The end of summer generally signals the hottest time of year, so what better way to beat the heat than with a good book and a cold drink? A genuine thirst for knowledge is part of RGT’s culture, and members of our Investment Team would like to share some of their favorite books with you. We’ve included books for those that love a good narrative, books for the analytically minded, and even something for the sports fans. Please enjoy.
The Most Important Thing, by Howard Marks is comprised of various letters Marks has written over the years. The letters provide insight into the famous investor’s strategy, as well as his views on markets and the overall economy. Value investor Warren Buffett has said of Marks, “When I see memos from Howard Marks in my mail, they’re the first thing I open and read. I always learn something, and that goes double for his book.”
The Intelligent Investor: The Definitive Book on Value Investing, by Benjamin Graham has been a must-read book since it was first published in 1949. As evident by its title, this book introduces value investing in a manner that transcends time.
Bulls, Bears, & Basketball: Financial Planning for College Hoops Fans, by Chuck Thoele is an RGT staple, and a must-read for college basketball fans. Published by one of our founders, the book presents financial planning in a relatable, easy to read manner.
Thinking, Fast and Slow, by Daniel Kahneman is an overview of Economist Daniel Kahneman and Psychologist Amos Tversky’s findings over their careers, based on behavioral science. The book provides several examples and explanations of their experiments and findings, along with more recent studies on happiness. This book is essential to an understanding of the science behind behavioral investing.
The Undoing Project, by Michael Lewis was published last winter and is about Kahneman and Tversky’s lives and careers. It touches on their history and explains their research and conclusions. While not as detailed as ‘Thinking, Fast and Slow,’ it is written in narrative form by a best-selling author.
Red Notice, by Bill Browder has elements of suspense, intrigue, finance, and Russian politics. Bill Browder is the co-founder and CEO of an investment firm that was once the largest foreign portfolio investor in Russia. The book is an unbelievable true story written like a crime thriller. You won’t want to put this one down.
Against the Gods, by Peter Bernstein describes the history of probability and risk management, from the early games of chance and probability theory to modern applications of risk management. While the book was written in the mid-90s and is dated to a certain extent, it still touches on the rise of derivatives in modern finance.
Devil Take the Hindmost: A History of Financial Speculation, by Edward Chancellor, paints a historical picture of how economic and psychological forces drive the desire to speculate. From the Tulip mania of the 1600’s to Long-Term Capital Management’s collapse in the late 1990’s, readers will see how bubbles are made, manipulated, and who wins when they pop.
This list is not exhaustive, but ideally it gives readers some insight into what drives our thinking, and lets you know what we like to read. Please enjoy the remaining “dog days” and let us know if we can serve you in any way.