Live Truly

Life, Books, and Adventures

Books

The Little Book That Beats the Market Joel Greenblatt’s The Little Book That Beats the Market is an impressively straightforward and action-oriented investing book. It’s also a pleasure to read. It’s based on Benjamin Graham’s principles but it gets the point across in less than two hundred pages and uses simple examples that a middle school kid could understand. The author also has a track record to prove his theories (he’s founder and managing partner of Gotham Capital, a fund with quite a record).

The things I love most about the book are:
1. It has a common sense formula
2. It explains why it’s common sense
3. It has easy action steps

My only issue with the formula is that you have to switch stocks in one year cycles, however, perhaps if a stock maintains its ratios it could be kept again. The stats on returns are amazing, but even better is that the formula isn’t just random, it actually makes sense.

Basically the secret of the book is this: buy companies that have a high ratio of earnings to capital invested (ie. if two businesses both cost 500k to start and one makes 250k and the other makes 100k a year… which is a better investment?) and to buy companies that have a higher earnings yield (ie. if two companies both sell shares at 10 dollars, but one company earns 1 dollar for that share and the other company earns 2.50 for its share… which is a better investment?).

The coolest thing is that there’s a website that helps you find such companies: MagicFormulaInvesting.com.

Even if this book took a week to get through (it only takes an hour or so) The Little Book That Beats the Market is definitely worth your time.

Here’s a more detailed review.

Brian Tracy

Posted by b On June - 30 - 2006

I’ve been listening to Brian Tracy for the past few weeks. The guy is fantastic. He’s quoted almost every other success coach I’ve read. His books make very strong points and asks very powerful questions:
-The differences between a winner and a loser is: clarity and responsibility.
-If you could be guaranteed success in field, what field would you choose? If you had ten million dollars, what would you do for a living?
-If you aren’t willing to pay the price to becoming the best in your field you should get out as soon as possible. You’re wasting your time.
-In order to succeed there are only two things you need to do: pay the price and pay it in full

His time management tips are amazing. I especially love the one about procrastinating on what’s not important. It’s such a powerful tool. I also like the whole “eat that frog” idea and the focusing techniques. Aside from Rich Dad, Poor Dad (which isn’t really a coaching book as much as an eye opener) I think this is fastest impact couching program I’ve listened too.

He also gave some really good tips about time and money. I really like the one about figuring out what you get paid per hour and what you would like to get paid and raising the value of your hourly contributions to that. I also like the one about taking a month to delay making any big spending decision.

Speaking of which, I might have made a mistake, but it’s a “mistake” that lets me listen to these tapes. =)

The Psychology of Achievement: Develop the Top Achiever’s Mindset
Million Dollar Habits: Proven Power Practices to Double and Triple Your Income
Master Strategies for Higher Achievement : Set Your Goals and Reach Them - Fast!

Power of the Seven Habits

Posted by b On May - 12 - 2006

The Power Of The 7 Habits : Applications And Insights Dr. Stephen Covey’s The Power Of The 7 Habits : Applications And Insights walks through the environment of habits needed for success. The book has a lot to offer.

While the style and structure seem best for paper (not easily memorizable) there are some really nice insights in the tape. Among them, what are seven habits of ineffective individuals: not taking responsibility, not putting first things first, over-committing, etc.

The book also stressed the same point that Robins’ book. Realizing that you have the ability to control your response. Then growing from there. The saying no to unnecessary commitments and taking time to write a mission statement parts are aslo really important.

Overall this is a nice quick listen, hard to orient at times, but because it’s so short, it’s not that big a problem.

Guns, Germs, and Steel

Posted by b On May - 10 - 2006

Guns, Germs and Steel Just finished my second library rental. Jared Diamond offers an insightful look into human history and pre-history and a nice explanation of why things are the way theye are. Guns, Germs and Steel is a great book for history and knowledge and offeres many insights, things one might never consider (like how much faster food spreads East-West versus North-South due to climate, and what that meant for Africa and the Americas versus Asia-Europe), but as far as a personal development book? That it is not.

Live with Passion

Posted by b On May - 8 - 2006

Live with Passion! : Strategies for Creating a Compelling Future Anthony Robbins’ Live with Passion! is up there as one of the best self-improvement books I’ve ever heard. The guy presents so many specific, simple, and effective ways to improve your life–instantly.

