Reading List

Concepts

1. Activation energy

2. Behavioral economics

3. Cognitive biases

4. Darwinism

5. Entropy

6. Game theory (particularly Repeated Games)

7. Moral Hazard

8. Nudge Theory

9. Potential and kinetic energy

10. Predation

11. Price elasticity of demand

12. Probability theory (particularly Expected value)

13. Prospect theory

14. Social psychology

15. Supply and demand (particularly Economic equilibrium)

16. The invisible hand

17. Thermodynamics

Books

1. “Security Analysis” By Graham & Dodd.

2. “The Intelligent Investor’” by Benjamin Graham.

3. “Poor Charlie’s Almanack” by Charlie Munger. Several copies of this book have been kept in the library, thanks to its editor, Peter Kaufman.

4. “100-to-1 in the Stock Market” by Thomas Phelps.

5. “Extraordinary Popular Delusions and the Madness of Crowds” by Charles Mackay. “The Crowd:A Study of the Popular Mind” by Gustave Le Bon

6. “The Great Crash 1929” by John Kenneth Galbraith.

7.  “A Short History of Financial Euphoria” by John Kenneth Galbraith. “The Power of Noticing:What the Best Leaders See” by Max Bazerman

8. “Stalking the Black Swan: Research and Decision Making in a World of Extreme Volatility” by Kenneth A. Posner.

9. “The Little Book that Creates Wealth” by Pat Dorsey.

10. “The Investment Checklist” by Michael Shearn.

11. “A Few Lessons for Investors and Managers from Warren E. Buffett” by Peter Bevelin

12. “Seeking Wisdom: From Darwin to Munger” by Peter Bevelin

13. “Value Investing: From Graham to Buffett and Beyond” by Bruce Greenwald

14. “Margin of Safety” by Seth Klarman

15. “Accounting for Value” by Stephen Penman

16. “Common Stocks & Uncommon Profits” by Philip Fisher

17. “Conservative Investors Sleep Well” by Philip Fisher

18. “Developing an Investment Philosophy” by Philip Fisher

19. “Understanding Michael Porter: The Essential Guide to Competition and Strategy” by Joan Magretta

20. “The Ten Commandments of Business Failure” by Don Keough.

21. “Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers” by Alexander Osterwalder,Yves Pigneur.

22. “Brand Breakout: How Emerging Market Brands Will Go Global” by Nirmalya Kumar. “Leverage: The CEO’s Guide to Corporate Culture” by John Childress.

23. “The Aggressive Conservative Investor” by Martin Whitman

24. “Poor Charlie’s Almanack” by Charlie Munger

25. “This Time Is Different: Eight Centuries of Financial Folly” by Carmen M. Reinhardt and Kenneth S. Rogoff.

26. “Thinking, Fast and Slow” by Daniel Kahneman.

27. “Seeing What Others Don't:The Remarkable Ways We Gain Insights” by Gary Klein. “Influence: Science and Practice” by Robert Cialdini.

28. “The Psychology of Judgment and Decision Making” by Scott Plous.

29. “Why I Failed: Lessons from Leaders” by Shweta Punj.

30. “Think Like a Freak: How to Think Smarter about Almost Everything” by Steven Levitt and Stephen Dubner

31. “Why Smart People Make Big Money Mistakes And How To Correct Them: Lessons From The New Science Of Behavioral Economics” by Gary Belsky and Thomas Gilovich.

32. “Being Wrong :Adventures in the Margin of Error” by Kathryn Schulz.

33. “Mistakes Were Made (But Not by Me):Why We Justify Foolish Beliefs, Bad Decisions, and Hurtful Acts” by Carol Tavris and Elliot Aronson.

34. “Fooled by Randomness:The Hidden Role of Chance in Life and in the Markets” by Nassim Nicholas Taleb.

35. “The Black Swan:The Impact of the Highly Improbable” by Nassim Nicholas Taleb.

Articles

1. "Biased Assimilation and Attitude Polarization: The Effects of Prior Theories on Subsequently Considered Evidence" by Lord, Charles, Ross, Lee, and Lepper, Mark (1979). Journal of Personality and Social Psychology, 37 (11): 2098-2109.

2. "A House Built On Sand" by Carol Loomis, FORTUNE, October 26, 1998.

3. "Are Investors Reluctant to Realize Their Losses?" by Terrance Odean, The Journal of Finance, Vol LIII, No. 5, October 1998.

4. "Lies, Damned Lies, and Managed Earnings" by Carol Loomis, FORTUNE, August 2, 1999.

5. "AOL+TWX=???" by Carol Loomis, FORTUNE, February 7, 2000.

6. "The 15% Delusion" by Carol Loomis, FORTUNE, February 5, 2001.

7. "Boys will be Boys: Gender, Overconfidence, and Common Stock Investment" by Brad Barber and Terrance Odean, The Quarterly Journal of Economics, February 2001.

8. "Blowing Up" by Malcom Gladwell, New Yorker, April 22 and 29, 2002.

9. "Does Rejection Hurt? An fMRI Study of Social Exclusion" by Naomi I. Eisenberger, Matthew D. Lieberman, Kipling D. Williams, Science, Vol 302, 10 October 2003.

10. "Pearls Before Breakfast: Can one of the nation's great musicians cut through the fog of a D.C. rush hour?" By Gene Weingarten, Washington Post, April 8, 2007.

11. "Misunderstanding the Nature of Company Performance: THE HALO EFFECT AND OTHER BUSINESS DELUSIONS" by Phil Rosenzweig, California Management Review, 2007.

12. "Everybody’s An Expert: Putting predictions to the test." by Louis Menand, New Yorker, December 5, 2005.

13. "Is Justin Timberlake a Product of Cumulative Advantage?" by DUNCAN J. WATTS, New York Times, April 15, 2007.

14. "Market Shock: AAA Rating May Be Junk" by FLOYD NORRIS, New York Times, July 20, 2007.

15. "Dr. Drug Rep" by Daniel Carlat, New York Times, November 25, 2007

16. "Emperor Corzine’s Goldman clothes" by JOHN GAPPER, Financial Times, November 3, 2011.

17. "Triple-A Failure: The Ratings Game" By ROGER LOWENSTEIN, New York Times, April 27, 2008.

18. "All Fall Down" by Thomas Friedman, New York Times, November 25, 2008.

19. "Corzine Forgot Lessons of Long-Term Capital" by ROGER LOWENSTEIN, Bloomberg, November 2, 2011.

20. Byun, H.S., Kim, W., Lee, E.J. and Park, K.S. (2019), When and Why Do Takeovers Lead to Fraud?. Financial Management, 48: 45-76. https://doi.org/10.1111/fima.12213

Additional Reading

1. Robert Greene (48 Laws of Power, 33 Strategies of War)

2. Brian DeChesare (Mergers and Inquisitions):

3. Robert Cialdini (Influence)

4. Extracts from the letters of Warren Buffett to the Shareholders of Berkshire Hathaway Inc from 1978 to 2013. Courtesy: www.berkshirehathaway.com

5. https://dailyspeculations.com/wordpress/ (THE [sic] WEB SITE OF VICTOR NIEDERHOFFER: DEDICATED TO VALUE CREATION, BALLYHOO DEFLATION AND APPLYING THE SCIENTIFIC METHOD IN FINANCE)