A good friend of mine always
said: "The best retirement plan is to be independently
wealthy." The following is a list of books for those who want to
pursue a hobby of financial security. This is NOT a "Millionaire
over night" solution. This is NOT the sexy "Investor du
jour" solution. This is a step-by-step guide to developing the
mindset and skills needed to analyze companies, and buy stocks that are
worth buying. It is an often-boring regiment that can reward patience
with wealth.
Cashflow
Quadrant: Rich Dad's Guide to Financial Freedom
Robert T. Kiyosaki, Sharon L. Lechter (Contributor)
The next "must read" in the Rich Dad, Poor
Dad series. Again, this book is best for motivating and directing your
thoughts, rather than presenting detailed solutions. It is a quick read
and worth the time.
The Millionaire Next Door: The Surprising Secrets of America's
Wealthy
Thomas J. Stanley, William D. Danko
Before you jump in, you should hear from the real
millionaires. This book is not about their secret formulas, but about
how they think and live. Reading this book will help you get there quicker.
Stock Investing
5.
One Up on Wall Street: How to Use What You Already Know to Make
Money in the Market
Peter Lynch, John Rothchild (Contributor)
At this point, your itching to pull the trigger on some
kind of investment vehicle. Peter Lynch, once guru manager of Fidelity's
stellar performing Magellan fund, gives a great introduction to stock
picking.
Financial Statement Analysis: A Practitioner's Guide, 3rd
Edition
Martin Fridson, Fernando Alvarez
If you are going to do your own research, rather than
rely on the perpetually-offered advice of all the good willed,
self-appointed market gurus, you are going to need to learn this. This book stands out for the real-world flavor it brings
to the subject. It is a fast read,
looking at the financial statement from both sides.
The Intelligent Investor: A Book of Practical Counsel
Benjamin Graham, Warren E. Buffett (Preface)
In this classic investment strategy book is the
information you need to take the next step. Warren Buffet describes
himself as ``85% Graham, 15% Fisher.'' Graham's concentration is value
investing.
10.
Common Stocks and Uncommon Profits and Other Writings
Philip A. Fisher
Where Graham's methodology is quantitative, Fisher takes
the qualitative approach. This classic will help with the intangibles
that are not always apparent in the numbers. Fisher's concentration is growth investing.