Donald
October 31, 2011, 11:20am
23
These are excellent books mentioned by many people. My list all the above would be…
Manias, Panics and Crashes By Charles P. Kindleberger. This is history of financial crises over the centuries. Really scholarly analysis of causes and effects of the crisis. it also gives us the typical sequence in which events usually unfold in such manias and subsequent crashes. It also tells us that the events feed into themselves and things go round in cycle indeed. He says the one reason for the crisis is always expansion of credit panic spreads causing recession/depression etc. Must read if you want to understand why such financial crisis repeat and how to detect these and guard against.
Influence By Robert B. Cialdini. Although not an investment book it will tell you how and why you get influenced into something which you would have ideally avoided. Will help you save from IPOs, stock brokers, tips from friends, herd mentality, investing into your company’s stock in the market etc.
Damodaran on valuation. I think basic understanding of valuing any asset is a must if you are in a business of trading (buying and then selling) any asset. It will also help the readers demystify notion of intrinsic value that we hear so much in all value investing books.
Financial Shenanigans- How to Detect Accounting Gimmicks & Fraud in Financial Reports Third Edition by Howard Schilit. Apropos to what you said above this kind of book may be useful in Indian context where creativity thrives in our businesses…but it is possible that this author has not entirely comprehended the ingenuity of an Indian mind. If any one has comment on certain inadequacy of this book in Indian context then I would like to learn from them.
Another book in the same genre is "Quality of Earnings’ by O’Glove which I am reading now.
Essays Of Warren Buffett - Lessons For Corporate the horse’s mouth. All his wisdom is given here.
the Gods: The Remarkable Story of Risk It is ultimate book on risk, probability etc. It gives the history of evolution of probability theory, measurement of risk management, which assumes that future risks can be understood, measured and to some extent predicted, is the focus of this solid, thoroughgoing history. Probability theory, pioneered by 17th-century French mathematicians Blaise Pascal and Pierre de Fermat, has made possible the design of great bridges, electric power utilities and insurance policies. The statistical sampling methods invented by dour Swiss scientist Jacob Bernoulli undergird diverse activities such as the testing of new drugs, stock-picking and wine tasting. Bernstein (Capital Ideas) animates his narrative with a colorful cast of risk-analyzers, including gambling addict Girolamo Cardano, 16th-century Italian physician to the Pope; and John Maynard Keynes, whose concerns over economic uncertainty compelled him to recommend an active, interventionist role for government. Bernstein also traces the development of business forecasting, game theory, insurance and derivatives, and surveys recent advances in risk forecasting made possible through chaos theory and by the development of neural networks. Very high rating for this book on Amazon is
Hi Girish
Thoughtful, well articulated recommendations.
Think these are excellent additions to the next reading list. Do you mind reproducing this list in the Next Reading List: Beyond the Basics Link: …/…/99479466 thread, else these important books might lose the attention they deserve among the top5 books discussion.
Regards
Donald
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