Like Tree49Likes

Personal Finance reading

Reply
Page 7 of 7 FirstFirst ... 4 5 6 7
  1. #61

    Join Date
    Jan 2018
    Posts
    839

    Power of Gold by Peter L. Bernstein
    https://www.wiley.com/en-us/The+Powe...-9781118270103

    Early Central banking - history of gold starting in Lydia 600 BC and up to modern times.

    Of the aspects I found interesting is that most of the time gold and silver were both used for official coinage - and this led to endless arbitrage flows, because central banks had to enforce a fixed exchange ratio between the two.

    Issac Newton - as head of the Royal Mint - set the ratio at 15.5. Since then it's been wacked around by demand and discoveries of gold/silver deposits - this morning it stands at 90.

    traineeinvestor likes this.

  2. #62
    tck
    tck is offline

    Join Date
    Jul 2015
    Posts
    140

    Thinking in Bets by Annie Duke. Not directly finance and investing but I'd say good decision processes.

    She's done the podcast tour talking about that book which you can check out before taking the plunge to read the book and she's an amazingly articulate and clear thinker.

    Check her appearance on either the Andressen Horowitz podcast: https://a16z.com/2019/05/07/thinking...n-uncertainty/

    Or on the Farnham St podcast https://fs.blog/annie-duke/

    shri and Elegiaque like this.

  3. #63

    Join Date
    Dec 2018
    Posts
    1,283

    In the current HK market Russell Napier's Anatomy of the Bear is worth revisiting.

    https://www.goodreads.com/book/show/...my_of_the_Bear


  4. #64

    Join Date
    Dec 2018
    Posts
    1,283

    Bank of England Staff Working Paper No. 686

    "Eight centuries of the risk-free rate: bond market reversals from the Venetians to 'VaR shock'" by Paul Schmelzing

    In spite of the title it's a actually a very interesting read for anyone interested in interest rates (especially bond investors) and the whole "lower for longer" interest rate predictions floating around right now.

    https://www.bankofengland.co.uk/work...-the-var-shock


  5. #65

    Join Date
    Feb 2012
    Location
    Park Island, Hong Kong
    Posts
    220

    The most important personal finance book I've read is Your Money or Your Life (2018 version) by Vicki Robin. If I could only recommend one book, it would be Your Money or Your Life.

    I've also read Financial Freedom by Grant Sabatier, and I think it's good if you want to try to motivate yourself to pursue other ways to make money, but I'm personally not ready to start a blog or a YouTube channel or write a book or make an online course to potentially create passive income. Also easy things like dog walking, babysitting, and even house sitting are real opportunities for many people in the U.S. and in other 1st world places where people can't pay to have a live in helper for less than 600USD a month. I'm also lucky with my current job, but if I only pursue side hustles that could make me 400+HKD/hour that seems like only something I get with tutoring or creating a successful passive income stream (the hard part being successful and knowing it'll work ahead of time).

    I've also read parts of Millionaire Expat by Andrew Halam and some of his blog, and I think you could do worse than buying VT or VTWAX and settling for the world index's average return.

    My favorite blog is by far mrmoneymustache.com, but I'll admit plenty of what is on there is specific to the U.S. and those that own cars, but plenty is applicable to many people even not in the U.S. and those that don't own a car. There is also an active forum, which is nice as he hasn't posted much since I started reading through his awesome stuff in early 2019.

    I'm currently reading through paulmerriman.com after @shri recommended one of his videos. It has now opened my idea to seeking the best possible average return using different asset classes, and Paul's evidence says that at least in the past small-cap value was the best performing asset class over any 40 year period. We only have the past, and it can hopefully at least give us a better gauge of potential risk, but the higher the potential reward the higher the potential downside. However, I really like the idea of trying to find the best and cheapest passive index fund investments. The best would be, at least in the past, those that had the greatest long-term (15 to 40 years) compound return with the lowest possible drawdowns and standard deviations.

    The more I try to read about investing though, the more I realize that I don't understand partially because no one can accurately and consistently predict anything about the wild stock market. I accept that, but what's the best I can do? I guess just do something that makes sense to me and that I can stick to in the long run and try to save and invest as much as I can along the way to my attempt at reaching financial independence.


  6. #66

    Join Date
    Dec 2009
    Posts
    216
    Quote Originally Posted by LoganH:
    It has now opened my idea to seeking the best possible average return using different asset classes, and Paul's evidence says that at least in the past small-cap value was the best performing asset class over any 40 year period.
    "best possible average" imo is an oxymoron
    Small cap value would also have left you very disappointed the past few years compared with just the general index.
    Personally think the most reliable way to maximize your portfolio more than trying to pick winners is being intentional to simply save/invest as much as you can
    Last edited by foxwendal; 16-07-2020 at 08:58 AM.
    shri likes this.

  7. #67

    Join Date
    Mar 2016
    Location
    Malaysia
    Posts
    221

    Another source for reading material related to personal finance is: https://www.caniretireyet.com/
    However, when it comes to taxes, health care insurance and so on, is it limited to US only.


  8. #68

    Join Date
    Feb 2012
    Location
    Park Island, Hong Kong
    Posts
    220
    Quote Originally Posted by foxwendal:
    "best possible average" imo is an oxymoron
    Small cap value would also have left you very disappointed the past few years compared with just the general index.
    I understand your opinion, and thanks for stating it as such. However, a few years isn't almost every 15 to 40 year time period since 1928. Also today small-cap value went up ~4%, and of course my limit order didn't go through because I was too greedy. Anyway, that's why many smart people say time in the market beats timing the market.

    Despite that if small-cap value has consistently been the best asset class in the past, and the past is all we have, then I'm taking a leap of faith that I believe history repeats itself. I could be 100% wrong, but no one knows for sure. I also like the idea of using the past to try to reduce risk while seeking to increase your return. Again history might not repeat itself, but over long periods I'm betting it will. I will also diversify, but I'll try a tilt towards value funds. You have to believe in your strategy or you're unlikely to stick to it, and you'll probably then sell low and buy high.

    I'm aspiring to be a long-term buy and hold investor that is confident that in the long-run markets will go up faster than inflation and will significantly beat the conservative returns of fixed income. I'm young and I want to take more risk while I'm young, and yes I need to save as much as I can, but I plan to invest as much of my savings as I can. I'll get the benefit of dollar-cost averaging because I simply don't have all the money I seek today to invest anyway.

  9. #69

    Join Date
    Jul 2004
    Posts
    3,701

    MMT explained in simple household terms, credible or bollocks only time will tell but so far party has been going on for over two decades..


    https://www.scmp.com/week-asia/econo...-all-debt-back

    Sage likes this.

  10. #70

    Join Date
    Dec 2018
    Posts
    1,283
    Quote Originally Posted by nivantj:
    MMT explained in simple household terms, credible or bollocks only time will tell but so far party has been going on for over two decades..


    https://www.scmp.com/week-asia/econo...-all-debt-back
    For those who aren't familiar with the concept of MMT (Modern Monetary Theory), it's basically the claim that governments can borrow as much money as they want in their domestic currency and repay the borrowings through higher tax revenues. Although adherents deny it (and get quite shrill when ducking any serious discussion), MMT claims that borrowing doesn't matter and governments can borrow as much as they want without adverse consequence. Meanwhile, in the real world ....

    IMHO it's utter BS but the politicians will grasp at anything that lends even the tiniest pretext of credibility to their electoral bribes.

    One of the milder summaries of a few of MMT's fatal flaws is here: https://www.mercatus.org/bridge/comm...5-problems-mmt
    nivantj likes this.

Reply
Page 7 of 7 FirstFirst ... 4 5 6 7