The World's Best Book Summaries
How is ethical taxation achieved? How can taxes be less disruptive to the economy? In The Wealth of Nations, Adam Smith shares his general principles for how taxes ought to be collected and assessed. He also analyzes specific forms of taxation in light of his principles and explains how each tax is problematic in its own way. Let’s review Adam Smith’s principles of taxation and his analysis of three common tax policies.
What is dark money? How is it used to influence politics in America? Journalist Jane Mayer describes how the wealthy elite in America, particularly conservative business tycoons Charles and David Koch, used their fortunes to propagate far-right ideology in American politics. They’ve done this, she says, through dark money. Read more to understand what Mayer means and to understand how lobbying is supposed to work.
What was the Citizens United ruling? What was Project REDMAP? What impact did these have on American politics? In Dark Money, Jane Mayer discusses the U.S. Supreme Court’s Citizens United ruling and Project REDMAP in the context of the Koch brothers. She explains how the ruling and the project led to a shift rightward in American politics, particularly in the states. Read more to learn about the Citizens United ruling and Project REDMAP—and to see how money and politics converge.
How does your mindset influence your financial success? How can you shed your self-sabotaging beliefs about money and adopt a rich mindset? The beliefs you hold about money greatly affect your financial outcomes. If you have a poverty mindset, you’ll end up poor even if a large sum of money lands in your lap (e.g. through inheritance or winning a lottery). Here’s how you can transcend the beliefs and ideas about money that keep you stuck in poverty.
What is equity in stock trading? How do investors earn profit from publicly traded equities or stocks? Broadly speaking, equity is the part of a company that belongs to its owners. When companies are publicly traded, investors can acquire partial equity in them by purchasing shares of their stock. Keep reading to learn how equity investing works.
What percentage of your portfolio should be comprised of bonds? What are some things you should consider when deciding on how much to invest in bonds relative to stocks? There’s no universal, ideal stocks-to-bonds ratio in a portfolio. When it comes to asset allocation, the rule of thumb is to base it on your financial circumstances and your risk tolerance. Here’s how to decide how much to invest in bonds relative to equity, according to Jack Bogle.
Do mutual funds charge fees? How much should you expect to pay in mutual funds fees? What other costs and charges should you expect to incur when investing in a mutual fund? Before investing in mutual funds, it’s important to consider all the fees and charges you’ll incur. Unlike index funds, mutual funds are actively managed so they incur significant costs for investors. Here are three areas where mutual funds cost more than index funds: expense ratios, sales charges, and portfolio turnover.
Why are Microsoft and OpenAI working together? What is generative AI? What are the pair’s plans for this year? Last month, Microsoft announced it would be investing $10 billion in OpenAI, which began as a nonprofit research lab in 2015 and now predicts it will produce $200 million in revenue this year. Even as Microsoft and OpenAI race to cash in on generative AI, they still face potential roadblocks moving forward. Read on to learn more about Microsoft, OpenAI, and the generative AI gold rush.
What is Jack Bogle’s The Little Book of Common Sense Investing about? What’s the key message to take away from the book? In The Little Book of Common Sense Investing, Jack Bogle outlines the reasons why investors typically make more money with index funds than actively managed mutual funds. Because the costs of mutual funds vastly outstrip those of index funds, Bogle argues that mutual funds deliver reduced returns, and those relative losses compound over time. Below is a brief overview of The Little Book of Common Sense Investing by John Bogle.
What is the portfolio turnover rate in mutual funds? How does a mutual fund’s portfolio turnover compare to turnover in index funds? Portfolio turnover is the ratio of a portfolio’s total assets to its total purchases and sales. Because higher portfolio turnover creates more fees, such as commissions to stockbrokers, mutual funds cost investors more money due to their higher turnover rates. Keep reading to learn how to evaluate portfolio turnover rates.