What’s worth reading?
We are frequently asked what investment material is worth reading. There is a tremendous amount of material out there, but so much of it is simply noise, and it can be difficult to sift through the good and bad. Through the years I have learned to narrow my financial reading to voices that are credible and have a long track record of deep analysis and success. I’m not looking for tricks or gimmicks, but timeless truths that can help in any type of market or economy. Here are a few recommendations of what is worth reading.
1. The Behavior Gap by Carl Richards – a basic, clear guide to markets and investor behavior, highlighting biases that result in investor underperformance.
2. Wisdom Before Wealth by Randall Sanada – Originally written as a letter to his grandchildren, Randall outlines the steps to wealth creation. This is not just an investing book, but a book that is about the basic steps to create lasting wealth.
3. Thinking Fast and Slow by Daniel Kahneman – A landmark book by Nobel prize winning economist Daniel Kahneman about the human mind and the surprising mistakes that impact our thinking. While not an investing book, Thinking Fast and Slow challenges how we make decisions in life and investing.
4.The Most Important Thing by Howard Marks – a compilation of client letters by legendary investor Howard Marks.
5. Predicting the Markets by Ed Yardeni – This book is admittedly more technical and reads as a compilation of life experiences and economic tools that economist Ed Yardeni has used to analyze markets.
For those who are interested in more current topics, here are a few books that I am reading right now:
1. Covid-19 The Great Reset by Klaus Schwab – Written by the leader of the World Economic Forum, Klaus Schwab, the book outlines the WEF’s vision for a new type of capitalism (which sounds an awful lot like socialism). While I disagree with the vision of the book, I am reading it to understand how forces are trying to nudge capital markets toward this new future.
2. The Dictatorship of Woke Capital by Stephen Soukup – An eye-opening book about the campaign to politicize corporate America, distracting managers from the goal of increasing value for investors. If you are wondering why Disney has destroyed 50% of shareholder value this year, this book helps explain why.
3. In Praise of Profits by Ed Yardeni – One of my favorite authors, Ed Yardeni outlines the foundational philosophy why corporate profits benefit everyone. This book could be considered a philosophical antidote for woke capital.