So by the end of last year, I said to myself, let me try out the whole Financial Independence, Retire Early thing.

That has been one of my main goals since 2015 when I quit my corporate job. At that time, I was trading about 12 hours of my day for a paycheck and felt like my life wasn’t really going anywhere.

I didn’t get any satisfaction out of my job, and I started reading books like The 4-Hour Work Week. I also learned about Mr. Money Mustache, who retired in his 30s and was living a frugal life.

Those ideas of having the freedom to do anything you want with your time appealed to me as a corporate warrior who felt boxed in. So I went for it.

Fast forward to 2025, and I’ve accomplished pretty much all the goals I set out for myself at that time. Granted, I thought I would hit those targets about 5 years earlier, but hey, we’re here.

What is financially comfortable

I don’t feel comfortable sharing exact numbers about my income and net worth because of a few reasons. Mainly because it’s not relevant. Money is situational.

What I mean is that the amount of money depends on where you live and how you live.

I live in a town called Leeuwarden in The Netherlands, where the cost of living is much lower than a place like Amsterdam. I own the apartment I live in with my wife, and I have a mortgage with 1.7% interest. I bought the condo for about the equivalent of $150K. It’s now worth at least 100K more.

And I’ve been paying off the mortgage since 2017. I don’t know exactly how much debt I have outstanding, but at 1.7%, I don’t care.

My passive income from my books, courses, and a rental property that I own is about $15K to $20K.

And I have seven figures in liquid assets (stocks and cash). I use about 30% of my assets to trade stocks. I’ve averaged about 30% annual returns since 2020, so that’s a decent amount of profit that I view as income, not as money for retirement. I haven’t spent that yet, and I’ve been using it to grow my net worth through investing in stocks.

All in all, I’m financially comfortable based on my lifestyle and where I live. My wife and I are planning to buy a large home this year. But even if that home will be a million bucks, I can sell some of my stocks and use it as a down payment and get a mortgage for 600K to 700K. At current interest rates, that’s about 3,500 bucks a month.

What about kids? We’re lucky we live in The Netherlands, where there’s pretty good government support when you get kids, nearly free education, and health insurance that’s not super expensive. So I’m not worried about that. And I have no issue with downgrading my own lifestyle in case we’re lucky enough to get kids.

I’m not going to stop working

Now, here’s my main takeaway about this early retirement thing.

I don’t like to have too much free time. I simply end up spending more money compared to when I’m working.

Over the past six months, I’ve traveled a lot, which obviously comes with costs. Plus, after a while of doing nothing, I get restless.

I don’t have that many hobbies. I’m also not a DIY guy or someone who likes to do chores around the house. I also can’t see myself surfing or golfing all day. I’m just not that type of guy.

My hobby is my work. Just saying that makes me realize how lucky I am.

For my entire adult life, I wanted to be free of “the shackles of society.” I wanted to break free from the 9 to 5. I wanted to “opt out” or “unsubscribe” from the whole rat race.

But here’s the thing: What are you going to do next when you opt out?

What comes after financial independence?

This is the point where it turns into a philosophical discussion. What are you going to do with your life once you’ve met your basic needs? The reality is that most people never really get to that point.

But we have to be honest. Whether you actually become financially free or not, you’re always in motion… figuring things out, doing new things, enjoying life, getting stronger, better, you name it.

In a way, not much changes when you have some money. Warren Buffett has this phrase that he often repeats, which goes something like this: You and me are the same. I just get to travel faster than you do. But that’s about it.

He’s referring to his private jet, which is pretty much the only true luxury that Buffett possesses. Other than that, he goes through the same motions every day.

You wake up, eat breakfast, go to work, do your work, eat lunch, etcetera, etcetera. Most of our lives are all the same.

The funny thing is that everyone wants to find out on their own. Just look at the number of people who are yearning to quit their job and travel the world.

The older I get, the more I believe that the purpose of life is to be useful. I’ve been looking at life that way for many years, but I also wanted to be financially comfortable. But having a bunch of money doesn’t really give any meaning.

