Winter Readings

I've always been an avid reader and this winter break I've had the opportunity to catch up on some reading on finance, economics, and investing. I believe the absolute best thing one can do to be successful in this industry is to read, read, and read. Absorb as much information as possible, be curious, and discuss what you read with colleagues, friends, professors, and frankly anyone.

In order to generate ideas for investment or learn more about finance/econ in general, I read primarily The Economist, WSJ, and any book I can get my hands on. Of these, the Economist is by far the best reading material to stay up to date on your business/fin/econ. In fact, Global Macro manager Jim Leitner once said he could still do what he does if all he had was the Economist.  He made a bundle investing in Guinness of Nigeria after reading about the country in an Economist article.

Anyway, here are the things I've read over my winter break so far.

I first read The Greatest Trade Ever: The Behind-the-Scenes Story of How John Paulson Defied Wall Street and Made Financial History by Gregory Zuckerman. This is the story of Paulson's infamous trade in credit-default swaps during the subprime crisis. I felt it provided a great view of how ideas are generated in a hedge fund and the potential problems that can arise in executing those ideas. I learned a lot about the intricacies of the trade itself as well. I'd recommend it for a quick read.

I next read Reinventing the Bazaar: A Natural History of Markets by John McMillan which thoroughly described the different types of markets around the world and how a stable, efficient market, is vital to financial success and economic growth. The title is misleading because the book doesn't go into any detail about the history of markets.

I then decided to take up The Financial Times Guide to Value Investing: How to Become a Disciplined Investor (2nd Edition) by Glen Arnold. This is a fantastic book about the different methods of value investing, covering the styles of Peter Lynch,  John Neff, Benjamin Graham, and Warren Buffet. The author then takes the best of all worlds and combines them into his "valuegrowth" style of investing, and further adds a detailed analysis on the competitiveness within industries.

Next up was How Countries Compete: Strategy, Structure, and Government in the Global Economy by Richard Vietor. This book provides a thorough analysis on the different types of economies in each major country, how they have developed over time, and how they compete with each other. The book takes a strong focus on the role of government and how it helps or hinders economic growth.

Finally, I'm currently reading Investing From the Top Down: A Macro Approach to Capital Markets by Anthony Crescenzi. I'll provide a review when I'm finished.

Hopefully this gives you a sense of what I read. I try to read a mix of finance, economics, and investing since these are inextricably linked to each other and an understanding of one will help you understand the others.