Book Reviews | Finance and Investing

Title: Trillions: How a Band of Wall Street Renegades Invented Index Fund and Changed Finance Forever

Author: Robin Wigglesworth

Summary

In Trillions, Robin Wigglesworth dives deep into the history of the invention of index funds, their path to national notoriety, and their subsequent effect on the financial industry. Wigglesworth weaves an intriguing timeline of index funds through stories of the well-known and lesser known contributors who took the academic research and applied it to real-world investing, leading to one of the greatest financial revolutions of our time.

"A magisterial, delightfully written history offering up portraits of the academic scribblers and entrepreneurial practitioners who created the index-fund revolution. It also contains common-sense wisdom that will benefit all investors.” - The Wall Street Journal

Title: The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness

Author: Morgan Housel

Summary

In The Psychology of Money, Morgan Housel looks at the interplay of financial decisions and behavior. He dives into how one’s personal history, pride, and even envy influence financial decision making. Doing well with money is not always about what you know; it is about how you behave. In this book, Housel discusses a multitude of short stories to explore how people think about money and provides insight as to how to make better sense of this important topic.

Title: Think Again: The Power of Knowing What You Don't Know

Author: Adam Grant

Summary

In Think Again, Adam Grant dives into the art of rethinking and learning to question not only the thoughts and opinions of others, but also our own. The ability to rethink, unlearn, and relearn is arguably a critical skill for all individuals in modern society. We tend to surround ourselves with individuals, readings, thoughts, and ideas that we agree with when we should be gravitating towards individuals who challenge our current thought processes and encourage us to think like scientists, consistently questioning what we believe to be true and finding joy in the art of being wrong. Think Again is an invitation to prioritize curiosity and mental flexibility in all arenas of life.

Title: The Price You Pay for College: An Entirely New Road Map for the Biggest Financial Decision Your Family Will Ever Make

Author: Ron Lieber

Summary

The Price You Pay for College is a comprehensive roadmap of financing higher education. Ron Lieber explains who pays what and why by reviewing financial aid, scholarships, student loans, and the value of a college education.

According to US News & World Report, the average tuition and fees at a private 4-year ranked college in 2022-2023 was $39,723. This does not include room and board. With a potential price tag this steep, it is vital to have a guidebook for how to assess the value of a college based on an individual’s priorities.

Lieber concludes by providing readers with a guide to creating and implementing a financial plan for paying for higher education, including how to discuss the plan with your student. While higher education is consistently evolving, I recommend this book to anyone who is trying to get a grasp on how to assess higher education and how to plan accordingly.

Title: The Behavioral Investor

Author: Dr. Daniel Crosby

Summary

In The Behavioral Investor, Dr. Daniel Crosby delves into how psychology directly impacts and should inform investment management strategies.

Crosby begins with an explanation of the sociological, neurological, physiological, and psychological concepts and roadblocks that impact investment decision-making. Human behavior is incredibly complex and therefore it is beneficial to understand the intricacies of human behavior in order to work on one’s own behaviors as it applies to investments. Ultimately, Crosby explains why psychology is so important in the realm of investing and how to invest in a way that increases self-awareness to limit the fatal behavioral flaws to which so many investors are prone.

Title: The Opposite of Spoiled: Raising Kids Who Are Grounded, Generous, and Smart About Money

Author: Ron Lieber

Summary

The Opposite of Spoiled: Raising Kids Who Are Grounded, Generous, and Smart About Money is a practical guidebook for parents on how to openly educate children about money with a values-based philosophy.

Children are incredibly aware of money. Think about all the things in a child’s life that could potentially involve money – birthdays, holidays, the tooth fairy, allowances, chores, babysitting, lemonade stands, their first part-time jobs, buying a car and car insurance, college tuition, and so much more. Parents who avoid this topic are missing out on an opportunity to educate their children on important financial behaviors while also missing out on the ability to imprint their family values. Lieber focuses on why this education is so important and how to approach it in a values-based way to focus on raising kids that are modest, patient, and grounded.

Title: The Little Book of Behavioral Investing: How Not to Be Your Own Worst Enemy

Author: James Montier

Summary

The Little Book of Behavioral Investing: How Not to Be Your Own Worst Enemy is a valuable guide for investors to learn about how to avoid common behavioral pitfalls and make more informed choices as they progress through their financial journey.

Montier explores the impact cognitive biases have on investors’ decision-making processes and, ultimately, their investment returns. He highlights biases including herding mentality, the endowment effect, and loss aversion, which can potentially lead to irrational choices and financial losses. Montier also presents practical strategies for how to counteract these biases. These strategies include disciplined investing, diversification, and maintaining a long-term perspective. Investors who understand the psychological aspects affecting investment decisions can become more self-aware and address emotionally driven decisions in a constructive manner.

Title: We Should All Be Millionaires: A Woman’s Guide to Earning More, Building Wealth and Gaining Economic Power

Author: Rachel Rodgers

Summary

We Should All Be Millionaires: A Woman’s Guide to Earning More, Building Wealth and Gaining Economic Power is a motivational read for women working for financial success, building their wealth, and gaining economic empowerment. Rodgers shares her entrepreneurial journey to provide a context for her wealth-building strategies. She highlights the importance of embracing your ability and ambition by being confident in your skills and worth. Rodgers includes strategies for negotiating higher pay and reaching for new opportunities, while also providing practical advice on budgeting and wealth building. This book provides actionable steps to take control of your finances, make informed investment decisions, and work towards long-term wealth.