When you spend the money, you might have nice things and experiences, but you get used to them. And the rush you get when you buy something new or do something new is never lasting. So you end up chasing the next hit.

But when you dedicate your life to making yourself useful to your community or society in general, you always have something to do. You will never be bored or restless.

What is balance?

What’s the right amount of work versus rest? I wish I had a straightforward answer, but the truth is that balancing is a continuous act.

This is why your career and money do matter. If you have a job that you hate and isn’t very accommodating when it comes to free time, you feel caged.

So it helps to work with people who understand that life isn’t only about work. Some careers, like investment banking, don’t allow for flexibility. But if that’s what you signed up for, you should pay the price.

Most of us want to have a level of freedom. You can also have that when you’re employed. The idea that you can only be free if you work for yourself or if you’re financially independent is not true.

Now, here’s the thing. Most people who want to have freedom and flexibility at work don’t take that freedom seriously. If you’re employed, you have to do your best at all times. I’ve met plenty of people who didn’t respect their jobs and bosses. That’s not a good attitude.

The right attitude is to always make yourself useful and try to do your job the best you can. Whether you’re employed or work for yourself doesn’t really matter as long as you’re properly compensated.

Never retiring

I’ve also played around with the idea of never stopping with work. To be honest, I think that’s what I want more than retiring, period. I can’t see myself just going through life doing a bunch of fun stuff. I love doing fun stuff after a period of work.

But rest without work isn’t satisfying.

And over the last few months, I took a lot of rest. Granted, I got married and traveled a bunch. But there were a lot of periods where I was just knocking about.

But I also did some work because I just couldn’t stop completely. I love my work too much, plus I have this drive to make myself useful.

I don’t want to stop working and writing. Since the past week, I’ve committed to a handful of new projects, and I’m planning to relaunch my weekly newsletter again.

So expect new content from me every Monday.

The post What No One Tells You About Early Retirement appeared first on Darius Foroux.

But what does “awe” actually mean?

Awe is that feeling we get when we encounter something larger than ourselves. Like watching a beautiful sunset.

You know, the stuff that we’re often too distracted to experience.

Does that mean we should all travel to see these beautiful sights?

Not really. I don’t think that’s sustainable. Also, chasing after pleasant experiences is not a good solution to making ourselves feel more alive.

Instead, we can do these 3 things to feel more alive this year.

1. Go on a road trip

I can’t recommend this enough. Pack up your stuff and drive to a different country or state.

I’ve been doing this now every year since 2022, and I love it. First, I went with my dad. The last several times with my partner.

We’ve done thousands of miles. Every time, we sleep in a different city. Now, you can also do this if you don’t have a car or much time.

You can just travel for a few days and then come back.

The true experience is in the trip itself. You’re constantly exposed to NEW things.

And that’s true gold in today’s routine-based life.

Everyone is crazy about their habits and routines these days. And I get it. Consistency is important.

But so is novelty.

Just do something that requires you to use all your senses. And the best thing in my experience is going on a road trip.

2. Find the three, simple things that soothe you

We feel more alive when we’re in a calmed, relaxed state. It’s definitely harder to be more present and aware of the world if you’re too busy and stressed out at work!

Now, having a vacation is nice. But we can’t do that every single time. So the best alternative is to find three simple things that soothes or relaxes you.

It could be anything small like brewing a cup of tea, listening to your favorite song, or meditating.

Marcus Aurelius said it best:

“Very little is needed to make a happy life; it is all within yourself, in your way of thinking.”

Allow yourself these moments of serenity, and they will act as your sanctuary amidst the chaos.

3. Cut down on content consumption

Everything you suspect about consuming content is true: It makes you passive, lazy, and addicted.

I’ve been cutting down on content consumption a lot recently. I’ve used YouTube Premium for many years now. But I canceled it.

I consumed A LOT of content on YT. From podcasts to informational videos. I’m done with always opening the YT app.

