It’s that time of year again … time to figure out what to get everyone on your holiday shopping list. I think one of the best gifts, both for getting and giving, is investment books. Here are some of my 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, 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 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. 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 involves Koteshwar’s interactions with a fellow named Boyd Hunt–honestly, I’m not sure if this is a real person–and Hunt’s lessons of how he got 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 features a bunch of great interviews with successful investors. Jack Schwager is the author of all three; the last book in the series (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 tapping Cabot’s bank account looking for new titles. When I find some good ones, I’ll let you know!