Here’s my 2024 reading list of 12 books on finance (book summary included)— Part #1

✍️Kamal O. Touhami

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As trading becomes more popular among the youth, the surge in the popularity of finance books continues to soar. The year 2022 witnessed an impressive spike in sales of business and economics print books, marking a decade-high milestone. According to The NPD Group, these books accounted for a significant quarter of all nonfiction unit volume, showcasing a remarkable 10% increase from the previous year.

Surpassing numerous other nonfiction genres, business stands as the second-highest category in print publishing, trailing only behind religious texts. This expansive category encompasses a labyrinth of more than 100 categories and over 200 subcategories, reflecting the multifaceted nature of financial literature.

Searching for the best finance books that could potentially quench your thirst and help you expand your knowledge can be overwhelming, which is why I’ve curated a meticulously crafted selection of top-tier finance books.

This compilation spans a rich spectrum, encompassing thrilling biographies, insightful guides on money management and investment strategies, vibrant references detailing the world of cryptocurrency, explorations of policies shaping economic landscapes, exposés uncovering scandals and prominent personalities, illuminating analyses on decision-making processes within stock markets and beyond, and the ultimate guide on negotiation tactics.

Authored by individuals from diverse backgrounds, these books present a panoramic view, offering comprehensive insights and cutting-edge perspectives essential to understanding the intricacies of today’s economy.

Each book in this collection is a treasure trove. They intend to illuminate the complexities of high-stakes situations found in the financial world and are curated in such a way as to empower readers to make informed and astute financial decisions.

Whether you want to understand the psychology behind stock market maneuvers, decipher the nuances of economic policies, or learn the art of negotiation, these literary masterpieces serve as invaluable resources.

So, let’s get started:

Rich Dad Poor Dad — Robert T. Kiyosaki

“Rich Dad Poor Dad,” now celebrating its 20th anniversary with a revised edition, has left an indelible mark on the realm of personal finance, crystallizing the notion that wealth isn’t solely about earnings but about astute financial management—an ideology resonating with seasoned investors.

Robert T. Kiyosaki, the author, pens an engaging and conversational narrative, emphasizing the indispensability of financial literacy in the pursuit of prosperity. The book draws insights from contrasting paternal figures: the “rich dad,” a friend’s father who orchestrates a remarkable ascent from humble beginnings to craft a thriving business empire and embody capitalist principles, and the “poor dad,” Kiyosaki’s own father, an educated government employee with socialist beliefs.

Kiyosaki, evidently influenced by the teachings of his “rich dad,” coalesces these lessons into a seminal work that continues to hold sway over personal finance literature even after 25 years.

In Chapter 2, the book provocatively challenges the conventional “American dream” of homeownership, positing Kiyosaki’s controversial view that a house isn’t an asset but a financial burden due to its constant financial demands for maintenance and expenses.

Chapter 4 delves into the intricate landscape of taxes and elucidates the supremacy wielded by corporations. Kiyosaki advocates for financial literacy, advocating a comprehensive understanding of accounting, investing, market dynamics, and legal frameworks.

Each chapter culminates in a “Study Session,” reinforcing the key concepts and presenting thought-provoking questions to stimulate critical thinking and application of the book’s teachings.

Remarkably, “Rich Dad Poor Dad” remained entrenched on the New York Times bestseller list for nearly seven years, an unprecedented feat for a self-published book. Many famous billionaires and successful people extol the book’s virtues, noting Kiyosaki’s adeptness in simplifying intricate financial concepts into easily digestible explanations.

Kiyosaki’s masterpiece remains a source of financial wisdom, providing priceless advice and insights to a generation about to make critical financial choices. Its ability to provide readers with the knowledge required to successfully negotiate the difficulties of personal finance, as well as the way it clarifies financial concepts, have contributed to its long influence and signaled a paradigm shift in how people view and handle their wealth.

