Over the years, I’ve read many books on investing. As a dividend investor, I’ve also read quite a few books on the niche area of dividend investing. While there’s a handful of good dividend investing books that I would recommend to fellow dividend investors, there’s one book that stands out to me as a ‘must-read’ book.
That book is The Single Best Investment, by Lowell Miller.
In my opinion, The Single Best Investment is a true game-changer, despite being written back in 1999. If you’re looking for a simple, low-risk investment strategy that is capable of generating sustainable long-term wealth, this book is a great place to start. For me, it’s essentially my dividend investing Bible.
So why do I rate the book so highly?
Simple investment strategy
For a start, it’s the simplicity of Miller’s strategy that appeals to me. Miller explains the importance of compounding over time, and emphasises the difference that reinvested dividends make to investment returns over the long term. Miller then outlines exactly how investors can create a ‘compounding machine’ by focusing on high-quality stocks that have a high yield and high growth of yield.
The strategy makes a great deal of sense, and as a result I’ve incorporated many of Miller’s ideas into my own investment strategy.
Easy to read
The Single Best Investment is also easy to read and even amusing at times.
Relative to many finance books, or indeed the thousands of pages of CFA material I plowed through in pursuit of the CFA charter, this book is a breath of fresh air.
If you’re looking for a book that will make you rich overnight, this book is not for you. However, if you’re looking for a dividend investing book, with the aim of building a long-term portfolio that generates an increasing stream of cash dividends year after year, I would highly recommend reading The Single Best Investment.
This article is provided for general information only and is not intended to be investment advice. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.