Good Books

Learn a lot more than I know


There is no better way to expand your knowledge than to read. There are so many books out there on finance and investing, that the information you need is out there somewhere. The task of finding it, however, may be daunting. So here is a collection of books that I have found particularly clear, helpful, and/or unique. Some of them are must-reads that most professionals will cite as 'classics.' For your convenience, links to amazon.com are provided so that you can purchase them easily online at the best prices.

Classics
1.
A Random Walk Down Wall Street
 
 

This book gives an essential perspective for the technical trader -- a skeptical one. Burton Malkiel's 1973 classic outlines what is known as 'efficient markets theory,' of which the basic lesson is that one cannot time the market. While I don't agree with this notion, the book is academic, very well researched, and very well written. There is a reason that it has been around for so long and is so frequently recommended.

 
2.
One up on Wall Street
 
 

Peter Lynch is the famed head of the brilliant Magellan Fund at Fidelity. This book was one of the originals to make the market accessible to laypeople, much like Jim Cramer is doing now. I recently read this and it has certainly reminded me that all of my investments should have some foundation in common sense.

 
3.
'The Intelligent Investor
 
 

The definitive book on value investing, by Benjamin Graham himself.

 
4.
Reminiscences of a Stock Operator
 
  This is Edwin Lefévre's story of a successful stock speculator. It is based on the true story of Jesse Livermore. It is extraordinarily inciteful when it comes to characterizing the psychological nature of the market and that of the successful trader. Although markets have changed a lot since 1923, most of the lessons in this book are highly valuable.  
6.
Market Wizards: interviews with top traders
 
 

Hear the biographies, strategies, and opinions of some of the best traders ever to live. Highly recommended.

 
7.
The New Market Wizards: Conversations with America's Top Traders
 
  Same as above, but for the new school.  

 

Wall Street Culture
1.
Monkey Business
 
 

Hands down, the funniest book I've ever read. This 2000 book is the memoirs of John Rolfe and Peter Troob, who worked as associates for the investment bank DLJ. The book is absolutely a must-read for anyone interested in becoming an investment banker, because it gives the perspective of two investment bankers who became disillusioned with the money and hype and ended up hating their jobs. It puts a critical eye on the industry, and helps you do the same. If you still want to be an i-banker after reading this book, godspeed. Even if you aren't interested in investment banking, I still recommend Monkey Business.

 
2.
Predator's Ball
 
 

Connie Bruck's detailed account of the rise of Michael Milken and the junk bond traders at Drexel Burnham. This book is essential to anyone interested in high finance, especially if you want to underwrite debt.

 
3.
Liar's Poker
 
 

Insider Michael Lewis offers this very funny, very well written description of life as a bond trader at Salomon Brothers in the 80s.

 
4.
Barbarians at the Gate
 
  A highly detailed account of one of the largest leveraged buyout in history -- that of RJR Nabisco. This one is long and complex, but if you want to understand the events that lead up to a deal of this nature, this is the best book out there. By Bryan Burrough and John Helyar.