ILLUMINATION
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ILLUMINATION

The 12 Essential Books To Be A Financial Expert

And it will make you more interesting at dinner

Books (Pixabay.com)

Some people manage their money as if they were born with calculators in hand. Others … No. They may fall victim to their own instincts to spend more than they should. Maybe math is simply not your strong suit, or you find it too tedious to keep track of your finances in detail.

So what can you do to better understand your finances and grow your money?

To learn. Educate yourself.

That’s how Elon Musk and Warren Buffett started, and they haven’t stopped reading now that they’re at the top of their respective businesses.

Here are 20 finance books that will make you the center of attention at the party. (Or at least, something close to that!)

1. Think Fast and Slow

(By Daniel Kahneman)

In his book, Daniel Kahneman leads his readers to explore the mind, examining the two types of thought processes that drive the way people think. The first system is fast, intuitive, and emotional. The second system is slower, more deliberate and logical, he says. Thinking Fast and Slow goes on to assess the impact that overconfidence can have on corporate strategies and analyzes the difficulties in predicting what makes people happy in the present and in the future.

“When people believe a conclusion is true, they are also very likely to believe arguments that appear to support it, even when these arguments are unsound.”

― Daniel Kahneman, Thinking, Fast and Slow

2. Mastering Market Timing (By Richard Dickson & Tracy Knudsen)

Many analysts have used the Wyckoff method and Lowry analysis to understand price/volume interactions and the forces of supply and demand. In Mastering Market Timing, Richard Dickson and Tracy Knudsen discuss how analysts can combine the two methods to provide an objective and quantifiable approach to applying traditional price/volume analysis. Using these techniques should help investors better understand technical methodologies and find signs of emerging trends.

“Only liars manage to always be out during bad times and in during good times.”

― Bernard Baruch

© Richard A. Dickson & Tracy L. Knudsen / Amazon.com

3. Unique Process Advisors (By Dan Sullivan)

Over the past 20 years, there have been two major changes in the financial advisory business, according to Dan Sullivan. One is that most advisers have lost much of their business freedom due to bureaucratic and regulatory restrictions. At the same time, a minority group of advisers has become more “independent, creative, and valuable in the marketplace,” he says. At Unique Process Advisors, the author engages with some of those advisors to learn about their unique approach to dealing with their clients and growing their business.

“Know what you own, and know why you own it.”

― Peter Lynch

© Dan Sullivan / Amazon.com

4. How to Master the Art of Selling (By Tom Hopkins)

Sales are about getting people to trust and accept you and buy a product or idea. In his book, Tom Hopkins offers hundreds of ideas for improving sales skills based on proven techniques and strategies. Readers will learn the art of persuasion and how to adapt it to your business. Readers will receive tips on how to increase your sales.

“Sales are contingent upon the attitude of the salesman — not the attitude of the prospect.”

― W. Clement Stone

© Tom Hopkins / Amazon.com

5. The Nature of the Investment (By Katherine Collins)

People constantly invest their time and energy in the world as citizens, business owners, and consumers. The term “investment” applies to more than money. Lately, however, the world of investing has become unnecessarily complicated with the creation of funds, securitization products and high-frequency trading. In her book, Katherine Collins offers examples based on her 20 years of experience in the field of how it is possible to create a simpler and better-used investment framework.

“An investment in knowledge pays the best interest.”

― Benjamin Franklin

© Katherine Collins / Amazon.com

6. Competitive Strategy (By Michael Porter)

In this 1980 book, Harvard Business School professor Michael Porter discusses what creates a competitive advantage in a particular industry. Since many financial professionals spend their days analyzing companies, industries, and strategies, Porter’s book provides an ideal starting point.

“There are only two ways to establish competitive advantage: do things better than others or do them differently.”

― Karl Albrecht

© Michael E. Porter / Amazon.com

7. Barbarians at the Gate (By Bryan Burrough & John Helyar)

In 1989, Bryan Burrough and John Helyar wrote the definitive history of these types of financing when they recounted the struggle that involved the leveraged buyout of RJR Nabisco, a now-defunct food and tobacco conglomerate. The writers originally covered the story as reporters for The Wall Street Journal.

“In the business world, everyone is paid in two coins: cash and experience. Take the experience first; the cash will come later.”

― Harold Geneen

© Bryan Burrough & John Helyar / Amazon.com

8. The Intelligent Investor (By Benjamin Graham)

Benjamin Graham also wrote this guide on long-term investment approaches. First published in 1949, The Intelligent Investor has been repeatedly updated over the past 65 years, even more recently by financial writer Jason Zweig, as Graham died in 1976. Graham uses his book to chart and defends his preferred value approach to investing.

“Successful investing is about managing risk, not avoiding it.”

― Benjamin Graham

© Benjamin Graham / Amazon.com

9. Common Sense on Mutual Funds (By John Bogle)

The book’s author, John Bogle, the founder of the Vanguard Group mutual fund company, presented his guide for mutual fund investors in 1999. Bogle advocates the value of index-based investing. His book is full of common-sense financial advice, such as pointing out that the less you pay someone to manage your investments, the more money you will be left with.

“I believe — deeply and profoundly — that speculation is a loser’s game.”

― John C. Bogle

© John C. Bogle / Amazon.com

10. A Random Walk Down Wall Street (By Burton Malkiel)

First published in 1973, Princeton economist Burton Malkiel’s book advises readers on various types of investing. Whether you’re just starting your financial professional career or an established professional looking to expand your investment profile, Malkiel’s volume, which has gone through 11 issues since its publication, remains a great source of market fundamentals.

“Trust in time rather than timing.”

― Burton Malkiel

© Burton G. Malkiel / Amazon.com

11. Freakonomics (By Steven D. Levitt & Stephen Dubner)

Are you interested in learning how the world really works? Do you think you are getting the best deal if you are a homeowner who hires a real estate agent to sell your home? This 2005 book by economist Steven D. Levitt and journalist Stephen Dubner look at the surface of various every day (and not every day) situations and looks at how things work. The book also explores the world’s economics of drug trafficking and sumo wrestling, among a wide range of other topics.

“Economy is the method by which we prepare today to afford the improvements of tomorrow.”

― Calvin Coolidge

© Steven D. Levitt & Stephen J. Dubner / Amazon.com

12. Investment Leadership (By Jim Ware, Beth Michaels, & Dale Primer)

In this book, Jim Ware, Beth Michaels, and Dale Primer provide readers with a guide to investment industry best practices. It offers tools that managers can use to be better leaders and ways in which they can contribute to the sustainable growth of their companies. It also offers ways to diagnose a company’s culture and reveals ways to replicate best practices that are implemented in leading companies.

“An investment in knowledge pays the best interest.”

― Benjamin Franklin

© Jim Ware, Beth Michaels, & Dale Primer / Amazon.com

The world of finance is an inexhaustible source of material for writers. If you want to broaden your knowledge in finance and investing, you would do well to choose some of these recommended books to increase your financial knowledge, improve your sales, management, and business skills, and better serve your clients.

“Rule №1: Never lose money.

Rule №2: Never forget rule №1.”

Warren Buffett

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Jesús Salazar

Jesús Salazar

Late night writer🌙 Internet enthusiast 💻 Active reader 📖 Researcher 🔎 Bibliophile 📚 “Creativity Is Intelligence Having Fun” —Albert Einstein 💡