The investor Bill Ackman about the most influential books for him
Security Analysis”by Benjamin Graham
– from the book Confidence Game.
Also recommended by Warren Buffett, Whitney Tilson, Jamie Dimon
The logic of buying undervalued securities is laid bare in this 1930’s classic. It has ended up on a JP Morgan summer reading list for private bankers, while the real-life examples make this book accessible to more experienced individual investors. Other topics covered include the importance of dividends and diversity within the portfolio. Though this book is most known for being on the favorite list of Warren Buffet, who called it his “Bible”, it has also shown up on the favorite reading list of investments author Whitney Tilson, and billionaire Bill Ackman.
“The IntelligentInvestor” by Benjamin Graham
– from the book Confidence Game.
Also recommended by Warren Buffett, Whitney Tilson, Jamie Dimon, Kevin Rose
If investors are intimidated by Graham’s prior groundbreaking work, “Security Analysis”, this book makes a good introduction to the difference between making investments and capitalizing on speculation – a risky business. Another favorite book of Warren Buffet’s (who wrote the introduction), it covers emotional decision-making versus rational analysis of markets and their fluctuations. Forbes magazine author Jason Zweig also counts it at the top of his favorite book list, calling it “prophetic”. Graham’s own history as a survivor of the Great Depression stock crash, and master of detailed company research yielding 14% annual returns, qualifies him to mentor others down the investment path.
You Can Be a Stock MarketGenius” by Joel Greenblatt
– Bill Ackman
Also recommended by Whitney Tilson, David Einhorn
Though the title may sound a bit far-fetched, Greenblatt asserts that the stock-picking individual does have distinct advantages over the professional. Without the pressure of quarterly returns, and without the distractions of making a living on educated guesses (especially spin-offs), Greenblatt asserts the ability of the little man over the master of the impressive portfolio. This work is a welcome addition to the reading lists of personal investors (and Columbia Business School students), a note of hope in a discouraging and confusing world of savvy (and sometimes criminal) investment schemes.
“One Up On Wall Street :How To Use What You Already Know To Make Money In The Market” by PeterLynch
– from the book Confidence Game.
This book by Peter Lynch may sound eerily similar to Benjamin Graham’s Intelligent Investor – because it is. Both were added to a top 10 reading list by Investopedia in 2009, as well as the recommended reading list for the Stanford GSB Finance and Investment Club. Both Graham and Lynch promote the concept of value investing (looking at business value long-term versus short-term gains), especially in stable but unexciting companies, and lived to beat the markets in their own time. However, Lynch’s work is much more readable and accessible to the average reader of investment literature.
