Interesting Books

In this page, I will be sharing some of the books that I find interesting and a short synopsis on their content or my thoughts after reading them.

The Little Book that Still Beats the Market.

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This is a useful book that teaches new investors on investing in the stock market, in a fun and easy manner, though not very in-depth. The magic formula touted in this book focuses on shares with high P/E ratios and high return on capital. It also establishes some other guidelines such as a setting a minimum market cap. 

The Little Book of Common Sense Investing

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The benefits of indexing are shown in this book. The author shows the downsides of investing in unit trusts and individual shares. An interesting piece that supports index funds. Just to note, the author is the founder, former CEO of the Vanguard Group and person credited with the creation of the first index fund available to individual investors.

The Intelligent Investor

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The analogy of Mr. Market, value investing. The intelligent investor is a good read for those interested in value investing. Benjamin Graham shares his views on topics such as inflation, the difference between the Defensive and Enterprising investor, picking undervalued shares and the role of shareholders in the management of the company (eg on the payment of dividends)

The Millionaire Next Door

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This book encourages its readers to become what it calls PAWs (Prodigious Accumulators of Wealth) instead of UAWs (Under Accumulators of Wealth). It shows that wealth is built through saving, investing and not by buying status symbols. An encouraging read for those trying to save up for their future and a cautionary tale for those who over spend.

The Five Rules for Successful Stock Investing

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I find this a useful book for a person who is looking for a more advanced understanding of how the stock market works. It covers the discounted cash flow valuation model as well as economic moats of companies, with examples, which is helpful for beginners that are looking for more in-depth and detailed understanding of how to value stocks and pick out good companies.