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August 2010



Don't Invest Based on Economy Outlook

August 29, 2010 – Comments (7)

I think it's very dangerous to invest based on economic outlook.   [more]



Investing Books

August 19, 2010 – Comments (0)

If you are looking for investing books to read, here's a list of some of my favorites. If you are new to investing, I've kind of put them in an order that I think would make sense to read them, but feel free to pick and choose whatever interests you. And I've grouped them into bottom-up and top-down books. You could start with a couple bottom-up books, then read a couple top-down books or something.

These books are more "bottom-up" - they deal more with individual stocks and fundamental analysis:

One Up On Wall Street by Peter Lynch - Entertaining and quick read, probably every investor has read this book

The Little Book That Beats the Market by Joel Greenblatt - Easy read and informative about basics

Little Book That Builds Wealth by Pat Dorsey - You can skip this if you read 5 rules (below) since this is basically a condensed version. But it's is still good, reading both wouldn't hurt.

5 Rules For Successful Stock Investing by Pat Dorsey - This is the best investing book I've read by far. Goes in-depth into topics like competitive advantage, economics of different industries, and valuation.

You Can Be a Stock Market Genius by Joel Greenblatt - Great book, despite the cheesy title. Special situations investing. More short-term value investing strategies.

The Little Book of Value Investing by Christopher H. Browne
- Decent book about value investing, some good examples and ideas.

The Intelligent Investor by Benjamin Graham - written by the "Father of Value Investing", mentor of Warren Buffett. Old book so not as readable, but still relevant.

These books are more "top-down", talk more about the overall market and broad sectors:

Stocks For The Long Run by Jeremey Siegel
- Some history of the stock market, some great stats

A Random Walk Down Wall St. by Burton Malkiel
- An important book because the Efficient Market Hypothesis is so prevalent. I disagree with it, but it has some good arguments.

The Future For Investors by Jeremey Siegel
- Another good top-down book, dealing with what's worked in the past and what will work in the future.

The Only Three Questions That Count by Ken Fisher - Deals more with economics than the other books. Pretty interesting stuff, though some of it is a bit controversial.

More Than You Know by Michael J. Mauboussin - I don't even remember, it talked about so many different topics. Good stuff though.

Value Investing: Tools and Techniques for Intelligent Investment by James Montier
- Spends half the time ripping on EMT, so you can contrast it with Random Walk. Other half is spent discussing value stocks from a statistical, top-down view.  [more]

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