The Black Swan: The Impact of the Highly Improbable

To quote from The NY Times: “The hubris of predictions –and our perpetual surprise when the not-predicted happens- are themes of Nassim Nicholas Taleb’s engaging new book, The Black Swan.  It concerns the occurrence of the improbable, the power of rare events and the author’s lament that “in spite of the empirical record we continue to project into the future as if we were good at it.”  We expect all swans to be white and are shocked when a black swan swims by.

Enough

Bogle, the founder of Vanguard, has written this short and insightful book on what "enough" means as it relates to money, business and life in general.  The book is filled with many quotes and antidotes, but none better than the story about the sign that supposedly hung in Einstein's office, which said "Not everything that counts can be counted, and not everything that can be counted counts."

Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets, Second Edition

This is a great discussion buy a hedge fund manager about how luck plays a vital role in all aspects of our lives- and how numbers really do lie.

More Than You Know: Finding Financial Wisdom in Unconventional Places

What does the development of human neural networks have to do with investing and markets?  Everything, according to Mauboussin.  The synaptic winnowing that occurs between birth and age three is an evolutionary survival process.  To Mauboussin, though, it holds additional meaning: It’s similar to what happens when a new industry emerges.  This fun read draws investing insights from a wide range of scholarly disciplines, from cognitive science to fractal mathematics.

The Number

A light-hearted book, similar to Blink and Freakeconomics, this book presents a different way to think about retirement.  You can read this and decide of you are a procrastinator, plucker, plotter or prober, or you can just read this for some fun and some insights into one of our favorite topics, human behavior.

Predictably Irrational and The Upside of Irrationality

The first in this series, Predictably Irrational, is a groundbreaker and a classic in the field of Behavioral Finance.  Whereas the first book focuses on the multiple biases most of us have that lead us to making poor decisions, the second, The Upside,  offers guidance on how we can attempt to be better by understanding our "irrational" behaviors and harnessing them.  Both books are replete with numerous experiments and antidotes that will surely entertain you but, more importantly, convince you that in spite of what many of us studied in school, we are simply not programmed to be the rational man or woman.

The Soul of Money - Reclaiming the Wealth of our Inner Resources

This unusual book delves into the inner workings of money and the human mind.  Twist argues that money, a human invention and a mere tool, can be harmful, destructive or wonderful.  Not surprisingly, she asserts that, “true wealth, or well-being, can’t be found in a static balance sheet, no matter how large the accumulation of financial assets.”

Stumbling on Happiness

As the book jacket says, this is a “brilliant, witty and accessible book” that “describes the foibles of imagination and illusions of foresight that cause each of us to misconceive our tomorrows and misestimate our satisfactions.”  We hope you enjoy it as much as we did.

Think Twice: Harnessing the Power of Counterintuition

Mauboussin, one of the leaders in the field of behavioral finance, provides a tour of classic behavioral finance mistakes we all make.  His previous book, More Than You Know, explored psychology, strategy and the science of money management and is a classic in this field.  In this work, according to one reviewer, he "helps us understand, recognize and even appreciate our vulnerabilities with humorous explanations. He reassures us that we can become more rational by recognizing the traps and applying tools to better cope with the realities of life. Best of all, those who take his work seriously will become more autonomous and responsible even when surrounded by the maddening crowd."

What Works on Wall Street

In this exploration of how human emotions foil rational decision making, O’Shaughnessy asserts that “Successful investors do not comply with nature, they defy it.”

Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the New Science of Behavioral Economics

Belsky and Gilovich manage to distill three decades of academic research into one short, entertaining and easy to read book on one of our favorite topics, behavioral finance.  You will learn the classic mistakes we humans make that lead to poor investing decisions, and hopefully, as the authors say, the "exposure of a particular mental blind spot-can do as much for your financial health as even the most helpful bit of advice that any financial adviser can give you."

Your Money & Your Brain

Zweig recants the normal behavioral finance mantras, but (unlike other authors we have read on this topic) he explains the science behind why we do what we do.  Science aside, it’s an excellent overview of humans and their money- and may even make you a better investor!

A Random Walk Down Wall Street

This book has long been considered an old classic for anyone with an interest in investing.  We recommend it to anyone out there, young or old, who wants to learn about the basics of investing.  And, the newest edition, 2009, has a topic on one of our favorite topics-behavioral finance.

Solutions for Impact Investors: From Strategy to Implementation

This book by Rockefeller Philanthropy Advisors aims to increase the rigor with which impact investors frame their investment decisions and demonstrate the integration of impact investing across asset classes.  The authors express that impact investing can create social good at scale and begin to address some of the world's most pressing problems.

