|What is Included in Wealth Management?|
|Best Books on Wealth Management: The List|
|Final Thoughts on Best Books on Wealth Management|
What is Included in Wealth Management?
Wealth management is an investment advisory service that resolves the issues of clients ranging from affluent to high-net-worth (UNW) and ultra-high-net-worth (UHNW).
It includes portfolio handling, financial planning, and some other services provided by asset managers, investment banks, and others. Some of the services provided by them are:
- Providing charitable plans.
- Managing investment.
- Examining health care benefits.
Best Books on Wealth Management: THE LIST
1 – Behavior Finance and Wealth Management | By Michael Pompian
Understanding how to use behavioral finance theory in investing is a hot topic these days. Nobel laureate Daniel Kahneman has described financial advising as a prescriptive activity whose main objective should be to guide investors to make decisions that serve their best interests. The reality? That’s easier said than done. In the Second Edition of Behavioral Finance and Wealth Management, Michael Pompian takes a practical approach to the growing science of behavioral finance and puts it to use for real investors. He applies knowledge of 20 of the most prominent individual investor biases into “behaviorally-modified” asset allocation decisions. Offering investors and financial advisors a “self-help” book, Pompian shows how to create investment strategies that leverage the latest cutting edge research into behavioral biases of individual investors. This book:
- Shows investors and financial advisors how to either moderate or adapt to behavioral biases, in order to improve investment results and identifies “the best practical allocation” for investment portfolios. Using these two sound approaches for guiding investment decision-making, behavioral biases are incorporated into the portfolio management process
- Uses updated cases studies to show investors and financial advisors how an investor’s behavior can be modified to improve investment decision-making
- Provides useable methods for creating behaviorally modified investment portfolios, which may help investors to reach their long term financial goals
- Heightens awareness of biases so that financial decisions and resulting economic outcomes are improved
- Offers advice on managing the effects of each bias in order to improve investment results
This Second Edition illustrates investors’ behavioral biases in detail and offers financial advisors and their client’s practical advice about how to apply the science of behavioral finance to improve overall investment decision making.
Quotes from Behavior Finance and Wealth Management;
“We want to identify relevant psychological biases and investigate their influence on asset allocation decisions so that we can manage the effects of those biases on the investment process.”
“Investor irrationality has existed as long as the markets themselves.”
“If you think you may have made a bad investment decision…confront the problem head on and rectify the situation.”
“One of the best ways to prevent your biases from affecting your decisions is to keep the rational side of your brain engaged as often as possible.”
“Women are more susceptible to the hot-hand fallacy than men are; men look at their portfolios more often than women do; men are more likely to cut losses immediately, whereas women are more likely to buy and hold.”
2 – Wealth | By Stuart Lucas
Wealth is the world’s most valuable guide to wealth management for individuals, families, business owners, and the “upwardly affluent.” In the six years since Stuart Lucas wrote this book, however, the financial world has changed dramatically. Throughout the financial crisis and beyond, Lucas has led the University of Chicago’s Private Wealth Management program, teaching 500+ members of the world’s wealthiest families. Now, he brings together extraordinary insights informed by this experience. Wealth, Updated and Revised Edition retain its core advice, now tested and proven by the worst financial crisis in 70 years. However, Lucas has updated his exclusive Strategic Wealth Management Framework to help even more individuals, families and entrepreneurs aspiring to wealth or seeking to protect it. Lucas highlights key drivers – family purpose, the economic engine, and leakage management – that mark the difference between family enterprises that succeed for generations and those that fail. He offers updated, sage advice on making financial decisions, evaluating “expert” advice, running a family business office, tax/estate planning, philanthropy, wealth preservation, and more. Since developing a family’s human capital is the best antidote to Wall Street excess, this edition adds even more robust, actionable guidance for building a culture of Entrepreneurial Stewardship: one that enables and encourages all family members to flourish, and improves the odds of sustaining wealth.
Quotes from Wealth;
“My family and I needed to get a handle on the long-term management of our wealth. Otherwise, we wouldn’t have a family fortune anymore – only the memory of it.”