I’m not really a social media type of guy, so I don’t use it anyway. But if you do, I recommend getting rid of it for a while.

The only content I consume now is audio. I’m back to listening to podcasts, which I didn’t do for years. And reading of course. I still read books and articles. That’s my default.

But getting rid of visual content is a must. We already watch enough content.

Use your time to make progress on your goals. And to DO MORE.

A new year means new chances

What month is it today? It doesn’t matter. Feeling more alive “this year” is always up to you. Whether the year is just starting or ending, it’s up to you whether you’ll start and continue to change something.

So if you want to build new habits, and it’s still January, then great!

Go for it. But even if it’s the middle of the month, or the last month of the year, you can always start to improve your life and happiness. As Seneca said:

“As long as you live, keep learning how to live.”

Every day is a new opportunity to feel more alive. Don’t wait for a new year to revitalize your life; the power for change is always in the present.

The post 3 Ways to Feel More Alive This Year appeared first on Darius Foroux.

Maybe you’re thinking of quitting, giving up, or even escaping your life and traveling the world?

Well, welcome to modern-day life, filled with expectations and pressure to be successful.

When life gets hard and we don’t get what we want, we tend to get frustrated. Eventually, that frustration leads to anger, which in turn results in an overall feeling of helplessness.

That’s when the gloomy thoughts take over.

“I can’t do it. I’m going to quit.”

Now you start questioning yourself. You forget about all the things you’ve accomplished in your life and you only think about how hard life is in the moment.

You lose all perspective. It’s just negative thoughts. Everything sucks.

I’ve been on this path many times in life. You and I both know that it’s a pure waste of energy.

Whether you feel sorry for yourself or not, life goes on. It’s your responsibility to snap out of your gloomy mindset.

10 things you can do right now to feel better

I want to give you a set of techniques you can immediately use if you feel gloomy. Maybe that’s right now. Or maybe you can use it in the future when you get in that type of mindset.

Here are ten practical steps you can immediately put into action.

1. Let go: Surrender, but not in the way you might think. Let go of unrealistic expectations and overly ambitious goals that are causing you stress. There’s virtue in knowing what truly matters. Remember, the sun doesn’t shine brighter because we force it; it simply shines every day without effort.
2. Embrace simplicity: Escaping isn’t the solution. Instead, learn to appreciate the mundane aspects of your life. Find joy in simplicity. A cup of hot coffee on a cold morning, a warm smile from a stranger, the sound of rain on the roof; these simple pleasures are the real treasures of life.
3. Listen to your favorite music: Music has the power to uplift your spirits. Listen to songs that make you happy.
4. Revisit your favorite childhood movie: For me, it’s “Back to the Future II”. I watched that movie so often when I was young. Watching it now reminds me of that time. Doesn’t matter which movie it is for you. Just let it remind you of simpler times.
5. Buy a bunch of good books: Get excited about immersing yourself in new worlds and ideas. Reading can be a great escape. From fantasy epics to insightful biographies, books offer us countless lives and realities.
6. Read “A Manual for Living” by Epictetus: This brief yet profound book will help you refocus on what’s truly important in life. Epictetus teaches us that it’s not events that disturb us, but our interpretation of them.
7. Connect with friends: Engaging in meaningful conversations with good friends can be energizing and uplifting. Reach out to an old friend, share a laugh, reminisce about old times, or even vent if you need to.
8. Go for a long walk: Walking is not just physically beneficial, but it’s also a great way to clear your mind and relax. As you walk, try to consciously notice the world around you – the falling leaves, the chirping birds, the cool breeze. Appreciate the beauty of nature.
9. Indulge in self-care: Take a warm bath or visit a sauna. Relaxation helps you to focus on the warmth and good feelings.
10. Slow down: When gloominess strikes, our thoughts tend to race. Make a conscious effort to slow down. Take deep breaths, meditate, or practice mindfulness. Remember, it’s okay to pause.

