I asked the Canadian Investment Review‘s editorial advisory board of industry experts and academics to tell us what they’re reading — here’s the list for your perusal. If you want to recommend something else or comment on one of these titles, feel free to post a comment below.
This Time Is Different: Eight Centuries of Financial Folly by Carmen M. Reinhart and Kenneth S. Rogoff.
“Covering sixty-six countries across five continents, This Time Is Different presents a comprehensive look at the varieties of financial crises, and guides us through eight astonishing centuries of government defaults, banking panics, and inflationary spikes–from medieval currency debasements to today’s subprime catastrophe. “
The Big Short: Inside the Doomsday Machine by Michael Lewis
“Who understood the risk inherent in the assumption of ever-rising real estate prices, a risk compounded daily by the creation of those arcane, artificial securities loosely based on piles of doubtful mortgages? Michael Lewis turns the inquiry on its head to create a fresh, character-driven narrative brimming with indignation and dark humor, a fitting sequel to his #1 best-selling Liar’s Poker. Who got it right? he asks.”
The Myth of the Rational Market: A History of Risk, Reward, and Delusion on Wall Street, by Justin Fox.
“Chronicling the rise and fall of the efficient market theory and the century-long making of the modern financial industry, Justin Fox’s The Myth of the Rational Market is as much an intellectual whodunit as a cultural history of the perils and possibilities of risk. The book brings to life the people and ideas that forged modern finance and investing, from the formative days of Wall Street through the Great Depression and into the financial calamity of today.”
The Ascent of Money: The Financial History of the World by Niall Ferguson
Niall Ferguson follows the money to tell the human story behind the evolution of finance, from its origins in ancient Mesopotamia to the latest upheavals on what he calls Planet Finance.
The Endowment Model of Investing: Return, Risk, and Diversification by Martin L. Leibowitz, Anthony Bova, P. Brett Hammond
With The Endowment Model of Investing Leibowitz, Bova, and Hammond take a closer look at the endowment model with customary research sophistication and attention to detail. Throughout the book, they examine how the model provides truly outstanding real returns, while keeping a close eye on the risks associated with this method of investing. Along the way, the authors offer practical advice on incorporating the endowment model into your own investment endeavors and reveal what it takes to make this method work in the real world.
No One Would Listen: A True Financial Thriller by Harry Markopolous
Written by the whistleblower who filed unheeded complaints about Bernie Madoff.
7Twelve: A Diversified Investment Portfolio with a Plan, by Craig Israelsen.
“Outlines a multi-asset balanced portfolio that is a logical starting point when assembling a portfolio-either as the blueprint for the entire portfolio or as a significant building block.”