|
| |
"A little learning is a dangerous thing;
Drink deep, or taste not the Pierian spring:
There shallow draughts intoxicate the brain,
And drinking largely sobers us again."
—— Alexander Pope (1688-1744), Essay on Criticism, 1711.
Here you will find books which will discuss investing issues broadly.
For a more detailed discussion of narrow topics, see our
Reading Room for Articles and Papers. If you have questions about any of the materials referenced
here, contact us — we love
talking about this stuff!
The books listed below should be on every serious investor's bookshelf. The books
are listed in alphabetical order by author.
 | Frank Armstrong,
Investment Strategies for the 21st Century, (1995). This is
an outstanding online book which is freely available to all. Click on the link above
to read it.
|
| Gary Belsky and Thomas Gilovich, Why Smart People Make Big Money Mistakes And How To Correct Them: Lessons From
Life-Changing Science Of Behavioral Economics, (Simon & Schuster, 1999).
This book describes the irrational biases we all occasionally have, which
conspire to cause us to do things which are adverse to our financial
well-being. Being aware of them will help us to overcome them.
|
| William J. Bernstein,
The Four Pillars of Investing: Lessons for Building a Winning Portfolio
(McGraw-Hill, 2002). This is one of the best investing books ever
written, in our opinion. Interestingly, Dr. Bernstein's primary
occupation was that of a practicing Neurologist.
|
| William J. Bernstein,
The Investor's Manifesto
(John Wiley & Sons: 2012). This is one of the best investing books ever
written, in our opinion. Interestingly, Dr. Bernstein's primary
occupation was that of a practicing Neurologist.
|
| John C. Bogle,
Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor
(John Wiley & Sons: 2009). John Bogle is the founder of The Vanguard
Group and one of the leading advocates for low-cost index investing
strategies.
Any other books by Bogle should also be a good read.
|
| John C. Bogle,
The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair
Share of Stock Market Returns
(John Wiley & Sons: 2007). Largely an update to his Common Sense
book above.
Any other books by Bogle should also be a good read.
|
| Charles D. Ellis,
Winning the Loser's Game (McGraw-Hill,
2013). This book is basically
an instruction manual for how to be a prudent consumer of asset
management services. Mr. Ellis is brutally honest and pulls no punches
in criticizing the excesses of the financial services industry. While
the book's topics are assembled in a somewhat haphazard order, he makes
his points effectively.
|
| Burton G. Malkiel,
A Random Walk Down Wall Street:
The Time-Tested Strategy for Successful Investing
(W.W. Norton & Company, 2011). Originally published in 1973 but updated
several times since, this is a true investing classic.
|
| Larry E. Swedroe. Larry Swedroe has written many books about
investing aimed at the layperson. All of them are good and worthwhile
reading. |
The books listed below are somewhat more sophisticated and might be
enjoyed by professionals and more sophisticated investors.
| Ian Ayres and Barry Nalebuff,
Lifecycle Investing: A New, Safe, and Audacious Way to Improve the
Performance of Your Retirement Portfolio, (Basic Books, 2009).
An outstanding book on the importance of evening-out stock exposure over an
investor's lifetime. Their recommendation that younger folks invest
with leverage for the first few decades of their adult life is a bit
troubling, but the idea that younger folks should have high stock allocations
(i.e., as high as they can tolerate, up to and including 100%) is important.
|
| Peter L. Bernstein,
Capital Ideas: The Improbable Origins of Modern Wall Street (The
Free Press: 1992). This is a lucidly written history of the major
innovations in modern investing principles. Mr. Bernstein tells the
stories so that most lay readers should be able to understand the ideas being
discussed.
Any other books by Peter Bernstein should also be a good read.
|
| Peter L. Bernstein,
Capital Ideas
Evolving (Wiley: 2007). An update of his outstanding book above,
detailing advances since 1980.
