Millennial Money, by Patrick O’Shaughnessy, explores how young investors can build a fortune.
And in this book review, you’ll learn everything you need to know about Millennial Money. So by the time you’re done reading, you should know for sure if this is the right investing book for you. Sound good?
But I bet you’re probably wondering…
The reason I bought this book was because I heard the author on the Masters in Business Podcast, hosted by Barry Ritholtz. The investing methodology that O’Shaughnessy shared in that interview was enough to make me buy the book. And I’m glad I did.
So let me tell you why.
A Summary of Millennial Money:
Millennial Money is a best practice guide for young investors. But even if you aren’t in your 20s, you can learn a lot from the investing wisdom in this book. The book covers a lot of ground, but it does so in a logical and easy to understand way.
Specifically: Millenial Money tells you to get started, be different, and get out of your own way.
Here’s what that means:
Millennial Money starts out by talking about the importance of investing. It builds a case for saving your money and investing it in the stock market. The book uses compelling data and insightful analysis to show that young investors do have an investing edge. But it doesn’t stop there.
Next, Millennial Money discusses the value of low-cost indexing. And then it goes a step further. I was happy to see the book challenge the myth of the efficient market. It explains that for those who are seriously interested, you can out-perform the market by being different.
The great thing about Millennial Money is that it gives you a very actionable framework to help you find your own investing ideas that can drive long term portfolio outperformance. What’s not to love about that? The book actually spends quite a bit of time analyzing different approaches to investing in a simple way that most people can understand.
Finally, Millennial Money dedicates a couple chapters to getting out of your own way. This means avoiding the emotional pitfalls that come along with investing. The book recommends a rules-based strategy that controls your stock buying and selling decisions. I personally tend to agree. So…
Now that you know a little more about Millennial Money, let me tell you my two favourite parts.
The Two Best Parts of Millennial Money:
Millennial Money was a really great read. But for me, there were two parts that stood out most.
- Millennial Money was incredibly actionable! I very much appreciated the way this book was written. It’s simple and straight to the point. And that translate into actionable information that the average person can easily put to use. Sounds good, right? The book even has a Millennial Money checklist that tells you exactly what to look for in stocks and when to buy and sell them. I
- The second best thing about Millennial Money is that the book is filled with data. You can have faith in the Millennial Money strategy because it’s the result of near-endless analysis and backtesting. I appreciate this quantitative approach and think it makes sense for investors to be objective in managing their portfolios.
The two factors above helped me get more out of Millennial Money. But you should know they’re just the tip of the iceberg. The book is packed with information and anecdotes that make it both engaging and educational. It’s easy to read and you can definitely get through it on your commute without compromising understanding.
So by now you’re probably wondering, does this book have any drawbacks?
Millennial Money – A Single Weak Spot?
I’ve been trying to find something bad to say about Millennial Money; but to be honest, the book is really quite good. It introduces a compelling approach to investing that should appeal to an entire generation.
Millennial Money also provides a list of additional recommended reads. I always like when authors provide more material for readers who are especially voracious in their information appetites.
To be sure, I should clarify that Millennial Money isn’t a technical analysis system or stock trading strategy. It’s an investing framework that can help you snowball your money for years to come. There is definitely an active management component but it’s not a fast moving day trading approach to markets. Make sense?
Okay, I think you’re getting a good picture of Millennial Money let’s finish this book review.
Millennial Money – The Final Word:
Millennial Money was an incredibly enjoyable read. It was educational and actionable, without being overwhelming. What more could you ask for in an investing book? For those reasons alone, I recommend you buy it on Amazon (unless you can find it cheaper somewhere else!)
And hey, if you’re still on the fence about this book, why not check out the video book review below. This’ll give you even more insight into the value of Millennial Money.