As you can see from the above tips, it’s all about slowing down your life and mind.

When you’re glooming, you go fast. You want to slow down.

Reject the gloomy thoughts

When gloominess sets in, remember that you have the power to break free from it. You can return to your normal self.

Viktor Frankl, a Holocaust survivor and psychiatrist who endured unimaginable suffering in concentration camps, said: 

“Everything can be taken from a man but one thing: the last of the human freedoms—to choose one’s attitude in any given set of circumstances, to choose one’s own way.”

This is a very powerful idea. YOU have the power to choose your attitude, NO MATTER WHAT.

Choose positivity, life, and good things—even if life is hard. Never walk away from hardship.

Go through it with an optimistic mindset.

The post How to Get Out of a Gloomy Mindset appeared first on Darius Foroux.

1. What is Stoicism?
2. Stoicism in the modern world
3. Core Principles of Stoicism
4. Who are the ancient Stoic philosophers?
5. Applying Stoicism in your own life
6. The best books on Stoicism

I. What is Stoicism?

Stoicism was founded in the 3rd century BC in Athens by Zeno of Citium. Coming from a wealthy merchant family in Citium, now part of Cyprus, Zeno initially pursued the family trade. However, after losing his fortune in a shipwreck near Athens, he turned to philosophy. Zeno’s journey highlights a common path to finding solace and understanding through philosophy.

Stoicism teaches logic and a unique perspective on life. It emphasizes distinguishing between what is within our control and what isn’t. Epictetus, a Stoic philosopher, summed it well:

“To achieve freedom and happiness, understand that some things in life are under your control, and others are not.”

We truly control only a few aspects of life, such as our beliefs, desires, aversions, and attractions, according to Epictetus. Everything else is beyond our control. Stoicism, therefore, is about letting go of worries over what we can’t control and focusing our energy on what we can.

II. Stoicism in the modern world

How is the ancient philosophy of Stoicism relevant today?

Stoicism isn’t just about enduring hardship. To me, Stoicism is a practical philosophy that you can start using right now, no matter what life throws your way. The key is to focus on what you can control.

For example, instead of getting angry and frustrated at being stuck in traffic, a Stoic recognizes that such events are out of their control. So they focus their energy on other things, like making plans or even listening to an audiobook.

Stoicism also emphasizes the importance of living in the present moment. It’s easy to get caught up in constantly planning for the future or dwelling on past mistakes. But by focusing on the present and accepting things as they are, we can find more peace and contentment in life.

III. Core Principles of Stoicism

Reason

This is our mind’s ability to figure out what’s true, make good guesses, and come to conclusions. It lets us think clearly and logically about the world. By using Reason, we can look at evidence and arguments, consider different opinions, and make smart choices. It’s key for critical thinking and solving problems.

Self-control

This refers to managing your emotions, thoughts, and actions to reach your long-term goals. Self-control is key to doing well in school, succeeding in your career, and having good relationships. It allows you to resist things that won’t fulfill your goals, and act in accordance with your values and beliefs.

Indifference

Being indifferent to external events means you don’t get too attached or upset about things you can’t control. It’s about accepting the world as it is, without letting anxiety, anger, or frustration take over. This doesn’t mean you don’t care about others’ suffering. It’s about understanding that we can’t always change what’s happening around us, but we can work on being at peace with ourselves.

Inner Strength

Inner strength means being able to handle stress, tough times, and challenges without giving up on what you believe in or who you are. The key is to build a mindset that welcomes change and growth. People with a lot of inner strength can deal with life’s ups and downs better, and recover from setbacks more easily.

IV. Who are the ancient Stoic philosophers?

You have likely come across these prominent Stoic philosophers already. Their wisdom is relatable and useful, so they are often quoted.

Several ancient Stoic philosophers laid the groundwork for Stoicism that the modern world would come to embrace and study.

Who is Seneca?

“All cruelty springs from weakness.”

