I regularly read but haven't gone through the trouble of reviewing on this site. I want to mention them because they can also lead to accumulating wealth, although they do it in a much less direct way.

1. Biographies. If you want to learn how to be like someone, read about them. It is amazing how much you can learn about wealth accumulation as well as how to run a business, invest in a business, and succeed in your occupation simply by reading about those who have done so well. I recommend reading about Bill Gates, Warren Buffet, Walt Disney, Andrew Carnegie, and any others who have been influential in your life.

2. Self-help or success books. If you learn how to be happy, or succeed in all aspects of your life, money has a way of finding you. These books also teach you how to be more productive or efficient with your time at work and at home, enabling you to climb the latter and make more money. Books I recommend include:

How to Win Friends and Influence People - Dale Carnegie
7 Habits of Highly Effective People - Stephen Covey
The Greatest Salesman series by Og Mandino

Books I've reviewed so far (click on the title for actual review and book details)

Other good financial reads

A note about my reviews

What I haven't reviewed