It is what you read when you don’t have to that determines what you will be when you can’t help it. – Oscar Wilde
I’m hoping everyone had an enjoyable New Years Eve! My sound advice to you would be to use this day of recovery to catch up on some reading and get yourself on the right track for the year ahead! I’ve made it a goal of mine to read a minimum of 12 new novels this year and I’ll be sure to outline them (plus any extras) through these bookshelves in an effort to keep you updated on potential pieces.
Below you’ll see my read for January and a completed read from a few months ago that I failed to mention in my last monthly bookshelf – I’d highly recommend both of them.
Adaptive Markets – Andrew Lo
My first read for the new year is one regarding the psychology of changing markets and how we as investors can better handle current/future conditions. Although I’ve just started the novel, the first few chapters have been very captivating and do a great job of taking complex ideas and making them consumable. I’ll be back in the beginning of February to give a full review, for now, take a look at the paragraph below and see if the book may be of interest to you.
Here’s an excerpt from Mohamed El-Erian explaining the book in better detail:
“Andrew Lo’s powerful new book brings together insights from many fields to advance our understanding of markets and investor behavior. In doing so, he provides one of the most compelling accompaniments to the theory of market efficiency, which, due to its narrow focus, has failed to explain satisfactorily too many periods of market instability, the reaction of investors, and the emergence of improbable outcomes. Containing practical examples, the book brilliantly provides a robust foundation for Andrew and others to build on—including, critically, by complementing economic and financial analyses with insights from AI, biology, neuroscience, and psychology.” – Mohamed El-Erian (CEA @ Allianz)
1. Flash Boys – Michael Lewis
I read Flash Boys back in October and it was a book that once picked up became very difficult to put down. Michael Lewis does an excellent job of explaining the journey, struggles, and triumphs of an ex-Wall Street investor (Brad Katsuyama) and his team of techies as they work to restructure a broken market system. The book goes into detail regarding the issue of front-running by high-frequency traders and the costs associated to the firms being attacked, Lewis even going so far as to name investors who were affected by it (E.g. Bill Ackman) in an effort to show the reality of the problem. Flash Boys should make any active investor seriously consider the validity and stability of the market, and will surely open your eyes to the underlying industry of high-frequency trading and the money spent in an effort to keep the secret quiet. Flash Boys is based on a true story and you can feel free to watch interviews with Brad/Michael on YouTube to get a better idea of who they were.
2. The Wealthy Barber Returns – David Chilton
The Wealthy Barber was a book listed in my January reads, and now upon completion, I can wholeheartedly say that it was a fantastic financial read. It will educate and inform you on everything personal savings and will be sure to open your eyes to the tools available and potential for wealth creation. Chilton does a great job of infusing humor throughout an otherwise dry topic and makes understanding personal-finances very enjoyable for readers. The short chapters allow for great reading mobility and the lessons packed within are vast – be sure to pay close attention and really put the advice given into action. As I said before, amassing capital is extremely important as young entrepreneurs & investors – let David ‘s tips help with the process.
See you in February!