The (Mis)behavior of Markets: A Fractal View of Financial Turbulence by Benoit Mandelbrot

[easyazon_image align=”left” height=”160″ identifier=”0465043577″ locale=”US” src=”http://www.sharkinvestor.com/wp-content/uploads/2016/02/51A5ihSFeGL.SL160.jpg” tag=”sharkinvestor00-20″ width=”106″]Who: Mandelbrot is a mathematician famous for his contributions to the field of fractal geometry, with applications that go well beyond the financial world.
What: In this book Mandelbrot challenges the foundations of modern portfolio theory. This is a pretty complex subject, and definitely not a beginner’s book: “fractals, self-similarity and long-range dependence” will make most people’s eyes glaze over, but if you allocate the time and mental effort to really understand it, this is a revolutionary book.
When: Originally published in 2004
Where: [easyazon_link identifier=”0465043577″ locale=”US” tag=”sharkinvestor00-20″]Here[/easyazon_link]

Why Stocks Go Up and Down by William Pike

[easyazon_image align=”left” height=”160″ identifier=”0989298205″ locale=”US” src=”http://www.sharkinvestor.com/wp-content/uploads/2016/02/41xrVO2BgrnL.SL160.jpg” tag=”sharkinvestor00-20″ width=”113″]Who: Pike ran Fidelity’s high income (junk bond fund in the 80s.
What: This is a very good beginner’s book. It begins by explaining the ins and outs of how a business operates, using practical examples, and move on to more involved topics like how to value a business.
When: Originally published in 1999
Where: [easyazon_link identifier=”0989298205″ locale=”US” tag=”sharkinvestor00-20″]Here[/easyazon_link]

Stocks for the Long Run by Jeremy Siegel

[easyazon_image align=”left” height=”160″ identifier=”0071800514″ locale=”US” src=”http://www.sharkinvestor.com/wp-content/uploads/2016/02/51035k7NUqL.SL160.jpg” tag=”sharkinvestor00-20″ width=”127″]Who: Siegel is a professor at Wharton, with frequent media appearances, and is an advisor to the ETF sponsor WisdomTree Investments.
What: Siegel has a swing at defining what he considers the optimal long term investment strategy, and backs up his conviction with empirical evidence. One of the interesting conclusions is that if you have a long enough time horizon, stocks are less risky than bonds.
When: Originally published in 1994
Where: [easyazon_link identifier=”0071800514″ locale=”US” tag=”sharkinvestor00-20″]Here[/easyazon_link]