The Silk Roads: A New History of the World — Peter Frankopan

Peter Frankopan’s “The Silk Roads: A New History of the World” transcends the romanticized imagery typically associated with the phrase. Rather, this 2015 book by the Oxford University professor of global history deconstructs a complex story that spans centuries, detailing the travels of daring traders, middlemen, soldiers, and leaders who braved dangerous routes through the Middle East, China, the Balkans, and South Asia.

Unpredictable factors, including severe weather, a wide variety of people, criminal activity, deadly illnesses, and the pervasive influence of many religions, hampered their endeavors and frequently resulted in power disputes and battles.

In the face of these difficulties, silk became a highly valued commodity, and when other conventional currencies such as grain failed, it became a worldwide currency. Throughout history, the formation and demise of cities have been primarily driven by commerce.

Former director of FIJI Water in Fiji and CEO of Wakaya Group, David M. Roth, is an entrepreneur-in-residence at INSEAD and praises Frankopan’s efforts for drawing attention back to a region that has historically played a crucial role in the global economy. According to Roth, the book provides insightful background information to understand current events in the larger context of human history, in addition to illuminating the historical significance of this region. He highlights the economy’s enduring significance and how it has shaped both historical and contemporary global dynamics.

Frankopan’s subsequent book, “The New Silk Roads: The New Asia and the Remaking of the World Order” (Vintage, 2018), serves as a complementary sequel, narrating the story of trading in Asia and its implications for the reconfiguration of the world order.

Frankopan’s work provides a compelling narrative that uncovers the profound historical forces shaping our contemporary world. It offers readers a deeper understanding of the interconnectedness and influence of regions and economies throughout human history.

What to Do with Your Money When Crisis Hits: A Survival Guide — Michelle Singletary

Michelle Singletary’s book, “What to Do with Your Money When Crisis Hits: A Survival Guide,” is a flexible personal financial guide that addresses a range of urgent demands. Singletary’s book—which is an expansion of her widely syndicated personal finance column, “The Color of Money” in The Washington Post—offers a practical, question-and-answer format that provides direct, authoritative, and actionable financial advice—whether it is read in its entirety or just on particular topics.

When things get tight financially, Singletary suggests a triage strategy. She advises readers to focus on necessities like putting food on the table while aggressively negotiating workable payment arrangements with creditors for unpaid bills. The book’s outstanding quality is that it may be read by a wide range of readers, from high-earners who are living beyond their means to those who are just starting to practice financial self-care.

Among the many useful resources available to consumers facing financial difficulties is the “Resources” chapter, which includes a comprehensive list of businesses, organizations, and governmental institutions. The book is “very timely, relevant, practical, and helpful,” according to Marguerita M. Cheng, CEO of Blue Ocean Global Wealth and a member of Investopedia’s Financial Review Board. This highlights the book’s importance in providing useful information during challenging financial times.

Singletary’s guide is more than just financial counsel; it’s a lighthouse of support, providing consolation and doable solutions for anyone facing financial difficulties. The book provides readers with a route towards financial stability and resilience in the face of unforeseen problems by fusing practical wisdom with a compassionate approach. This allows readers to effectively traverse the complexity of financial hardship.

The Snowball: Warren Buffett and the Business of Life — Warren Buffett

“The Snowball: Warren Buffett and the Business of Life” offers an engrossing and illuminating look into the life and career of Berkshire Hathaway’s Chairman and CEO, Warren Buffett, who is well-known for being the “Oracle of Omaha.” This masterful biography, written by Alice Schroeder and written at Buffett’s request, illuminates facets of the man’s private life that were previously concealed. Reputably modest, Buffett suggested to Schroeder that whenever her account looked different from others’, she should focus on the less favorable versions.

The New York Times bestseller explores Buffett’s ancestry and traces it back to his German and French Huguenot ancestors, who followed a rigorous no-loans policy and lived by the maxim “spend less than you make.”

Buffett’s life is meticulously chronicled by Schroeder, starting from his birth in the wake of the 1929 stock market disaster and ending with his unusual parenting and marriage decisions. She also delves into the enthusiasm surrounding Berkshire Hathaway’s wildly popular shareholder meetings, which are known for their circus-like atmosphere, and his numerous deals.

