"Outside of a dog, a book is a man's best friend.
 Inside of a dog... it's too dark to read."
      - Groucho Marx

People often ask me for recommendations on books to read for more in-depth coverage of specific topics.  That's exactly the purpose of this page.  I've listed below a number of excellent books in various categories.   I own and have read every book listed here (as well as tons of others that don't make the cut). This is a work-in-progress, and since I'm always reading, it will never be complete.

Each book has a link to an Amazon.com page where you can read more about it or purchase it online.  Note that for simplicity I'm only giving partial citations, you can get complete citations by clicking on the title of the book. 

Investments

Beginners

1. How to Buy Stocks by Engel and Hecht -- Now in its 8th edition, this is the first investing book I ever read.
2. Be Your Own Stockbroker by Schwab

Fundamental Analysis

1. Graham and Dodd's Security Analysis by Cottle, Murray, and Block -- This is a revised version of the bible of security analysis.  Its a must-read for anybody who wants to be involved with the securities business.

Technical Analysis

1. Technical Analysis of Stock Trends by Edwards and Magee -- The all-time classic book for chartists.
2. Technical Analysis Explained by Pring -- Another great book that goes into more than just reading charts.
3. Technical Analysis of the Financial Markets by Murphy

Options

1. Options as a Strategic Investment by McMillan -- The best option book ever written in my opinion.
2. Option Volatility and Pricing by Natenberg
3. Sure Thing Options Trading by Angell -- A less technical introduction to options trading.

History

1. Extraordinary Popular Delusions and the Madness of Crowds by MacKay -- This is one of my all-time favorites.  It documents all kinds of craziness that occurred in the world before the mid-1800s.  It is still widely read even after more than 150 years since its original publication.
2. Reminiscences of a Stock Operator by LeFevre -- This book provides a fantastic view of the markets (and the manipulation thereof) in the early part of the 1900's.  It is reputed to be the autobiography of Jesse Livermore (one of the 20th century's great speculators and manipulators) written by him under the pen name of Edwin LeFevre.  I have also heard that Edwin LeFevre was an actual financial journalist.  Regardless of the truth about the author, it is a great book.
3. Against the Gods: The Remarkable Story of Risk by Bernstein -- A wonderful and very readable history of risk measurement and management.
4. Inventing Money by Dunbar -- This is a very well-written and easy to read history of the debacle of Long-Term Capital Management.  LTCM was the hedge fund run by an all-star cast, including two Nobel prize winners in economics (Myron Scholes and Robert Merton).  Its a fascinating story of how hubris can cause the downfall of even the smartest of people.  

Corporate Finance

1. Financial Analysis with Microsoft Excel,3rd Ed, by Mayes and Shank -- Yes, its my book. So, go buy a copy!
2. Analysis for Financial Management by Higgins
3. Techniques of Financial Analysis by Helfert
4. Finance (Barron's Business Review Series) by Groppelli and Nikbakht -- This is a great book that all finance majors should own.  It has 20 chapters (491 pages) that summarize most of the material that you should be familiar with, and will serve as a good reference book for all finance classes.
5. Financial Shenanigans by Schilit -- Accounting fraud and gimmickry has been going on since Cotrugli and Pacioli invented the whole idea back in the mid and late 1400's.  Schilit's book will make you aware of some things to watch for.  Its an excellent book, though I think it could use more detail.  I have the first edition, but the link is to the new second edition.

Economics

1. The Road to Serfdom by Hayek - Did you ever wonder why centrally-planned economies are almost always totalitarian, and always much poorer than they should be?  Why a utopian society simply isn't possible?  Hayek has the explanations in this great book.  This is definitely a must read for anybody, but especially those espousing more government control in the name of "compassion."   
2. Basic Economics: A Citizen's Guide to the Economy by Sowell -- Thomas Sowell has long been one of my favorite economists/columnists, so when I heard about this book I knew it would be good.  Its even better than I had hoped.  The main theme of the book is how prices and incentives are of supreme importance to economic efficiency and economic growth.  It is written for those with little or no background in economics; there's not one equation in the whole book.  This book should be required reading for everybody (particularly politicians, most of whom have no idea of the impact of some of the idiotic laws they pass - particularly rent control).
3. Economics in One Lesson by Hazlitt - First written in 1946, and updated in 1978, this book is a true classic of economics.  The primary theme of the book is that we have to look beyond the immediate consequences of any economic policy, and thoroughly examine its secondary effects.  Anyone who has read Bastiat's essay "What is Seen and What is Not Seen" will immediately understand where this book is going.  It is spectacularly well-written and is a great introduction to economics for the uninitiated.  It should be required reading in every Econ 101 class in the country.
4. Economics for Real People by Callahan - A very easy to read introduction to the Austrian school of economics (Menger, Mises, Hayek, Rothbard, and so on).  This is a fun book.  For example, instead of starting with a "Crusoe" economy he starts with a "Survivor" economy which initially has just one economic actor, Rich from the first "Survivor."  I actually laughed out loud several times, but the book is a serious introduction to the Austrian school and is guaranteed to make you want to read some of the great scholars of that tradition.  If you like this book, or just want to learn more about the Austrian school, you should point your browser to the Mises Institute.

 

Other Books I Like

1. What are the Chances? by Holland - This book is a fun little read.  It gives some interesting examples of the application of probability theory (particularly probability distributions: Binomial, Poisson, and Normal).  No heavy math.  My only complaint is that I wish it had been more in-depth and at least twice as long.

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This page last updated on Sunday, 5 December, 2004