Today's graduates have no idea what they're getting into.
We're getting close to high school and college graduation season. Some graduates are hopeful about the future, some are pessimistic... but they're all clueless when it comes to finances.
A survey from the National Association of College Stores found that 72% of new college graduates don't feel even somewhat competent about investing.
Many also said they didn't feel prepared for topics like preparing taxes, paying down debt, or saving for retirement.
I've said it many times: The best way to empower yourself to take control of your own life is to educate yourself. If high school or college won't prepare you for the real world, you need to find something that will.
And learning doesn't stop after you've left school. Lifelong learning is crucial for mental acuity. If you want to keep your brain sharp, ward off dementia, and live a long and successful life, never stop learning. And we're celebrating Financial Literacy Month with the No. 1 tool you need to add to your financial toolbox.
Whether you're a recent grad, the parent or grandparent of a grad, or a lifelong student, today's issue is one you can't miss.
Over the years, I've compiled my ultimate reading list. It covers the best books in a range of financial topics. Today, I want to share the top three books from each category. I've also asked my team members to each recommend a book as well.
Start building – or refreshing – your financial literacy today.
Beginning Books for Investors and Moneymakers
- Liar's Poker, Michael Lewis
- Think and Grow Rich, Napoleon Hill
- The Little Book of Common Sense Investing, John Bogle
Philosophy of Life, Money, and Investing
- Atlas Shrugged, Ayn Rand
- The Drunkard's Walk: How Randomness Rules Our Lives, Leonard Mlodinow
- Against the Gods: The Remarkable Story of Risk, Peter Bernstein
Big Swingers of Wall Street
- Beating the Street, Peter Lynch
- The New Market Wizards: Conversations With America's Top Traders, Jack Schwager
- Adventure Capitalist: The Ultimate Road Trip, Jim Rogers
Value Investing Books
- The Little Book of Value Investing, Christopher Browne
- The Dhandho Investor, Mohnish Pabrai
- Value Investing Made Easy, Janet Lowe
- Trader Vic: Methods of a Wall Street Master, Victor Sperandeo
- How to Trade in Stocks, Jesse Livermore
- The New Money Masters, John Train
- Economics in One Lesson, Henry Hazlitt
- Naked Economics: Undressing the Dismal Science, Charles Wheelan
- Warren Buffett's Annual Letters (www.berkshirehathaway.com)
History of 'The Street' Books
My Team's Picks
One Up on Wall Street – Peter Lynch explains how to use everyday experiences to beat Wall Street. He tells you how to find a product or service, how to research if it's a good investment, and what to do when you've decided to invest. Lynch uses his own real-life examples of winners and losers to help you make better gains than traders. This is a good aid for investors who want to break away from a financial adviser or broker and find their own investments.
The New Coffeehouse Investor – If you don't feel like spending your time watching the market, this is the book for you. Bill Schultheis explains how to get market earnings without trying to beat the market and set up your portfolio for long-term growth. This is a book any average investor can use.
Your Money and Your Brain – Jason Zweig dives into "neuroeconomics" in this easy and enjoyable read. He covers behavioral finance, biases, and the "why" behind common investing misconceptions. This is a great book if you have an interest in psychology and behavior.
Another great resource: our own Health & Wealth Bulletin. Feel free to share this with your friends and family. Signing up is easy – you can click here to sign up on our website.
What We're Reading...
- Companies are offering workers financial-education benefits.
- Something different: Beware of melatonin gummies.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
April 26, 2023