3 books to help build serious wealth on the ASX

How to find and invest in companies like CSL Limited (ASX:CSL) and Cochlear Limited (ASX:COH).

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're serious about building wealth it's not complex finance strategies that will get you ahead.

Rather, the most effective approach is to focus intensely on the classic, time-proven methods that come up time and time again.

I've picked out three books I think do a great job of explaining what works in investing and how to avoid devastating losses.

1. Unshakeable: Your Financial Freedom Playbook – Tony Robbins

Don't worry, this book isn't as in-your-face as you may expect and makes for an excellent weekend read.

Robbins advocates heavily for the use of index funds, minimising fees, diversification and being cautious with who you trust for advice. But the book also has valuable insight for choosing individual investments and hunting for big winners like CSL Limited (ASX: CSL) and Cochlear Limited (ASX: COH). An important point is to look for asymmetric returns, where the upside is much bigger than the downside.

Tony Robbins exploits his big-name connections to dig into what we can learn from the some of the world's best investors like Jack Bogle, Ray Dalio and Howard Marks. Yes, Buffett is in there too.

2. The Millionaire Mind – Thomas J. Stanley

The Millionaire Mind is based on a survey of 638 millionaires in the United States and argues heavily against the idea that you needed to be great at school to make money.

Instead, hard-work, creativity and people skills are common characteristics of millionaires in America, skills anyone can tackle. Wealth is not associated with good grades at school – if you struggled with school don't let it hold you back from chasing financial freedom.

3. A Wealth of Common Sense: Why Simplicity Trumps Complexity in Any Investment Plan – Ben Carlson

This book does an incredible job of explaining why every investing maxim you've heard is not only valid, but essential to building wealth.

Carlson makes a great case that the best investing style is the one you can stick with and offers advice on understanding our own investment behaviour to reduce un-forced errors which can make you your own worst enemy.

Foolish takeaway

The reason I've chosen these three books is not because they contain ground-breaking secrets. It's because they share the basic tools that anyone can use to build significant by keeping it simple, focusing on what works and having the patience to compound returns.

These books explain the details of how to do that and, importantly, how to navigate this path and stick with it when times are tough.

Regan Pearson has no position in any of the stocks mentioned.

You can follow him on Twitter @Regan_Invests.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. and CSL Ltd. The Motley Fool Australia has recommended Cochlear Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A man has computer-generated images rushing through his head indicating an AI (Artificial Intelligence) concept of a communication network.
Technology Shares

ASX investors are obsessed with Nvidia shares! Here's why

The global chipmaker reported a 94% increase in annual revenue in the third quarter.

Read more »

A man wearing a red jacket and mountain hiking clothes stands at the top of a mountain peak and looks out over countless mountain ranges.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another disappointing day for ASX investors this Thursday.

Read more »

two racing cars battle to take first place on a formula one track with one tailing the the leader and looking to overtake the car.
Opinions

Down 21% in 2024. This ASX 300 stock looks like a money-making monster

Profits are expected to plunge, but the future could still be bright.

Read more »

A businesswoman exhales a deep sigh after receiving bad news, and gets on with it.
52-Week Lows

Down 68% from highs, this ASX 200 stock just hit a 4-year low. Time to pounce?

Is this beaten down stock a buy? Let's see what one leading broker is saying.

Read more »

two men smiling with a laptop in front of them, symbolising a rising share price.
Share Gainers

Why Pinnacle, PWR, Race Oncology, and Vulcan shares are flying today

These shares are having a good session on Thursday. But why?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Accent, Sayona Mining, Web Travel, and Weebit Nano shares are dropping today

These shares are having a tough time on Thursday. Why are they being sold off?

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Share Market News

Insider buying alert: 3 ASX 200 shares directors are snapping up right now

Directors in some of Australia's blue-chip businesses aren't shying away from the market.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Broker Notes

Guess which beaten down ASX share is rocketing 11% today

Why are investors buying this beaten down stock? Let's find out.

Read more »