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I'd also recommend anything by Matt Taibbi, but only if reading about the shadiness of Wall Street interests you. His books are well written and fact checked, but definitely have a bias that you may not care for.
Henry Hazlitt - 'Economics in one lesson' Mises - 'Theory of Credit and Money' Adam Smith - 'Wealth of Nations' Milton Friedman - 'Capitalism and Freedom' Murray Rothbard - 'A New Liberty' Have been my personal, but somewhat one-sided favourites.
Good choices BTW, even though, as you say, they're a bit one-sided. Essential reading regardless of which "side" you're on.
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How heterodox are Hayek and Mises compared to Milton Friedman. I'm not trolling here. I'm actually asking. I thought that they were essentially proponents of similar theories? I'm the definition of a layman though, so I could easily have that all wrong.
I haven't read enough of Friedman to argue details, but I do know they were from different economic schools. Mises and Hayek were of the Austrian school. Friedman was in the Chicago school. As far as heterodox, Friedman seems to have enjoyed more political and social influence than Hayek and Mises ever did.
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This is a common misunderstanding. Buffett Partnership Ltd., Buffett's initial hedge fund, was very much was guided by the cigar butt style investment principles of Graham. When Buffett bought Berkshire Hathaway a few years after closing the partnership, his investment philosophy had changed. Your best bet to understand his investing is to simply read his letters. He may come across as a bit folksy or country bumpkin…
I mean, much of Graham's "investment philosophy" has been thoroughly invalidated by the Modigliani-Miller theorem published in the 1960s. But like Deepak Chopra, he's still around!
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.459...
M&M says there shouldn't be 1st order implications for a firm's dividend payout ratio on its stock price (there are potential effects caused by taxes, agency and signalling that they assume away for simplicity).
However, other popular value metrics such as low price to earnings, market cap to book value, historic beta or past/future earnings growth are not affected by M&M. The efficient market hypothesis is an assumption rather than an implication of the theorem and there is a good empirical case for the combination of value investing and leverage.
I prefer the 2007 version, it's more mathy.
Looking up the suggested texts for previous test years (or for obsolete tests) may also reveal texts that may be cheaper now or available as used copies.
You could probably get something like Price Theory and Applications (Landsburg) or Principles of Corporate Finance (Brealey, Myers, Allen) for cheap.
[0] http://beanactuary.org/exams/preliminary/?fa=preliminary-com... [1] https://www.soa.org/education/exam-req/edu-exam-p-detail.asp... [2] https://www.soa.org/education/exam-req/edu-exam-fm-detail.as... [3] https://www.soa.org/education/exam-req/edu-exam-mfe-detail.a... [4] https://www.casact.org/admissions/syllabus/index.cfm?fa=Ssyl...
These are important books but obviously not a comprehensive list. * John Locke's Two Treatises of Government - It's political philosophy but it's hard to understand Classical Liberalism without having read some Locke. * Adam Smith's Wealth of Nations - He and Locke are the two main guys to read for a solid start on Classical Liberalism, which is completely different than modern political liberalism. It's like having…