Success and Markets have an overarching connection: both are random. Fooled by Randomness does an excellent job conveying the randomness and luck involved in being successful. Through brilliant story telling Nasim Taleb offers a powerful argument concerning the lucky success of traders. Through his use of statistics, he systematically disregards speculators whom tout successful track-records. By discrediting speculating and technical analysis Fooled by Randomness serves to legitimize value investing as a worthwhile investment strategy. While the book delves, heavily into statistics it was designed with the lay person in mind. With a snarky attitude, Fooled by Randomness offers a unique take on luck and is quintessential to a more thorough understanding of the markets. I would highly recommend this book to anyone who regards technical analysis as a legitimate investment strategy.
In my quest to understand the financial markets and receive valuable insights I turn to books. Understanding the markets is very nuanced and complex but literature helps to bridge this gap and make the markets more accessible. Thus, the books I recommend have helped me considerably in trying to grasp this complicated world.
In order to evaluate a company to be a viable value investor, we have to look holistically at a company. Understanding the difference between successful companies and bankrupt ones requires an understanding of how they were created. This link between company creation and success give corporate biographies incredible value.
Made in America, by Sam Walton gives invaluable insight into identifying qualities that make a company successful. The book is not only humorous but a solid piece of financial literature. Made in America will highlight qualities an adept investor should look for in evaluating a prospective company. While the book centers around Walmart the lessons it shares transcend far beyond the realm of retail.
I highly recommend this book as a present or a quick read during the holidays. If you read this book or have read it, please leave your comments below.