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50 pages 1 hour read

I Will Teach You To Be Rich: No Guilt. No Excuses. No BS. Just a 6-Week Program That Works

Nonfiction | Book | Adult | Published in 2009

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Key Figures

Ramit Sethi (The Author)

Born in California in 1980, Ramit Sethi is the child of first-generation South Asian immigrants. He grew up in Fair Oaks, California, and attended Stanford University, where he graduated with a bachelor’s degree in science, technology, and society and a minor in psychology. He proceeded to earn his master’s degree in sociology from Stanford.

Throughout I Will Teach You to Be Rich, Sethi relates anecdotes from his life as the child of South Asian immigrants who went on to attend an elite private university. Specifically, he uses depictions of South Asians and South Asian immigrants to emphasize the importance of practicality and bargaining. For example, he subtitles Chapter 3 “Negotiate Fees Like an Indian” (69).

By referring to himself as both “Indian” and “American,” Sethi establishes himself as both like and unlike his readers, whom he presumes to be American; he is both subject to the same desires and beliefs about money as they are and privy to alternative ways of looking at the world. For example, in Chapter 1, he tells a story about buying his first car in which he depicts himself as similar to other “Indian people,” who he says are “absolutely nuts about hammering down the price to the last penny” (23). After explaining how he negotiated with the car dealership as his South Asian father would, he proceeds to identify himself with “most Americans,” who “hate negotiating” (23). Sethi positions himself as both skilled at negotiating, as he says South Asians are, and uncomfortable with it, as Americans are. He thus presents himself as the ideal teacher for his readers because he both understands them and can see beyond their limitations.

In addition, Sethi uses good-humored depictions of his South Asian background to present himself as a success story of his own system. Characteristic of South Asians, he says, his parents were perpetually disappointed in the one A-minus he got on otherwise impeccable report cards, and they relied on him to fund his own college education. At the same time, they taught him how to save and bargain at an early age. As a very successful entrepreneur who is the child of South Asian immigrants, he presents himself as a walking testimonial to the effectiveness of his advice.

John Bogle

John C. Bogle was the founder of the Vanguard Group, an investment management company, and he is credited with creating the first low-fee index fund available to individual investors. Bogle’s philosophy was based on “common sense” investing; he believed that instead of trying to beat the market, investors should aim to make money at the rate of the market through long-term investing.

Bogle was born in 1929 in New Jersey into a family that was hit by the stock market crash of 1929 and the Great Depression. His family lost its money and had to sell their home, and his parents soon divorced. When he went on to study economics at Princeton, he focused on investment. Bogle founded Vanguard in 1974 and created the first mutual index fund in 1976. Although the importance of his index fund was not recognized at the time, he has since been recognized as one of the most influential investing minds of the 20th century.

Bogle is a key figure for Sethi both because he is someone who gained financial success by pushing back against the mainstream and because his philosophy epitomizes Sethi’s own approach to investing. Repeatedly, Sethi tells his readers that trying to beat the market is fruitless; instead, they should invest in the long-term in low-cost index and target date funds and allow their money to compound over time. Bogle is an authoritative financial figure whose life and philosophy provide evidence of the validity of Sethi’s approach. 

David Swensen

David Swensen is another authoritative financial figure whose investing philosophy Sethi endorses. From 1985 until his death in 2021, Swensen served as the Chief Investment Officer at Yale University, where he grew the endowment from $1 billion in 1985 to more than $29 billion in 2019. Swensen championed a model of investing based on asset allocation that became known as the Yale Model. Similar to Bogle, Swensen pioneered an original approach to investing that emphasized slow, long-term growth and focusing on different asset classes rather than chasing the next hot stock.

Swensen was born in 1954 in Iowa, and he earned his bachelor’s degree from the University of Wisconsin–River Falls in 1975 and then his Ph.D. from Yale in 1980. After beginning his career on Wall Street, first at Solomon Brothers and then at Lehman Brothers, Swensen became the CIO at Yale in 1985 at the age of 31. At Yale, Swensen developed a model of portfolio management-based asset allocation that lowered risk and raised returns. He recommended dividing a portfolio into five or six equal parts and then investing each part in a different asset class to protect against fluctuations in any one market sector.

This philosophy of asset allocation and slow long-term investment is precisely what Sethi recommends for his readers, and Sethi cites Swensen as evincing the success of the strategy. Sethi writes:

The key to constructing a portfolio is not picking killer stocks! It’s figuring out a balanced asset allocation that will let you ride out storms and slowly grow, over time, to gargantuan proportions. To illustrate how to allocate and diversify your portfolio, we’re going to use David Swensen’s recommendation as a model (246).

Sethi therefore uses Swensen as evidence for his points that he makes about Turning Attention From the Micro to the Macro and focusing on slow growth rather than the minutiae of “killer stocks.”

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