LIVING OFF DIVIDENDS & PASSIVE INCOME

I just finished reading A Million Bucks By 30:How to Overcome a Crap Job, Stingy Parents, and a Useless Degree to Become a Millionaire Before (or After) Turning Thirty.  The author, Alan Corey, was kind enough to send me a review copy. I must say, it’s one of the most interesting personal finance books ever! In fact, its my all time favorite.

A lot of people have complained that Robert Kiyosaki’s Rich Dad, Poor Dad stories sounded insincere and that killed the whole concept for them. If you’re in that camp, then you’ll love Corey’s book. He recounts his days of living in abject poverty until he become a millionaire. Don’t get me wrong, he wasn’t poor - he just lived that way to achieve his dream of becoming a millionaire before his 30th birthday. While his story is quite hilarious, he actually covers all the points of personal finance without actually dwelling too long on them; live on less than you earn, learn about investing, invest for your retirement, delay your gratification, take educated risks, make sure your significant other is on the same page or get another significant other. Instead of explicitly mentioning these points, he just shows you how he practiced them on a daily basis.

Previously, I had mentioned a $2,500 book by Mohnish Pabrai called Mosaics:Perspectives on Investing and how I was hoping I could find my own signed copy to hawk on Amazon.

Well, I did find it and after jumping through several hoops I was finally approved as a seller on Amazon.com. (Don’t know what the issue was, just some technical difficulties on their end).

Not only did I find a signed copy, I also happened to have an unsigned copy too!

I’m selling the autographed copy for $2,395 (don’t want to be too greedy!). Here’s the link on Amazon.com. If anyone’s interested, contact me directly and I’ll let it go for $2,200 with free FEDEX shipping.

I’m not sure what sort of people buy these kind of books. But I know they exist. Someone spent $395 and bought the unsigned edition a few days ago. I know that for a fact because I got a $23 commission from Amazon on the sale of that book(thanks whoever you are!).

I spent Sunday evening browsing books at Barnes and Nobles. I picked up The Future for Investors: Why the Tried and the True Triumph Over the Bold and the New because of the rave reviews I’d read, but while I was there I glanced at a book on display called Survival of the Sickest: A Medical Maverick Discovers Why We Need Disease.

Intrigued by the title I started reading the book. It was so interesting that I spent the next two hours standing there and I finished the entire book! The author has a PhD in neurogentics (which I had never heard of) and using non-scientific terminology provides explanations for the probable reasons behind common genetic diseases.

Monish Pabrai is being called the ‘young Warrent Buffett’. He’s been returning 30% annual returns for his investors, similar to what Warren Buffett had been returning in the initial stages of his career.

He’s come out with a new book:
The Dhandho Investor: The Low - Risk Value Method to High Returns

Based on the fact that his previous book, Mosaic: Perspectives on Investing is now selling for about $495, it might be worth picking up a copy as an investment, even if you don’t like reading!

I happened to meet Mr. Pabrai when he was giving a speech in Orange County a year ago and was lucky to pick up a signed copy of Mosaic. Signed copies of that book have sold for $2,500!!! I hope I didn’t throw it away, it was lying in my car trunk for the longest time.

I’m currently half way through a great book by Jared Diamond called Guns, Germs, and Steel: The Fates of Human Societies.

It delves into 30,000 years of human history and tries to answer the question how some cultures were able to dominate over others and become successful. Its an incredibly interesting book and the author has done a ton of research. If you’re too lazy to read it, its also available on DVD from National Geographic.

It doesn’t have anything to do with investing but I had to recommend it nonetheless. On the other hand, anything you learn can spark a million dollar idea! Check out some really dumb ideas that made millions.

Popularity: 2% [?]

I just finished reading Hot Commodities by Jim Rogers. Its a very easy to read book and the author does a great job explaining why everyone should invest in commodities. A lot people mistakenly believe that commodities are very risky and that investors usually lose their shirts.

Jim Rogers shows this isn’t the case and that commodities and stocks just follow different cycles. Infact in many cases, commodities have similar returns to the S&P500 but with lower risk. He explains what causes commodity prices to rise & fall, how a few different commodities have behaved in the past and how they are likely to behave in the future. If you don’t have any commodities or commodity related stock in your portfolio I strongly recommend you pick up the book.

I’m currently re-reading The Millionaire Next Door. I had read it back in 2000 after my wipe-out in the stock market. Its good to re-read books every so often so the salient points stick in your mind. Especially the points in this book.

Most millionaires are extremely frugal. They don’t waste money on luxury cars or fancy stuff, nor do they feel the need to impress others about their wealth. This is an especially important thing to remember especially considering that Black Friday is tomorrow and Walmart’s selling a 42 inch plasma for $997.00. Thats an unbelievably low price and if I was in the market for a TV I’d definitely get it. However, once I get that, I’ll probably feel the need to get digital cable which is a waste of money and of course time. The goal is to simplify life and get out of the consumerism mentality. Thats how average people making ordinary salaries become millionaires.

I get asked by a lot of newbie investors about what to read. Rather than keep on searching and sending out the same list repeatedly, I decided to put it up online. Here’s my list of the
best investing books. You’ll see some of the all time classics like Benjamin Graham’s “Intelligent Investor” and also a few surprises like “Popular Delusions & the Madness of Crowds“. Check it out and let me know what you think.

Also, any time you can attend a seminar for under a $100, you should take the opportunity. Its a good networking opportunity as well so make sure you have business cards printed with your name, contact info and the fact that you’re an investor. If you’re looking for something in particular, you can put that on the card too.