Capital Ideas

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1. RockyMcNutsSep 2016
   FWIW this would be my list of books every investor should read, which is different from what you should read to work in finance but anyway ...

   Capital Ideas: The Improbable Origins of Modern Wall Street by Peter L. Bernstein. A lively introduction to the theoretical foundations of modern finance and their history, Markowitz, Sharpe, etc. https://www.amazon.com/Capital-Ideas-Improbable-Origins-Mode...

   The Essays of Warren Buffett : Lessons for Corporate America by Warren E. Buffett. In his own words...you can also find many if not all online, on Berkshire website https://www.amazon.com/The-Essays-Warren-Buffett-Corporate/d...

   Buffett: The Making of an American Capitalist by Roger Lowenstein. Insightful biography...The Snowball was written more recently with Buffett's approval, but would read this one first https://www.amazon.com/Buffett-American-Capitalist-Roger-Low...

   Common Stocks and Uncommon Profits and Other Writings by Philip A. Fisher. It's not widely appreciated, but Warren Buffett's method is 50% Ben Graham and 50% Phil Fisher. If you can find value stocks that are also great franchises, and hold onto them for dear life, you will be rich... if you also bet big, operate companies well, don't screw up, live in a bull market era and survive long enough, maybe as rich as Buffett. https://www.amazon.com/Common-Stocks-Uncommon-Profits-Writin...

   The Intelligent Investor: A Book of Practical Counsel by Benjamin Graham. Classic introduction to value investing https://www.amazon.com/The-Intelligent-Investor-Practical-Co...

   Unconventional Success: A Fundamental Approach to Personal Investment by David F. Swensen. Asset allocation, and the perils of mutual funds...leading endowment investor of our time (Yale) gives his advice for individuals https://www.amazon.com/Unconventional-Success-Fundamental-Ap...

   The Most Important Thing: Uncommon Sense for the Thoughtful Investor by Howard Marks. Lessons in investing... at any time, any one of them can be 'the most important thing' and so they all are jointly and severally 'the most important thing'. https://www.amazon.com/The-Most-Important-Thing-Thoughtful/d...

   The Investor's Anthology: Original Ideas from the Industry's Greatest Minds (Vols 1 and 2) by Charles D. Ellis (Editor), James R. Vertin (Editor). Essays from a broad selection of writers https://www.amazon.com/The-Investors-Anthology-Industrys-Inv... https://www.amazon.com/Classics-II-Another-Investors-Antholo...

   The Money Masters; The New Money Masters; Money Masters of Our Time, by John Train. Methodologies of all-time great money managers, in their own words https://www.amazon.com/The-Money-Masters-John-Train/dp/08873... https://www.amazon.com/Money-Masters-Time-John-Train/dp/0887... https://www.amazon.com/New-Money-Masters-John-Train/dp/08873...

   Market Wizards; The New Market Wizards; Hedge Fund Market Wizards, by Jack D. Schwager. Interviews of successful traders https://www.amazon.com/Market-Wizards-Jack-D-Schwager/dp/088... https://www.amazon.com/The-New-Market-Wizards-Conversations/... https://www.amazon.com/Hedge-Fund-Market-Wizards-Winning/dp/...

   Manias, Panics, and Crashes: A History of Financial Crises by Charles P. Kindleberger. Why good markets go bad https://www.amazon.com/Manias-Panics-Crashes-Financial-Inves...

   Reminiscences of a Stock Operator by Edwin Lefevre. Fictionalized biography of a famed early-20th century trader https://www.amazon.com/Reminiscences-Stock-Operator-Edwin-Le...

   A Random Walk Down Wall Street: The Best and Latest Investment Advice Money Can Buy by Burton G. Malkiel. Reality check from an efficient market theorist https://www.amazon.com/Random-Walk-Down-Wall-Street/dp/03933...

   This is a rollicking good read on links between Shannon, Kelly, Thorpe, who wrote 'Beat the Dealer' and was maybe the first hedge fund legend https://www.amazon.com/Fortunes-Formula-Scientific-Betting-C...

   And maybe something on technical analysis, but not really sure what to recommend...a lot of people view it kind as mumbo jumbo, but I kind of think fundamentals are like playing your poker hand, technicals are like playing the opponents' tells...the chart gives you an idea of who owns it at what price, what levels might make people rethink positions. Maybe this one as an easy intro, dumb title notwithstanding https://www.amazon.com/Stan-Weinsteins-Secrets-Profiting-Mar...

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2. rahJan 2010
   1. The Lever of Riches, by Joel Mokyr 2. Guns Germs and Steel, by Jared Diamond 3. A Farewell to Alms, by Gregory Clark 4. Power and Prosperity, by Mancur Olsen 5. Carnage and Culture, Victor Davis Hanson 6. Capital Ideas, by Peter Bernstein 7. The Geodesic Network, by Peter Huber
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3. zupatolJan 2009
   I studied economics, but I never had the feeling of understanding much about the economy. Most of economics, including microeconomics and macroeconomics always seemed to me completely detached from reality. Theories for developing poor countries seem to follow fashions that change every ten years. But there are a few topics where I felt the knowledge was interesting and relevant. This was 15 years ago and in german, but I'll try to find the right words in english.

   National accounting: how gross domestic product, the balance of payments etc... are calculated.

   The creation of money: how central banks create money and control inflation. This is probably the only theory on which all, well most, economists agree.

   Economic history: this is the most down to earth subject, the one that relies most on evidence. It's where you will find accounts about industrialization and crashes that micro- and macroeconomics almost never consider, because they're too busy dreaming about equilibriums.

   History of economic theory: For every topic there are a thousand contradicting opinions. It's dismaying if you want to find an answer to a question, but it's fascinating if you look at it like a history of thought. Then it becomes interesting in the same way as philosophy.

   Finance: the rocket science behind valuing options, exotic financial products, Black, Scholes and Merton's nobel prize and the crash of LTCM. This looks like hard science, there's a lot of math, but it all rests on shaky assumptions. If a model gives you a different value than the market, it's more likely you found a flawed model than a mispriced security. Here I actually have a very readable book to recommend: Capital ideas, by Peter Bernstein.

   And last but not least, one of the most enlightening sources, although systematically biased in favour of free markets and international trade: the economist, I mean the magazine.

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4. epostsJul 2008
   Here is a good list: http://www.bogleheads.org/readbooks.htm

   General Investing

   # The Four Pillars of Investing - by William ("Bill") Bernstein.

   # Wise Investing Made Simple or The Only Guide to a Winning Investment Strategy You'll Ever Need - by Larry Swedroe

   # The Bogleheads' Guide to Investing - by Taylor Larimore, Mel Lindauer, and Michael LeBoeuf

   # All About Asset Allocation - by Rick Ferri

   # The Informed Investor - by Frank Armstrong

   # The Little Book of Common Sense Investing - by John "Jack" Bogle

   # The Coffeehouse Investor - by Bill Schultheis.

   Investor Behavior

   # Why Smart People Make Big Money Mistakes And How To Correct Them - by Gary Belsky and Thomas Gilovich

   # Your Money and Your Brain: How the New Science of Neuroeconomics Can Help Make You Rich - by Jason Zweig

   # Rational Investing in Irrational Times: How to Avoid the Costly Mistakes Even Smart People Make Today - by Larry Swedroe

   Financial History

   # Against the Gods and Capital Ideas - by Peter L. Bernstein

   # Devil Take the Hindmost: A History of Financial Speculation - by Edward Chancellor

   # A Random Walk Down Wall Street - by Burton Malkiel

   Like others here have mentioned, http://www.bogleheads.org/ is a great forum for Vanguard investors.

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