Books
Welcome to my books page. In this page I would love to share some of the great books that I have the fortune to stumble across during my investment journey.
The best way to learn is often to do it yourself. But an even better way is to learn it from someone who had done it before. To become a better investor, it is only logical to learn from those who had attained success and what better way to do it than to gain insights from their writings.
The best investment one can make is to invest in oneself. Learning paves the way to knowledge and when put into action produces magic.
These books have certainly made me a better investor and even more showed a better way to live my life.
My goal here is to review one book every month giving my insights from these book and also quotes some impactful lines from the author. Many of these book can be found on Amazon.com by just clicking the link on the book image.
“Profits were piling up as Renaissance began digesting new kinds of information. The team collected every trade order, including those that hadn’t been completed, along with annual and quarterly earnings reports, records of stock trades by corporate executives, government reports and economic predictions and papers.”
Gregory Zuckerman
May 2024
The book provided a peak into how the Medallion Fund achieved an annualised return of nearly 40% over 30 years. Using only data, Jim Simons has created the perfect algorithm to solve the market. Letting software programs trade on their own, Renaissance achieves what many have thought to be impossible.
“At Fundsmith, we only invest in companies which make high returns on capital employed; convert most or all of their profits into cash; have high profit margins; and which have proved resilient to economic cycles over many decades”
Terry Smith
Apr 2024
This book by UK super investor Terry Smith, contents are extracted from the annual letters of Fundsmith as well as articles from the Financial Times. The book includes lots of timeless value investing tips which certainly will saviour and begging for more.
“Becoming a creature of discomfort can unlock hidden potential in many different types of learning. Summoning the nerve to face discomfort is a character skill – an especially important form of determination”
Adam Grant
Mar 2024
Another great book from one of my favourite authors Adam Grant. This time he delves into the world of how people can unleash their hidden potential. Using real-life examples, the authors tell many stories of how individuals and nations use special ingredients like culture and habits to move ahead.
“The best strategy for an incumbent with economies of scale is to match the moves of an aggressive competitor, price cut, new product for new product, niche by niche.”
Bruce Greenwald & Judd Kahn
“Access to cheap capital or deep pockets is another largely illusory advantage.”
Feb 2024
This books delve into case studies of why some companies have a competitive advantage over their competitors. It is a wonderful read for investors willing to delve into business details with how and why some companies prosper while others fail.
“The biggest hurdle to making 100 times your money in a stock – or even just tripling it – may be the ability to stomach the ups and downs and hold on.”
Christopher Mayer
To make money in stocks you must have “the vision to see them, the courage to buy them and the patience to hold them.” According to Phelps, “Patience is the rarest of the three”
Jan 2024
Christopher Mayer extended the idea in Thomas Phelps’s book 100 to 1 by investigating how companies return 100 times the amount to their investors. He reiterated Ben Graham’s view on focusing on the business rather than the share price. The book also examines the characteristics of such businesses and the temperament required to hold onto such gems.
Munger “If you want to get rich, or make some serious money, you’ve got to underspend your income. And you’ve got to intelligently invest the money you haven’t spent”
Peter Bevelin
Dec 2023
This physical book which I bought from the 2023 Berkshire AGM is surprisingly entertaining. It is about 4 person with Warren, Charlie and 2 fictitious person having a conversation from everything about investing, rationality and how to live a better life in general.
“Predicting what the world will look like fifty years from now is impossible. But predicting that people will still respond to greed, fear, opportunity, exploitation, risk, uncertainty, tribal affiliations, and social persuasion in the same way is a bet I’d take.”
Morgan Housel
Nov 2023
Same as ever is a book of rationality. There are many stories within that intrigues the reader to view the world with a different set of lens. While most chapters are finance related, the common sense discussed are also applicable to many other fields.
“A company delivering high ROCE with modest revenue growth will generate excess cash. This is not an opinion – just a mathematical fact.”
Pulak Prasad
“Not buying is an equally – if not more – important skill.”
Oct 2023
Pulak Prasad argues that he learned from Darwin and invest in only companies with a high return on capital employed, very low debt, high cashflow at a reasonable price. Nalanda Capital his investment fund delivered returns of over 20% after fees over a period of 15 years. The fund investment investment philosophy is simply : We want to be permanent owners of high-quality businesses.
