The Richest Man In Babylon - George S. Clason !

[One World Trader]

[amazonsearch]The Richest Man In Babylon[/amazonsearch]

 

Hello!

 

I am introducing myself to this board with the goal of being one of the many financial freedom success stories I have read about in the few weeks of reading through some of the impressive posts to this board!

 

I am a recent college graduate with a degree in engineering and have been reading about the world of finance for a few years (even before graduation but don't tell my professors)! I have studied strategies and thought processes of the greats and I think Mr. Watsa will go down as one of them! I am excited to be a new shareholder and consider myself a value investor though the name might not suggest (tribute to the WTC I grew up wanting to work in), and am excited to its potential especially for someone my age.

 

Speaking of value investing, of the books I have read I consider this one of the best!! Reading through "The Richest Man In Babylon" gives a timeless feeling of how the benefits of investing for the long-term spans generations, and gives a sense of security knowing that we are not the first to reap the rewards of financial wisdom, nor is our civilization the first to develop wise investment practices.

 

Enjoy this book! Such a simple yet effective read. I recommend it to anyone who thinks of themselves a value investor.

 

Thanks and look forward to future posts discussing things with you all!

 

One World Trader

 

[jay21]

Your not only with your recommendation.  I think Richard Handler also recommended this and it's on my reading list.

[Liberty]

Welcome to the board! Thanks for the recommendation, I'm adding it to the list :)

[giofranchi]

Hi One World Trader!

And welcome to the board!

I agree with you, and I simply think any father/mother should make his/her children read “The Richest Man In Babylon”, as soon as possible! And, sincerely, I don’t understand how this book is not mandatory reading in school…

 

A PART OF ALL YOU EARN IS YOURS TO KEEP. It should not be less than a tenth no matter how little you earn. It can be as much more as you can afford. Pay yourself first.

…

I advise that you take the wisdom of Aglamish and say to yourselves, ‘A part of all I earn is mine to keep’. Say it in the morning when you first rise. Say it at noon. Say it at night. Say it each hour of every day. Say it to yourself until the words stand out like letters of fire across the sky.

 

Impress yourself with the idea. Fill yourself with the thought. Then take whatever portions seem wise. Let it be not less than one tenth and lay it by. Arrange your other expenditures to do this if necessary. But lay by that portion first. Soon you will realize what a rich feeling it is to have something upon which you alone have claim. As it grows it will stimulate you. A new joy of life will thrill you. Greater efforts will come to you to earn more. For of your increased earnings, will not the same percentage be also yours to keep?

 

Then learn to make your treasure work for you. Make it your slave. Make its children and its children’s children work for you.

 

Insure an income for thy future. Look thou at the aged and forget not that in the days to come thou also will be numbered among them. Therefore invest thy treasure with greatest caution that it be not lost. Usurious rates of return are deceitful sirens that sing but lure the unwary upon the rocks of loss and remorse.

 

Cheers! :)

 

giofranchi

 

[One World Trader]

 

Hello Jay 21, I didn't see it and didn't know the books couldn't be repeated however I figure this one is worth mentioning again!

 

Bravo Giofranchi!

 

Thanks for some contributing ideas and posts in recent weeks, I look forward to reading on. I agree I am not sure why but I am inclined to believe the consumer culture doesn't allow any time to learn how to save, just how to spend!

 

[bookie71]

I read it years ago and have given copies to quite a few folks.  It should be reread periodically.  I believe that John Templeton suported the same basic idea,but had a much higher percentage.

[matjone]

I picked this one up finally after seeing it mentioned on here.  I was thinking I wouldn't like and it would be silly, an opinion I formed solely from the title and a few excerpts I had seen online about some guy asking for advice about how to obtain golden shekels.  I was wrong - this is a great read and now I feel the urge to read it again and commit certain passages to memory.  Some of the events in it were so similar to my own episodes of financial foolishness it was uncomfortable to read.  When you get that feeling you know it is something you need to hear.  So, to Gio and others, thanks for the recommendation.

[rkbabang]

I picked this one up finally after seeing it mentioned on here.  I was thinking I wouldn't like and it would be silly, an opinion I formed solely from the title and a few excerpts I had seen online about some guy asking for advice about how to obtain golden shekels.  I was wrong - this is a great read and now I feel the urge to read it again and commit certain passages to memory.  Some of the events in it were so similar to my own episodes of financial foolishness it was uncomfortable to read.  When you get that feeling you know it is something you need to hear.  So, to Gio and others, thanks for the recommendation.

