It’s interesting to note that while I used to almost always get my books from Half.com, now I almost exclusively use Amazon coupled with their Prime shipping. I’ve ordered on average about 50 books a year the past 3 years (although this year is a little higher).
I just read Think Twice: Harnessing the Power of Counterintuition on the plane to Colorado. I like Mauboussin’s work, but I’ve read so much behavioral literature at this point it was mostly rehashing. Probably worth the read if you’re new to the space. I also read Riches Among the Ruins: Adventures in the Dark Corners of the Global Economy in Colorado and on the way back to LA. This was a good book in the same vein as Jim Roger’s books and Confessions of an Economic Hit Man. Although the conclusions (it was highly profitable to trade emerging market debt but now too efficient) remind me of Ben Graham’s conclusion about stock analysis about 30 years ago.
The five best reads this year are below. What I liked about these reads is that they give you a framework for how to invest based on history. And by history I mean hundreds of years rather than the last three. The takeaways are usually quite different than the commonly accepted theories of today. What they are not are simple explanations of what happened after the fact – they are useful in building your portfolio going forward. I don’t need to know what went wrong, I need to know how to prepare now.
3. The Myth of the Rational Market
5. The Capitalism Distribution
Honorable Mention: The Ivy Portfolio (I can’t nominate my own book, right?)
Interesting new upcoming book I have on pre-order – The Billion Dollar Mistake: Learning the Art of Investing Through the Missteps of Legendary Investors.
What is your favorite read?
The link for your 5th rec doesn't work although I did find it by googling.
Thanks and always enjoy your writing.
Meb, do you have a method or technique for tracking what you learn from your readings? With the quantity of books and information; I wonder if you have a practice you would perhaps share with us. Thanks
Myth of the Rational Market was phenominal, my personal favorite of '09. Would also love to hear your response to hector's question regarding tracking what you've read/ learned. This is something I'm going to attempt to impliment in 2010. -EM3
I'm reading Think Twice now, and like it a lot. Counter intuitiveness is very difficult for me.
Chapter 8 talks about sorting luck from skill: Why Investors excel at buying high and selling low, and describes some examples of “The Halo Effect”.Chess involves skill, poker skill and luck, and slot machines are pure luck.
http://www.youtube.com/watch?v=pGgXracT_ls
Kinda like the TV show “The Office” where Michael and Dwight's Scranton branch just keep out performing other divisions even though they are miserable workers. LOL.
I haven't read #4 and 5 but The Myth of the Rational Market wins the gold medal! Extremely stimulating book. Chapter could've been better organized but again it's the book every investment professional should read. I would add Forgotten Man: History of the Great Depression to the list. It's the first book i read on GD and I highly recommend it. Thanks.
The GFD Guide references an excel worksheet throughout the article but doesn't have a link to the spreadsheet. Do you know how to get the spreadsheet?
I have gifted the The Ivy Portfolio to a good friend. We both feel it is a great reference.
I am currently reading Wall Street Revalued by Smithers and I am finding it to be very complementary to The Ivy Portfolio.
CA
Hey man, your book was one of my top 5! Simply just a great reference without a bunch on nonsense.
Yeah, I'd include The Ivy Portfolio in the top 5, as well.
Yeah, I'd include The Ivy Portfolio in the top 5, as well.