Born around 4BC, Seneca the Younger is the son of the wealthy writer, Seneca the Elder. Attalus the Stoic tutored the young Seneca. From Attalus, Seneca learned the value of applying philosophy for real-world improvement.

Despite his drive for self-improvement, Seneca’s father steered him towards a political career. In his fifties, Seneca withdrew from public life to write philosophical works. He was later implicated in a conspiracy against Emperor Nero and was forced to commit suicide in AD 65.

Who is Musonius Rufus?

“If one accomplishes some good though with toil, the toil passes, but the good remains; if one does something dishonourable with pleasure, the pleasure passes, but the dishonour remains.”

Gaius Musonius Rufus is a Stoic philosopher who lived during the same time as Seneca, in the first century AD. He was born into an aristocratic family. Scholars often refer to Musonius Rufus as the “Roman Socrates” for his emphasis on the practical application of philosophy and his insistence on living a virtuous life.

Musonius Rufus’ teachings centered around self-discipline, moral fortitude, and living in accordance with nature. He emphasized the importance of practicing what one preaches and leading by example.

Who is Epictetus?

“When you set about any action, remind yourself of what nature the action is.”

Epictētos is Greek meaning “acquired.” Epictetus was born into slavery, and his given name remains unknown. Epictetus walked with a limp, and it’s uncertain whether a slave master twisted it or he was born with it. Despite that, Epictetus wasn’t broken.

He famously stated, “Lameness is an impediment to the leg, not to the will.” He believed in the power of choice, which was central to his philosophy.

Epictetus gained his freedom after Nero’s death. He then dedicated himself to philosophy, teaching in Rome for 25 years until Emperor Domitian expelled all philosophers. Epictetus moved to Nicopolis in Greece, where he founded a school and taught philosophy until his death.

Who is Marcus Aurelius?

“Time is like a river made up of the events which happen, and a violent stream; for as soon as a thing has been seen, it is carried away, and another comes in its place, and this will be carried away too.”

Marcus Aurelius, born in AD 121, became co-emperor of Rome at the young age of nineteen. He extended Rome’s dominion to include regions that are today known as Germany, Austria, and Switzerland, along with parts of the Netherlands, Belgium, and France. This expansion meant he essentially ruled over nearly all of Europe.

Stoicism deeply influenced Aurelius, who often cites Epictetus in his sole published work, Meditations. This book contains Aurelius’ personal musings and philosophical thoughts. The emperor wrote these during some of the most challenging times of his reign.

V. Applying Stoicism in your own life

The keys to applying Stoicism in your life are twofold: Focus on what you control, and live in the present. Below are major areas of life where we can apply Stoicism. I’m listing my best articles on each topic so you can easily learn more about them.

Self-Improvement and Productivity

You can boost your personal growth and productivity with stoicism by setting small, reachable goals. It’s important to concentrate on the journey, not just the end result.

• Stop Putting Imaginary Pressure on Yourself – The “I need to do X (action) otherwise Y (bad outcome) will happen” thinking is a waste of your energy. And yet, we all do it. Here’s how to change that thinking pattern.
• How to Use Setbacks as Energy – When I wrote this article, I had just experienced two health and career setbacks: I got a stomach virus after eating ice cream at McDonald’s, and our family business engineer, who’s also a personal friend of mine, suddenly quit so our workflow took a huge hit and we’re all scrambling to maintain consistency. Here’s how a Stoic mindset helped me push through.
• Small Habits That Rewire Your Mind to Be Better – Many used to believe that aging halted brain evolution. But recent research found that our brains exhibit “neuroplasticity,” which means it’s constantly shaping our identity. Each new skill learned prompts our brain to adapt, changing in size and structure to accommodate new knowledge. Our brain evolves continuously. And we can help evolve it better with certain small habits.
• Strategic Opportunism: How to Thrive in an Unpredictable World – My book, The Stoic Path to Wealth, was supposed to come out in February 2024. But my publisher decided to push it further to July 2024. When I heard about the new publishing date, I had already started with the marketing strategy for the new book. This meant I had to suddenly change my strategy and mindset.

