Security Analysis

I think the first question that you will face is if you agree with the Efficient Market Hypothesis (EMH) and the random walk. Basically they say that prices reflect all available information and that you cannot "beat" the market (there's a subtle difference between EMH and random walk). The return on an investment is a direct reflection of the risk. Good reading to get an understanding for this are "A Random Walk Down Wall Street" and papers by Eugene Fama (EMH will be covered by any intro to finance book as well). For a good overview of EMH, I like this paper: http://www.cs.ucl.ac.uk/fileadmin/UCL-CS/images/Research_Stu... (http://www.cs.ucl.ac.uk/fileadmin/UCL-CS/images/Research_Student_Information/RN_11_04.pdf) The investment takeaway is that you should invest in passive index funds with low management cost (typically ETFs).…

I've been having an interesting time working through Security Analysis by Graham and Dodd. It's ancient, but it really gets to the heart of what bonds and stocks actually are, and gives you an insight into how everything worked before it all got accelerated to the Nth degree. The historical perspective of the 1928 crash being recent memory is really interesting too.

Preface: For a bit of I suppose... uhh, qualification, I took nearly every single upper division Economics class my university offered (~25). I did so because I LOVE Econ. Also, sorry for the rambling nature of this. First things first, finance is only sort of economics, it's really just finance. I'd highly recommend taking an accounting class (or book) and a grab an intro finance book. Accounting will really help with jargon, and just some really basic things (like balance sheets). Also, "Security Analysis" [0] is the "only" book you'll ever need, Warren Buffet recommended it to Bill Gates, and now Bill Gates recommends it to everyone. Back to Economics... There are two primary "groups" of thought... sort of like twins separated at birth who grow to hate each other. ---------------------------------- The First: Neoclassical Economics ----------------------------------…

Security Analysis - 1940 Edition. Re-reading it for the one millionth time. Always learn something new from it.

I probably have bookmarks in 20+ books but these are at the top of the pile: The Art Of Probability , Richard Hamming. I find prob/stat frustratingly hard to master. This book is clearing up my confusion chapter by chapter. As an engineer this book appears to be written for someone with exactly my level of knowledge which helps a lot. Conspiracy of Fools , Kurt Eichenwald. Very entertaining ... shining examples of what not to do. Security Analysis, 1934 Edition, Graham and Dodd. They authors are exquisitely clear thinkers. I don't know how useful the financial information is because it is 80 years old.

I have read many of the recommend books. Here are my two pence. Books on Wealth 1. "Rich Dad Poor Dad" and find out exactly why someone becomes rich. (if you like this one, at some point you may also want to quickly scan through "Cashflow Quadrant Rich Dad's Guide to Financial Freedom".) 2. Also "chapter 6 - How to make wealth" from "Hackers and Painters's chapter 6 - " 3. "The Way to Wealth by Benjamin Franklin" Investing books in this order 1. Peter Lynch's One Up on wall street 2. The Intelligent Investor (Ben Graham) 3. Common Stocks and Uncommon Profits 4. Security Analysis (Ben Graham) 5. The Warren Buffet Way is a famous business read not exceptional but read it if you have some time left 6. A Random Walk Down Wall Street (Read it for a good laugh) Do NOT read 1. AA- The Motley Fool Money Guide 2. How Gerge Soros Knows What He Knows 3. Investing Online For Dummies 4. Malkiel Burton - A Random Walk Down Wall Street 5. Cracking the millionaire code 6. Joel Greenblatt - You Can Be A Stock Market Genius

The New New Thing Founders at Work Hackers and Painters How To Get Rich Competitive Strategies The Intelligent Investor (or Security Analysis) Liar's Poker