ITA Wealth Management

While “The Golden Rule of Investing” is to save as much as you can as early as you can, the “Silver Rule of Investing” is, read books.  Not any sort of investing book will suffice.  Read investment books that are well-written, backed by research, exhibit experience, and focus on long-term investing.  These books were rare or non-existent when I began my investing career.  Fortunately, serious investors are no longer starved for good reading material.  Take advantage of what is available and begin your investment education degree by reading the “right” books.  Several months of self-education will save you a lot of heartache and losses over your saving and investing career.  Where do you start?

It is difficult to name the very best investment book, or the one to read first.  Different investors react differently to different authors. Nevertheless, here are recommendations that will get interested readers off in the right direction.  If you are looking for a concise and simple book, I can think of none better than Charles D. Ellis and Burton G. Malkiel’s tiny book, “The Elements of Investing.”  In this small volume, you will find the very basics of investing.  This is a great book to launch you into my second recommendation, William J. Bernstein’s “The Investor’s Manifesto.” Bernstein is simply one of the best investment writers in the business.

After reading these two “starter” books, you are set to work your way through authors such as Roger Gibson, Larry Swedroe, Richard Ferri, Mark Hebner, John Bogle and more of Bernstein.  Search these name on this blog and you will find all the titles by these excellent authors.

As you build your investment philosophy, think how you are going to structure a Portfolio Policy.  Am I going to build a portfolio through selecting individual stocks or through index investments?  Will I use actively managed mutual funds or index funds?  How will I know if I am on the right track?  Can I do this on my own or do I need professional management?  The authors I recommend will help readers answer these fundamental questions.  No one author will answer all the questions, but as you read author after author, the ideas will slowly become second nature and you will be able to manage your own money.  Start now with the Ellis Malkiel book.  One last bit of advice is to continue reading this blog.

Photograph:  Young girl in Lima, Peru.  I captured this image through the window of our van and was fortunate not to pick up any noticeable reflection.

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