“Everyone dreams of financial ease. It turns out that living with ease takes a great deal of work, discipline and planning.”
“Entrepreneurial stewardship involves striking the right balance of risk taking, wealth preservation and family leadership to ensure that a family can deal successfully with threats to family economic prosperity and harmony.”
“The universe of hedge funds is reputed to include many that have ‘fat tails.’ This means that a hedge fund’s strategies can work well for years and then suddenly unravel.”
“Suffice it to say that the more ways a firm charges you for services, the more difficult it is to keep the interests of advisors and client aligned.”
“In the wealth management industry today, having a little bit of knowledge can be a dangerous thing.”
“The wealth management goals of clients and their financial advisors can easily diverge.”
“Managing wealth effectively requires that you take charge of the process early.”
3 – Global Private Banking and Wealth Management | By David Maude
In this lengthy and detailed survey of the private banking and wealth management business, David Maude offers a picture of the current condition of the industry and provides historical detail about how the very wealthy manage their affairs. His objective and balanced chapters examine the challenges confronting the business today, as client relationships change, and he offers a vision for the future. This book probably belongs on the shelf of those in the private banking and wealth management business, or those rich enough to need the advice.
Quotes from Global Private Banking and Wealth Management;
“There is no generally accepted standard definition of wealth management…but a basic definition would be financial services provided to wealthy clients, mainly individuals and their families.”
“Lending services are surprisingly common in the product offerings of many private banks. Their significance has grown in recent years, given low interest rates and more sophisticated clients.”
“In the offshore business, clients are often less price sensitive and less focused on investment performance.”
“In Europe in particular, the financial advisor network…has shown itself to be a highly effective vehicle for serving the financial planning and investment needs of the affluent client segment.”
“One of the tricks with client segmentation is grouping the clients accurately and easily to differentiate service.”“Advice remains at the heart of the wealth management industry. But particularly for the larger firms, which operate in multiple geographies, advice has often been ad hoc and of variable quality.”“The rapidly changing wealth management environment is forcing market participants to take a hard look at their own operations and consider new ways of boosting growth.”
“The primary questions for wealth managers the world over is: Who are the wealthy and how much wealth do they have.”
4 – Common Wealth | By Jeffrey Sachs
This is a book about how we should address the great, and interconnected, global challenges of the twenty-first century. Our task, Sachs argues, is to achieve truly sustainable development, by which he means finding a global course that enables the world to benefit from the spread of prosperity while ensuring that we don’t destroy the eco-systems which keep us alive and our place in nature which helps sustain our values. How do we move forward together, benefitting from our increasing technological mastery, avoiding the terrible dangers of climate change, mass famines, violent conflicts, population explosions in some parts of the world and collapses in others, and world-wide pandemic diseases? In answering these questions, Sachs shows that there are different ways of managing the world’s technology, resources, and politics from those currently being followed and that it should be possible to adopt policies that reflect long-term and co-operative thinking instead of, as currently, disregard for others and ever-increasing barriers to solving the problems which we collectively face. It is a book which appeals equally to both head and heart, and one which no globally thinking person can ignore.
Quotes from The Lean Startup;
“The defining challenge of the 21st century will be to face the reality that humanity shares a common fate on a crowded planet.”
“Social insurance expands the concept of social protections beyond the most basic needs to include universal access to…health services…education…unemployment insurance…old-age pensions…insurance against various natural hazards and income transfers to households in the event of job loss, disability or extreme poverty for other reasons.”
“When countries are struggling to break free of extreme poverty, the role of the state is clear: to help the population meet basic needs…to invest in agriculture and…core infrastructure…to provide the foundations for private-sector-led economic growth.”
“The goals are achievable…and at vastly lower cost and vastly greater benefit than is currently imagined.”
“We are…crowded into an interconnected society of global trade, migration and ideas, but also risks of pandemic diseases, terror, refugee movements and conflicts.”
“Human activity is…devoted quite explicitly to ensuring that habitat, water supply, nutrient flows and introduced species all serve human needs rather than the needs of other species.”
