Good reads from around the Web.
Last week I offered some suggestions for investing books for Christmas presents. All those books would be great reads for you, friends, or family.
That said, one of the best investors I know claims he’s only read a couple of investing books in his lifetime, and one of those by accident!
This fellow is no intellectual slob, but he argues it’s better to read books about business and the wider world if you want to be a great investor.
Perhaps he has a point.
UK passive investors need only read Smarter Investing or Investing Demystifiedto be intellectually set-up for life (though sticking with Monevator for regular updates on the cheapest options – as well as pep talks on the strategy – can continue!)
Even active investors should probably read more about business than spend too much time in legendary investor worship.
I found The Snowball as interesting as anyone, but I’ll never be Warren Buffett. The Sage himself says understanding companies and being a businessman is the key to his success.
Handily enough, Warren’s pal Bill Gates has just published a list of his best reads of 2013.
Here’s a handy cribsheet, then, for those of us who want to raise our game – whether in investing terms or intellectually, or just to have something to discuss should we end up next to a billionaire on a plane!
Bill Gates’ best books of 2013
Gates says: “Makes a good case that the move to containerized shipping had an enormous impact on the global economy and changed the way the world does business.”
Gates says: “I’d wanted to know more about steam engines since the summer of 2009, when my son and I spent a lot of time hanging out at the Science Museum in London.” [Who knew?]
Gates: “As clear and as numeric a picture as is possible of how humans have altered the biosphere.”
Gates: “It’s not as good as Diamond’s Guns, Germs and Steel. But then, few books are.”
Gates: “Jerven, an economist, spent four years digging into how African nations get their statistics and the challenges they face in turning them into GDP estimates.”
Gates: “Until you get an excess supply of graduates, then you don’t really get any price competition.”
Gates: “Sabin chronicles the public debate about whether the world is headed for an environmental catastrophe. He centers the story on Paul Ehrlich and Julian Simon, who wagered $1,000 on whether human welfare would improve or get worse over time.”
Gates has a few more things to say about these on his blog. And if any of my family are reading, feel free to pop one into a stocking for me…
From the blogs
Making good use of the things that we find…
- My index fund is smacking the S&P 500 – Rick Ferri
- Will the stock market ever return to “the good old days”? – Mint
- Beware backtests built to anchor expectations – Abnormal Returns
- Q&A with Warren Buffett – University of Maryland blog
- Do you really need to pay up for growth? – mcturra2000
- Searching for reliable, profitable, dividend growth – UK Value Investor
- Growth investing versus value investing – Wexboy
- The key to being a great trader – Finance Trends
- US market not expensive by most measures – The Reformed Broker
- Market risk and the fear of flying – Rick Ferri
- The Soldier of Luxury – Mr Money Mustache
- Falling living standards and what to do about them – S.L.I.S.
Product of the week: Sitting down to watch TV at set times will soon be as old-fashioned as buying the latest vinyl LP. The Guardian reviews your on-demand streaming options.
Mainstream media money
Some links are Google search results – in PC/desktop view these enable you to click through to read the piece without being a paid subscriber of that site.1
- In praise of index fund inventor, Jack Bogle – HBR blog
- Have index funds become too popular? [Video] – Yahoo
- Swedroe: Hedge funds not worth the fees – Index Universe
- Whisper it: You can time the market. Cautiously. – Morningstar
- Why diversification is so hard these days – MarketWatch
- Investing in bonds after the not-so “great rotation” – iii blog
- A hedge fund needs $300m in assets just to breakeven – CitiGroup
- Equities the new bonds [unfortunately for economy] – FT Alphaville
Other stuff worth reading
- Adventures in art market commodification – Reuters
- Foreign ownership of UK homes up 40% – Telegraph
- An easy Q&A guide to the Volker Rule – The Guardian
- 20-somethings should be saving 12% for retirement – The Guardian
- Women: Not so risk averse, after all [Search result] – Economist
- Lessons we should learn from Madoff – Washington Post (via Mike)
Book of the week: Finance folk are raving about A Giant Cow-Tipping by Savages. The author colourfully lifts the veil on the billion-dollar M&A business and the egomaniacs hiding in plain site on Wall Street.
Like these links? Subscribe to get them every week!
- Reader Ken notes that: “FT articles can only be accessed through the search results if you’re using PC/desktop view (from mobile/tablet view they bring up the firewall/subscription page). To circumvent, switch your mobile browser to use the desktop view. On Chrome for Android: press the menu button followed by “Request Desktop Site”.”