“Businesses that make great capital allocation decisions deliver higher returns for their shareholders. They earn higher returns on capital and they don’t squander the money once they earn it. Good capital allocation means doing more with less to create happier customers. The pressure to continually deliver value is one of the wonders of the free market.”
Jacob L. Taylor
Sep 2023
I gave this book to my son for his birthday this month as he turns 11 years old. This book is very relatable as it narrates a story of a kid’s interaction with a wise old businessman. The book contains lots of conversational ideas for sound investments in businesses. This is a great introduction book into the world of value investing.
“Given their history in digital sound, Creative was more qualified than Apple to introduce a digital music product. The problem was, they advertised their product as a ‘5GB mp3 player.’ It is exactly the same message as Apple’s ‘1000 songs in your pocket.’ The difference is Creative told us WHAT their product was and Apple told us WHY we need it.”
Simon Sink
Aug 2023
WHY is a reason for a company and its product to exist. The author argued that companies without a WHY will have difficulties with their identity which affects their recruitment, product design and company culture. Companies with a WHY are able to attract liked minded employees which translate to higher productivity because of culture alignment. Even more their product attracts customers whom have the same WHY. A great company always will have its WHY and as investors one should be able to identify them after reading this nice book.
“Average investors focus on understanding a company’s competitive positioning. Outlier investors focus on understanding what drives it. The competitive strength of a company is simply not determined by its competitive strength. It’s determined by its competitive strength relative to the competition.”
Danial Jiwani
Jul 2023
I didn’t really expect much from a 99c book. But instead this book is probably up there with books like The Joy of Compounding. The book surprised me in all aspect from the age of the author to the detail thinking involved. Concepts are discuss with well thought out examples. I can certainly relate Howard Mark’s 2nd level thinking to Danial Jiwani’s 2nd layer of competence. Overall this is a wonderful book at an even more wonderful price.
“Allowing ourselves to be happy – accepting that it is okay to push through the guilt and seek joy – is a triumph over permanence. Having fun is a form of self-compassion; just as we need to be kind to ourselves when we make mistakes, we also need to be kind to ourselves by enjoying life when we can. Tragedy breaks down your door and takes you prisoner. To escape takes effort and energy.”
Sheryl Sandberg
Jun 2023
Sheryl Sandberg shared a vivid account of her journey in facing adversity when her husband suddenly died during a holiday trip. The book gives strength to those who faces adversity and show it is possible to built resilience and eventually find joy again after encountering a tragedy. I also learned much about what one should do in order to comfort and walk along family members or friends in their darkest moments.
“Ted Weschler, an investment manager at Warren Buffett’s investment company, Berkshire Hathaway, had been following Apple for several years. He considered the iPhone to be more effective than Coca-Cola at creating a loyal customer base. Apple’s lock on those customers meant that it could charge them to store photos on iCloud and listen to songs on Apple Music, and collect fees on the apps they purchased.”
Tripp Mickle
May 2023
The book gives a vivid account of the power struggle within Apple between its CEO Tim Cook and Designer in Chief Jony Ive. It also narrates the birth of the iconic product the Apple Watch and how Jony Ive has his hand in the design process. The story shows how Tim Cook helm Apple and took them to a trillion dollar valuation and attracted the endorsement of Warren Buffett to become the largest shareholder of the company.
“New research shows that advice seeking is a surprisingly effective strategy for exercising influence when we lack authority. Asking for advice encouraged greater cooperation and information sharing, turning a potentially contentious negotiation into a win-win deal”
Adam Grant (Apr 23)
Apr 2023
Adam Grant advocates that being a “Giver” one who is selfless and gives without expectation of any reciprocation has a long term merits. Being a giver helps others win and creates a pay it forward culture that over time it benefits the giver’s circle as a whole. If you believe in doing good and over the long run is going to beneficial, this is the book to substantiate such a wonder and noble way to behave.
“Powell had been rushing out some of the Fed’s most extreme tools on a daily basis, but non of it seemed to be working. With the virus infections rising, the public-health situation was only going to get worse. That was sure to intensify market panic. A health crisis would become a financial crisis, which would in turn vastly amplify the ensuing economic crisis.”
