I’ve had a quiet Sunday unintentionally reading in my home office. I went to sleep with grand plans to be out with friends today. I woke up to find London under snow. A few flurries can bring this great city to a halt and the tube lines I needed were down.
A few days a week I snuggle into my home office in my back garden instead of braving the busyness of Central London. Below is a picture taken of my little cave in the snow today. It’s got a desk, chair, my computer, and an exercise bike (the bike mostly serves as a handy shelf). Most importantly it contains my collection of investing books - the fuel for ideas that keep an investing geek like me going.
At this time of year there seem to be lists galore for gifts to give and books to read.
I thought I’d add my two cents. My criteria were that it had to be two books only to keep things short and they also had to have been published in 2017.
Principles by Ray Dalio
Ray Dalio is one of the most investing heroes who has recently been “discovered” despite starting his firm Bridgewater Associates ($150 billion under management) in 1975. I became interested in his work a few years ago as he claims meditation was the secret to his brain’s success. His investing tactics are difficult to follow as they are very resource intensive but “Principles” outlines how he thinks about life and business. If you liked “Extreme Ownership” by Jocko Willink, you’ll get where Ray Dalio is coming from.
There is an excerpt of his book on his company’s website:
Adaptive Markets by Andy Lo
Andy Lo is an MIT professor whose gift is writing books without too many formulas included. “Adaptive Markets” tries to outline a holy grail framework to explain how markets work. It argues that we have traditionally taken a Physics approach to trying to understand markets – very mechanical. The book argues that a more complete view of how investing works can be understood using the laws of Biology and Evolution. If you liked “Sapiens” by Yuval Harari, this is the investing book for you.
The following is a short podcast of Andy Lo being interviewed about the book by the Financial Times: