Investing links that have caught my attention recently

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Jul 03, 2018
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Investing, Behavioral Finance

I've been catching up on my summer reading recently. Here are a few investing posts from the blogosphere that caught my attention (thanks to Abnormal Returns for your curating skills!):

  • Solin's Simple Rules.
    • What would be your four rules for investing? Follow these four rules and you will be better off than 98% of the investing public. Flashback to Bill Bernstein's insight about investing: It's simple but not easy. 
  • What's the most important number in financial planning?
    • Asset allocation? Investment selection? Selecting the right broker? Read the post from Retirement Researcher to find out.
  • What were the biggest mistakes made by the best investors? 
  • Ever wonder why stock prices tend to go up over time? 
    • Ben Carlson has the answers in his blog Wealth of Common Sense
    • Here is what I found most interesting: "The long-term track record of the world stock market is not perfect but it is quite compelling. However, long-term average returns are promised to no one because we don’t know what the future holds. In many ways, investing in the stock market is a faith-based exercise; faith in human ingenuity; faith in the capitalist system; and faith in other people wanting to improve their lot in life.
  • Another book that I may add to my summer reading list, the Geometry of Wealth, which "takes readers on a journey toward wealth, informed by disciplines ranging from ancient history to modern neuroscience. He contends that tackling the big questions about a joyful life and tending to financial decisions are complementary, not separate, tasks." A few notable quotes from an admiring blogger:
    • “Richer humans become ensnared in a ‘luxury trap,’ in which formerly unimaginable inventions evolve from mind-blowing to luxuries to taken-for-granted to necessary. I can’t imagine living without a refrigerator, but my great-grandparents certainly could. Over time, the amazing becomes normal.”
    • “If there were a reliable relationship between more risk and bigger rewards, then technically you wouldn’t be taking more risk. Everyone would bet long-shots all the time.”

What are you reading? Ping me at tim@ngpf.org and I will be sure to share.

 

 

And for all you readers out there...see how much good your daily reading habit is helping your brain. 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.