A friend asked how many books I had read over the past few years, wanting a recommendation for something to read over the holidays. I had to pause a few minutes to think about the answer and was more than a little surprised to tell him the number: fifty-four — since January of 2008.
“Fifty-four?” he asked, “Well, which were your favorites then?”
“That’s almost like asking which of my three children I love the most,” I kidded. “I’ll make a list and email it to you.” This article is the result of that email (and these are in no particular order).
My Favorite Books
I’ve reviewed most of these on The Wisdom Journal. Feel free to check out my Book Reviews category.
How A Second Grader Beats Wall Street 
Allan Roth’s book, How A Second Grader Beats Wall Street, is a MUST READ resource for anyone looking to increase their wealth with the least amount of risk and the most opportunity for growth. As a recovering “return chaser,” this book held an “AHA!” moment for me (now it’s one one of my favorite books on investing).
Hindsight is always 20/20. Humans can spot a “trend” that ties in nicely with the financial markets using anything from sunspot activity to migrating ladybugs and it all is worthless for predicting financial markets.
Just a couple of the ideas Allan Roth covers in this book:
1. You’re paying far more in fees than you realize.
2. You cannot predict where the stock market will be in [insert ANY length of time here].
3. Wall Street gurus don’t know either. They’re just really good at convincing others that they know what they’re talking about. Remember that most “experts” were advising us to buy Lehman Brothers and Wachovia (among others) just days before they collapsed.
4. The fees and taxes we pay cause our real returns to shrink to a fraction of our perceived returns.
5. Our biases (and our financial planner’s biases) can cause us to lose big money over the long run.
Outliers: The Story of Success
In Outliers: The Story of Success one of the most delightful books I’ve read in a long, long time, author Malcolm Gladwell outlines the way people from The Beatles to the feuding Hatfields and McCoys to a struggling family in Jamaica become successful, or don’t become successful (in the case of the feud). More importantly, he argues that the complete story of success, the real underlying story, is much more complex and surprising than anyone wants to believe.
What if none of our assumptions about success were true? What if all of them were true? What if success was a unique combination of luck, skill, talent, common sense, family connections, family history, determination, perseverance, and more? What if there was no one single factor? Are you ready for that?
Debt Is Slavery
Debt Is Slavery was a book that kicked me in the teeth. It is a powerful indictment of how society has come to view the use of debt to buy worthless consumables to satisfy an insatiable need to appear successful. But when you’re a slave to anything, how can you even remotely consider yourself successful?
Author Michael Mihalik did a fantastic job of connecting to me as a reader and he really nailed home a handful of few key points:
- Stop spending money needlessly on things that will become obsolete, things you really won’t use, things you really don’t need, and things that will never love you back.
- Avoid debt like the plague.
- Be frugal and make wise financial decisions.
- Take steps to implement extreme savings in your life.
- Ignore marketing’s siren call. Because the book is so short (88 pages), he is really blunt and to the point. This book doesn’t waste your time and at about $10 or $11 bucks, it doesn’t waste your money either.
17 Lies That Are Holding Your Back and the Truth That Sets You Free
17 Lies That Are Holding You Back and the Truth That Will Set You Free
Chandler says that there are “white lies” we tell others to spare their feelings. There are public lies told by public figures. There are lies that we tell to make ourselves look better or get out of work.
Rich Like Them
In Rich Like Them: My Door to Door Search for the Secrets of Wealth in America’s Richest Neighborhoods, author Ryan D’Agostino decided the best way to learn how the richest people got that way was to simply ask. So, he did. Traveling through almost 2 dozen of the richest zip codes, he knocked on 500 doors and interviewed about 50 wealthy people, simply asking, “How did you get to live in a home like this?”
The diversity of responses was staggering, as were the variety of occupations and careers that these wealthy individuals had chosen. Roughly half of them rose through the corporate ranks, got tired of the corporate rigmarole, and struck out on their own to start their own business. His book outlines the responses of the rich to his questions and it is fascinating … and encouraging.
Secrets of Power Negotiating
Ready to stop being a doormat when it comes to the negotiation process? If so, then Secrets of Power Negotiating is for you.
Before reading this book, I was under the impression that negotiation was a process shrouded in mystique. I think that most people approach the negotiation process with a little fear because they worry they’ll be manipulated into making a decision they would not make under ordinary conditions. I now know that there is a specific sequence of events and that there are specific methods to get the other side to agree to your position.
I plan to move this article to the blue navigation bar and add to is as I read more. Check back often!
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These all sounds like fantastic reads, and I have not read a single one of them. I am just getting ready to read a different book by Malcolm Gladwell called “The Tipping Point” which looks very interesting.
Thanks for sharing!
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I read Outliers already and loved it – it wasn’t what I expected but nonetheless I agree with you and think its a great book.
I haven’t read Debt is Slavery but just judging by your bullet points it appears that the author has committed a logical error in assuming that all debt is bad instead of making the justifiable point that debt is bad when you go into debt for consumable depreciating assets:
“# Stop spending money needlessly on things that will become obsolete, things you really won’t use, things you really don’t need, and things that will never love you back.
# Avoid debt like the plague. ”
Of course, the many different caveats about when debt is good should have been added because it does not necessarily follow that just because we should “Stop spending money needlessly on things that will become obsolete, things you really won’t use, things you really don’t need, and things that will never love you back.” that we should then “Avoid debt like the plague. ” – of course if all that we spend our money on is needless things then yes but there are many things like business assets, educations, and other things that are assets that potentially appreciate and produce cash flow that we definitely can and often should use debt to acquire.
I have not read Rich Like Them but I think you just convinced me to check it out!
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Ron 's reply:
November 17th, 2009
The author does make allowances for certain (though very limited) forms of debt, but even in those cases, he points out in a mortgage example, you don’t really own the home. The bank’s name is listed on the deed! Same thing for cars — you’re just the co-owner and therefore, a slave to the payment. Here’s my book review.
The perspective is really a personal one and as someone who has paid off well over six figures in debt (not the mortgage yet) I can testify that life has much less tension without debt than with it.
Entrepreneurs like yourself seem to have a higher risk tolerance for debt. Someone in danger of losing their only income source (such as a job) generally wishes to lessen their personal risk profile by “avoiding debt like the plague.”
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Ok not to be simplistic – and not even to support public education (I am a homeschooling Mom of 18 years) BUT, Outliers points out an excellent reason to NOT send one’s kids to school early. Actually, it makes a good argument for not sending kids to anything too early – until they have at least matured to the level needed for said activity. Both hubby and I immensely enjoyed this book. Have you also read Tipping Point by the same author?
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Ron 's reply:
November 18th, 2009
Glad you enjoyed Outliers! I haven’t read Tipping Point yet, but it’s on my list.
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I’ve read Outliers by Malcolm Gladwell and I can honestly say that it’s one of the best books I’ve ever read. Some of the things presented are just so surprising. If you enjoyed Outliers, you should definitely check out The Tipping Point as well. Both are great books!
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