5 – Wealth Secrets | By Sam Wilkin
According to getAbstract, “Economic analyst Sam Wilkin’s guide to wealth is a tongue-in-cheek analysis of robber barons and monopolists – those he calls the “filthy rich.” His original title for the book was Wealth Secrets of the One Percent, which better captures his subversive tone. Wilkin brings a welcome, breezy style to a topic that can be as dry as the legalese in an antitrust lawsuit. He doesn’t write like an economist, and that’s a compliment.”
Quotes from Wealth Secrets;
“Being rewarded for the risks you took is not a wealth secret – being rewarded for the risks borne by someone else is a wealth secret.”
“Growth isn’t the ultimate achievement of business strategy; having one’s competitors hanged is the ultimate achievement of business strategy.”
“If you have a motivated and innovative workforce, that is wonderful, but there is nothing to stop your competitors from finding out how you did it and doing the same thing.”
“There is also one characteristic that I did not find among the masters of wealth secrets profiled here: they did not appear to be superhuman.”
“The industries most likely to develop into natural monopolies on a local or even global scale tend to be network businesses of one kind or another.”
“By establishing intellectual property rights in an economy-of-scale business, [Bill] Gates had given himself not only a monopoly but an untouchable monopoly.”
“Monopoly is, without question, the most exciting word in business.”
“Technology companies are profitable because they have patents, and patents give them miniature monopolies.”
“What matters in business is not having a big market; what matters is dominance.”
6 – Wealth Watchers | By Alice Wood
Through her journey from having it all to dealing with financial setbacks, Wood provides tools to help you organize your finances and understand which spending patterns are knocking you off-track.
Ten years ago, Alice Wood was living a normal life, balancing her career, family, and finances with confidence. She knew instinctively how to handle money until a brain injury sustained on a commercial airplane changed her life. After the injury, Alice encountered many new challenges; for the first time in her life, she was overweight and in serious debt. Weight Watchers® allowed Alice to lose weight and keep it off. Inspired by Weight Watchers’® daily discipline of journaling and the principle of group accountability, she decided to create a new and radically simple program to reclaim her financial stability. She called it Wealth Watchers. This simple program enabled her to meet her own financial goals and soon was helping thousands of others to do the same. Today, the Wealth Watchers program is an important part of the rapidly growing movement for financial literacy and empowerment sponsored by school, state, and federal government programs; corporations such as McDonald’s and Visa; and several large financial institutions.
Quotes from Wealth Watchers;
“If you follow the principles and use the tools of Wealth Watchers, you will be able to have and enjoy the things that you want no matter what your income maybe.”
“There’s something very uncomfortable about debt and there’s something very comforting about money in the bank.”
“If we don’t know how much we can spend without spending too much, we don’t know when to stop.”
“While there are many causes to the economic problems facing the country, it is undeniable that a lack of financial literacy is a contributing factor.” (investment expert Charles Schwab)”
7 – Automatic Wealth | By Michael Masterson
According to getAbstract, “The world is filled with get-rich schemes and early retirement plans. Michael Masterson’s book stands out because it blends common-sense advice with savvy investment strategies and a healthy dose of reality. Using personal stories and instructive examples, Masterson provides reality-based insights about achieving financial independence. The chapters on wealth-producing habits and investment diversification are especially helpful, although the multiple sections on real estate investments make the book slightly repetitive. It might have benefited from tighter editing. This is a lively book with helpful suggestions and examples of generating wealth and achieving financial independence.”
Quotes from Automatic Wealth;
“Having enough money can liberate you from a thankless job, free you to follow dreams, and allow you to take care of your loved ones.”
“My early experience as a promoter of hot new ideas has taught me the danger in good stories. The better they sound, the more skeptical I’ve learned to become.”
“Be suspicious of stock stories. The stock brokerage and information businesses work on the basis of drama.”
“To get your financial fortune started, you have to radically boost your income.”
“You are not going to get rich by saving 10% of your income every month.”
“The more money you have, the more choices you have.”
“You can’t wish yourself to wealth, you have to plan for it…one detail at a time.”
