1/ Some book recommendations: Rules of the game: many people are asking me for investing book recommendations and I finally felt guilty enough to actually put together a list. BUT--this is a first instalment and these were the books that literally came to mind. Not definitive.
2/ I will add to this list as I think of other useful books. I KNOW I have forgotten to list many seminal books, I'll get to them. Okay, in now particular order, let's go: "Against the Gods: The Remarkable Story of Risk" by Peter L. Bernstein
3/ "The Misbehavior of Markets: A Fractal View of Financial Turbulence" by Benoit Mandelbrot and Richard L. Hudson Worth it for the chapter on the "Case Against the Modern Theory of Finance" alone. "Reminiscences of a Stock Operator" by Edwin Lefèvre. Old, but classic
4/ that all investors should read. You'll swear he's writing about markets of today. "Contrarian Investment Strategies: The Psychological Edge" by David Dreman So fact-filled it nearly bursts with good advice and information.
5/ “Extraordinary Popular Delusions and the Madness of Crowds” by Charles Mackay. An oldie but a goodie. Lots of great history that reminds us that we've seen market manias and panics again and again and again… "The Big Short: Inside the Doomsday Machine" by Michael Lewis.
6/ Lewis is a great writer and if you didn't know it was absolutely true, you'd swear it was great financial fiction. Worth it for the characters alone. "It Was a Very Good Year: Extraordinary Moments in Stock Market History" by Martin S. Fridson
7/ Starting with 1908, Fridson catalogues some of the shared themes of the best performing years. Lots of cool stuff you might not know, for ex. 1933 was +54%. "How we Know What Isn't So: The Fallibility of Human Reason in Everyday Life" by Thomas Gilovich
8/ Oldie, but a great resource for investors. "Your Money and Your Brain: How the New Science of Neuroeconomics Can Help Make You Rich" by @jasonzweigwsj Want to understand how your brain conspires to make you a bad investor? Start here.
9/ "Inside the Investor's Brain: The Power of Mind Over Money" by Richard L. Peterson "There’s someone in my head but it’s not me.” ~@pinkfloyd “The Behavioral Investor” by @danielcrosby Behavioral Finance 2.0
10/ “Thinking in Bets: Making Smarter Decisions When You Don't Have All the Facts” by @AnnieDuke Think you’re right? Wanna bet? “Skin in the Game: Hidden Asymmetries in Daily Life” by @nntaleb Yes, he’s caustic as hell. Yes, you should still read him.
11/ “The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit” by @AswathDamodaran A good primer before his more challenging texts. “The Little Book of Behavioral Investing: How not to be your own worst enemy” by James Montier
12/ “The Geometry of Wealth: How to shape a life of money and meaning” by @brianportnoy With all thy getting, get understanding.
13/ “Quantitative Value: A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors” by @alphaarchitect and @Greenbackd These are the ones I really just thought of right now. More to follow. Happy 3-day weekend.
14/ "Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life" by @rorysutherland Filled with wisdom, a sampling: “Value resides not in the thing itself, but in the minds of those who value it.” ~Rory Sutherland
15/ "The Psychology of Money: Timeless lessons on wealth, greed, and happiness" by @morganhousel Morgan's a friend and I got an early review copy. I'd pre-order it today. Morgan manages to deliver sound financial advice in an entertaining, non-jargon laden way.
16/ "How to Decide: Simple Tools for Making Better Choices" by @AnnieDuke Another great book from a friend. Annie brings all the techniques she learned becoming a world-class poker player to the broader field of learning how to better calibrate your decision-making skills.
17/ "The Zurich Axioms: The rules of risk and reward used by generations of Swiss bankers" by Max Gunther I'm writing the new forward for the edition that comes out next year. An oldie, one of the first investment books I read along with "Reminiscences of a Stock Operator"
18/ Another one from a very different angle is @lukeburgis's "Wanting: The Power of Mimetic Desire in Everyday Life" If your an investor in ANY market, you'll want to understand how Mimetic Desire powers a lot of people's actions. Luke's book is filled with actionable advice.
@jposhaughnessy I second this. PERFECT starter list, and most are MUST reads if you’re serious about understanding just what heck is going on simultaneously in markets but also your head.
@BamaTrader Thanks!
@jposhaughnessy Still working on WWOWS. It’s a lot of fun to see some concepts written about a decade ago and are pitched as hot things today under new names by newbies.
@jposhaughnessy Securities Analysis- Graham&Dodd
@billahearn3 Of course, but it's been recommended about a million times, I didn't think adding a drop of water into the ocean would help. For Individual investors, I think "The Intelligent Investor" is better.
@jposhaughnessy Kahneman, "Thinking, Fast and Slow"; Tetlock, "Superforecasting"
@BigAltheDukie Yep, as I said, I'm sure I left a ton of great books out, thanks, both of these are great.
@jposhaughnessy @macroarb Thx for the recommendations, will check out some of the ones I have missed. I know you say not a definitive list, but not including @jackschwager’s Market Wizards & New Market Wizards is criminal!!
@jposhaughnessy Not a single O’shaugnessy family book 📚 on there? What Works on Wall Street—is certified, triple OG legend status
@EditorsTopPick Thanks. Kinda assumed people would know about mine and Patrick's.
@jposhaughnessy Good morning Jim. Your booklist is excellent, I’m going to send your list to my advisor, while I read The Art of Happiness by the Dalai Lama.
@moseleywilliams Thanks Dennis. Looking forward to seeing it, cheers
@jposhaughnessy Annie Duke's "Thinking in Bets" isn't about investing...yet it is.
@TWFOG 😂😂