Buffett admits the influence of luck and credits his “intelligent parents” for helping him succeed. But even at the young age of ten, the numerate Buffett had started to decode the mysteries surrounding wealth acquisition, realizing the value of being financially independent, learning the fundamentals of stock trading, and appreciating how the volatility of equities affected investments. He compares the idea of compounding to a snowball rolling down a hill, gaining mass and strength. This is a fascinating metaphor.

As one of the richest people on the planet, Buffett is still actively involved in his business at the age of 82, despite his enormous achievements and estimated net worth of $99.7 billion at the time of writing. In addition to providing an insightful look into the life of this financial icon, “The Snowball” is a motivational example of Buffett’s unwavering commitment, core values, and wise investment philosophy, all of which have contributed to his unmatched success in the financial industry.

Trillions — Robin Wigglesworth

The editor of Financial Times’ Alphaville, a forum for financial professionals, Robin Wigglesworth, offers an engaging analysis in his book “Trillions.” He invites readers to consider the significant ramifications of this financial phenomenon as he painstakingly chronicles the development of index funds from their conception to their current widespread domination in the investment world.

Wigglesworth initiates the narrative by introducing a cast of 32 influential characters, notably spotlighting only two women, such as Jeanne Sinquefield, a derivatives designer, and former Barclays Global Investors CEO Pattie Dunn. Among the key players highlighted in the book:

Louis Bachelier, a French mathematician from the early 20th century, credited as the intellectual forefather of passive investing due to his pioneering work on the ‘random walk’ theory of stocks.

Warren Buffett, who famously won a decade-long bet in 2017 against Ted Seides of Protege Partners, asserted that index funds would outperform a basket of hedge funds.

Jack Bogle, the revered founder of Vanguard, often referred to as “Saint Jack” for popularizing index funds. Towards the end of his life, Bogle expressed concerns about the potential consequences and limitations of index fund growth. He grappled with the dilemma of preserving the significant innovation in finance while navigating the challenges posed by its massive expansion. Bogle acknowledged the monumental impact of index funds while raising caution about the uncertainty and implications of their overwhelming growth.

“Trillions” raises important questions regarding index funds’ pervasiveness in contemporary investing while also providing a historical perspective on their ascent. The contributions, perceptions, and concerns of significant individuals are deftly woven into Wigglesworth’s narrative, prompting readers to consider the effects of this ground-breaking financial invention on the world economy and investing scene.

The Predators’ Ball — Connie Bruck

Connie Bruck’s gripping narrative in “The Predators’ Ball” explores a significant period in finance, chronicling the life and times of Michael Milken, who was a pivotal figure known as the “junk bond king.” While today, Milken is recognized for his advocacy for prostate cancer research and the Milken Institute, during the book’s era, he grappled with federal charges of securities and tax violations.

At the height of the boom in leveraged buyouts and junk bond popularity, Milken helped organize significant corporate raiders, such as Carl Icahn and Ronald Perelman. Bruck’s gripping narrative brings to light Milken’s unwavering work ethic, which included arduous eighteen-hour workdays at his Southern California office, and emphasizes his crucial role in creating the junk bond market and corporate raider culture.

Milken’s unease with Bruck’s investigative reporting led to an unprecedented offer: he offered to purchase all copies of the book to prevent its publication. Bruck’s detailed narrative meticulously captures the rise of Milken’s career, the financial environment of the time, and the subsequent precipitous downfall that culminated in a plea deal in 1990.

In addition to Milken, the book introduces a cast of influential characters, including Leon Black of Apollo Management, Henry Kravis of KKR & Co., Laurence Tisch of Loews Corp., stock trader Ivan Boesky, and Rudy Giuliani, then a determined U.S. Attorney for the Southern District of New York. Notably, then-President Donald Trump granted Milken a full pardon in 2020.

“The Predators’ Ball” is an accurate and compelling depiction of a time when the maxim “greed is good” typified the culture. By fusing the tales of important figures, Bruck’s story provides a vivid picture of a turning point in the financial landscape that altered attitudes and behaviors in the high-end banking industry.

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