Top Finance Professional Books
The world of finance is unpredictable at times, and even the most skilled professionals may need some enlightenment to improve their practices in this dynamic environment. Books have always been a great source of knowledge and inspiration. When it comes to finance professionals, even they can use some books to improve their understanding of the profession.
Here are 20 amazing books that every finance professional should add to their reading list:
The Theory of Investment Value by John Burr Williams
Originally published in 1938, the book still manages to influence the others in the industry. The book is an insightful combination author’s original research work and his personal experience in the world of investment. In fact, the “Dividend Discount Model”, which is used by professional investors to evaluate a company’s stock price, was introduced by the author himself.
A Random Walk Down Wall Street by Burton Malkiel
Malkiel’s best-selling book, originally published in 1973, is a vastly informative guide that educates the readers about the instability of the market, how to navigate through it and how to manage investments with confidence. It’s a must-read for investors of all ages.
Against the Gods by Peter Bernstein
Published in 1996, “Against the Gods: The Remarkable Story of Risk” offers a comprehensive history of man’s endeavor to understand risk and probability through time. Starting from the ancient Greek gamblers to the modern chaos theory – Bernstein covers almost everything.
One Up on Wall Street by Peter Lynch
This enlightening and easy-to-follow commentary on how to use your knowledge to make money in the market can turn a stock portfolio into a star performer. This 1988 publication offers a guide for sorting out the long shots from zero shots just by spending several minutes with a company’s financial statements.
Freakonomics by Steven Levitt and Stephen Dubner
If you are a lover of unconventional writing, this book is perfect for you. The book covers a lot of ground by speaking about almost everything. First published in 2005, Freakonomics redefines the way one views the modern world.
Barbarians at the gate by Bryan Burrough and John Helyar
This New York Times bestseller is considered one of the best business narratives written till date. It’s a piece on investigative journalism covered by the author-duo which stands as a valuable cautionary in the age of frequent business crashes and federal bailouts.
Security Analysis by Benjamin Graham and David L. Dodd
No other investment book in the history has the long-term relevance and value than this book. Originally published in 1934, the content was updated several times by the author-duo. The book focuses on the advice that a careful analysis of balance sheets is the primary road to investment success.
Common sense on mutual funds by John C. Bogle
If mutual funds are the primary focus of your profession, this book is a must-read for you. This book (originally published in 1999) by Bogle outlines a logical plan not only to boost the investors’ returns but to improve the whole fund industry.
Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay
First published in 1841, this book highlights the fact that greed and fear have always been the driving forces of financial markets. Drawing the instances of great financial manias throughout the history, the book gives you the idea how being sensible is not enough to survive against the allure of popular craze.
Liar’s Poker by Michael Lewis
This book is an excerpt from Lewis’ life that narrates his transition from an economics graduate from London School of Economics to a successful bond salesman at Solomon Brothers, one of Wall Street’s premier investment firms. This personal take on the unique and turbulent time in American business is a must read.
Competitive Strategy by Michael E. Porter
This enlightening book by Porter offers an outline for the task of strategic positioning. Porter explains how competitive behavior can be predicted and how all subsequent work can be developed. Through the years, Porter’s words have influenced the business practices in various industries.
Manias, Panics, and Crashes: A History of Financial Crises by Charles P. Kindleberger
This book follows the turbulent world of financial markets from the beginning of trade and commerce. Kindleberger’s brilliant narrative reveals how financial crises follow a particular rhythm. Originally published in 1978, the book’s fourth and latest edition covers the most recent calamities of the markets.
Capitalism and Freedom By Milton Friedman
This book is listed under the “hundred most influential books since the war” by the Times Literary Supplement. First published in 1962, this book focuses on the immensely influential economic philosophy by Friedman.
The Intelligent Investor by Benjamin Graham
The book is considered as the stock market bible for the professionals. It preserves the integrity of Graham’s philosophy of “value investing” which has protected investors from making significant errors and has educated them to build long-term strategies, over the years.
The General Theory of Employment, Interest and Money by John Maynard Keynes
In this book, reputed British economist J. M. Keynes critically analyzed the laissez-faire policies, focusing on the key proposition that a normally functioning market economy would bring full employment. Keynes’ views have altered the way in which economists used to look at the world.
The Great Unraveling: Losing Our Way in the New Century by Paul Krugman
This thought-provoking book from the Influential Op-Ed columnist Paul Krugman is a treat for readers. In simple, yet gripping English Krugman describes how the boom economy unraveled or how the age of corporate idols paved the way for corporate scandals and much more.
Capital in the Twenty-First Century by Thomas Piketty
Originally published in 2013, this book offers an analysis of a unique bouquet of information from twenty countries to unveil the socio-economic patterns. Piketty’s analysis explains how the economic growth and dissemination of knowledge have allowed us to avoid Marx’s prediction of massive inequality.
The New Market Wizards by John D. Schwager
The book by John D. Schwager, one of the renowned experts in futures and hedge funds, talks about the financial strategies that allow finance professionals (who are no less than a wizard) to strive towards success. It discusses the trading experience of the author along with interviews from different traders.
The Wealth of Nations by Adam Smith
This book, originally published in 1776, lays the foundation for modern economic thought. It is also considered the most important account of the rise of modern capitalism and the principles behind it. Even though it was written in the eighteenth century, some crucial issues still have been covered.
The Black Swan: The Impact of the Highly Improbable by Nassim Nicholas Taleb
Highly unpredictable yet impactful events, which are often termed as “black swans” serve as the core concept of the book by Taleb. Here, the author discusses how we restrict our thinking to inconsequential things while the large events like 9/11 continue to surprise and shape the world.
Adding these books to your reading list cannot only enlighten you about the history or the best practices in the market but may also offer you a better understanding of the elements which have influenced the market over the years.