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Ask HN: What are the must-read books about economics/finance?

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Re: Ask HN: What are the must-read books about economics/finance?

#251
post #246

Earlier quoted context omitted.

I'm starting to form a different model from the standard (gross managerial incompetence / systemic failures of the Communist model) for why the USSR failed, though I'm largely in the information-gathering stage. On Samuelson, I'm increasingly less impressed with him over time. I studied with his book (~17th edition or so, mid/late 1980s), and have compared later editions with the first (1948 IIRC). I'm not sure how m…

The most interesting narrative is from Jerry Pournelle, who points out that part of bankrupting of the USSR was their outfitting the North Vietnamese Army (NVA) with 3 complete armies of mechanized equipment, from trucks to tanks (this kind of army: https://en.wikipedia.org/wiki/Field_army ). One was used up piecemeal. One was stomped flat by the Army of the Republic of Vietnam (ARVN) and the air support provided by…

Hrm. I'd have to see Pournelle's specifics, though I'm not particularly inclined to find him highly credible. The narrative is interesting.

A few pieces I've been putting together from numerous sources:

1. The USA and USSR were the two dominant oil suppliers of the first half of the 20th century, and are still typically trade off the 2nd & 3rd spots, after Saudi Arabia, today. Oil is much of what made the 20th century. See Daniel Yergin's The Prize (mentioned several times in this thread), and Manfred Weissenbacher's Sources of Power -- he notes this in the introduction. The book is an exporation of how energy shaped history.

2. The final collapse of the Soviet Union happened in large part through the oil glut of the late 1980s. The USSR had overextended its domestic committments, had been forced into an unsustainable arms race by the US (which had greater capabilities than the USSR through much of the postwar period, total ground fources excepted).

3. William Ophuls, a little-known author, who combines ecology and political science. In his 1977 book Ecology and the Politics of Scarcity, he calls much of the subsequent three decades of development, including the fall of the USSR, the industrialisation of China, and the nonindustrialisation (mostly) of India and Africa. Moreover, he gets the dynamics right, a far more crucial element IMO than timing, which is hugely uncertain.

I've found it interesting that command economies (USSR, China, North Korea, Cuba, East Germany) often see a very rapid initial growth stage, then a stagnation. One might argue that there are exceptions (Saudi Arabia is essentially a family-government-enterprise-state institution based on oil), and there are market-democratic states that fare poorly. But that quick-launch-early-plateau dynamic seems fairly common.

Appreciate the ref even if I'm taking it skeptically.

Re: Ask HN: What are the must-read books about economics/finance?

#252

Earlier quoted context omitted.

Would an economist go through an entire career and never read, say, John Locke? I don't know the answer. I'm genuinely curious.

Quite possibly, just as one can be a productive physicist without reading, say, Einstein, in the original.

I wasn't asking as a productivity question it was more wouldn't they want to read the history of thought leading to what they're doing just out of sheer curiosity?

Re: Ask HN: What are the must-read books about economics/finance?

#253
post #246

Earlier quoted context omitted.

The most interesting narrative is from Jerry Pournelle, who points out that part of bankrupting of the USSR was their outfitting the North Vietnamese Army (NVA) with 3 complete armies of mechanized equipment, from trucks to tanks (this kind of army: https://en.wikipedia.org/wiki/Field_army ). One was used up piecemeal. One was stomped flat by the Army of the Republic of Vietnam (ARVN) and the air support provided by…

Hrm. I'd have to see Pournelle's specifics, though I'm not particularly inclined to find him highly credible. The narrative is interesting. A few pieces I've been putting together from numerous sources: 1. The USA and USSR were the two dominant oil suppliers of the first half of the 20th century, and are still typically trade off the 2nd & 3rd spots, after Saudi Arabia, today. Oil is much of what made the 20th centur…

About to go to bed, but this item:

The final collapse of the Soviet Union happened in large part through the oil glut of the late 1980s.

Is at least claimed to be part of Reagan's economic warfare against the USSR.

