For someone who’s never been in finance before, what are your recommendations for some general knowledge 101 type books? For example, on economic indicators, investing, etc.? I’m looking to get more of a general background that I can build on, but nothing specific. Thanks.
I started with Yahoo message boards while watching Suze Orman on cable television. If you don’t have internet or cable tv then borrow this book from your library: http://www.amazon.com/Margin-Safety-Risk-Averse-Strategies-Thoughtful/dp/0887305105
Maybe a few years ago it was possible. Klarman’s book used to be the one of the most stolen books at Libraries that carried it. I would be shocked if they let you even use it without being monitored.
Read as much as possible. Go to the library or bookstore, glance the investments section, grab a book that catches your eye and start reading. Doing that will introduce you to various finance topics over time. The internet sites like Yahoo Finance, Morningstar, Money, etc are great free sites. Check those out daily as well.
investopedia-dot-com isn’t a bad reference site, I think they used to have nice tutorials on stuff. I found seekingalpha-dot-com also had useful info.
Random Walk down Wall Street - Very informative and easy/fun to read. Millionaire Next Door/Automatic Millionaire - Useful information on saving/investing.
Want to learn - Wall Street Journal (soon to be free). New York Times (now free). Search for blogs that talk about finance a lot. Judge their credibility as some blogs are crap. Read read read read read. Go to the library and pick books that seem interesting. and so forth.
Easiest way: take level one of the cfa exams.
I’m going to post a big list here, but one that I recently read and liked a lot was Value Investing with the Masters by Kirk Kazanjian It’s basically a set of interviews with various value-oriented managers. Great insight into their thought process. Really enjoyed it. In no particular order… Latticework: The New Investing by Robert G. Hagstrom Expectations Investing: Reading Stock Prices for Better Returns by Alfred Rappaport The Warren Buffett Way, Second Edition by Robert G. Hagstrom Capital Ideas: The Improbable Origins of Modern Wall Street by Peter L. Bernstein Financial Shenanigans: How to Detect Accounting Gimmicks & Fraud in Financial Reports, by Howard M. Schilit Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets by Nassim Nicholas Taleb The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron by Bethany McLean When Genius Failed: The Rise and Fall of Long-Term Capital Management by Roger Lowenstein The Essays of Warren Buffett : Lessons for Corporate America by Warren E. Buffett Den of Thieves by James B. Stewart The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else by Hernando De Soto Moneyball: The Art of Winning an Unfair Game by Michael Lewis In an Uncertain World: Tough Choices from Wall Street to Washington by Robert Rubin The Predators’ Ball: The Inside Story of Drexel Burnham and the Rise of the Junk Bond Raiders by Connie Bruck Buffett: The Making of an American Capitalist by Roger Lowenstein A Random Walk Down Wall Street: Completely Revised and Updated Edition by Burton G. Malkiel Barbarians at the Gate: The Fall of RJR Nabisco by Bryan Burrough One Up On Wall Street : How To Use What You Already Know To Make Money In The Market by Peter Lynch Good to Great: Why Some Companies Make the Leap… and Others Don’t by Jim Collins The Roaring Nineties: A New History of the World’s Most Prosperous Decade (Open Market Edition) by Joseph E. Stiglitz Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets by Nassim Nicholas Taleb The Intelligent Investor: The Classic Text on Value Investing by Benjamin Graham You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock Market Profits by Joel Greenblatt Common Stocks and Uncommon Profits and Other Writings by Philip A. Fisher The Little Book That Beats the Market by Joel Greenblatt Market neutral investing: long/short hedge fund strategies by Joseph G. Nicholas
I would also recommend A Random Walk Down Wall Street (Malkiel). A great intro and overview of basic finance theory. Fun read, and easy to follow. Excellent for beginners.
I recommend the General Discussion board of Analyst Forum.
Monkey Business (Investment Banking) by John Rolfe and Peter Troob Confessions of a Wall Street Analyst (Equity Research) by Dan Reingold
Nice list. I’d like to add: All about Hedge Funds: the easy way to get started Robert Jaeger (terrible title, but it gives a really good overview of hedge fund strategies, as well as a great discussion about how capital markets, traders, IB, hedge funds, prime brokers, etc. all fit together) If you like the hedge fund info, then read: Absolute Returns Alexander Ineichen (he has a new book called Assymetric Returns, which is on my to-read list) If you like trading, I really liked: The Way of the Turtle Curtis Faith Trading for a Living, or Come into my Trading Room Alexander Elder
REMINISCENCES OF A STOCK OPERATOR, Jesse Livermore
Liar’s Poker.