 

I read this book a long time ago, so I don't remember all of the details or the story, but I have never forgotten the message.  IIRC:  1) Spend less than you make.  2) Regardless of what ever happens in your life or what stupid decisions you make or have made in the past whenever money comes in always, always, always pay yourself first, at least 10%.

 

There may have been other nuggets of wisdom that I have forgotten, but those are the two that have always stuck with me.  If you follow those two pieces of advise alone from a young age you can't help acquiring wealth.

 

[cobafdek]

For what it's worth, Munger mentioned this book positively at one of the Wesco annual meetings I went to.

[Liberty]

I've read about a third of it last night and realized that it's the inspiration for A Wealthy Barber by David Chilton, a best-seller in Canada that basically has the same premise (couple people go ask their barber how he became wealthy, and he talks about paying yourself first and making your money work for you and multiply).

 

My father made me read that book when I was a teenager, and I think it had a pretty big impact on me. I guess I can indirectly thank Richest Man in Babylon.

[Kraven]

I've read about a third of it last night and realized that it's the inspiration for A Wealthy Barber by David Chilton, a best-seller in Canada that basically has the same premise (couple people go ask their barber how he became wealthy, and he talks about paying yourself first and making your money work for you and multiply).

 

My father made me read that book when I was a teenager, and I think it had a pretty big impact on me. I guess I can indirectly thank Richest Man in Babylon.

 

I believe Wealthy Barber was also a big hit in the States.  I recall reading actually a couple editions of it in the 90's at some point.  That was a pretty good book for what it is.  I remember the story around which Chilton weaves the investment advice was well done.  I always remembered the first part of the book when the main character talks about how great spring is because school is almost over (I believe he was a teacher) and one had the Tigers, Pistons and Red Wings on tv all at the same time (he's supposed to be in Detroit).

[Liberty]

I've read about a third of it last night and realized that it's the inspiration for A Wealthy Barber by David Chilton, a best-seller in Canada that basically has the same premise (couple people go ask their barber how he became wealthy, and he talks about paying yourself first and making your money work for you and multiply).

 

My father made me read that book when I was a teenager, and I think it had a pretty big impact on me. I guess I can indirectly thank Richest Man in Babylon.

 

I believe Wealthy Barber was also a big hit in the States.  I recall reading actually a couple editions of it in the 90's at some point.  That was a pretty good book for what it is.  I remember the story around which Chilton weaves the investment advice was well done.  I always remembered the first part of the book when the main character talks about how great spring is because school is almost over (I believe he was a teacher) and one had the Tigers, Pistons and Red Wings on tv all at the same time (he's supposed to be in Detroit).

 

Interesting. Looks like they made a version localized for the U.S., because Wikipedia says the story is set in Sarnia, Ontario:

 

https://en.wikipedia.org/wiki/Wealthy_Barber

 

Wikipedia also says: "The basis of the book is Roy's advice to "save 10 per cent of all that you earn and invest it for long-term growth." In that, it draws from the advice first set forth in The Richest Man in Babylon. "

[Kraven]

I've read about a third of it last night and realized that it's the inspiration for A Wealthy Barber by David Chilton, a best-seller in Canada that basically has the same premise (couple people go ask their barber how he became wealthy, and he talks about paying yourself first and making your money work for you and multiply).

 

My father made me read that book when I was a teenager, and I think it had a pretty big impact on me. I guess I can indirectly thank Richest Man in Babylon.

 

I believe Wealthy Barber was also a big hit in the States.  I recall reading actually a couple editions of it in the 90's at some point.  That was a pretty good book for what it is.  I remember the story around which Chilton weaves the investment advice was well done.  I always remembered the first part of the book when the main character talks about how great spring is because school is almost over (I believe he was a teacher) and one had the Tigers, Pistons and Red Wings on tv all at the same time (he's supposed to be in Detroit).

 

Interesting. Looks like they made a version localized for the U.S., because Wikipedia says the story is set in Sarnia, Ontario:

 

https://en.wikipedia.org/wiki/Wealthy_Barber

 

Wikipedia also says: "The basis of the book is Roy's advice to "save 10 per cent of all that you earn and invest it for long-term growth." In that, it draws from the advice first set forth in The Richest Man in Babylon. "

 

I didn't realize that.  I just pulled it off the shelf.  It doesn't say anything about it being tailored to the US, but it is "as seen on PBS".  It's the "Updated 3rd Edition" which incorporates the Taxpayer Relief Act of 1997 with assistance from Arthur Andersen so you know all the advice is golden. 

