TBR List

General:

• Beginner
  • BOGLE, John – Little Book of Common Sense Investing
  • MALKIEL, Burton – A Random Walk Down Wall Street
  • LARIMORE, Mel; LINDauer, Taylor; LeBOEUF, Michael – The Boglehead Guide to Investing
  • BERNSTEIN, William – Four Pillars of Investing
  • MORRIS, Virginia B – Guide to Money & Investing
• Intermediate
  • BERNSTEIN, William – Intelligent Asset Allocator
  • A History of Interest Rates
  • The Myth of the Rational Market
  • CASSIDY, John – How Markets Fail
  • Alchemy of Finance
  • LYNCH, Peter – One Up on Wall Street
  • BERNSTEIN, Peter – Against the Gods
  • PONZIO, Joe – F Wall Street
• Advanced
  • Hedge Fund Market Wizards
  • Manual of Ideas

Corporate Fundamentals:

• Beginner
  • ITTELSON, Julie – How to Read Financial Statements
  • TRACEY, John – How to Read a Financial Report

Fundamental Analysis:

• Intermediate
  • GRAHAM, Benjamin – The Intelligent Investor
  • Expectations Investing
  • O’SHAUGHNESSY, James – What Works on Wall Street
  • Accounting for Value
  • 『Value Investing from Graham to Buffett and Beyond
  • ROSENBAUM, Joshua – Investment Banking
  • What’s Behind the Numbers
  • It’s Earnings That Count
  • FISHER, Philip – Common Stocks and Uncommon Profits
  • Contrarian Investment Strategies
• Advanced
  • Financial Statement Analysis and Security Valuation

Quantitative Strategies:

• Intermediate
  • Your Complete Guide to Factor Investing
  • Quantitative Strategies for Achieving Alpha
  • Quantitative Value
  • Quantitative Momentum
  • GOTTESMAN, Moorad – Derivatives Essentials

Macroeconomics:

• Beginner: Any current intro to macro textbook. It’s best to stick to a university level intro book here because most of those won’t try to push any sort of agenda.
• Intermediate:
  • Read up on money and banking. The standard textbook is Fredric Miskin (again get the latest edition). I thought the book was dry as dust (sorry Rick!) but it does go through the basics. If you are a serious investor you need to inoculate yourself against all the fairy tales from Austrians/bitcoiners/gold bugs/FED-haters generally that are floating around on the internet.
  • Another really great book is David Moss “Macroeconomics.” It’s a very concise book that he uses at Harvard b-school to give an overview to MBAs. It’s actually more basic than a textbook like Blanchard, but it’s so short and well-organized that it will give you the big picture AFTER you been immersed in the details.
  • Ed Leamer’s “Macroeconomic Patterns and Stories” cannot be recommended enough for investors. He is a serious econometrician, but here he emphasizes the importance of “Pictures, Words, and Numbers: In that order.” The book is all about forecasting the business cycle and gets you thinking about wrestling with the data. His examples are mostly US based (a large fairly closed economy) so you’ll need to keep that in mind when you consider small open economies (like say the Netherlands).
  • Read Carlin and Soskice “Macroeonomics” – again the latest edition. So why another macro book? It doesn’t hurt to look at things from a (slightly) different perspective. The explanation of the New Keynesian 3-equation model in the book is among the best. Go find the syllabus used at Oxford for their undergrad macro course to get some supplemental materials and essay topics.
• Advanced:
  • Read all the reports and releases that come from the main central banks (Fed, ECB, BoJ, BoE). This is indispensable for being a macro investor. Don’t rely only on the summarized, filtered version from the news. You want to get inside the head of Yellen, Draghi, Kuroda, and Carney and the rest of the people on the monetary policy committees. How are they interpreting the news, what mental and formal models are they using, where do they disagree? Modern central banking has moved toward policy transparency so investors need to be well-calibrated to what is being said and follow their lead in many cases.
  • Get a book on economic indicators. There a few standard ones somewhat skewed to the US audience. Goldman Sachs at least in the past, puts out guides to macro releases. Don’t worry if you can’t get your hands on these, just go to the relevant government agency website and there will be more details than you could ever want. Of course, it will take experience to understand how markets react to the different macro announcements.
  • Get up to speed on market-based indicators. These will tend to be the most up-to-date, forward looking indicators since they are based on traded financial instruments. An example is Fed funds futures from which you can extract the market’s expectation of a rate change. There are lots of traded instruments that will give you insight into what the market thinks is going on for interest rates, inflation, etc. Options on equity indices will also give you information. If you need some background, get Hull’s excellent introductory book on options.
  • Read the article on money creation from the Bank of England. Resident mod (and I hear also a very good cook in real life) u/MasterCookSwag often provides this link in this sub when battling the above mentioned goldbugs, bit coiners and other loonies. You’ll find that it is additive even after you’ve read Mishkin.
  • Read the book “Economic Policy” by Bénassy-Quéré, Coeuré, Jacquet, and Pisani-Ferry. This book is written by a group of academics/policymakers and ties policymaking to economic theory. It’s not very technical, but covers a lot of ground and is very applied. It will help you understand what people at central banks and finance ministries are thinking about.
  • Finally, lest you think you know it all at this point, check out Uribe and Schmitt-Grohe’s forthcoming book “Open Economy Macroeconomics,” a draft manuscript of which is available for free here. The website also has lectures slides, computer code, and data so that you can really learn the material. Unfortunately, unless you are technically (i.e. mathematically) well-trained just reading the previous books in this list will not prepare you for this book since serious macro requires a lot more than curve-shifting. (Curve shifting is enough to be a very good investor, but if you want to know what the experts are talking about, you need to go beyond. But go in with your eyes open and read Romer’s recent essay on the state of affairs.)
  • If necessary (for example to understand the Uribe book), take a step back and learn some of the technical foundations. Read David Romer’s “Advanced Macroeconomics” and work through the superb programming exercises at Tom Sargent and John Stachurski’s online course at Quantitative Economics, which can be done in Python or Julia. If you need to take another step back, read Stachurski’s recent book “A Primer in Econometric Theory” for a gentle introduction to probability and estimation.

By Topic

• Hedge Fund: https://www.streetofwalls.com/finance-training-courses/hedge-fund-training/hedge-fund-books/
• Accounting:
  • Financial Statements (Career Press, 11 June 1998)
  • MULLIS, Darrell; ORLOFF, Judith – Accounting Game (Sourcebooks, 1 November 1998)
  • FOTOPULOS, Dawn – Accounting for the Numberphobic
  • PIPER, Mike – Accounting Made Simple
  • Accounting All-in-One For Dummies (For Dummies, 10 March 2014)
  • Accounting: For Small Businesses QuickStart Guide (ClydeBank Media LLC, 28 February 2016)
  • Fundamental Accounting Principles (McGraw Hill, 20 October 2008)
  • Accounting, 6th edition (Barron’s Business Review Series)
  • Accounting: Tools for Business Decision Making, 5th Edition (Wiley, 10 December 2012 )
  • Accounting Principles (John Wiley & Sons, 1 February 2007)
• BUFFET, Warren – The Essays of Warren Buffett: Lessons for Corporate America