2022 was the worst year for the typical 60/40 portfolio, losing about 17 percent according to Blackrock. As prices of stocks and bonds fell in lockstep last year, more investors sought to increase their allocations into alternative investments. However, since the term "alternative investments" includes everything from real estate, to private equity, to rare wines, it can be daunting to get started in alternative investing.
Our founder and CEO, Tory Reiss, has a list of favorite books and blogs that he shares with anyone interested in private market opportunities. Check out his list below👇
I Will Teach You to be Rich by Rami Sethi
We love how action-oriented this book is. Rather than providing the usual run-of-the-mill budgeting tips, Sethi provides unique tips on things like talking your way out of late fees and talking your way into a raise at work.
Pioneering Portfolio Management by David F. Swensen
This one is an Equi team-wide favorite! Old, but not dated. Educational, but not pedantic. This classic, especially relevant in today's economic environment, explains how to build a diversified portfolio that can leverage alternative assets and withstand market swings.
The Alchemy of Finance by George Soros
You can love him or you can hate him, but there's no denying that Soros is one of the greatest active investors of our time. This book is a great way to gain insight into his thought process and investing approach.
Thinking Fast and Slow by Daniel Kahneman
Although not exactly a book on finance and wealth management, "Thinking Fast and Slow" is an illuminating book on how we can avoid making irrational decisions, including around money and spending.
The Millionaire Next Door by Thomas J. Stanley and William D. Danko
A bit dated, but a good reminder that millionaires often become millionaires by rejecting flashy lifestyles and focusing on working hard, saving diligently, and living within their means.
The Simple Path to Wealth by JL Collins
While the author advocates for index funds and equities long-term and does not appear to be a huge fan of alternative investing, he does an excellent job of explaining important financial instruments such as 401(k)s, IRAs, Roth IRAs, TRFs, HSAs, and a slew of other acronyms.
The Richest Man in Babylon by George S. Clason
This is the book to read if you learn best through parables and storytelling. The advice offered is simple and actionable.
Your Money or Your Life by Vicki Robin
Have you calculated every cent you've ever made in your life and what currently remains in your bank account? Vicki Robin's book takes you through several exercise and a 9-step program to take back control over your financial life.
The Bogleheads' Guide to Investing by Mel Lindauer, Taylor Larimore, Michael LeBoeuf
As suggested by the title, this guide espouses the investing beliefs of John C. Bogle, founder of Vanguard.
A Random Walk Down Wall Street by Burton G. Malkiel
For those who have more of an interest in trading and the stock market, this book dives deep on the concept of efficient markets and the implications for investors.
Why Smart People Make Big Money Mistakes by Gary Belsky & Thomas Gilovich
Few things in life cause people to make emotional decisions as money. Focusing on the psychology behind financial decisions, the authors provide wise advice on avoiding the pitfalls of financial faux pas.
Intelligent Asset Allocator by William Bernstein
Bernstein covers a wide range of topics in his book, from the history of asset allocation to behavioral finance. He also includes a comprehensive section on active versus passive investing, market timing, and tactical asset allocation.
The Four Pillars of Investing by William Bernstein
Another one by Bernstein, this book emphasizes the importance of diversification across asset classes and defines four pillars of investing:
1) Portfolio Theory
2) Market History
3) Behavioral Finance
4) Investment Funds
One Up On Wall Street by Peter Lynch
Written by one of the most successful money managers Peter Lynch, this book shares Lynch's investment philosophy which focuses on the importance of investing in what you know, conducting robust due diligence, and being savvy about seeking out growth opportunities.
Debt: the first 5000 years by David Graeber
A fascinating new view on the concept of debt, this book argues that debt has been far more than a financial instrument throughout human history. Rather, it has been an instrument for influencing politics, gender roles, religion, and much more.
The Ascent of Money by Niall Ferguson
This books also takes an anthropological view of money and documents how various historical events led to the rise of our current financial system.