[Liberty]

I didn't realize that.  I just pulled it off the shelf.  It doesn't say anything about it being tailored to the US, but it is "as seen on PBS".  It's the "Updated 3rd Edition" which incorporates the Taxpayer Relief Act of 1997 with assistance from Arthur Andersen so you know all the advice is golden.

 

I just had a 'duh' moment. Of course it must be localized for the US, since tax and advantaged retirement vehicles and various other laws are different in the US... Otherwise you'd have been reading about RRSP and provincial tax.

 

Does you version recommend buying Enron shares?

[Kraven]

I didn't realize that.  I just pulled it off the shelf.  It doesn't say anything about it being tailored to the US, but it is "as seen on PBS".  It's the "Updated 3rd Edition" which incorporates the Taxpayer Relief Act of 1997 with assistance from Arthur Andersen so you know all the advice is golden.

 

I just had a 'duh' moment. Of course it must be localized for the US, since tax and advantaged retirement vehicles and various other laws are different in the US... Otherwise you'd have been reading about RRSP and provincial tax.

 

Does you version recommend buying Enron shares?

 

Of course, that didn't occur to me either.

 

I don't recall any mention of Enron shares.  I just flipped pages and didn't see anything about Enron or any other common stocks.  In fact, Roy admonishes his young charges that he doesn't know anything about analyzing stocks and doesn't know anyone who knows how.  He tells them to invest in stocks one needs a "sixth sense" and asks them if they know anyone who became rich "buying and selling stocks". 

[Liberty]

I don't recall any mention of Enron shares.  I just flipped pages and didn't see anything about Enron or any other common stocks.  In fact, Roy admonishes his young charges that he doesn't know anything about analyzing stocks and doesn't know anyone who knows how.  He tells them to invest in stocks one needs a "sixth sense" and asks them if they know anyone who became rich "buying and selling stocks".

 

Now I can't tell if you're playing it straight  ;)

 

I was kidding about Enron. Just riffing on your Arthur Andersen reference.

[Kraven]

I don't recall any mention of Enron shares.  I just flipped pages and didn't see anything about Enron or any other common stocks.  In fact, Roy admonishes his young charges that he doesn't know anything about analyzing stocks and doesn't know anyone who knows how.  He tells them to invest in stocks one needs a "sixth sense" and asks them if they know anyone who became rich "buying and selling stocks".

 

Now I can't tell if you're playing it straight  ;)

 

I was kidding about Enron. Just riffing on your Arthur Andersen reference.

 

Oh, crap.  I didn't even focus on Enron itself, just common stocks.  Nice tie in with Arthur Andersen.  I'm slow today. 

[bizaro86]

I've read about a third of it last night and realized that it's the inspiration for A Wealthy Barber by David Chilton, a best-seller in Canada that basically has the same premise (couple people go ask their barber how he became wealthy, and he talks about paying yourself first and making your money work for you and multiply).

 

My father made me read that book when I was a teenager, and I think it had a pretty big impact on me. I guess I can indirectly thank Richest Man in Babylon.

 

I believe Wealthy Barber was also a big hit in the States.  I recall reading actually a couple editions of it in the 90's at some point.  That was a pretty good book for what it is.  I remember the story around which Chilton weaves the investment advice was well done.  I always remembered the first part of the book when the main character talks about how great spring is because school is almost over (I believe he was a teacher) and one had the Tigers, Pistons and Red Wings on tv all at the same time (he's supposed to be in Detroit).

 

Interesting. Looks like they made a version localized for the U.S., because Wikipedia says the story is set in Sarnia, Ontario:

 

https://en.wikipedia.org/wiki/Wealthy_Barber

 

Wikipedia also says: "The basis of the book is Roy's advice to "save 10 per cent of all that you earn and invest it for long-term growth." In that, it draws from the advice first set forth in The Richest Man in Babylon. "

 

Detroit is by far the closest major city to Sarnia, ON. People growing up there would quite possibly be fans of

Detroit sports teams, and it's probably where they'd go to watch a game. Toronto is nearly 3 times as far.