8 – Family Wealth | By James Hughes Jr.
Every family, looking at the next generation, hopes to confer advantages that are more than just material and financial–to inculcate character and leadership, to inspire creativity and enterprise, to help all family members find and follow their individual callings, and to avoid the financial dependency and loss of initiative that can all too often be an unwanted consequence of financial success. Yet many families never succeed in realizing that vision, much less sustaining it for three, four, or five generations and beyond.
James Hughes has thought deeply about these challenges, and his insights are at once practical and profound. For more than three decades, he has personally guided multiple generations of families in creating strategies to preserve their human and intellectual capital as well as their financial assets. His teachings synthesize insights from psychology, anthropology, political history, philosophy, economic theory, and the law, with examples ranging from Aristotle to cutting-edge social science theory. His ideas have been taken up by numerous exceptional families, by their advisers, and by scores of authors, practitioners, and academics who have found value in the methods he pioneered.
The first edition of this book, privately published, became a word-of-mouth classic. Now, Hughes has updated and substantially expanded it with new chapters that challenge conventional notions of wealth and offer guidelines for conserving family assets in the broadest senses. Filled with tested principles and practices for family governance and joint decision making, it is a rich source of workable wisdom that family members can put into practice today, to the enduring benefit and gratitude of future generations.
Quotes from Family Wealth;
“A family’s wealth consists primarily of its human capital and its intellectual capital, and secondarily its financial capital.”
“Every family I have observed that is successfully ‘wealth preserving’ is itself a reflection of the five virtues of truth, beauty, goodness, community and compassion. Transcending all of these is its reflection of love.”
“The history of long-term wealth preservation in families is a catalog of failures epitomized by the universal cultural proverb, ‘Shirt sleeves to shirt sleeves in three generations’.”
“I am convinced that, without this spiritual component, a family cannot succeed in preserving itself, since its value system will fail and with that failure will come disintegration.”
“Successful long-term wealth preservation requires the creation and maintenance of a system of governance or joint decision-making, to the end of making slightly more positive decisions than negative ones over a period of at least 100 years.”
9 – Deena Katz on Practice Management | By Deena Katz
According to getAbstract, “Deena Katz, a Certified Financial Planner (CFP) who has given financial advice in magazines and on TV, describes how to set up a practice as a financial planner and adviser. She discusses how to grow your business and manage your clients’ lives as well as their dollars. She draws on her experience, interviews, and networking with other practitioners to provide a detailed hands-on guide. She considers such issues as recruiting, hiring and firing staff, working with partners, using hardware and software, and setting up effective systems. She provides tips on public relations, hiring, firing and refusing clients, and keeping good clients. Her book concludes with a targeted resource section on useful books, journals, magazines, newsletters, software programs, and Web sites.”
Quotes from Deena Katz on Practice Management;
“If you perceive that your value is strictly designing asset allocation strategies and providing performance, your competition will be every distribution center with services on sale at every corner.”
“Once you’ve figured out the one thing that defines you and your organization, you must develop from it the foundation on which you build your business practices. I refer to these fundamentals as core values.”
“In order to be successful, you must determine at the outset the unique service you propose to provide.”
“At the heart of superior service is the ability to know your clients and to manage their expectations. To do that best, you need a good information manager.”
“If you carve out a niche offering various levels of planning, support and counseling, putting the interest of your client first, and providing a holistic service, you will have little real competition.”
“The market is increasingly deserting sales-based practices for service and professional alternatives.”
10 – The New Organizational Wealth | By Karl Sveiby
New strategies for business success based on shifting the focus from information to knowledge
— Fifty percent of the fastest-growing companies in the U.S. can be described as “knowledge companies” — those that employ highly-skilled, highly educated people who sell their knowledge rather than products
— Provides tools for measuring intangible assets such as competent and creative employees, patents, brand names, and company reputation
— Some archetypal knowledge companies are consultancy firms, advertising agencies, software companies, and architecture firms
Few of today’s companies improve performance through knowledge or learning. This is because few managers understand how to make a business of knowledge. They focus on explicit knowledge — information — instead of implicit human knowledge. Investing in information technology instead of in people, they only know how to measure performance in money.
