What began as a newsletter afterthought has grown into one of the most talked about areas of the newsletter.  So I have decided there might as well be a page devoted to reading .

General Recommendations   Reading, Writing

  How to Read a Book by Charles Van Doren.  It was originally published in 1940 and is a classic.  I remember when I read it in college (it was part of a Philosphy course). I thought it was essentilaly common sense, BUT seeing the reading practices of many since then, it seems not many know how to actively read a book, this will teach you. 

Elements of Style By Strunk and White.  Another classic, it was originally written "during WW I,"  it covers how to write.  They can even make grammar interesting.  If you do not beleive me, read the reviews from Amazon. 

Recent Books read (from the newsletter): 
 

April 1865: the Month that Saved America by Jay Winik is one of the best books I have read in months.  The basic premise so far is that before the Civil War, the US was really just a group of states and not a nation.  Fascinating.  I have long thought we owe Robert E. Lee a great deal for not turning the Civil War into a guerrilla war, but this is making the point (and others) even more clear.  GREAT!!

To America: Personal Reflections of an Historian by the late Stephen Ambrose.  I really liked it.  Ok, it may not have been an academic history, but it was entertaining and largely historical.   A great read!

Thomas Jefferson: Genius of Liberty .  The introduction by Garry Wills alone is worth the price.  Which is good since much of the rest of the book is pictures

I absolutely love Fooled by Randomness by Nassim Nicholas Taleb. It is not the fastest read in teh world, but it is VERY well done!  You’ll love it!

Six Nightmares By Anthony Lake.  While it really was many more than 6, it was very good and quite educational.  I think I could have lived with it being a tad shorter, but highly recommended by me.  I have no idea what some of the others on Amazon are thinking.  Yes he defended Clinton occasionally and yes he wandered a bit, but come on it was very interesting regardless.

Pickett’s Charge in History and Memory by Penn State’s own Carol Reardon.  Sure the book is about the famous charge at Gettysburg, but it serves to point out a much larger and more important truth, that accounts of what happened (in battle or elsewhere) are just that.  My favorite line: “History is an Agreed Upon Lie.”  Good

Finance Reading List

These books are in no particular order but are all very good.
 