Nick Timiraos (Mar 23)
Mar 2023
The book gave deep insights to the inner working of the Federal Reserves especially its chairman Jerome Powell. It documented how Powell was appointedt by then president Donald Trump and later on their public spat on monetary policies.
It also includes a chronological event of the Covid 19 pandemic hitting the financial market in United States during early 2020. Through common sense and gut feel, the Federal Reserve ditch all past economic models and went on a path of offensive as it successfully prevented an economic disaster.
“Longevity has two components. The first is how long you live, your chronological lifespan, but the second and equally important part is how well you live – the quality of your years. This is called healthspan. The only way to create a better future for yourself – to set yourself on a better trajectory – is to start thinking about it and taking action now.”
Peter Attia (Feb 23)
Feb 2023
The magic of compounding works best with a long runway. In this book Peter Attia breaks down the secret to a long and fulfilling life. Termed Medicine 3.0 the author wrote about ways to prevent the 4 horsemen of heart disease, cancer, neurodegenerative diabetes and related metabolic dysfunction.
“These companies’ applications are woven into the fabric of daily life around the world, and every year the weave gets tighter and stronger. As such, companies like Google and Facebook can rightly be regarded as the Coca-Cola and the General Motors of our generations.”
Adam Seessel (Jan 23)
Jan 2023
Adam Seessel argued that technology is now dominating our daily lives so readers must learn how digital companies create wealth. He also discussed why investors have to value technology companies differently such as to reach certain conclusion of these companies value
The book introduce case studies including companies such as Amazon, Alphabet and Intuit. It gives deep insights into how valuation of such companies should be done to reach a logical conclusion of their intrinsic value.
“Fairchild was still owned by an East Coast multimillionaire who paid his employees well but refused to give them stock options, viewing the idea of giving away equity as a form of ‘Creeping Socialism’. Soon everyone began looking for the exit. The reason was obvious. Alongside new scientific discoveries and new manufacturing processes, this ability to make a financial killing was the fundamental force driving forward Moore’s Law. As one of Fairchild’s employees put it in the exit questionnaire he filled out when leaving the company: ‘I…WANT…TO….GET…..RICH’”
Chris Miller
Dec 2022
In Chip War, Chris Miller painted a vivid and accurate picture, starting from the birth of the semi conductor industry. From its first discovery in the United States to shifting of the most advance chip making technology to Japan, the book is filled with details of the shift in manufacturing prowess of silicon chips.
America’s resurgent with Intel betting on a general purpose chip to power the first generation of personal computers. Subsequently on how Morris Chang ended up in Taiwan and the founding of TSMC (Taiwan Semiconductor Manufacturing Company). This book gives a great perspective of how chips had evolved and how it will tilt the balance of power among the world’s most powerful nations.
“You need to be aware and honest with yourself about how you are spending money. Liabilities are everything from financial debt on depreciating assets to bad habits. The only good debt is debt that brings a higher return than cost. If something provides income, better health, happiness or time it’s an assets. If something cost you money, health or time it’s a liability.”
Rich Fettke
Nov 2022
The wise investor is not your typical investment book. The book has a story that depicts the hope and fear a typical middle income family. The main character of the book Ryan faces a balancing act of trying to climb up the corporate ladder while leaving him without much time for his family.
Fortunately he met a mentor who guided him the way forward. Years later Ryan finds himself in a good spot, having enough time for his family after putting his finances in order.
“Modern capitalism is a pro at two things: generating wealth and generating envy. Perhaps they go hand in hand; wanting to surpass your peers can be the fuel of hard work. But life isn’t any fun without a sense of enough. Happiness, as it’s said, is just results minus expectations.”
Morgan House
Oct 2022
In his book The Psychology of Money, the author Morgan Housel explore the many ways people think about money. Sometimes what seems to be most rational may not be the most reasonable. As such people act and think differently with money all the time.
Morgan also delve into how money can affect individual happiness. He concluded that having the ability to do what you want, when you want, with who you want, for as long as you want, is priceless. Hence the highest dividend money pays is freedom.
“The true investor will do better if he forgets about the stock market and pays attention to his dividend returns and to the operating result of his companies. The message is clear: In the long run, stock returns depend almost entirely on the reality of the investment returns earned by our corporations.”