Any other books by Peter Bernstein should also be a good read.
|
| Peter L. Bernstein and Frank J. Fabozzi,
Streetwise: The Best of The Journal of Portfolio Management (Princeton
University Press: 1998). This compendium of the best papers from 25
years of the Journal of Portfolio Management should be on any serious
professional investor's bookshelf.
|
| William J. Bernstein,
The Intelligent Asset Allocator:
How to Build Your Portfolio to Maximize Returns and Minimize Risk,
(McGraw-Hill, 2001). This is a well-written (though somewhat technical)
book. You can also read an archived copy of an earlier electronic
version of this book
here.
|
| Paul Cootner,
The Random Character of Stock Market Prices (Risk Books, 2000). This book is
a true classic of financial economics. Originally published in 1964, it
contains, among other papers, the classic Theory of Speculation, Louis
Bachelier's amazing dissertation, written in 1900, which may be the earliest
work describing the Efficient Markets Theory.
|
| Aswath Damodaran,
Investment Philosophies (John
Wiley & Sons, 2002). This book is freely available on-line
here. There are also lots of supporting materials (also available
free)
here. Dr. Damodaran is a professor at New York University's Stern
School of Business. He brings a refreshing objectivity to the issues.
His material is somewhat technical, but very well written.
|
| Elroy Dimson, Paul Marsh, and Mike Staunton,
Triumph
of the Optimists: 101 Years of Global Investment Returns (Princeton
University Press, 2002). An outstanding book surveying most major themes
in investing and investigating supporting trends over the past 101 years in
all the major (and many less major) markets in the world.
|
| Roger C. Gibson,
Asset Allocation: Balancing
Financial Risk (McGraw Hill, 2013). This book covers asset
allocation for the professional.
|
| William Reichenstein and William Jennings,
Integrating Investments & the Tax Code (John Wiley & Sons, Inc., 2003).
This outstanding book authoritatively addresses many questions dealing with
the tax effects of investing.
|
| Mark Rubinstein,
A History of the Theory of Investments (John Wiley & Sons, Inc.,
2006). This book might be thought of as a much more thorough (and harder
to read) version of Peter Bernstein's "Capital Ideas" book above.
|
| Frank Sortino and Stephen Satchell,
Managing Downside Risk in Financial Markets (Elsevier, 2003). An
excellent primer on the concept of Downside Risk.
|
| Nassim Nicholas Taleb,
Fooled by Randomness: The Hidden Role of Chance in the Markets and in Life
(Texere, 2001). An excellent book about the relationship between chance
(i.e., luck) and results.
|
| Nassim Nicholas Taleb,
The Black Swan: The Impact of the Highly Improbable (Random House,
2007). An excellent follow-on to Fooled by Randomness above. |
The books listed below should also be worthwhile.
| Frank Armstrong,
The Informed Investor: A Hype-Free Guide to Constructing a Sound Financial
Portfolio (Amacom, 2002). This is an updated, printed
version of Mr. Armstrong's (freely available)
online book.
|
| Gregory Arthur Baer and Gary Gensler,
The Great Mutual Fund Trap (Random House, 2002). A
no-holds-barred exposé of the actively-managed mutual fund industry.
Here's a good review of the book.
|
| Rick Ferri,
All About Index Funds (McGraw-Hill, 2002).
Anything else by Rick Ferri should be good too.
|
| Rick Ferri,
All About
Asset Allocation (McGraw-Hill, 2005).
|
| Taylor Larimore, Mel Lindauer, and Michael LeBoeuf,
The Bogleheads Guide to Investing (John Wiley & Sons, Inc., 2006).
A basic book on prudent investing principles. Written by and for
laypeople.
|
| Dean LeBaron and Romesh Vaitilingam,
The Ultimate Investor: The
People and Ideas that Make Modern Investment. This is an
online book which is freely available to all. Click on the link above to
read it. |
This web page contains the current opinions of Eric E. Haas at the time it is
written—and such opinions are subject to change
without notice. This web page is intended to serve two purposes:
| To educate the public; and |
| To provide disclosure of Mr. Haas' opinions to prospective clients.
We believe that prospective clients are well-served by being made aware of
what they are buying—and what they are buying is advice
that is based on these opinions. |
We believe the information provided here to be useful and accurate at the time
it is written.
Information contained herein has been obtained from sources believed to be
reliable, but is not guaranteed.
No investor should invest solely on the basis of information listed here.
Before investing, it is important to consult each prospective investment's
prospectus and consider both its risk/return characteristics and its effect on
your overall portfolio.
This information is not intended to be a
substitute for specific individualized tax, legal, or investment planning
advice. Where specific advice is necessary or appropriate, Altruist
recommends consultation with a qualified tax adviser, CPA, financial planner, or
investment adviser. If you would like to discuss the rationale or support
for any particular idea expressed on this web page, feel free to
contact us. |