Money, Investing, and Personal Finance

Stoicism advises us to separate our feelings from our finances. It encourages us to see money as a tool, not a source of happiness. This mindset helps us make smart financial choices aimed at long-term success, not just immediate pleasure.

• The Stoic Path to Wealth: An ancient investing strategy for the modern world – When this article first came out in 2021, nearly a thousand people emailed me to learn more about stoic investing strategies. This inspired me to write a book about the topic. After more than 2 years of writing and editing, The Stoic Path to Wealth book is now available.
• Stoic Investing: Mastering Your Emotions Will Make You Rich – Stoicism is a philosophy that favors the long-term over the short-term. If we apply that philosophy to investing, it means that Stoic Investing is about putting your money to work today so that you don’t have to work later. Stoicism can help you to become a more consistent investor, through the ups and downs of the market.
• A Life of Pleasure: How to Enjoy Yourself Without Destroying Your Wealth – An overly luxurious lifestyle will destroy your wealth. But even the ancient stoics didn’t believe in living like a monk. Seneca said it well: “The wise man does not consider himself unworthy of any gifts from Fortune’s hands.”
• Get Rich With Stoicism – If your only reason to acquire money is so you can buy a fancier car, go on more luxury vacations, and wear better clothes, you’re missing the point. I believe that everyone should apply the principles of Stoicism to their finances. Without a Stoic mindset, one will succumb to greed.
• Investing and The Fear Of Missing Out – The two biggest emotions in investing are fear and greed. Because there are so many opportunities in the market, you feel the pressure to jump on every stock that seems to be going up. Stoicism helps us make better investments by managing our emotions.

Decision-making, mindset, and happiness

Use stoicism to improve your decisions, mindset, and happiness by focusing on what you can control and accepting what you can’t. We can’t control things like the economy, the job market, etc., but we can control how we react and what choices to make.

• The Stoic Mindset: How to Use Ancient Lessons to Face Life’s Challenges – I apply Stoicism to my happiness, work, finances, and even relationships. This Stoic mindset allowed me to leverage ancient lessons into my entire life.
• 5 Classic Stoic Principles to Live By for a Happier Life – Before I discovered stoic principles, I went through life without a clear purpose. Without any idea of how to live a good life. I simply imitated the actions and behavior of those around me.
• Five Timeless Life Lessons from Seneca – Detaching your self-worth from material success, pursuing financial independence but not at all costs, making an impact on others, being content with what you have, and valuing your time more than your possessions.
• Living with Intention: Lessons on The Brevity of Life – How would you change your life today if I told you that in 3 years, you would die? That’s a good thought experiment if you want to live your life with intention. Look, life is short. We all know it. And yet, we get stuck in the mundanity. Here’s where Stoicism comes in.
• Stoicism as a Way of Life – I’ve been reading philosophy since I was 17. And out of all the philosophies I’ve read in my life, I identify most with Stoicism. I came to this conclusion after 13 years and hundreds of finished books.

VI. The best books on Stoicism

If you want to learn more about Stoicism and the teachings of the ancient Stoic philosophers, then I recommend the following books.

The Manual For Living by Epictetus

“It is the act of an ill-instructed man to blame others for his own bad condition.”

A short book. The Manual For Living is exactly what the title says it is. This book also gives you a larger perspective on humanity. People have always had problems with self-confidence, family, work, other people, etc. In a way, nothing has changed. And that’s pretty comforting.

Arian was a student who transcribed Epictetus’ lessons in the early second century AD. Arrian’s notes propelled him to fame in Rome as a political advisor, military commander, and author.

Meditations by Marcus Aurelius

“Constantly test your mental impressions – each one individually, if you can: investigate the cause, identify the emotion, apply the analysis of logic.”

