Hey guys (and gals), I know that I talk about reading quite a bit on this blog. I’ve also noticed that I’ve barely mentioned to you any of the books that I’ve read which have helped me get to the point that I’m at now. I’ve been extremely vague with the sources that I use in order to attain new and relevant information.
And for that, I am sorry
Which is why I am writing this post. I want to right the wrong that was caused by lack of clarity. In this post, I’m going to go into depth on a few of the books that I’ve read so far in 2018.
This post will give a short description of each of the books and the area that each book has helped me in. Each book section will also feature links (affiliate links) which will guide you to the place that I purchased the book from in the first place.
A Man For All Markets by Edward O. Thorp
Before I go any further, this book is a biography of the author. It talks about all of the things that he’d learned throughout his life, the places that the journey has taken him, and all of the people that he’s met.
The thing about this book is that, even though it covered all of the adventures that he’d gone on during his active lifetime, it still holds a bunch of information regarding statistical measurements and trading.
It talks about how he used arbitrage(trading the spread) across several different markets and how he’s protected his hedge fund from the financial massacre that took place in 1987 due to algorithmic traders and a few small miscalculations.
Edward went over the method that he’d used in order to beat both the roulette table, poker, and the market.
With that, this book would be great for those seeking to find their edge in the markets (or any endeavor really).
If interested, here’s my affiliate link to this book
Sway by Ori and Rom Brafman
Sway was a book that truly made me think. I’d originally purchased this book so that I could gain a better understanding of irrationality and the way that the mind works.
I’ve always been interested in the human mind and our decision making abilities.
The thing is that this book covered much more than just irrational decision making, it talks about the world the way that the authors view it and, I have to say that their perspective on things is something to really pay attention to.
Rom and Ori brought a few good points to mind throughout this book. Things such as human’s innate desire to refrain from taking losses or how different cultures look at fairness differently.
The fairness portion was incredibly interesting to me.
For a small taste of what this book talked about, look below.
In one of the chapters, the authors discussed the concept of fairness and how it is viewed differently in different parts of the world.
To demonstrate this they gave two examples from two different peoples; one of them was (again, obviously) America and the other were the Machiguenga.
To sum the story up(it’s kind of elaborate), the people of America believed(and this was statistically backed up information) that for something to be split fairly it would have to be 50/50; even if they didn’t work for it whatsoever.
Even though it was something that they wouldn’t have had otherwise, they would refuse to accept anything short of 50 percent. On the other hand, the Machiguenga stated that they would accept any number of something that they hadn’t had to work for at all.
They believed that it made a ton of sense for them to accept whatever that they were offered simply because of the fact that they wouldn’t have owned it otherwise.
Do you see what I’m getting at?
The authors suggested that the idea of fairness depended totally upon the people; that it’s taught.
This was a great book and if you’re interested don’t hesitate to check it out.
Last but not least we have Numbah 3.
Security Analysis by Graham and Dodd
This book focused heavily on the ways to break down financial statements and to understand a few types of derivatives.
I want to remind you of one thing before anything else. This book is about 800 pages long and is full of financial mumbo-jumbo.
It was interesting to me solely because I need the information.
That means that this book is one of those acquired taste types of books and probably won’t be very interesting to most. But, it did teach me a lot.
It helped me understand the scams of stock financings, a few of the ways that accountants can manipulate their balance sheets, and how to implement safety measures so that a balance sheet isn’t valued too highly.
Among many other things.
Again, this is a book that will probably require you to gain a love of the financial markets before you’re ever really able to enjoy it.
These are just a few of the books that I’ve read and that has helped me gain a bit of the knowledge that I have on a few topics.
Again, these books center mostly on things that have and are helping me gain an understanding of the financial markets and human behavior; they may be interesting to you though. Who knows.