Evan Carmichael recommends five books for investors: The Intelligent Investor, which shaped Warren Buffett's philosophy; Rich Dad Poor Dad, where Robert Kiyosaki challenges conventional views on assets; Flash Boys, Michael Lewis's investigation into high-frequency trading and Brad Katsuyama; Beating the Street, Peter Lynch's guide to stock-picking; and Think and Grow Rich, on mindset and wealth.
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What's up, Believe Nation? It's Evan. My one word is believe, and I believe in people more than they believe in themselves. And I want some of that to rub off onto you so you can go off and create something fantastic and amazing. Get that thing inside you out into the world. And so to help you on your journey today, we're going to look at the top 5 books for investors. Coming in at number 1 is The Intelligent Investor by Benjamin Graham.
It's really a pleasure for me to be able to talk to you about Ben Graham. I've had some lucky days in my life, but one of the luckiest was in 1949 when I was 19 years old in Lincoln, Nebraska, and I picked up a copy of The Intelligent Investor. It not only changed my investment philosophy, it really changed my whole life. I'd be a different person at a different place if I hadn't have first seen that book. I got a bedrock of investment philosophy that really hasn't changed ever since I read the book. I may embellish on it a little here and there, but it was Ben's ideas that sent me down the right path.
Coming in at number 2 is Rich Dad Poor Dad by Robert Kiyosaki.
Well, you have an anniversary as well. Your book turns 20 this year and has sold over 35 million copies. So do the lessons that you aimed to teach, I guess, 20 years ago— 30 years ago, rather, 1997— do they still resonate today?
They're more important today than ever before because, you know, back in the old days, 1997, before you guys were born—
yeah, I wish—
it was, you know, I said your house is not an asset, the rich don't work for money, and savers were losers. And in 2000, you know, everything started started to collapse and, you know, interest rates dropped below zero, which has never happened before. People lost their houses, lost their jobs. So it's more important today than ever before. And I'm not really saying that it's right or wrong. I'm just saying we need financial education. What does school teach us about money?
Answer's nothing.
Coming in at number 3 is Flash Boys: A Wall Street Revolt by Michael Lewis.
This week there is a lot of buzz about a provocative new book focusing on how it has changed and how 1/1000th of a second can make a big difference. The book is titled "Flash Boys." The author is Michael Lewis, who also wrote "Moneyball," "Liar's Poker," and "The Big Short." And Michael Lewis joins us now. Welcome back to the NewsHour.
Yes.
So you focus much of the story on this New York financial trader who starts out thinking the markets are all about one thing, discovers that there's something wrong, and basically goes about trying to change everything.
Yes.
Why did you focus on him?
Because I was working on something else and I needed to learn what high-frequency trading was. I mean, this is a term of art that really didn't even exist until 3 or 4 years ago, and it was— my ignorance was deep on the subject, and I asked big investors, if they could point me in the direction of someone who knew about this. And they said, there's this young man, he's Canadian, who's basically running around Wall Street explaining this to us. And he knows more about these markets than anybody. And so you ought to go see him. And I went to see him just really on background to see— his name is Brad Katsuyama— to see what he could teach me about this. And it turned out that he was engaged in this essentially attempt to reform Wall Street from within, to kind of discover what was wrong with the stock market, how predatory activity had arisen in the stock market that he had been on the wrong end of, and then educating American investors about, about what was happening.
Coming in at number 4 is Beating the Street by Peter Lynch.
In 1990, Peter Lynch retired as manager of Fidelity Magellan, the nation's largest stock mutual fund and one of the most successful. In 13 years, he drove Magellan to a 2,800% gain. Quite simply, Lynch has been recognized as one of the greatest money managers ever. He beat the stock market for so long not by timing the market, but by picking the right stocks. Of course, no one can promise you Peter's record, but you can learn a lot from him, and you don't need a billion-dollar portfolio to follow his rules.
Hi, my name is Peter Lynch. For 13 years I managed Fidelity Magellan Fund. Those were 13 amazing years. 9 times the market declined by 10% or more, and I was very consistent. All 9 times Magellan Fund fell 10% or more. I learned a lot of lessons. I think they're true now, I think they were true 20 years ago, I think they'll be true 20 years from now. I think I can help you do a better job of investing.
Coming in at number 5 is Think and Grow Rich by Napoleon Hill.
My search led me to the study of the spiritual forces with which all of us are blessed, and it was in this field that I came upon a clue which has enabled me to help millions of people to find their earthly destinies. I want to describe my discovery in the simplest terms possible. Because it will reveal to you why it is true that whatever the mind can conceive and believe, the mind can achieve, regardless of how many times you may have failed in the past or how lofty your aims and hopes may be. Mr. Carnegie delivered a lecture that I shall never forget because it changed my entire life and paved the way for my helping to change the lives of millions of people, some of them not yet born. 'Let me call your attention to a great power which is under your control,' said Mr. Carnegie. 'A power which is greater than poverty, greater than the lack of education, greater than all of your fears and superstitions combined. It is the power to take possession of your own mind and direct it to whatever ends you may desire.' 'This profound power,' Mr. Carnegie continued, is the gift of the Creator, and it must have been considered the greatest of all of his gifts to man because it is the only thing over which man has the complete and unchallengeable right of control and direction. When you speak of your poverty and lack of education, Mr. Carnegie explained, you are simply directing your mind power to attract these undesirable circumstances because it is true that whatever your mind feeds upon, your mind attracts to you. Now you see why it is important that you recognize that all success begins with definiteness of purpose, with a clear picture in your mind of precisely what you want from life.
Thank you guys so much for watching. I hope you enjoyed the video. I'd love to know how many of these books have you actually read? How many of them are in your library? Is there a 6, 7, 8 that you want to add to the list as well that Believe Nation, other people watching this video need to read? Leave it down in the comments below. Really curious to hear your thoughts. Thank you guys again for watching. I believe in you. I hope you continue to believe in yourself and whatever your one word is. Much love. I'll see you soon.