This ground-breaking book offers practical advice and rules of thumb for designing a business strategy that focuses on knowledge as an intangible asset. It begins by outlining the differences between information-focused strategies (such as adding chips to a manufacturer’s product line) and knowledge-focused strategies (such as seeking returns in long term customer relationships, ideas and learning, and research and development). Measuring the knowledge-based assets of a company explains why, for example, Microsoft is valued at 40 times its worth on paper.
In eight chapters, Sveiby assembles a veritable toolbox of knowledge-based management techniques to enable managers to meet the new business challenges of the coming century.
Quotes from The New Organizational Wealth;
“The receiver of information – not the sender – gives it meaning.”
“Facts might be considered digital while skills are considered analog.”
“It is hard to mobilize the pressure from the authorities and the investors that is needed to make managers publish figures that show them at a disadvantage.”
“A high average-age company indicates a stable company with more wisdom than drive.”
“Knowledge does not disappear when it is sold.”
11 – Turn Waste into Wealth | By Mark DeLuzio
Cash is lying around everywhere in companies. It’s in warehouses and on shelves, hiding in plain sight as inventory. It litters administrative offices, disguised as incorrect invoices, late billings, sloppy requests from salespeople. It sits in company lobbies waiting for sales calls to start. All that cash is retrievable – available for re-investment. Turn Waste into Wealth will help you get that cash by turning your organization into a Lean company.
Mark DeLuzio, the principal architect of the vaunted Danaher Business System that has led companies to world-class performance, presents hard-hitting advice and numerous case histories that will help you make your company Lean. You’ll learn: Why Lean is the modern way to run any organization; What you must do to ensure a successful Lean transformation; Lean accounting practices that promote Lean behaviors; How to identify and deal with Lean naysayers; Why LEAN does not mean “Fewer Employees Are Needed”; What and why to benchmark; The Lean formula for setting prices; How to deploy strategy in a Lean environment.
Great companies continuously improve everything they do to increase shareholder returns. If you’re new to lean or already using Lean practices, Turn Waste into Wealth will help you make your company great.
Quotes from Turn Waste into Wealth;
“Problems are money-making opportunities.”
“Leadership must introduce employee-retention policies that are consistent with the ‘people-first’ tenet of lean.”
“One tenet of continuous improvement is to regularly question the prevailing wisdom, to shake the status quo, to challenge the company’s myths and beliefs.”
“Quantity discounts do lower the unit price for each item, but this practice promotes the building of excess (and eventually obsolete) inventory.”
“White-collar waste is the white whale of opportunity for companies that deploy lean administration.”
“All good management teams use strategy deployment to rocket their enterprises from waste to wealth.”
“Standard work is a lean tool that details the process in each value-adding step and ensures that each step is performed the best way and exactly the same way every single time.”
12 – Warren Buffett Wealth | By Robert Miles
Warren Buffett Wealth follows the world’s greatest investor from the beginning of his career, as he takes a 100-dollar investment and turns it into one of the most successful multibillion-dollar companies in the world. By carefully detailing how Buffett began his career and discussing what he learned from Benjamin Graham, this book reveals the true secrets to Buffett’s success. Readers will see how Buffett reached the pinnacle of his profession by following certain key principles such as investing in old-style traditional American companies, holding the companies forever, and hiring and keeping the same managers.
Quotes from Measure What Matters;
“$1 million earned and invested each year for 48 years at 10% annual interest equals $1 billionâ€¦but Warren Buffett did this 66 times for his shareholders plus 36 times for himself or more than 100 times over his investment career of the past 50 years, and he’s not finished.”
“True wealth, in the broadest sense of the word, is about character.”
“Warren Buffett’s philosophy has always been to make wealth together, not at the expense of his partner. For every $1 of wealth he has created for himself, he has created $2 for his partners.”
“Be careful where you get your advice, particularly if you’re listening to the so-called experts or talking heads on television.”