1. A Random Walk Down Wall Street by Burton Malkiel.  Before you begin trading you should definitely read this.  Obviously it stresses the Efficient Market Hypothesis.  This is a classic must read!
2. The Complete Finance Companion: Mastering Finance by The Wharton School (Editor), the London Business School, University of Chicago Graduate School of Business.  This is one of my favorites.  I actually paid for a text!  This is largely a text and it is written by some of the top people in Finance.  I HIGHLY recommend it.  I have read much of it twice!  MUCH cheaper than a true "text."
3. Devil Take the Hindmost: a History of Financial Speculation Edward Chancellor--Not a great book but a good history lesson and very interesting.  Some things are amazing. For example derivatives have been traded and also harangued for thousands of years!  Great for antecdotes for teaching!
4. The Great Game: the Emergence of Wall Street as a World Power (1653-2000) by John Steele Gordon.  Filled with antecdotes and financial trivia.  A fun read!
5. Rich Dad Poor Dad by Robert Kiyosaki and Sharon Lecter CPA.  An interesting and quite motivational read that I enjoyed.  However do not read it for facts, as there are several/many errors and inconsistencies.  However I am glad I read it.  Need not be a Finance major.  In fact it may be more benefical if you are not!  Simplistic in parts but many good points and quite motivating.  Basic ideas are not new (invest, avoid taxes, avoid excess liabilities) but brings into the forefront the idea of "minding your business."  Realizing you will likely change jobs, keep your big picture in mind and out watch for getting yourself into unnecessary financial problems.  Problems are in details and facts.  But as a business "novel" it was fun.
6. Fiasco by Frank Partnoy.  Very good!  Entertaining and informative. Hopefully things are not as bad as he says.  The story of a derivative trader at Morgan Stanley.
7. The Bankers: the Next Generation by Martin Mayer:  I was tempted to require this for my Money and Banking Class.  Very readable, interesting, and informative.  Good examples for class or for understanding.
8. Liars Poker - A very entertaining book!  About a bond trader in the 1980s.  Funny, with good insights it is an easy, fast read.
9. Barbarians at the Gate: the Fall of RJR Nabisco by Bryan Burrough and John Helyar.   My favorite.  It reads like a novel and is written by Wall Street Journal  reporters.  A real page turner!  Also avaliable on Cassette 
10. Beating the Street  by Peter Lynch--Even though I have serious reservations on whether anyone can consistently "Beat the Street" this is a good story and is interesting.  Also has a Cassette Version 
11. The Warren Buffet Way --What has not been said about Warren Buffet?  He is arguably the most famous and successful investor of our time.  He has a cult-like following.  I am not convinced this is the best book about him but it is pretty cheap! Also on Cassette 
12. Creating Shareholder Value:  a Guide for Managers and Investors by Alfred Rappaport.   While not a perfect book, it sounds like my class in many areas!  Very sound financial theory throughout.
13. Managing Financial Risk : A Guide to Derivative Products, Financial Engineering and Value Maximization (Irwin Library of Investment & Finance) by Charles W. Smithson, Clifford W. Smith.  Ok so has the longest title going.  As I say on my summaries page, I will read anything by Smith.   This is no exception.  He makes the difficult, easy.  I model my teaching on his as much as possible.
14. Capital Ideas and Market Realities: Option Replication, Investor Behavior, and Stock Market Crashes  by Irwin Jacobs with a reface by Markowitz!  Deals with the idea that portfolio insurance may have magnified the crash of 1987 and that these ideas (selling into a falling market) increase volatility.  Also denounces many option strategies.  READ THE PREFACE!  Problem with model based trading.  Especially recommended for the more quantitative amound us.
15. Index Mutual Funds: Profiring from an Investment Revolution is a pretty cool book on investing in Index mutual funds. It talks about how they outperform actively managed funds and even discusses the track record of some of investment's super stars such as Peter Lynch.
16. Confessions of a Venture Capitalist: Inside the High Stake World of Start-up Financing by Ruthann Quindlen.  It is a good book but does Bill Gates really call her for advice?

 

1. The Principles of Corporate Finance by Brealey and Myers.  The best finance text there is.  I would recommend that every advanced corporate finance class in the world use this!
2. The Fundamnetals of Corporate Finance by Brealey, Myers, and Marcus.  An excellent introductory Finance text.  Often called "Baby Brealey."  I have used it in class several times and it is easy, fun, and interesting.  Good if you are learning the subject on your own (or with this web site ;-)  )
3. The New Corporate Finance: Where Theory Meets Practice by Donald Chew  This is a collection of academic journal articles and roundtables that focus on Corporate Finance.  Interesting for the serious student, a bit much for some.  I think the Revolution in Corporate Finance may have been better.

 

 
 
 
 
 
 
 
 
 
 
 

Not a Finance book but recommended to anyone who writes in the course of the day.  I especially recommend it to my students!  ;-) 
 
Elements of Style by Strunk and White.  While not a finance book but I have recommended it to so many students it deserves to be here!  if you do not believe me, read the reviews on Amazon.com .   It is a classic that needs no introduction.  Everyone should have this book! 
 

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Reading is a thing that I love to do but rarely have time.  I have become a BIG backer of Books-On-Tape .  Where else can you "find" time?!  and Time is our most valuable resource.   I am constantly listening to many books.  As I write this I am in the midst of listening to three books and reading 4 or 5 other books on everything from Finance to Gardening to Cuban prisons.  But alas this is a Finance site so I will only list finance books here.  I may start another list elsewhere of other great books. 
 

* I am including links to Amazon.com.  If you do buy from them please do so through the links provided above.  Supposedly they lose money on these purchases which is good since I think they are getting too spread out (deworsification anyone?) and also as they have now entered the grocery business.   Thanks!