Meditations is a unique document, revealing the private thoughts of one of the world’s most powerful men advising himself on fulfilling his duties. Marcus Aurelius regularly engaged in spiritual exercises to cultivate humility, patience, empathy, generosity, and strength. Reading this book will help you during difficult times. It’s practical philosophy at its best.

The Stoic Path to Wealth by Darius Foroux

“At its core, Stoicism is a survival strategy. Stoicism is not just a set of beliefs; it is a way of protecting your sanity. But you can also apply Stoicism to protect your money… The Stoics were (in essence) investors. They gave up instant gratification and bad habits to increase their odds of living a peaceful life. That’s exactly the key: to find financial fulfillment is to invest in yourself.”

The Stoics understood that if you can control your reactions and manage your emotions, you can achieve success. The same principles apply to our financial lives today. That’s because money and investing are not logical – they’re mostly emotional.

Combining ancient wisdom with practical investment strategies drawn from analysis of the greatest investors of all time, The Stoic Path to Wealth will teach you how to:

• Cultivate an investing edge by managing your emotions and developing your unique skills and talents.
• Develop the discipline to ignore short-term market fluctuations and avoid living in the future.
• Foster a mindset that allows you to enjoy what you have and avoid greed.
• Create a sustainable approach to trading

As financial markets become increasingly unpredictable and chaotic, The Stoic Path to Wealth offers the key to weathering any economic storm while building wealth that will last a lifetime and beyond.

Focus on What Matters by Darius Foroux

“Without accepting that we don’t control most things in life, we can never have lasting happiness. Getting concerned with things outside of our control is a habit.”

Focus on What Matters is a collection of 70 letters/essays I wrote about different aspects of life, from happiness, wealth, health, relationships, and much more. These letters, inspired by the original works of the Stoic philosopher Seneca, serve as reminders to focus on the right things in our chaotic lives.

Focus on What Matters is inspired by those letters. It will show you..

• Simple thought exercises to become resilient and focused
• How to live in the present moment every day
• Authentic Stoic values for a life of happiness
• A way to build more discipline

In short, this book helps you live well despite daily life’s challenges.

The post Stoicism for Beginners: An Ancient Guide for Living Well appeared first on Darius Foroux.

At the time, many would have considered putting so much capital into a single business risky. But Munger and Buffett believed that the company’s capital resources were a better trade-off.

Their investments paid off when Blue Chip Stamps became a key part of Berkshire Hathaway’s portfolio. And they used the company’s capital to fund their other investments like See’s Candies, Wesco Financial, The Buffalo Evening News, and Precision Steel.

This experience shaped Munger’s belief that diversification isn’t always necessary. As he famously said:

“The whole secret of investment is to find places where it’s safe and wise to non-diversify. It’s just that simple.”

When you think about it, why put your money in 20 mediocre companies when you can invest in 3 that will actually yield higher results?

Munger’s strategy showed that concentrated investments in high-quality businesses can lead to extraordinary returns. This shows that reading about successful investors from the best investing books can teach us valuable lessons.

The following five lessons from the best investing books.

1. The Intelligent Investor by Benjamin Graham: Focus on value, not price

The economist and investor, Benjamin Graham’s The Intelligent Investor is an old, but classic book on investing. It teaches value investing: Buying stocks that are cheap compared to what they’re really worth.

This book isn’t about guessing stock prices. It’s about investing logically and sticking to a plan. As Graham said:

“The intelligent investor is a realist who sells to optimists and buys from pessimist.”

Graham says you should understand what you’re buying and focus on long-term value, not short-term price changes.

Warren Buffett loves this book. It really is one of the most influential investing books. Even until the present, Graham’s idea of the “margin of safety” is still big in investing.

2. Berkshire Hathaway Letters to Shareholders: Always think long-term

Buffett’s letters to Berkshire Hathaway shareholders are a goldmine of investing knowledge. They’re like personal lessons from one of the best investors ever. Buffett doesn’t just talk about stocks. He talks about patience, understanding businesses, and thinking long-term.