“An active investor’s primary activity must be reading – a little bit of talking with other investors, managers, suppliers, customers and competitors on the phone, but mainly doing a lot of research and independent thinking on your own.”
“His wealth, because it was built on classic principles, came easy but certainly not quickly.”
13 – The Gospel of Wealth | By Andre Carnegie
This book had become a great influence on every reader’s perception of the poor, the rich people, and how important philanthropy is. He discussed that every rich should at least dedicate themselves to any charitable deeds. He kept emphasizing that the affluent have this unique responsibility to help the poor, those who are in need while they are still alive.
Carnegie wrote in this book that the perfect way to impact the world as an affluent is by dedicating an amount of money to places and services that belong to the people. To be more specific, by developing recreation areas, public libraries, and so on. He emphasized that every poor person had to have the right to wealth information. Therefore, they will have full control of their future by educating themselves and fortitude so they will be given a chance to become successful individuals.
He legendarily ended the book with the saying, ‘The man who dies thus rich dies disgraced” which is, at present, very helpful.
Quotes from The Gospel of Wealth;
“Humanity is an organism, inherently rejecting all that is deleterious, that is, wrong, and absorbing after trial what is beneficial, that is, right. If so disposed, the Architect of the Universe, we must assume, might have made the world and man perfect, free from evil and from pain, as angels in heaven are thought to be; but although this was not done, man has been given the power of advancement rather than of retrogression. The Old and New Testaments remain, like other sacred writings of other lands, of value as records of the past and for such good lessons as they inculcate. Like the ancient writers of the Bible our thoughts should rest upon this life and our duties here. “To perform the duties of this world well, troubling not about another, is the prime wisdom,” says Confucius, great sage and teacher. The next world and its duties we shall consider when we are placed in it.”
“I have never known a concern to make a decided success that did not do good, honest work, and even in these days of the fiercest competition, when everything would seem to be a matter of price, there lies still at the root of great business success the very much more important factor of quality.”
“Among the conditions of life or the laws of Nature, some of which seem to us faulty, some apparently unjust and merciless, there are many that amaze us by their beauty and sweetness. Love of home, regardless of its character or location, certainly is one of these.”
“It is now thirteen years since I ceased to accumulate wealth and began to distribute it. I could never have succeeded in either had I stopped with having enough to retire upon, but nothing to retire to.”
14 – The Dilemmas of Family Wealth | By Judy Martel
Few families are able to pass along their wealth successfully to the next generation. The barriers to keeping money in the family are much more formidable than the barriers to making money in the first place. Why should this be? What pitfalls are most common? How can families and their advisers increase the odds of a successful intergenerational transfer of wealth? How can they preserve the family’s human and intellectual capital?
Judy Martel, CFP®, provides insightful answers to these questions and dozens more in this richly detailed book. The Dilemmas of Family Wealth takes a fresh look at the communications barriers, misunderstandings, and generational conflicts that can pull families apart and scatter their wealth in far less time than it took to build it. Martel identifies the dilemmas that families are likely to face and offers wise counsel for overcoming the challenges they pose. Her book includes advice and perspectives from top experts in the field and frank first-person experiences related by family members with whom they have worked.
Quotes from The Dilemmas of Family Wealth;
“The power of money to enhance, or distort, a family’s destiny plays itself out as each generation deals with the opportunities and the burdens of wealth.”
“When couples understand the importance each brings to the relationship, and have worked out their money philosophies, they inspire confidence in the rest of the family.”
“It seems the old maxim about men choosing women for their youth and appearance, and women choosing men for their ability to provide money and security still holds true.”
“If a family stays together solely to augment one another financially, it is more than likely going to fracture when each individual sees no reason not to take his share of the money and run.”
“Families must learn how to govern themselves as they manage their assets, and communication in the cornerstone.”
“When the founder allows the family to grow by permitting each generation to pursue its own goals, the result, ironically, is a more cohesive unit.”
“Many people do not know how to plan so that both the family and the business remain intact.”
Final Thoughts on the Best Books on Wealth Management
Do you see a book that you think should be on the list? Let us know your feedback here.