Reminiscences of a Stock Operator
Not many financial books can lay the claim to reading like a novel, yet this pseudo biography of Jesse Livermore does exactly this. It is incredible to believe that it isn’t actually a biography, as the emotion running through the pages is incredible. While I wouldn’t read the book to gain knowledge on how to read charts, it is something that has to be read to gain emotional intelligence. As the author goes through some of the plays that shaped the financial sector of the 20th century, you can empathise with the traders' situation, allowing you to recognise parallel circumstances in your real life and avoid mistakes.
The Snowball
Warren Buffett is without a doubt one of, if not the greatest, investors to ever grace the world. Apart from producing incredible returns consistently, he has also educated millions others in how to actually value a business. So, what better way to begin your value investing journey than to read about the masters journey. Parts of it surprise you, and others are completely expected. One part of Buffett that we can all emulate is his focus, as in his long life he has never taken his eyes off the prize of outperforming the market. When you do this, regardless of the pursuit, success is inevitable eventually.
The Black Swan
I will be the first to say I didn’t actually like the writing of this book. Luckily however, the incredible amount of information that is present far outweighs the arrogant sentences scattered throughout. When you are finished reading the book, you may be slightly terrified as you now view the probabilities of cataclysmic events as likely higher than supposed. I had my view of a safe portfolio greatly changed after this book, and I even came up with a crypto portfolio that greatly reduces the downside while being positioned for greater upside. If you can handle the writing of this book, next up you should read the remaining literature by Taleb and honestly, for better or for worse, a veil of ignorance will be removed from your eyes.
Reading is vital to investing, but time is limited, so you have to focus on finding quality both in the stock market and in the library. I believe that these three choices will not only let you learn something, but will likely make you some money too. A win-win, something common in the realm of reading.