Five Practical Books & 5 Investment Lessons – By George Mentz JD MBA CWM

If you have ever read a great wealth management related book, there are usually a few invaluable tips in each manuscript which make it worth your while. Here are 5 practical books, and a key investment idea from each manuscript that made it worth reading.

1) Who Moved My Cheese by Spencer Johnson

If a Stock is Not Working for You Anymore, Get Out.

While this sounds subjective, it has several important meanings such as: If a company has reduced your dividends and you do not see upside stock potential where your stock has lost 8% or more recently, then maybe you can get out of the position and cut your losses. See: Johnson, S. (1998) Who Moved My Cheese? An Amazing Way to Deal with Change in Your Work and in Your Life, London: Random House.

2) The Way to Wealth by Benjamin Franklin

Make Use of Your Investments . As Ben Franklin said, ” We are taxed twice as much by our idleness, three times as much by our pride, and four times as much by our folly, and from these taxes the commissioners cannot ease or deliver us by allowing an abatement.”

See: Franklin, B. (1993) “The Way to Wealth” in Benjamin Franklin: Autobiography and Other Writings, O. Seavey (ed.), Oxford: Oxford University Press.

3) The Science of Getting Rich by Wallace Wattles.

Convey the Impression of Increase to Your Customers.   Look for the value in your investments. If you can clearly see how the company’s services or products are providing solutions; then, you have isolated the ability of the company or stock to increase the lives of others. If you have not read this 100+ year old book, do it. It is quite an astounding piece of prosperity writing from the turn of the century, and the book is concise.  See: Wattles, W.D. (1976). Financial Success through the Power of Thought [The Science of Getting Rich]. Rochester, Vermont: Destiny Books. (Written originally around 1910). or How to Promote Yourself by Wattles – Lulu Press ISBN-10: 0615223494

4) Rich Dad Poor Dad by Robert Kiyosaki

Getting Your Assets to Work For You 24/7 is the Key to Cash Flow

Kiyosaki famously stated, ““Rule one. You must know the difference between an asset and a liability, and buy assets. If you want to be rich, this is all you need to know.”

See: Kiyosaki, R. with Lechter, S. (1997) Rich Dad, Poor Dad: What the Rich Teach Their Kids about Money… That the Poor and Middle Class Do Not! London: Time Warner.

5) Buffett – The Making of an American Capitalist by Roger Lowenstein

There is No Income Tax Due While Holding Great Growth Stocks. While this may sound like old news, holding great stocks is the oldest form of owning a deferred tax growth investment. Further, growth with dividends is the greatest way to have cash flow and potential upside.   See: Lowenstein, R. (1995) Buffett: The Making of an American Capitalist, London: Orion.

Any of these writers and their books will boost your mindset and consciousness of investment savvy.  From time to time it takes a book like the ones listed above to shock our consciousness to make progress in life.  There are dozens of great financial planning books, yet sometimes practical wisdom is the most welcomed kind.

For the benefit of the readers, here are some stocks and an ETF with strong dividend income yield along with growth potential.

1. WalMart (NYSE: WMT)
2. AT&T Inc. (NYSE:T)
3. Waste Management, Inc. (NYSE:WM)
4. Johnson & Johnson (NYSE:JNJ)
5. Goldman Sachs Group, Inc. (NYSE:GS)
6. Utilities SPDR (ETF) (NYSEARCA:XLU)

 

Lawyer and Counselor George Mentz, JD, MBA, CILS, CWM is a world recognized wealth management commentator and award winning professor who has authored several revolutionary books. Prof. Mentz, an international attorney, has been a keynote speaker globally in Asia, Arabia, USA, Mexico, Switzerland, and in the West Indies. Mentz can be contacted for speaking engagements at www.gmentz.com or www.managementconsultant.us *No counseling, tax investment or legal advice provided herein. Please consult with a licensed professional in your jurisdiction before making any important career, financial or legal decision. All rights reserved by George Mentz, Esq.