Investment Management Recommended Reading
MORE BOOKS, BY CATEGORY:
VALUE INVESTING
Security Analysis by Graham and Dodd – somewhat dense and complex, but this was the original textbook on investing, and is worth a read if you have the time. Essential for sophisticated deep value investors.
Value Investing: A Balanced Approach by Marty Whitman – manager of Third Avenue Value Fund, which has outperformed the market by a lot for a long time. Stresses financial strength; probably the best primer on "balance sheet investing." For more detail, see:
The Aggressive Conservative Investor by Marty Whitman and Martin Shubik.
Value Investing: From Graham to Buffett and Beyond by Bruce Greenwald – delivers the value investing overview that the title promises.
Value Investing Today by Charles Brandes – directly influenced by Graham shortly before his death in the 70s, Brandes went on to build an eponymous $100 billion-plus international value shop, which recruits on campus. Available as an e-book and in the CRC.
Margin of Safety: Risk Averse Value Investing Strategies by Seth Klarman
INVESTOR PSYCHOLOGY & BEHAVIORAL FINANCE
Groupthink by Irving Janis – "The best book ever written on the complexities and pitfalls of group decision making," according to Morgan Stanley's Barton Biggs.
Beyond Greed and Fear by Hersh Shefrin
Why Smart People Make Big Money Mistakes by Gary Belsky and Thomas Gilovich
The Crowd by Gustave Lebon – Arguably a bit outdated and perhaps not the most straightforward reading, but a very interesting look at how different behaviors transpire in crowd settings.
The Psychology and Judgment of Decision Making by Scott Plous
How We Know What Isn't So by Thomas Gilovich
The Inefficient Stock Market by Robert Haugen
The New Finance: Overreaction, Complexity, and Uniqueness by Robert Haugen
Decision Traps: 10 Barriers to Brilliant Decision Making by Edward Russo
Fooled by Randomness by Nassim Taleb
Hare Brain, Tortoise Mind by Guy Claxton
Investment Psychology Explained: Classic strategies to Beat the Market by Martin Pring
RISK, BUBBLES, AND CRASHES
Against the Gods: The Remarkable Story of Risk by Peter Bernstein – a historical perspective on estimating risk in a broad economic sense.
Manias, Panics, and Crashes: A History of Financial Crises by Charles Kindleberger – an excellent look at the history, psychology, and economics of asset bubbles.
WALL STREET NARATIVES AND HISTORY
Liar’s Poker by Michael Lewis
The Predators' Ball: The Inside Story of Drexel Burnham and the Rise of the Junk Bond Raiders by Connie Bruck
Barbarians at the Gate: The Fall of RJR Nabisco by Bryan Burrough and John Helyar
The Money Game by Adam Smith – not the Scottish, father-of-economics Adam Smith, but a pseudonym for journalist George Goodman. A very entertaining and educational account of the Street during the exuberant 60s. Indirectly analyzes investor psychology.
Go-Go Years: Drama and Crashing Finale of Wall Street's Bullish 60s by John Brooks
The Great Game: The Emergence of Wall Street as a World Power 1653 – 2000 by John Gordon
The Great Crash, 1929 by John Kenneth Gilbraith
ASSET CLASSES, ALLOCATION, AND MACRO INVESTING
Stocks for the Long Run by Jeremy Siegel – provides historical context on stock returns and risk premiums over the past century. For Siegel’s latest, see:
The Future for Investors by Jeremy Siegel – which argues that the wave of baby-boomer retirements may systematically and fundamentally affect equity returns over our lifetime.
Tomorrow's Gold by Marc Faber – A look at which asset classes might outperform in the future; based on a very rich and interesting analysis of the performance of assets classes over very long periods of time (thousands of years).
The Alchemy of Finance by George Soros – a good start on Soros; essential for people with a macro focus. Also see: Soros on Soros: Staying Ahead of the Curve by George Soros.
