Financial Literacy Video Series
The finance and investment world is loaded with jargon and technical terms. At their best, they help professionals convey specific and relevant information in a quick and easy manner that those professionals understand and agree upon. Unfortunately, when dealing with the general public, or worse, their clients, too many financial professionals and advisors throw around that jargon to confuse their audience and sometimes obfuscate their own poor understanding of the concept. In my opinion, a lack of basic financial literacy among the general investing public is one of the leading causes of bad investing outcomes. You don’t need to be fluent in the most recent research into option-pricing or stochastic modeling of time series returns. Leave that to the academics. Just a basic familiarity with concepts like asset allocation, diversification, risk, expected return and a handful of others can help you to avoid some of the worst investment and borrowing mistakes that the typical investor makes.
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I am producing a series of videos as a public service, and hope that these educational pieces do just a small part in educating a small part of the public to make better financial decisions. Check back for updates regularly, or subscribe to the YouTube site.
Financial and Investment Readings
Here are a few suggested reading materials I have put together that might enhance your financial acumen and IQ. Some are quick, breezy reads, and others are longer and more challenging.
Short and sweet, but definitely worth the read.
Liz Claman (2006). The Best Investment Advice I Ever Received: Priceless Wisdom from Warren Buffett, Jim Cramer, Suze Orman, Steve Forbes, and Dozens of Other Top Financial Expert
Pat Dorsey (2008). The Little Book That Builds Wealth: The Knockout Formula for Finding Great Investments
Richard Thaler and Cass Sunstein (2008). Nudge: Improving Decisions about Health, Wealth, and Happiness
Some classics on Value Investing.
Benjamin Graham, (1973). The Intelligent Investor. A Book of Practical Counsel. Fourth Revised Edition.
Benjamin Graham and David Dodd (2008). Security Analysis Sixth Edition - Absolutely the essential tome on value investing, originally published in 1934. The 6th edition is enhanced with commentary from top investors in today's markets.
Peter L. Bernstein (1998). Against the gods: The remarkable story of risk. Comprehensive look at what Risk is, and has been throughout history. How it has been conceived, measured and managed.
Words of Wisdom from Warren Buffett
Berkshire Hathaway Owner's Manual -- In June 1996, Berkshire’s Chairman, Warren E. Buffett, issued a booklet entitled “An Owner’s Manual*” to Berkshire’s Class A and Class B shareholders. The purpose of the manual was to explain Berkshire’s broad economic principles of operation.