Read it if:

You want a comprehensive, data-heavy history and analysis of investing vehicles, theory, and performance.

Tip:

Be sure to buy the latest edition. The original version is over 20 years old with many subsequent updates.

Top three takeaways:

1. There is no methodology that can predict the future of financial (or any) markets.

2. A portfolio using Modern Portfolio Theory (MPT) (particularly an 83%/17% US/International index) provides optimal risk-adjusted returns.

3. Judgment bias is strong: people attribute skill to luck and luck to misfortune. They own the good, but not the bad.

Read it if:

You want to understand the hows and whys of market cycles to avoid buying at the top and selling at the bottom.

Top three takeaways:

1. Read the entire book; it’s a treasure trove of wisdom.

2. Sign up for Howard Mark’s Oaktree Insights newsletter for periodic, pertinent market analysis.

3. Surface-level summary of the book’s overall ideas:

“A winning investment philosophy can be created only through the combination of a number of elements: a technical education; a view on how markets work; be a lifelong reader; exchange ideas with other investors; there is no substitute for experience.”

Read it if:

You want to understand the power and pitfalls of your psychology to make better investment decisions.

Top three takeaways:

1. You will change - adapt and release plans and ideas that no longer serve you.

2. The future will be a surprise; things that have never happened before happen all the time.

3. Risk is what is left over when you think you’ve thought of everything.

Read it if:

You want to read just one book.

Top three takeaways:

1. A money manager’s chief value to their clients is in shielding them from costly mistakes.

2. All things revert to the mean.

3. The worst enemy of a good plan is the dream of a perfect plan.

Read it if:

You want the least reading for the highest value. You could literally just read the cover and get most of the value.

Top three takeaways:

1. Keep it simple.

2. Keep costs low.

3. Stay the course.

Read it if:

You want a solid overview of getting from your working life to your retired life.

Top three takeaways:

1. Investment Policy Statement: critical to have and review annually.

2. Ensure advisor fees are in alignment with your interests as an investor.

3. For estate planning, use a professional in your state of residence.

Read it if:

You are hesitant to retire for psychological reasons. Otherwise it’s just meh.

Top three takeaways:

1. Think about your life-long vocation vs vacation.

2. Purpose is essential to satisfaction.

3. Use your own life expectancy number for planning.

Why I didn’t like it:

Very expensive and little in-depth or meaningful information - especially for such a large and costly book. Makes me wonder about the value of the CFP designation.