Note also that not any one or even two of these things were likely sufficient to bankrupt it, they all piled on particularly in the '80s, and most of it was external and intentional.

Re: Ask HN: What are the must-read books about economics/finance?

#254

As a start, take some economics courses, intro Micro and Macro. (Check https://www.coursetalk.com/ https://www.class-central.com/ ) Actually the first book I'd recommend would be The Worldly Philosophers, a readable history of economics https://www.amazon.com/Worldly-Philosophers-Economic-Thinker... A couple of more right-leaning books - Hayek, The Road to Serfdom https://www.amazon.com/Road-Serfdom-Fiftieth-Annivers…

FWIW this would be my list of books every investor should read, which is different from what you should read to work in finance but anyway ...

Capital Ideas: The Improbable Origins of Modern Wall Street by Peter L. Bernstein. A lively introduction to the theoretical foundations of modern finance and their history, Markowitz, Sharpe, etc. https://www.amazon.com/Capital-Ideas-Improbable-Origins-Mode...

The Essays of Warren Buffett : Lessons for Corporate America by Warren E. Buffett. In his own words...you can also find many if not all online, on Berkshire website https://www.amazon.com/The-Essays-Warren-Buffett-Corporate/d...

Buffett: The Making of an American Capitalist by Roger Lowenstein. Insightful biography...The Snowball was written more recently with Buffett's approval, but would read this one first https://www.amazon.com/Buffett-American-Capitalist-Roger-Low...

Common Stocks and Uncommon Profits and Other Writings by Philip A. Fisher. It's not widely appreciated, but Warren Buffett's method is 50% Ben Graham and 50% Phil Fisher. If you can find value stocks that are also great franchises, and hold onto them for dear life, you will be rich... if you also bet big, operate companies well, don't screw up, live in a bull market era and survive long enough, maybe as rich as Buffett. https://www.amazon.com/Common-Stocks-Uncommon-Profits-Writin...

The Intelligent Investor: A Book of Practical Counsel by Benjamin Graham. Classic introduction to value investing https://www.amazon.com/The-Intelligent-Investor-Practical-Co...

Unconventional Success: A Fundamental Approach to Personal Investment by David F. Swensen. Asset allocation, and the perils of mutual funds...leading endowment investor of our time (Yale) gives his advice for individuals https://www.amazon.com/Unconventional-Success-Fundamental-Ap...

The Most Important Thing: Uncommon Sense for the Thoughtful Investor by Howard Marks. Lessons in investing... at any time, any one of them can be 'the most important thing' and so they all are jointly and severally 'the most important thing'. https://www.amazon.com/The-Most-Important-Thing-Thoughtful/d...

The Investor's Anthology: Original Ideas from the Industry's Greatest Minds (Vols 1 and 2) by Charles D. Ellis (Editor), James R. Vertin (Editor). Essays from a broad selection of writers https://www.amazon.com/The-Investors-Anthology-Industrys-Inv... https://www.amazon.com/Classics-II-Another-Investors-Antholo...

The Money Masters; The New Money Masters; Money Masters of Our Time, by John Train. Methodologies of all-time great money managers, in their own words https://www.amazon.com/The-Money-Masters-John-Train/dp/08873... https://www.amazon.com/Money-Masters-Time-John-Train/dp/0887... https://www.amazon.com/New-Money-Masters-John-Train/dp/08873...

Market Wizards; The New Market Wizards; Hedge Fund Market Wizards, by Jack D. Schwager. Interviews of successful traders https://www.amazon.com/Market-Wizards-Jack-D-Schwager/dp/088... https://www.amazon.com/The-New-Market-Wizards-Conversations/... https://www.amazon.com/Hedge-Fund-Market-Wizards-Winning/dp/...

Manias, Panics, and Crashes: A History of Financial Crises by Charles P. Kindleberger. Why good markets go bad https://www.amazon.com/Manias-Panics-Crashes-Financial-Inves...

Reminiscences of a Stock Operator by Edwin Lefevre. Fictionalized biography of a famed early-20th century trader https://www.amazon.com/Reminiscences-Stock-Operator-Edwin-Le...

