10 Investing Books That Changed My Life & PnL
Here's how I learned to understand markets.
Start by learning the trading strategies & decision-making building blocks of:
- macro
- value
- quant
- high frequency
The market is literally the sum of their actions.
🧵
👇
Here's how I learned to understand markets.
Start by learning the trading strategies & decision-making building blocks of:
- macro
- value
- quant
- high frequency
The market is literally the sum of their actions.
🧵
👇
1/ The Alchemy of Finance
by @georgesoros
-- MACRO --
Here you'll learn:
- how markets constantly reshape based on changing expectations, i.e. the natural disequilibrium that drives price action
- Soros's mental model for mapping world events
by @georgesoros
-- MACRO --
Here you'll learn:
- how markets constantly reshape based on changing expectations, i.e. the natural disequilibrium that drives price action
- Soros's mental model for mapping world events
2/ The Changing World Order
by @RayDalio
-- MACRO --
Here you'll learn:
- a crash course on macroeconomics
- why American life is the way it is today (because of USD reserve status) and whether/how long that will last
- Dalio's mental model for mapping the lifecycle of nations
by @RayDalio
-- MACRO --
Here you'll learn:
- a crash course on macroeconomics
- why American life is the way it is today (because of USD reserve status) and whether/how long that will last
- Dalio's mental model for mapping the lifecycle of nations
3/ Expectations Investing
by @mjmauboussin
-- VALUE --
Here you'll learn:
- investing isn't about picking great companies that everyone agrees are great; it's about realizing when things are overhyped or oversold
- Frameworks for assessing economic soundness & deviations
by @mjmauboussin
-- VALUE --
Here you'll learn:
- investing isn't about picking great companies that everyone agrees are great; it's about realizing when things are overhyped or oversold
- Frameworks for assessing economic soundness & deviations
4/ Damodaran on Valuation
by @AswathDamodaran
-- VALUE --
Here you'll learn:
- a crash course on fundamental analysis
- the difference between revenue, profit, margins, cash flow, working capital, etc.
- how to read a 10K
by @AswathDamodaran
-- VALUE --
Here you'll learn:
- a crash course on fundamental analysis
- the difference between revenue, profit, margins, cash flow, working capital, etc.
- how to read a 10K
5/ Everything you need to know about finance and investing in under an hour
by @BillAckman
-- VALUE --
Ok so this one isn't a book but it still changed my life.
Title says it all.
youtube.com
by @BillAckman
-- VALUE --
Ok so this one isn't a book but it still changed my life.
Title says it all.
youtube.com
6/ Expected Returns
by Antti Ilmanen
-- QUANT --
Here you'll learn:
- a crash course into factor analysis
- AQR's mental model/ "cube" for parsing market returns (risk premia) into momentum, value, carry, volatility, growth, etc.
- the relationship btw risk & returns
by Antti Ilmanen
-- QUANT --
Here you'll learn:
- a crash course into factor analysis
- AQR's mental model/ "cube" for parsing market returns (risk premia) into momentum, value, carry, volatility, growth, etc.
- the relationship btw risk & returns
7/ All About High Frequency Trading
by Michael Durbin
-- HFT --
Here you'll learn:
- what HFT is and what it isn't (i.e. read this after Expected Returns & you'll see how HFT is different from "quant")
- markets where HFT is appropriate
- basics of how to implement algorithms
by Michael Durbin
-- HFT --
Here you'll learn:
- what HFT is and what it isn't (i.e. read this after Expected Returns & you'll see how HFT is different from "quant")
- markets where HFT is appropriate
- basics of how to implement algorithms
8/ Market Wizards: Interviews with Top Traders
by @jackschwager
-- VALUE, MACRO, QUANT --
Here you'll learn:
- real trading war stories told from the horse's mouth
- trading in asset classes beyond stocks
- interviewees include:
Paul Tudor Jones
Michael Steinhardt
Ed Seykota
by @jackschwager
-- VALUE, MACRO, QUANT --
Here you'll learn:
- real trading war stories told from the horse's mouth
- trading in asset classes beyond stocks
- interviewees include:
Paul Tudor Jones
Michael Steinhardt
Ed Seykota
9/ Hedge Fund Market Wizards
also by @jackschwager
-- VALUE, MACRO, QUANT --
- similar to the first market wizards book, but new interviewees including:
Ed Thorpe
Ray Dalio
Michael Platt
also by @jackschwager
-- VALUE, MACRO, QUANT --
- similar to the first market wizards book, but new interviewees including:
Ed Thorpe
Ray Dalio
Michael Platt
10/ Payment Systems in the US
by Carol Coye Benson
Here you'll learn:
- how money moves around
- where & why the system is broken (e.g. why T+2)
- ok, admittedly this one isn't about investing per se, but anyone in DeFi trying to build new financial systems MUST read this first
by Carol Coye Benson
Here you'll learn:
- how money moves around
- where & why the system is broken (e.g. why T+2)
- ok, admittedly this one isn't about investing per se, but anyone in DeFi trying to build new financial systems MUST read this first
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