To be honest, I reread some CFA readings, but mainly focus on Youtube a lot. Recently looked at hedonic pricing models, kelly’s criterion for efficient capital allocation and brownian motion.
IF you want a book to hold, the intelligent investor I cannot agree with more. You could also look at common stocks and uncommon profits and another one, not quite sure if i can remember the title, “irrational exuberance” by shiller. I did economics at uni and the author was pretty entertaining.
I’m tending to read a bit of the top management books if you wanted to look there as well like Good to Great. They don’t drain your brain like some of the finance books and easy to read on public transport.
just my 2cents
I thought everybody had the opposite problem – too much on the reading wish list and not enough time. Investing and finance probably the most written about subject. There is so much good stuff out there. My favorite author is Jack Schwager. He has several book where he interviews the best in various roles and he’s a very competent finance guy himself, so he explains concepts where necessary.
A bit out of topic, but I just wanted to share my favourite passage from one of the more entertaining finance-related books, Liar’s Poker:
want to be an investment banker. Lehman Brothers is the best. I want to be
rich. On the appointed day, at the appointed hour, I rubbed two sweaty palms
together outside the interview chamber and tried to think only pure thoughts
(half-truths), such as these. I did a quick equipment check, like an astronaut
preparing for lift-off. My strengths: I was an overachiever, a team player, and
a people person, whatever that meant. My weaknesses: I worked too hard and
tended to move too fast for the organizations I joined.
name was called. Lehman interviewed in pairs. I wasn’t sure I stood much of a
chance against one of these people, much less two.
news. Lehman had sent to Princeton one man and one woman. I didn’t know the
man. But the woman was a Princeton graduate, an old friend I hadn’t expected to
see. Perhaps I would survive.
news. As I walked into the cubicle, she didn’t smile or otherwise indicate that
she knew me. She later told me that such behavior is unprofessional. We shook
hands, and she was about as chummy as a boxer before a fight. She then retired
to her corner of the room, as if waiting for the bell to ring. She sat silently
in her blue suit and little bow tie. Her accomplice, a square-shouldered young
man of perhaps twenty-two, held a copy of my resume.
the two of them they had two years of investment banking experience. The
greatest absurdity of the college investment banking interview was the people
the investment banks sent to conduct them. Many of them hadn’t worked on Wall
Street for more than a year, but they had acquired Wall Street personas. One of
their favorite words was professional. Sitting stiffly, shaking firmly,
speaking crisply, and sipping a glass of ice water were professional. Laughing
and scratching your armpits were not. My friend and her accomplice were exhibit
number one in the case against becoming a professional. One year on Wall Street
and they had been transmogrified. Seven months earlier my friend could be seen
on campus wearing blue jeans and a T-shirt that said dumb things. She drank
more beer than was healthy for her. She had been, in other words, a fairly
typical student. Now she was a bit player in my Orwellian nightmare.
young man took the seat behind the cold metal desk and began to fire questions
at me. Perhaps the best way to describe our encounter is to recount, as best as
memory will allow, what passed for our conversation:
YOUNG MAN: Why don’t you explain to me the difference between commercial
banking and investment banking?
(making my first mistake by neglecting to seize the chance to praise investment
bankers and heap ridicule on the short work hours and Lilliputian ambition of
commercial bankers): Investment bankers underwrite securities. You know, stocks
and bonds. Commercial bankers just make loans.
YOUNG MAN: I see you majored in art history. Why? Aren’t you worried about
getting a job?
(clinging to the party line of the Princeton art history department): Well, art
history interested me most, and the department here is superb. Since Princeton
doesn’t offer any vocational training, I don’t believe that my choice of
concentration will make much difference in finding a job.
YOUNG MAN: Do you know the size of U.S. GNP?
I’m not sure. Isn’t it about five hundred billion dollars?
YOUNG MAN (casts a meaningful glance at the woman who I thought was my friend):
More like three trillion. You know we interview hundreds of people for each
position. You’re up against a lot of economics majors who know their stuff. Why
do you want to be an investment banker?
(obviously, the honest answer was that I didn’t know. That was unacceptable.
After a waffle or two, I gave him what I figured he wanted to hear): Well, really,
when you get right down to it, I want to make money.
YOUNG MAN: That’s not a good reason. You work long hours in this job, and you
have to be motivated by more than just money. It’s true, our compensation is in
line with our contribution. But frankly, we try to discourage people from our
business who are too interested in money. That’s all.
all? The words ring in my ears. Before I could stop it from happening, I was
standing outside the cubicle in a cold sweat listening to the next candidate
being grilled. Never for a moment did I doubt the acceptability to an
investment banker of a professed love of money. I had thought that investment
bankers made money for a living, the way Ford made cars. Even if analysts were
not paid as well as the older investment bankers, I had thought they were meant
to be at least a tiny bit greedy. Why did the square young man from Lehman take
offense at the suggestion? A friend who eventually won a job with Lehman
Brothers later explained. “It’s taboo,” he said. “When they ask
you why you want to be an investment banker, you’re supposed to talk about the
challenges, and the thrill of doing deals, and the excitement of working with
such high-caliber people, but never, ever mention money.”
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