Important Finance Books Worth Reading Today – Introduction
Reading is an important aspect for any trader or investor. To be successful, you need to spend a good amount of time reading books, magazines, and reports. This is true for people who have done business and finance course in the university and those who have not. In this article, I will provide a list of books that you need to read today to become a successful trader or investor today.
- The Handbook of Fixed Income Securities (Frank Fabozzi)
This is a must-read book for any person with interests in fixed income. It is particularly important among people who are starting their careers in finance and investment. The book explains everything that you need to know about fixed income in a language that anyone can understand. It starts with explaining what fixed income is to the risks associated with it. Also, it highlights all the major strategies that fixed income operators use to make money.
- Fooling Some of the People All of The Time (David Einhorn)
David Einhorn is the founder of Greenlight Capital, a hedge fund that manages more than $10 billion. He is one of the most recognizable activist investors in the world. He combines long and short strategies to make money for his investors. In this book, David writes about his experience shorting a company called Allied Capital. David identified the business malpractices of Allied Capital and decided to bet publicly against the company which provided capital to businesses. He noted that some of the businesses they provided capital were not stable. At the end, Allied Capital was acquired after one of the companies David talked about went bankrupt.
- Why Wall Street Matters (William D. Cohan)
William is one of my favorite authors. He has written several best-selling books including the famous House of Cards. William’s writing is characterized by intense research about the subject at hand.
In this book, he writes about Wall Street and the hate it has received since the financial crisis. In the media, it has been portrayed as if Wall Street is an evil place made of people who only care about themselves. However, when you look at it objectively, you realize that Wall Street is the engine that runs America, if not the world. William makes the case that investors in Wall Street manage funds for pension funds which are relied by most Americans. When Wall Street succeeds, indirectly, even the poorest people benefit. In addition, without Wall Street, most of the products we use today such as Facebook and Instagram would not be as great as they are. This is because Wall Street provides liquidity to these companies. Of course, there are bad apples in Wall Street but the entire ‘community’ should not take blame for a few people’s mistakes.
- The Oxford Handbook of Private Equity (various authors)
This is a very important book similar to the first one I mentioned above. This book is particularly important for people who have interests in private equity. Private Equity is the business that provides liquidity and strategy to many businesses in the world. Some of the PE firms are: TPG, Apollo Asset Management, and Blackstone. The book starts with explaining the structure of private equity funds and goes on to write everything that you need to know about the business. Even as a trader, reading such a book plays an important role in improving your finance life.
- Money and Power: How Goldman Sachs Came to Rule the World (William D. Cohan)
Goldman Sachs is the biggest investment bank in the world with assets nearing $1 trillion. The company’s power in America is unparalleled. In fact, most American presidents turn to the company to get their treasury secretary, economic advisors, and Fed chair. In this book, William writes about the company and how it evolved from a small company to a big powerhouse in the United States. This book will give you a different perspective on the bank.