A Random Walk Down Wall Street: The Best and Latest Investment Advice Money Can Buy by Burton G. Malkiel. Reality check from an efficient market theorist https://www.amazon.com/Random-Walk-Down-Wall-Street/dp/03933...

This is a rollicking good read on links between Shannon, Kelly, Thorpe, who wrote 'Beat the Dealer' and was maybe the first hedge fund legend https://www.amazon.com/Fortunes-Formula-Scientific-Betting-C...

And maybe something on technical analysis, but not really sure what to recommend...a lot of people view it kind as mumbo jumbo, but I kind of think fundamentals are like playing your poker hand, technicals are like playing the opponents' tells...the chart gives you an idea of who owns it at what price, what levels might make people rethink positions. Maybe this one as an easy intro, dumb title notwithstanding https://www.amazon.com/Stan-Weinsteins-Secrets-Profiting-Mar...

Re: Ask HN: What are the must-read books about economics/finance?

#255

Earlier quoted context omitted.

Galbraith could be more of polar opposite (than Keynes); if one is pressed to have the balance.

Not pressed but it's a good idea isn't it? I considered Galbraith for my list but wasn't sure if he was a fit and only vaguely remember what Theory of the Leisure Class was about to be honest. Thank you.

I mistakingly attributed _Theory of the Leisure Class_ to Galbraith, when it was actually written by Thorstein Veblen. I've not read it but I guess it's now on Marmot's canon. I hope it's a good book.

It was John Kenneth Galbraith who wrote _The Affluent Society_, which Wikipedia says is about, "the manner in which the post-World War II United States was becoming wealthy in the private sector but remained poor in the public sector, lacking social and physical infrastructure, and perpetuating income disparities."

Re: Ask HN: What are the must-read books about economics/finance?

#256

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…

Galbraith could be more of polar opposite (than Keynes); if one is pressed to have the balance.

John Kenneth Galbraith most famous book was The Affluent Society. If you don't want to be a slave to fashion, read Robert Reich's all-time favorite book on economics, The New Industrial State.

Re: Ask HN: What are the must-read books about economics/finance?

#258

Earlier quoted context omitted.

Quite possibly, just as one can be a productive physicist without reading, say, Einstein, in the original.

I wasn't asking as a productivity question it was more wouldn't they want to read the history of thought leading to what they're doing just out of sheer curiosity?

Definitely, and I'm sure many do. And it is often very surprising how far ahead the older authors had thought. But while such reading is fun as a leisure activity, doing it seriously requires full-time dedication as a historian of thought because often even if the words are intelligible the concepts have drifted so much that they can be understood only by studying not only the famous works but their entire intellectual milieu. For example, to someone trained in contemporary economics even Keynes' 'General Theory' written in 1936 is very hard to make detailed sense of. So as a practical matter it comes down to a choice of studying either economics or the history of economics.

Re: Ask HN: What are the must-read books about economics/finance?

#259

Earlier quoted context omitted.

Quite possibly, just as one can be a productive physicist without reading, say, Einstein, in the original.

I wasn't asking as a productivity question it was more wouldn't they want to read the history of thought leading to what they're doing just out of sheer curiosity?

Adam Smith is still very relevant.

Re: Ask HN: What are the must-read books about economics/finance?

#260

Earlier quoted context omitted.

Nobody in their right mind would try to read Capital. It's a massive, unreadable tome that you could summarize in an article online somewhere. That's borderline sadistic to suggest someone try to get through that thing. :-)

I'm not going to claim that I am in my right mind all the time but I read Capital. Well, the main volume. In English. And I skimmed the others. I think it was worthwhile. I value the experience especially in light of how often the text is reinterpreted and cast off in the US without much attention to the text itself. If you dare try, this is site might be helpful. http://la.utexas.edu/users/hcleaver/357k/357k.html .…

You're much braver than I am. I'd go so far to say hard core. You must be either a scholar or a layman with extraordinary discipline. Either way. Keep at it.
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