“If I have seen further than others, it is by standing upon the shoulders of giants” Isaac Newton said those famous words and those words still ring true more than hundred years later. Books provide us with insight into the thought process of great minds and they provide us with a window into their decision-making process. Successful traders and investors often show a strong disposition towards reading because you need to constantly educate yourself in order to stay ahead in the market.
Smart traders and investors would have started making their 2017 reading lists in order to prepare for the uncertainties that the new year might bring. If you are not done compiling your 2017 reading list, this article profile four books that analysts at Stern Options think all traders and investors must read before heading into the new year.
The Essays of Warren Buffett: Lessons from Corporate America by Lawrence Cunningham
Warren Buffet doesn’t need an introduction to traders or investors – even the newest students of financial world would have heard stories about the wizardry of Oracle of Omaha. In case you have somehow missed the memo, Warren Buffet is an American business magnate and investor. For context, the shares of his holding company through which he invests and trade, Berkshire Hathaway costs about $225,150 per share.
The Essays of Warren Buffet as compiled by Lawrence Cunningham is a collection of Warrant Buffet’s annual investor letters to shareholders of Berkshire Hathaway. The most recent edition is dated 30 Nov. 2015 but you might want to wait a couple of weeks for the 2016 edition. The Essays of Warren Buffet provides invaluable insight into the thought processes behind Buffet’s investment decisions. The book is a must-read for anybody that wants to invest or trade based on fundamental analysis of the markets.
You Can Be a Stock Market Genius, by Joel Greenblatt
Joel Greenblatt is an accomplished hedge fund manager and investor with a track record of consistent gains. In the last 10 years, his fund has outperformed the Dow Jones with returns of more than 50% each year. In his book, You Can Be a Stock Market Genius he provides a comprehensive and practical guide for succeeding in the stock market. The book is a one-stop shop that includes background information on the markets, case studies, and insights on investment opportunities.
You should definitely buy and read this book if you’d like to understand how you can make money from the stock market when the rest of the market is panicking. Joel Greenblatt takes the time to demystify corporate restructurings, spin-offs, right offerings, merger securities, bankruptcies and risk arbitrage among other things.
Flash Boys: A Wall Street Revolt by Michael Lewis
If you consider yourself a serious trader, you must read Flash Boys even if you won’t read any of the other books profiled in this article. Flash Boys peels away the veil of secrecy on covering the rise and use of high frequency trading in the U.S. equity markets. The book reveals how the equity markets might have been rigged to favor the big names on Wall Street. No matter how good and disciplined you are as a trader, you simple do not stand any chance against high-frequency traders.
Michael Lewis is a celebrated financial journalist and he brings measure of storytelling to the high-stakes world of high frequency trading. Philip Delves Broughton of Wall Street Journal says Flash Boys is
“Important to public debate about Wall Street… in exposing what one of his central characters calls the ‘Pandora’s box of ridiculousness’ that financial exchanges have become.”
Bold: How to Go Big, Create Wealth and Impact the World by Peter Diamandis
Peter Diamandis is Greek-American entrepreneur with interests in the frontier fields of space exploration, robotics, and 3D among other things. His book, Bold: How to Go Big, Create Wealth and Impact the World is a visionary roadmap on the next generation technological advancements with insights on how to position yourself strategically to profit from the paradigm shift. Bill Clinton says the book provides “invaluable advice about bringing together the partners and technologies to help them do it.”
If you’d like to catch the brewing waves to invest in the next Apple, Google, Amazon, or Tesla, you should definitely get a copy of Bold. Peter Diamandis talks about 3D printing, robotics, synthetic biology, and artificial intelligence among other things. He also provides insight on how you can invest in these new technologies before they are available in the mainstream investment community.