My Sunday Washington Post Business Section column is out. This morning, we look at what books make for a good starter library for new investors.
Here’s an excerpt from the column:
“About once a week, I get an email like this: “I am interested in learning more about investing. What books would you recommend I read?”
An excellent question.
I try to read 10 to 20 books a year, with half of those related to finance or investing. (I am only modestly successful.) Having read many of the best financial writers out there, I could suggest an investor’s library of hundreds of books. Instead, I’ll share 10 books to start you on your way.
To make this list, a book must be readable — which eliminates many important but challenging tomes. It must also contain timeless wisdom and offer a perspective not available elsewhere. I suggest you read a book a month . . . “
My dozen starter library for investors include:
1. “Market Wizards: Interviews with Top Traders” by Jack D. Schwager
2. “Bull! A History of the Boom, 1982-1999” by Maggie Mahar
3. “Black Monday: The Catastrophe of October 19, 1987 and Beyond” by Tim Metz.
4. “A Random Walk Down Wall Street: Time-Tested Strategy for Successful Investing” by Burton G. Malkiel.
5. “Thinking, Fast and Slow” by Daniel Kahneman
6. “Extraordinary Popular Delusions and the Madness of Crowds” by Charles Mackay
7. “The Myth of the Rational Market: A History of Risk, Reward, and Delusion on Wall Street” by Justin Fox
8. “The Quants: How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It” by Scott Patterson
9. “The Big Short: Inside the Doomsday Machine” by Michael Lewis
10.“Winning the Loser’s Game” by Charles D. Ellis
11. “When Genius Failed: The Rise and Fall of Long-Term Capital Management” by Roger Lowenstein
12. “Against the Gods: The Remarkable Story of Risk” by Peter L. Bernstein
Thats a book a month; get reading and in one year’s time, you will be a much better investor.
A reading list that yields a solid return on investment
Washington Post, August 28, 2016