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Some Worthwhile Reads

Posted By Barry Ritholtz On April 22, 2004 @ 10:18 am In Books,Finance | Comments Disabled

A hedge fund friend, now comfortably esconced in Colorado, asked for some market/econ related reading suggestions. One thing led to another, and thus a list was born:

First, I assume you read Jack Schwager’s Market Wizards [1] and New Market Wizards [2]). If you haven’t, that’s where anyone interested in this industry MUST start. (The second version is optional)
Jack D. Schwager: Market Wizards : Interviews with Top Traders [3]

Taleeb Nassim’s “Fooled by Randomness [4]” was a fast read, if you like mathematical theory. — although it could have very easily been a 3000 word magazine article.
Nassim Nicholas Taleb: Fooled by Randomness: The Hidden Role of Chance in the Markets and in Life, First Edition [5]

For more heavy lifting on the subject, try James Gleick’s Chaos [6]. (Its utterly fascinating, but its not lite reading — its enjoyable work).
James Gleick: Chaos: Making a New Science [7]

As long as we are recognizing that the market is subject to the rules of chaos, its important to note that it is also a dynamic, nonlinear system. An excellent exposition of how these systems work in non market environment is Malcolm Gladwell’s The Tipping Point: How Little Things Can Make a Big Difference [8]. A very easy and enjoyable summer beach book.
Malcolm Gladwell: The Tipping Point: How Little Things Can Make a Big Difference [9]

Let’s move on to the MacroEconomics arena. Two books I really liked alot were: New ideas from Dead Economists [10], from Harvard Prof and economic adviser in the first George H.W. Bush administration. A broad historical survey of economic theories through the years. Very interesting to see the evolution of Econ thinking. (It turns out that Economists have been getting wrong for centuries).
Todd G. Buchholz: New Ideas from Dead Economists: An Introduction to Modern Economic Thought [11]

and

Prechter’s Perspectives [12]
by Robert Prechter. Very, very interesting view. This book is one of the most fascinating and challenging books I’ve ever read.
Robert R. Prechter Jr.: Prechter's Perspective [13]

A more general market read is “Stock Market Rules [14]” — its an almost fun book. Its lite; You can pick it up, read 10 pages, then put it down. I didn’t agree with everything in it, but it was interesting nonetheless.
Michael D. Sheimo: Stock Market Rules: 70 of the Most Widely Held Investment  Axioms Explained, Examined and Exposed [15]

It might be a bit late to be reading Sy Harding’s Riding the Bear [16], but the guy nailed the top as well as anyone. There are plenty of instructive rules in this one to help you prep for the next top.
Sy Harding: Riding the Bear: How to Prosper in the Coming Bear Market [17]

Finally, I just started “The 48 Laws of Power [8]” by Robert Greene. Its really about ye olde rulesof court, when the Lords and Ladies all jockeyed for position and favor around the King. Very provocative, yet surprisingly applicable to the stock market. Its a different and interesting read . . .
Robert Greene: The 48 Laws of Power [18]



Many of these are available from Amazon used for 20% of the original list price.


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URLs in this post:

[1] Market Wizards: http://www.amazon.com/exec/obidos/tg/detail/-/0887306101/ref=ase_thebigpictu09-20/102-4529470-0078540?v=glance&s=books

[2] New Market Wizards: http://www.amazon.com/exec/obidos/ASIN/0887306675/ref=ase_thebigpictu09-20/102-4529470-0078540

[3] Image: http://www.amazon.com/exec/obidos/ASIN/0887306101/thebigpictu09-20

[4] Fooled by Randomness: http://www.amazon.com/exec/obidos/ASIN/1587990717/ref=ase_thebigpictu09-20/102-4529470-0078540

[5] Image: http://www.amazon.com/exec/obidos/ASIN/1587990717/thebigpictu09-20

[6] Chaos: http://www.amazon.com/exec/obidos/ASIN/0140092501/ref=ase_thebigpictu09-20/102-4529470-0078540

[7] Image: http://www.amazon.com/exec/obidos/ASIN/0140092501/thebigpictu09-20

[8] The Tipping Point: How Little Things Can Make a Big Difference: http://www.amazon.com/exec/obidos/ASIN/0140280197/ref=ase_thebigpictu09-20/102-4529470-0078540

[9] Image: http://www.amazon.com/exec/obidos/ASIN/0316346624/thebigpictu09-20

[10] New ideas from Dead Economists: http://www.amazon.com/exec/obidos/ASIN/0452280524/ref=ase_thebigpictu09-20/102-4529470-0078540

[11] Image: http://www.amazon.com/exec/obidos/ASIN/0452280524/thebigpictu09-20

[12] Prechter’s Perspectives : http://www.amazon.com/exec/obidos/tg/detail/-/0932750400/ref=ase_thebigpictu09-20/102-4529470-0078540?v=glance&s=books

[13] Image: http://www.amazon.com/exec/obidos/ASIN/0932750400/thebigpictu09-20

[14] Stock Market Rules: http://www.amazon.com/exec/obidos/ASIN/0071340963/ref=ase_thebigpictu09-20/102-4529470-0078540

[15] Image: http://www.amazon.com/exec/obidos/ASIN/0071340963/thebigpictu09-20

[16] Riding the Bear: http://www.amazon.com/exec/obidos/ASIN/1580621546/ref=ase_thebigpictu09-20/102-4529470-0078540

[17] Image: http://www.amazon.com/exec/obidos/ASIN/1580621546/thebigpictu09-20

[18] Image: http://www.amazon.com/exec/obidos/ASIN/0140280197/thebigpictu09-20

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