Unshakeable is a financial book written by Tony Robbins and coauthored by Peter Mallouk which is a very short one and an easy read or even better an easy listen in Audible. This book became the New York best seller in June 2017 when it was published. I heard this book on Audible and was worth the time spent listening to this book although this goes to really the basics about financial savings and investing. I would really recommend this book to beginners as well as working population who put their hard earned money in bank deposits or the most famous 401Ks. Key premise of this book is to guide common people to not miss out on the power of compounding and being in the market through index funds at the same time being well diversified in asset allocations.
Tony emphasizes the importance of start saving early and not trying to time the market. He substantiates the power of compounding with an example of 2 friends, one of who invests $300 every month for eight years until an age of 28, investing at total of $28,000 and stops investing after that, but that person would end up at retirement age of 65 with $2 Million. Whereas the other friend who started investing at the age of 28 and continues to invest till 65 will still end up less than first friend by a whopping 300,000. This just shows how powerful the compounding is. The more time we let the money compound in the market, the more wealth it creates assuming we invest in the right assets at right prices.
Tony also brings out the negative implications of high fees funds and hidden fee structures in 401k plans that sucks the money from the investors in the form of so called expense ratios. Hence he emphasizes the importance of investing in Index funds at dollar cost averaging principle. He invites readers to seek out fiduciaries who have no vested interests for the firms they work for but rather are genuine in meeting your investments goals. And he explains the importance of diversification and asset allocation in the middle chapters and has lots of good inputs on how to diversify. What I really liked are the Core 4 principles of investing which are 1) never lose money 2) Reduce risk and increase reward 3) Tax Saves 4) Diversification. There is also some emotional appeal to the book where he correlates happiness to the art of fulfilment which is attributed to progress or growth and giving. I don’t want to delve deep into this part of the book since it’s worth the listen.
For a seasoned investor who is well equipped to understand businesses and invest at right valuations, this book will appear primitive but for any common man who wish to save and has no time or understanding of businesses or markets, this book will be of great asset.