John C. Bogle
Sep 2022
The late John C. Bogle and founder of the Vanguard Group is considered the father of passive index investing. Bogle argue that by investing in a diversified low cost index fund beats 90% of mutual funds as fees charges are simply too high for active managers to do justice for their customers.
In 2008 Warren Buffet famously issued a challenge to the hedge fund industry that a low cost index fund advocated by Bogle will beat them hands down. A million dollar stake was place and Protege Partners LLC took up the offer. By 2015 Protege Partners threw in the towel before the end date of 2017. Upon defeat Protege conceded that hedge fund fees were simply too high to be beneficial to their investors.
“What I began to understand is that the greatest investors are intellectual mavericks. They’re not afraid to question and defy conventional wisdom. They profit from the misperceptions and mistakes of people who think less rationally, rigorously, and objectively.”
William Green
Aug 2022
William Green a financial journalist wrote this book after getting the opportunity to interview the best investors in the business. The book is filled with treasure troves of wisdom from the great of Sir John Templeton, Mohnish Pabrai, Joel Greenblatt, Nick Sleep, Howard Marks and more.
One of the attributes many great investors shown in the book is patience. There is no prizes for frenetic activities. Rather, investing is mostly a matter of waiting for those rare moments when the odds of making money vastly outweigh the odds of losing it.
“Success carries within the seeds of failure, and failure the seeds of success. Like a pendulum, the swing of investor psychology towards an extreme causes energy to build up that eventually will contribute to the swing back in the other direction.”
Howard Marks
Jul 2022
Howard Marks is one of the most successful investor in the current era. His practice mainly focus on high yield debt or more often known as junk bonds. Also known for his memos on the financial markets, The Most Important Thing is a compilation of his memo written in the 1990s and 2000s. The book covers his views during the tech bubble and the great financial crisis.
Howard’s understanding of risk goes beyond price volatility and hence been able to achieve significant above average returns by managing risk well. His work on market psychology and on the subject on market cycle provides a compass for investors during times of excess and gloom.
“Cash is a call option on opportunity. Having ample liquid cash puts a valuable optionality in the hands of investors, to make bargain purchases when opportunities arises. Cash increases in value as other asset prices drop. The more they drop, the more valuable cash becomes.”
Gautam Baid
Jun 2022
The Joys of Compounding is a book about life long learning. This is a book of many quotes from famous investors as well as real life examples of their investment philosophy and strategies. The idea of this book is if one can learn to compound one’s knowledge then you are on your way to compounding wealth.
I have learned so much from those quotes including well-known value investors including Warren Buffett, Charlie Munger and Howard Marks. This book is an easy read and should be one of the first few books a novice investor should read when starting your investment journey. Season investors will also fine many lessons well thought out and able to take away some ideas from this book.
-
The SRS Fund May 2024 Update
Investors did not go away this May, and the economies in Singapore and the United States kept on humming. Listed companies generally reported good solid earnings providing the foundation for the stock market to reach new highs.
-
The SRS Fund Apr 2024 Update
Into the 2nd quarter of the year, the market realised that inflation may not be falling after all. The stock market for one is heating up as earnings from major corporations over the world showed strong growth.
-
The SRS Fund Mar 2024 Update
The SRS fund was created in 2008 when I made my first contribution to the SRS for tax-saving purposes. Little did I imagine that it kickstarted a journey into making this fund the main vehicle for my retirement planning.
-
The SRS Fund Feb 2024 Update
It is the time of the year when the Singapore government plans and proposes the nation’s budget for the next fiscal year. Since Singapore is a very small nation, the impact of government spending will be rather substantial and the direction that expenditure will give a hint of where the money will flow to the…
-
Haw Par the well know value trap?
Long-time investors who are familiar with this company that produces our beloved Tiger Balm oil. As the world freed itself from Covid 19, the company made a stellar recovery in sales increasing revenue by 39.7% in the 2H of 2023.
-
The SRS Fund Jan 2024 Update
The S&P 500 surge to a record high in the month of Jan erasing the loss incurred due to the fastest rate hike in recent history. The strong showing suggest the US economy remains strong and resilient despite the high interest rate environment and geo political tensions.
MYNEST.SG 