Author Topic: Advice on books to read  (Read 3733 times)

RandyP

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Advice on books to read
« on: December 26, 2018, 09:32:07 AM »
Has anyone read a book on the Great Depression (or even the 2008 Great Recession) about how to invest and ride out the storm that they would recommend? While the Depression was destructive for most, a few were able to take wealth and turn it into massive fortunes. I don't expect to do that, but would like to read some to be more prepared.

Any advice you can give?

Kalliste

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Re: Advice on books to read
« Reply #1 on: December 26, 2018, 05:01:37 PM »
Good read:
https://www.bridgewater.com/big-debt-crises/


rluks

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Re: Advice on books to read
« Reply #2 on: December 27, 2018, 12:08:27 AM »
https://www.goodreads.com/book/show/26889576-the-big-short
There is also a movie with the same title.

RandyP

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Re: Advice on books to read
« Reply #3 on: December 27, 2018, 07:08:43 AM »
https://www.goodreads.com/book/show/26889576-the-big-short
There is also a movie with the same title.
I read this one (as well as every book by Lewis). It's one of my favorites. The issue here is, I'm not going to short the housing market trying to make billions. I'm just trying to learn how to make my little bit get bigger at a time when most people's wealth is shrinking.

But with that said, the Big Short is great. One of Lewis's "lesser known" books that is great is The New New Thing. One of the few books that I ever finished reading, and almost immediately started over.

Fat Tony

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Re: Advice on books to read
« Reply #4 on: January 16, 2019, 11:58:34 PM »
While it's good to read about debt crises and understand why things broke down in the past, I really am tired of all the recent shilling for Ray Dalio. The "All-Weather Portfolio" that gets recommended has a ridiculous 30% stock, 55% bond, 7.5% gold, and 7.5% commodities allocation, and suffers from extreme cherry-picking/backtest bias. Look at any reasonable early retirement analysis and you'll find that a low-stock portfolio just dooms you to failure due to lack of capital growth, if you want to withdraw 4% or even 3.5%.

The *actual* hedge-fund implementation of All-Weather is using leverage (in which case it has some legitimacy) to create a risk parity portfolio - but a risk parity portfolio is still something I have heavy suspicions on. Ray Dalio just goes on TV randomly and spreads various emotions, and ends up hurting retail investors a ton. You listen to his "you'll be really stupid if you stay in cash" at the beginning of 2018, meanwhile market takes a dip but his own fund moons. So many problems with "Radical Transparency" too - and I generally support lots of transparency within organizations. You honestly won't miss much by going opposite of Dalio (if going Dalio-minded means thinking of a long term debt crises and going hyperbearish) or ignoring him.

Honestly, the best books to read in turbulent times are the bullish ones: Stocks for the Long Run by Jeremy Siegel, A Random Walk Down Wall Street by Burton Malkiel, etc. If you want some market drama and fun, the John Lewis ones are good e.g. Big Short. More Money Than God by Sebastian Mallaby is also great for hedge funds.
« Last Edit: January 17, 2019, 12:00:59 AM by Fat Tony »

ForgingFinance

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Re: Advice on books to read
« Reply #5 on: March 17, 2019, 10:17:26 AM »
I agree that the big debt crises book is a good read.

However for an overall good FI book, the best I've read is The Millionaire Next Door, followed by The Millionaire Mind. These books have lots of practical and actionable advice.

Your money or your life is another good one, and oft touted by the FI bloggers.  It's good for an exercise in perspective on placing more value on your time than material possessions.