Books/financial literature

[blackcap]

Hi all,

Just wondering if any out there have any as yet unkown or unseen gems that they could recommend. I thought I would start a thread where we can review/recommend books we have read that deal with finance and investing broadly speaking.
I have received from this forum numerous tips starting with The Intelligent Investor by Benjamin Graham and many others but always spread out and lost in the deluge of posts.
My nominations for some interesting reads that I have read in the last 2 weeks are:

"The Black Swan"; by Nassim Taleb. He explores Black Swan events and shows that the "bell curve" we are so familiar with is fatally flawed and also the prevalence of Black Swans is more than we think.

"How Markets Fail" by John Cassidy (yes thanks for the tip winner69) which gives a beautiful easy to understand historical narrative of financial systems and economic thought.

"The intelligent Investor"; by Benjamin Graham. A must read for fundamental investors. A bit "boring" by today's standards but the modern analogous commentary provided by Jason Zweig sets it in todays time and gives plenty of real life examples.

I am always looking for more to read and any suggestions would be welcome. I can wholeheartedly recommend the above 3 books.

[Wolf]

I found the "5 keys to value investing" pretty decent which i got out from Wellington Library.

I found it a very in depth fundamental analysis book looking at horizontal and vertical techniques to analyzing a company and identifying potential catalysts. Looking at how to judge management, market niche etc as well as the financials. I also found its discussion of margin of safety enlightening where it looks at NTA as well as take over value and the cost of coming into the industry to judge margin of safety (how far the price could fairly fall) as well as intrinsic value.

[arc]

Title: The Business of Share Trading - From starting out to cashing in
Author: Leon Wilson
2nd edition
417 pages
Wright Books

Examines Motivations, Tools, Techniques, Analysis.
Lists common indicators, what they represent and how they should be used. Looks at trends and reversals etc.
Contains multiple graphs and representations to aid descriptions.

[Okebw]

It's been a while since I read it but "Fooled by Randomness" also written by Nassim Taleb was very good.

[winner69]

It's been a while since I read it but "Fooled by Randomness" also written by Nassim Taleb was very good.

Great book

I loved his bit about the dentist who took up trading and looked how his portfolio was going every minute --- essentially this A minute-by-minute examination of his performance means that each day (assuming eight hours per day) he will have 241 pleasurable minutes against 239 unpleasurable ones. These amount to 60,688 and 60.271, respectively, per year. Now realize that if the unpleasurable minute is worse in reverse pleasure than the pleasurable minute is in terms, then the dentist incurs a large deficit when examining his performance at a high frequency.

A bit more
http://www.curatedalpha.com/2011/nassim-taleb-on-the-difference-between-noise-and-information/

Heck, I am sure many here looking at depth all day long must get down in the dumps. Little do they realise its all noise.

He convinced me not to do this sort of stuff

[blackcap]

It's been a while since I read it but "Fooled by Randomness" also written by Nassim Taleb was very good.

Halfway through it at the moment. Brilliant eye opener, brilliant book and well written. Winner... yep that thing with the dentist is oh so interesting.

[Okebw]

Hi all,

I am always looking for more to read and any suggestions would be welcome. I can wholeheartedly recommend the above 3 books.

I've just ordered all three so I'll give my two cents on them in a couple weeks when they arrive

[blackcap]

I am now working at a large library so have constant and unfettered access to both 'historic' books and current text like NBR. I'm in heaven :)

Most recent book I bought (yes, not checked out it was that good!) was Dotcon by John Cassidy. Cassidy combines a classic narrative of the creation of the internet, the first startups and eventual boom of the stock market in 1999-2000 with investment speak of valuations, IPOs and fund raising. One of the most interesting parts was how PS ratios, 'eyeball' metrics and follow through numbers were created to fill a gap in 'classic' valuation and defend the stratospheric (and most would say insane!) Valuations being put on stocks at the time. Interspersed throughout is a look at the matter inward from the Fed and why Greenspan took a hands off approach to the entire matter. Finally, it gives a succinct answer to why the bubble burst and the signs behind the madness. The charts in the index of individual stocks, their IPOs and valuations are very enlightening.

I am glad I read this book as it gives me an insight into the madness my father participated in but could never really explain (and why he ended up near a breakdown with diabetes developing afterwards). It is also invaluable insight into why people suspend disbelief, how to ride these waves and why we should never mutter "it's different this time" ever again!

Next up is Bubble Man, a book on Greenspan and his actions during this period. Currently also reading "Origins of the Crash" by Lowenstein. I am not a cynical 28 year old (yet!)

:)

I wanted to get dot.con out from my local library but alas they do not have a copy. So I suggested they buy it because that did have another John Cassidy book. Looks like I will be following in your footsteps and ordering one at the book depository.

Thanks to all posters for your suggestions. Great to get "tips" as it helps (not always) streamline the selection process.

[percy]

I wanted to get dot.con out from my local library but alas they do not have a copy. So I suggested they buy it because that did have another John Cassidy book. Looks like I will be following in your footsteps and ordering one at the book depository.

Thanks to all posters for your suggestions. Great to get "tips" as it helps (not always) streamline the selection process.

Over the years I have put in requests for Christchurch library to purchase business books for me.Their acquisition department appear to be happy to order them.I suspect they do not have an experienced "business book" buyer. Fantastic service.
Go back to your local library and ask them to submit a request for their acquisition department to buy it.If you have no joy,phone "the district librarian."
Google the title,then give the library the isbn number,title and author.
No joy.Then google the isbn number and a list of places you can order the book from comes up.

[Okebw]

Judging by one of moosies previous threads I can just ask him to order me things given that he works at a library in Palmy :p

[blackcap]

Over the years I have put in requests for Christchurch library to purchase business books for me.Their acquisition department appear to be happy to order them.I suspect they do not have an experienced "business book" buyer. Fantastic service.
Go back to your local library and ask them to submit a request for their acquisition department to buy it.If you have no joy,phone "the district librarian."
Google the title,then give the library the isbn number,title and author.
No joy.Then google the isbn number and a list of places you can order the book from comes up.S

Thanks Percy. I did have some joy with the library as they gave me a card to fill out and I could add the details of the book etc and they would consider ordering it. The lady serving me did say that the chance was "heightened" as they already had a book by the same author. Fingers crossed.
Might just buy it anyway but it is good to see that the library do accept requests and recommendations from their users.

[winner69]

Originally Posted by moosie_900
Here's a good article to read (and eventual book to buy) goldfish:

http://www.slate.com/articles/busine..._reviewed.html



The best Michael Lewis book I ever read was Moneyball. Later made into a movie with Brad Pitt starring.

Great story about a baseball team but an even greater story if read in the context of value investing .... finding the hidden and unloved bargains and doing well out of them

I read Billy Beane's story every year .... and the Oakland A's are really on fire this year, more than 10 years after Lewis wrote that book

[winner69]

Lewis also wrote another great book in Blindside

All about Michael Oher a down and beat kid who became a star college football player ..... and years after the book and a film that Sandra Bullock ruined that kid was in a winning Super Bowl team with the Ravens

Great stuff ..... even better than Roy of the Rovers

[Okebw]

Come in and see me one day Okebw, I'm upstairs on 2nd floor if not down in my dungeon working on the archives. We have quite a good selection of books. If you want to order anything I will second it for you so that it will most likely get through the system! :)

I'll have to take you up on that at some stage. Though between the three I've ordered and textbook readings I'd say that day is a fair ways off