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The Intelligent
Asset Allocator by William
Bernstein, MD
Excellent evidence-based discussion of what matters in investing, with emphasis on constructing a well-balanced portfolio using index funds. As an aside, Bill Bernstein is a practicing neurologist in Oregon AND co-founder of a large fee-only investment firm ($25 million minimum.) -
The Winner's
Curse: Paradoxes and Anomalies of Economic
Life by Richard Thaler
A survey of the relatively new field of behavioral finance, which is the study of why people make the financial decisions they do. Shows that it's very easy to fall into mental traps that cause bad decision making. -
Fooled by
Randomness: The Hidden Role of Chance in
Markets and in Life by Nassim
Taleb
The message in this fascinating book is that it's very easy to confuse luck with skill in many arenas, including the financial arena, and doing so can be a very costly mistake. -
Against the
Gods: The Remarkable Story of
Risk by Peter Bernstein
An interesting (at least I thought so!) history of the concept of risk going back to 1500s. -
The Intelligent
Investor by Benjamin
Graham
Ben Graham was Warren Buffet's early mentor. More than anything else, this book is about applying rationality to making investment decisions. -
The Millionaire
Next Door by Thomas
Stanley
An entertaining book about who are the millionaires in this country. Generally not who most people think. -
Freakonomics
by Steven Levitt and Stephen Dubner
NY Times bestseller for over a year now. Very interesting and entertaining look at many questions not typically thought of as economics related: What ads work in the online dating environment? If drug dealers make so much money, why do most of them live at home with their mothers? Which is more dangerous, having a gun or swimming pool? And many more. Great read. Highly recommended.
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