Sitting in the sun reading a book over the summer is one of our favorite things to do. Here are the seven investment books, including one from the mentor of the richest investor ever, that we are sharing for summer of 2016:
The Intelligent Investor by Benjamin Graham – We start with a classic that most of us have read several times. While many people do not know who Benjamin Graham is, they do know his most famous pupil, Warren Buffett. Within this seminal book is a section about asset allocation that has evolved to be one of the most important passages ever written on investing. If you have never read an investing book, or more importantly, if you have never read this investing book, start your summer reading here.
Market Wizards by Jack D. Schwager – Schwager answering the question – why do most traders fail? “There are many reasons. They seek easy answers. They listen to “experts” and chase trading fads instead of doing the hard work of developing their own methodology. They focus almost all their energy on determining trade entry points and all but ignore the more critical questions of trade exit and risk management. They listen to other people. These are a few of the reasons. Readers will find a lot more in the book.”
Reminiscences of a Stock Operator by Edwin Lefevre with forward by William O’Neill – This book is a fictionalized biography spanning the life, investment career and tragedies of Jesse Livermore. It first appeared in the Saturday Evening Post in the 1920s. Livermore was one of the first true superstar traders, making and losing fortunes at least twice. At one point he is believed to have been the richest person in America. Said Livermore, “I learned early that there is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again. I’ve never forgotten that.”
Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets (Incerto) by Nassim Taleb – This is the prelude book to Taleb’s famous “The Black Swan” (worth reading over the winter) which discusses basing analysis upon probabilities. Taleb has been a derivatives trader, professor and researcher. His collection of works on uncertainty – Incerto (Latin) – are among the most acclaimed of the generation. Consider this quote as you plan, “We cannot truly plan, because we do not understand the future–but this is not necessarily a bad news. We could plan while bearing in mind such limitations. It just takes guts.”
Flash Boys by Micheal Lewis – Per the New York Times, “In Michael Lewis’s game-changing bestseller, a small group of Wall Street iconoclasts realize that the U.S. stock market has been rigged for the benefit of insiders. They band together―some of them walking away from seven-figure salaries―to investigate, expose, and reform the insidious new ways that Wall Street generates profits. If you have any contact with the market, even a retirement account, this story is happening to you.” Having read this recent book already, all we can say, is we agree with NYT here.
The Only Game in Town: Central Banks, Instability and Avoiding the Next Collapse by Mohamed El-Erian – In this 2016 release, well known economist and investment manager Dr. Mohamed El-Erian lends his voice to the analysis of the changing interconnected world of economics, politics and markets. Says TIME Magazine, “The one economic book you must read now . . . If you want to understand this bifurcated world and where it’s headed, there is no better interpreter than Mohamed El-Erian. . . . An excellent primer [and] a guide on what to expect as the world struggles to cope with slower, less equal growth.”
The Richest Man in Babylon by George Clason – Renowned as one of the most inspirational works to address the ideas of thrift, financial planning and personal wealth. One reviewer says, “I am continually amazed at how a book so small can contain so much content and be so powerful.” If you are looking to build wealth and save your soul, this is the book of wisdom you might need.
Okay, time to get reading. Tell us what you think of these books when you are finished, we’d love to hear.