Recommend me a must have book
Hi,
I'm looking for something to read to improve my knowledge, I have read all this:
-What works on wall street - Security Analysis - The intelligent investor - Investment Valuation (damodaran) - Valuation (McKinsey) - Hedge fund Market Wizards - Investment strategies of hedge funds - All about asset allocation - The Five Rules for Successful Stock Investing - The Little Book That Builds Wealth - Technical Analysis of the Financial Markets (murphy) - Trading for a Living - Liar's poker - One up on wall street - Young money - Accounting for value
Wright now I'm reading about active portfolio management and I have studied macro and microeconomics at the university.
What can you recommend me?
Plenty of good books on that list. I'd add The Big Short.
... I'd also suggest you've read plenty of books and might be worth while just hanging out with people in the industry. Will teach you just as much if not more.
Thanks.
The problem is that I haven't got access to anyone who works in the industry, but it would be perfect to know someone because as you say you can learn more than with a book.
I'd recommend "The Most Important Thing" by Howard Marks.
was going to say the same thing
You've got a pretty good list right there. But investing is something that needs to be practiced to really be understood.
As other people have suggested, try to talk to people in the industry. Read investment writeups on Seeking Alpha, VIC and message boards like Berkshire/Fairfax. Pick a couple companies you find interesting and read their 10-ks cover to cover. Then get back to books. It'll create a positive feedback loop, better informing your understanding of the books which in turn help you understand actual companies better.
That's what I do, I have read the books first and then I opened a trading account and I invest some money so I read the 10k reports of the companies I analyze and then I get back to the books as a support during this valuation process.
I'm also planning to write articles to seeking aplha if possible and I read some articles once-twice a week (I also receive some articles by mail about macro and some companies I follow).
The problem is how to contact with someone in the industry, I would like to have a mentor, but it's difficult to get it.
Margin of safety by Seth Klarman - incredible book on investing and how to think about risk - states that the best investors are risk managers before amazing opportunity spotters
When the Music Stopped - learn about the financial crisis and how it has repainted the backdrop of the market and economy.
You should read the rest of the Market Wizards, Hedge Fund Wizards was probably the weakest one. Also second'ing The Big Short, and recommending Thinking Fast & Slow for behavioral finance.
Lords of the Atlas.
Dividend playbook, commodity options by Carley garnet and Paul brittain, options trading the hidden reality by cottle.
You Can Be A Stock Market Genius by Joel Greenblatt. It's a great and somewhat underrated book on special situations investing, despite the awful title.
I have downloaded a quantitaive risk management book (coleman) and one about M&A.
Can anyone recommend me a great book about macro investing/trading?
Also my list of non-macro stuff: Colossal Failure of Common Sense Predators Ball Shipping Man Mr. Market Miscalculates The Signal & the Noise Thinking Fast & Slow Stock Market Genius or Margin of Safety (but probably not both) Fooled By Randomness Fooling Some of the People All of the Time Traders, Guns, Money
I think you would have fun with all of these books. I did
My dad got me More Money Than God for my bday this year, but haven't really gotten around to reading it. I felt like it looked like more of an entertainment book than really something to learn from. Would you say that's what it is?
I have seen this one, but I don't know if it would be too soft, anyone have it?
http://www.amazon.com/dp/111836242X/ref=wl_it_dp_o_pC_nS_ttl?_encoding=…
Competition Demystified
Agree with this. Builds general "business knowledge" versus talking specifically about investing, so it's particularly valuable.
Would also agree with Margin of Safety by Klarman. It will not be groundbreaking in terms of value investing philosophy if you have read Security Analysis + Intelligent Investor, but its a quick read and covers some other interesting topics / examples.
I'll might get monkey shit for this but I would actually recommend getting into something philosophical or spiritual every once in a while. I know that sounds diametrically opposed to capitalism for a lot of people, but try to find a way to work it in. Personally, I think having a spiritual practice has made me a much better investor- obviously not so much from a technical standpoint, but rather my ability to see a strategy clearly, execute, keep calm, not fucking worry all day, etc. This is something that a lot of successful business people have in common.
That's probably not what you were looking for, but having your shit together as a human being helps a lot.
I agree. I thoroughly enjoyed "Zen Mind, Beginner's Mind" - it's not a cure to the cynicism I've accumulated, but the book's helped.
reminiscences of a stock operator
&
the alchemist. i think its important to diversify your readings.
the worldly philosophers was good too (economic history)
"How I made $2 million in the stock market". Quite the amusing title, I know, but it's an enjoyable read.
Stigums' Money Markets Soros' the Alchemy of Finance
The Big Short, Against the Gods, Inside the House of Money
Reminiscences of a stock operator and the sex god method
When Genius Failed (about LTCM failure) The Outsiders by William Thorndike The Big Short (by, the one and the only, Michael Lewis) Barbarian at the Gate (about LBO of RJR Nabisco) and many others
But what is the best book for understand in practice the model DCF for equity research if i have no skills?
I'd add Margin of Safety by Seth Klarman. As the book is about $1,500 on Amazon I'd suggest finding a pdf.
FOOLED BY RANDOMNESS & THE BLACK SWAN by Taleb. All you'll need.
When Genius Failed - goes through the rise and fall of Long Term Capital
Capital Ideas and Capital Ideas Evolving - Bernstein
"Technical Analysis of the Financial Markets (murphy)" is hands down the best book you could ever read and apply to trading stocks.
Thank you guys for your advice.
I think the next will be 'the Alchemy of Finance' (soros) to read something about a macro view.
I also found a pdf of 'how the machine works' (Ray Dalio)
Art of short selling is very good
Capital In the 21st Century by Thomas Piketty (He nearly won last years nobel prize for this book)
Capital in the 21st Century Flash Boys The Big Short Too Big to Fail A Random Walk Down Wall Street
For philosophy and life in general:
Road Less Traveled - M. Scott Peck 7 Habits of Highly Effective People - Dr. Stephen R. Covey
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