Top 5 Non-Financial Books
...that laid the foundation for my investment journey
Motivated by a tweet from InvestInAssets about book recommendations for those new to investing, I wanted to share my Top 5 non-financial books that played an important role in helping me build a solid foundation when venturing into the world of investing and finance.
The following reads not only expanded my mindset but also equipped me with valuable insights that go far beyond just crunching numbers and helped me build a foundation for long-term thinking. Let's dive right into it!
1) "The Courage To Be Disliked" by Ichiro Kishimi and Fumitake Koga
Summary: This book is a philosophical dialogue that explores the psychology of Adlerian psychology, which advocates for individual empowerment and personal responsibility.
Lessons I Learned: It taught me the importance of taking responsibility for my financial decisions and not being swayed by external factors. Investing requires courage and conviction, and this book instilled that in me.
Key Takeaways:
You have the power to change your financial future by making responsible choices
External validation is not necessary for successful investing
Accepting your past financial decisions and moving forward is essential for growth
Favourite Quote:
“The reason that so many people don’t really feel happy while they’re building up their success in the eyes of society is that they are living in competition.”
2) "Against the Gods: The Remarkable Story of Risk" by Peter L. Bernstein
Summary: This book delves into the history and evolution of risk management, providing insights into how risk has shaped our world.
Lessons I Learned: Understanding risk is fundamental to investing. This book helped me appreciate the concept of risk and its role in financial markets, enabling me to make more informed investment decisions.
Key Takeaways:
Risk is inherent in all investments; understanding it is key to managing it
History offers valuable lessons in financial risk and decision-making
Diversification is a powerful tool for mitigating risk
Favourite Quote:
“Time matters most when decisions are irreversible. And yet many irreversible decisions must be made on the basis of incomplete information.”
3) "Economics in One Lesson" by Henry Hazlitt
Summary: A concise exploration of economic principles, Hazlitt's book simplifies complex economic ideas for readers from all backgrounds.
Lessons I Learned: This book provided me with a strong foundation in economics, helping me understand the broader economic forces that influence financial markets and investments.
Key Takeaways:
Recognize the importance of considering long-term consequences when making financial decisions
Understand the unintended consequences of government interventions in the economy
Learn to think critically about economic policies and their impact on your investments
Favourite Quote:
"The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.”
4) "Finite and Infinite Games" by James P. Carse
Summary: Carse's philosophical work explores the concepts of finite and infinite games, offering a fresh perspective on life and decision-making.
Lessons I Learned: Investing is an infinite game, and this book taught me to adopt a long-term perspective and flexible strategies, rather than focusing solely on short-term gains.
Key Takeaways:
Embrace a long-term mindset when approaching investments
Adaptability and strategy adjustments are vital in the ever-changing financial landscape
Consider the bigger picture and your ultimate financial goals
Favourite Quote:
“A finite game is played for the purpose of winning, an infinite game for the purpose of continuing the play.”
5) "Rich Dad Poor Dad" by Robert Kiyosaki
Summary: Kiyosaki's book contrasts the financial philosophies of his "rich dad" and "poor dad," offering valuable insights into financial literacy and wealth-building.
Lessons I Learned: This book fundamentally changed my perception of money, assets, and liabilities, paving the way for a more strategic approach to wealth accumulation and investment.
Key Takeaways:
Understand the difference between assets and liabilities to build wealth
Develop financial literacy and continuously educate yourself about money
Taking calculated risks is crucial in building financial independence
Favourite Quote:
"The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth seemingly instantaneously.”
These books, along with many others, have taught me valuable lessons in long-term thinking and have shed new perspectives on finance and investing. Now, I'm curious: Do you have any book recommendations that have changed how you think about money and investing?
Feel free to share them and let's keep the knowledge flowing!
Disclaimer: This publication and its authors are not licensed investment professionals. The information provided in this publication is for educational purposes only and should not be construed as investment advice. We do not make any recommendations regarding the suitability of particular investments. Before making any investment decision, it is important to do your own research. RhinoInsight assume no liability for any investment decisions made based on the information provided in this newsletter.