ACADEMIC
Irrational Exuberance by Robert Shiller – called the market peak in 2000; convincingly argues for the periodic irrationality of the markets.
A Random Walk Down Wall Street by Burton Malkiel – the classic look at the argument for rational markets (which you may be asked to refute in interviews). Also contains some useful investment wisdom.
ACCOUNTING
The Interpretation of Financial Statements by Benjamin Graham – advanced financial statement analysis from an investor’s perspective.
Financial Shenanigans: How to Detect Accounting Gimmicks by Howard Schilit – a good complement to 30116 (Accounting and Financial Analysis I); will help you spot poor earnings quality. Questions along these lines are common in interviews ("Name three ways that managers can distort earnings.").
Financial Statement Analysis: Theory, Application, and Interpretation by Leopold Bernstein
Quality of Earnings: The Investor’s Guide to How Much Money a Company is Really Making by Bill O'Neil
MUTUAL AND HEDGE FUNDS
Common Sense on Mutual Funds by John Bogel – Vanguard’s creator talks about the future of the business
Fidelity's World: The Secret Life and Public Power of the Mutual Fund Giant by Diana Henriques
The Mutual Fund Business by Robert Pozen – former chairman of Fidelity and current chairman at MFS
All About Hedge Funds: The Easy Way to Get Started by Robert Jaeger – a good overview of the different hedge fund strategies
How to Create and Manage a Hedge Fund by McCrary, Stuart
ECONOMICS
Capitalism and Freedom by Milton Friedman
The Wealth of Nations by Adam Smith
The Long Wave in Economic Life by J.J. Van Duijn
Monetary History of the United States, 1867 – 1990 by Milton Friedman
Capital Ideas by Peter Bernstein
BIOGRAPHIES
No Bull: My Life In and Out of Markets by Michael Steinhardt – autobiography that contains some helpful tips on a more short-term, trading-oriented investing style.
So Far So Good: The First 94 Years by Roy Neuberger – autobiography of a successful investor who started his career in 1929 and has seen it all.
Reminiscences of a Stock Operator by Edwin Lefevre – written in the 1920s, this book reads like a novel, and describes the ups and downs of a trader in the early part of the 20th century.
The House of Morgan by Ron Chernow – comprehensive biography of JP Morgan, with an analysis of his broader effects on financial markets.
Maestro: Greenspan's Fed and the American Boom by Bob Woodward
Baruch: My Own Story by Bernard Baruch
Julian Robertson: A Tiger in the Land of Bulls and Bears by Strachman, Daniel
Chainsaw: The Notorious Career of Al Dunlap by John Byrne
BUFFETT AND BERKSHIRE
Buffett: Life of a Capitalist by Roger Lowenstein – contains both biographical detail and a description of Buffett’s investment approach.
Of Permanent Value by Andrew Kilpatrick – everything you every wanted to know about Berkshire; not to be read in one sitting.
The Warren Buffett Way by Robert Hagstrom – analyzes some of Buffett’s more successful investments.
Warren Buffett Speaks by Janet Lowe.
Buffetology by Mary Buffett – a decent Buffett starter, but not that sophisticated.
The Science of Hitting by Ted Williams – Buffett recommends this book to teach investors how to wait for the right pitch in a game where there are no called strikes.
Sandman's Place – a website devoted to Buffett and Berkshire. www.sandman.com
CHARLIE MUNGER
Poor Charlie's Almanack edited by Peter D. Kaufman – a tome on Charlie Munger, who Buffett credits as integral to his investment success. Contains countless gems on investing and "worldly wisdom" from one of the most interesting and iconoclastic investors around.
Damn Right by Janet Lowe – more on Munger; this one reads more like a traditional biography.
Seeking Wisdom: From Darwin to Munger by Peter Bevelin. If Munger’s mental models appeal to you, this is where to learn more. This is an extremely interesting book if your interests extend beyond business and investing.
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