Berkshire Hathaway Letters to Shareholders isn’t just about investing. Buffett shares his mistakes and what he learned, which is helpful for any investor. As Buffett said:

“The stock market is a device for transferring money from the impatient to the patient.”

This means focusing on long-term ownership and ignoring short-term market ups and downs.

Buffett’s letters show that success isn’t about guessing when to buy or sell. It’s about owning great companies for a long time. This focus on long-term value (which Graham also talks about) is something every investor needs to remember.

3. Against the Gods — The Remarkable Story of Risk by Peter Bernstein: Understand and manage risk

Peter Bernstein’s Against the Gods explores how humans have learned to understand and manage risk throughout history.

This book dives deep into how risk shapes financial markets and human progress. It shows how risk management is the foundation of every successful financial decision.

Whenever you invest, you have the risk of losing your money. No one has total control of the stock market. So it’s important to learn how to manage that risk. Mastering risk management is what separates successful investors from those who lose all their money.

Bernstein shows that our ability to predict risk and uncertainty has been the key to progress in financial markets. One of Bernstein’s most powerful lines sums up the book’s message:

“The essence of risk management lies in maximizing the areas where we have some control over the outcome while minimizing the areas where we have absolutely no control over the outcome.”

This advice is essential for anyone building a strong portfolio.

4. How to Trade in Stocks by Jesse Livermore: Manage your emotions

How to Trade in Stocks by Jesse Livermore is a timeless lesson on the role of emotions in investing.

Livermore was a legendary stock trader in the early 20th century, and I actually wrote about him intensively both in my blog and in my latest book. His life and investing career are interesting and full of insights.

How to Trade in Stocks emphasizes the importance of discipline and emotional control in trading. Livermore built and lost fortunes multiple times, and much of this book reflects the wisdom he gained from those experiences.

The most valuable insight from this book is Livermore’s warning against the dangers of emotional investing.

“The stock market is never obvious. It is designed to fool most of the people, most of the time.”

Livermore emphasizes that it’s essential to remain objective, especially during volatile markets. The market is full of noise—hype, rumors, and fear—and it’s easy for investors to get caught up in it.

As an investor, you must be able to separate your emotions from your decision-making process. Livermore’s focus on emotional control and disciplined trading is as important today as it was a century ago.

5. How I Made $2,000,000 in the Stock Market by Nicolas Darvas: Stick to your system

Nicolas Darvas wasn’t a professional investor—he was a dancer. Through self-study and discipline, he made millions in the stock market.

His book, How I Made $2,000,000 in the Stock Market, details his famous “Box System” for identifying stocks poised for growth. What makes this book different is the author’s unconventional path and his strict adherence to his own system, even when others doubted him.

The lesson from this book is simple: Develop a system that works for you, and stick to it.

Darvas created a strategy based on stock price movements and volume patterns, and he disciplined himself to follow that system no matter what the market did. As he puts it:

“There are no good or bad stocks, there are only rising and falling stocks.”

Darvas’ story proves that you don’t need to be a Wall Street insider to succeed in the stock market. What you need is a clear, well-defined system and the discipline to execute it consistently.

It’s all about the long game

When you go online, it might seem like millions of people are getting rich quickly by buying Bitcoin, Gamestop stocks, or other things. Every week, there’s a story about some asset going up by hundreds of percent in a short time.

Those are outliers. Most of us will never get rich that quickly. You can get lucky, of course. But luck is not an investing strategy. That doesn’t mean you can’t get rich over a longer period.

In the long run, public markets are still the best way to build wealth. You can’t afford not to invest.

Investing is difficult because it goes against human nature. We need to make choices today that pay off in the future. Too many folks want instant gratification.

While most assets have gone up in value over the last century, our purchasing power hasn’t changed. Sure, wages have increased. But so has inflation. End result? If you don’t invest, you’ll likely lose money over the long term.

That’s the advantage of learning from the best investing books. When you have a strong foundational knowledge of investing, you can execute sustainable investing decisions.

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