Summer Reading: Investment Books

The weather has finally turned nice here in New England, with a consistent string of 60-degree days and a couple of scorchers thrown in (we set records on Tuesday, with temperatures north of 90 degrees!).  That means it’s nearly vacation time!  And with vacation comes reading; I’m always on the lookout for good books, investment or otherwise, to help me unwind while I watch waves lap against the sand.

Since this is a wealth advisory, of course, I’ll offer up some of my favorite investment-related book recommendations.  Heck, I might even re-read one or two of these this summer.  Here are some favorites:

“Reminiscences of a Stock Operator”:  My favorite book, which I’ve read many times, was written by Edwin Lefèvre.  It’s the fictional biography of Jesse Livermore and many of his escapades, both good and bad.  Not a step-by-step book on how to get rich, but if you fancy yourself a student of the stock market, you must read this book.

“How to Trade in Stocks”:  This was actually written by Jesse Livermore, though it’s been republished and expanded a bit.  Again, it’s not a step-by-step instruction manual, but it is more specific in some of the tactics Livermore used.

“The Successful Investor”:  This one, by William O’Neil, is more of an instruction manual, which makes it longer to read (and hence, might not be the best for a beach trip).  But if you read it, you’ll find many of the same principles Cabot’s growth publications adhere to.

“Hedge Hogging”:  This one I read just last summer (on my honeymoon!), and I was planning on reading it over a few days … but it only lasted three.  It instantly became one of my favorites.  It’s basically about Barton Biggs’ (the author) attempt to start a hedge fund, and all the work that goes into it.  However, it’s really a compilation of short stories and experiences he’s had in the investment world.  I loved this book!

“Confessions of a Street Addict”:  Author Jim Cramer has a few recent books that I’ve perused … and am not that impressed with.  (To each his own, though.)  This book, however, was his first, written years before he became a TV personality.  It’s basically about his life as a hedge fund manager; there is a three-chapter section about his dealings during the 1998 financial crisis (Russian ruble, Long Term Capital Management, etc.) and bear market that might be the best three chapters I’ve ever read.

“The Perfect Speculator”:  This book is a follow-up to author Brad Koteshwar’s first book (called “The Perfect Stock,” which was actually about TASER).  It basically involved Koteshwar’s interactions with a fellow named Boyd Hunt–honestly, I’m not sure if this is a real person, but bear with me–and Hunt’s lessons of how he made it rich in the stock market.  I wouldn’t say it’s the easiest read out there, but it has many great tools to add to your arsenal.

“Market Wizards”:  I’ve mentioned these books before–there are three of them (the first one was written in the late 1980s, the most recent around 2000 with an update in 2002) and each feature a bunch of great interviews with successful investors.  Jack Schwager is the author of all three; the last of the three (called “Stock Market Wizards”) focuses exclusively on stock investors.

I’m hoping to add more names to my “favorites” list in the months ahead; you can be sure I’ll be draining Cabot’s bank account looking for new writings and teachings.  When I find some, I’ll let you know!