Last week I finally managed to get to the library, and with all the excitement got almost half a dozen books on tape. This was the first and I finished it in less than three days. I really needed it right now, and it really helped. The first and one of the greatest strategies in this book is the ability to control one’s desire for an object or a situation. There was a term for it, but the idea goes like this, on a scale from -10 (completely repulsive) to 10 (you can’t live without it, now), figure out your desire for an object, or an event. Figure out how it could be a little lower and a little higher, play with this until you get it to the number you want. So if you take an apple, what would it take for that apple to move from a zero to a two… (the crispness of it)… to a five (being really hungry and a little thirsty)… to an eight (that apple cool on a hot day and smelling super yummy)… to a ten (all those things… and you have it with ice cream)…. (these may vary for different people. Well in being able to contol your desire, you can control how much you want to do your daily stuff and how much you’ll enjoy it. Even for something that is horrible, you can ask yourself, well how could it be a little bit better. What would it take. And by preselecting your mood and your milestones, you can make some annoying things seem a lot better. I know this tool worked for me for most of this week at work.

Another cool concept he gives is about rules. Figuring out one’s own rules and understanding that others have different ones. An even neater section was his section on communication. The exercises about how you act when stressed or when you want someone to do something make you realize just how silly we can get when we forget why we communicate. Then there was a section on handling stressful situations, a set of steps, which unlike the desirability metric thing, was too long for me to memorize, wish I managed to write it down (but I have another two weeks). Another interesting section on being sure and unsure and how a person should question which approach will help them get the most out of life. He went off on a long talk about AIDS and how many of the things we all believe aren’t so true. I didn’t know a lot of the things he mentioned. What was funny though was in order to show how we base our sureness on the news or professionals he used professionals to prove the counter point. But how else would you do it? Actually he was consistent in that it’s a good idea to get as many points of view as possible before committing to an idea, especially if you’re going to commit to something that can destroy you. The statistics about how doctors choose medicines was also very eye-opening.

Then he goes on to a section on meaning, also really good, and asks us to figure out what we are meant to do. What is the purpose of our lives? Anthony Robbins said his was to serve G-d and people to his utmost of his ability. I think this is a wonderful goal. To be honest, it made me realize just how much I got lost lately. I’m really not sure what’s going on. Half a year ago I knew it so clearly, now I’m not so sure. Listening to the tape he said it’s important to start somewhere. To say anything. Can you guess what came out? What’s the purpose of your life? I said to create beautiful art. Where did that come from? No idea. Being a good Yid? Being a good husband and father? The first thing that came to my mind was the art thing. Maybe that’s a big chunk of my destiny, even though the next two were (and should still be) my crystal clear goals. I finally had a weekend to relax, sleep, and think a bit more clearly. I think it’s helping, though still not sure.

He ends the book with a recap with an emphasis on meaning. He stresses that it’s as important to live each moment towards achieving a goal as it is to achieve it. His stories, like his trip to India and getting assigned dish-washing to the life-and-death situations where persistence saved lives, to the tales about death, the whole collection was just wonderful. This CD, just because of the control part would be up there with Rich Dad, Poor Dad, and it has more good parts too. Anthony Robbins’ Live with Passion! is definitely life-changing and eye opening, and worth a listen.

Lazy Man’s Way to Riches by Richard Gilly Nixon

Posted by b On March - 23 - 2006

Update: Looks like someone found the workbook! Contact walrusbooks(AT)yahoo(DOT)com [-b 4/14/2007]

Warning: The additional workbook is nowhere to be found. [-b 1/26/2007]

The Lazy Man's Way to RichesThe Lazy Man’s Way to Riches - a neat little audio book. It has a lot of the ideas that Think And Grow Rich and Rich Dad, Poor Dad have in them. What really makes this guy stand out is that he explains that procrastination means more work. Not doing something that needs to get done drains as much energy as actually doing it, except it drains it for longer without results. Another cool idea was the type of people you’re surrounded with and how to build your company (not just in the business sense) to be beneficial. This is a lot like Napoleon Hill’s mastermind idea.

The thing that really stands out is the last part of the book about online products: e-books and such. While the ad campaign section isn’t exactly new news, one should considers that for its time, and even now, it’s a fantastic and thorough explanation. He covers e-zines and e-books and mailing lists and gives lots of fantastic ideas.

While I’d still recommend Rich Dad, Poor Dad as the wake-up book, the latter online business part of Richard Gilly Nixon’s The Lazy Man’s Way to Riches is worth listening to. I wonder what Joe Karbo’s original was like.

[Edit:] Warning: The site at the end of the book is either too hard to find or no longer valid… The book is worth listening too, but it’s a bummer the promised section isn’t readily available. - Thanks Gigi!
If anyone knows how to get there, please pass on how. Thanks. -b