Stabilizing an Unstable Economy

Minsky presents his groundbreaking financial theories in this investment classic. First published in 1986, this work is as relevant now as it was then.  In it, Minsky argues, rather convincingly we fear, that there is nothing in our economy to constrain the tendency towards ever increasingly large and scary financial bubbles. No doubt, 2008 has proved this all too well.

The Templeton Touch

This is the story of one of the most astute investors of our times- a quick but thorough read on Templeton’s investment principles and philosophy.  We especially like his time-tested maxims of the “Templeton Touch.”

Too Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save the Financial System---and Themselves

If you only have time to read one book on the 2008 financial crisis, make it this one.  This book is riveting-one of us devoured all 600 plus pages in one weekend.  Sadly, it reads like fiction; how we wish that were indeed the case.  

When Genius Failed: The Rise and Fall of Long-Term Capital Management

Who would think that the history of a hedge fund would make for fascinating reading?  OK-we would. And, it does.  This is not your ordinary hedge fund.  The story centers around the spectacular blow-up of Long Term Capital, a fund formed by some of the brightest luminaries in the hedge fund world in the 1990's including 3 Noble prize winners.  It is, we feel, another classic and oft-repeated tale of human folly, hubris and greed and it shows even the best brains and the fanciest computers in the world can not control the markets.

The Winning Investment Habits of Warren Buffet and George Soros

In this quick and fascinating read, Tier analyzes two brilliant and radically different investors, Soros and Buffet, using their styles to ascertain what works and what goes terribly wrong for investors.  If you’re short on time, just read the chapter called the “Seven Deadly Investment Sins.”

Alexander Hamilton

Ok, so you can tell we are Chernow fans.  Love Hamilton or hate him, this book tells a fascinating story of one of our founding fathers in particular, and all of them in general.  If you have not read about the history of the United States since high school, we highly recommend this biography as an entertaining and insightful refresher.

Extraordinary Popular Delusions & the Madness of Crowds

Written in 1841, this book is as relevant today as when it was written.  The chapters on the tulip mania of 1634 and the South Sea bubble are very insightful, and very scary.

The Last Tycoons: The Secret History of Lazard Freres & Co.

As one reviewer said, “The Last Tycoons is a tale of vaulting ambitions, whispered advice, worldly mistresses, fabulous art collections, and enormous wealth- a story of high drama in the world of high finance.” But, beware: We listened to the abridged CD and even then found it long and laborious at times.

Mellon: An American Life

One could never say that Mellon led a traditional American life, but his enigmatic life was indeed fascinating.  Cannadine does a stellar job of telling the tale of Mellon’s successful career and his very troubled family life.

Mornings on Horseback: The Story of an Extraordinary Family, and the Unique Child who Became Theodore Roosevelt

This is a brilliant biography of the young Teddy Roosevelt, struggling with numerous medical ailments, traveling to Europe with his family, losing the love of his life, living the cowboy life, an eventually returning to New York to embark on adult-hood.

The Snowball: Warren Buffett and the Business of Life

Schroeder has written one of the best biographies we have ever read. If you are interested in investing, the country, history or just the life of a legendary investor, Warren Buffett, you'll enjoy this fine book.

Truman

This story starts in 1884, and ends in the time of rockets to the moon.  Truman’s childhood, rise to the presidency, and the dramatic events during his time in office form a riveting biography of a fascinating man- told by a master storyteller/historian.

Walt Disney, The Triumph of the American Imagination

Walt Disney’s life is the tale of a dreamer, a poor businessman who made it rich and changed the world in the process.  This is an engrossing and enjoyable story for anyone interested in business and history- and the leaders who shaped both.

What Marie Antoinette Wore to the Revolution; Queen of Fashion

Combining fashion and French history is undoubtedly a stroke of genius.  For those who love fashion and French culture, this is a must read.

Change Philanthropy

This is a great book for learning about effective long-term strategies that address the causes of critical social problems.  It describes some initiatives that have worked and some that have not worked in creating social change. The book uses case studies from several foundations of different sizes, including Liberty Hill Foundation, Charles Stewart Mott Foundation, Needmor Fund, Global Fund for Women, and the Open Society Institute.

Creating a Private Foundation: The Essential Guide for Donors and Their Advisors

Readers of this book should know that the authors work for a company that provides back-office services for foundations, and they clearly have a bias towards foundations as opposed to some of the other vehicles for charitable giving. However, we encourage anyone interested in understanding some of the more technical issues concerning philanthropic vehicles to ignore that and read this book. It provides clear and concise explanations of numerous confusing terms in philanthropy and as such, serves as a wonderful primer.  Terms like distribution rates, leverage, UBTI, bargain sales, CRTs, CLTs, TIPS, hedge funds, and one of our favorites, "affluenza" will all be demystified. And, the last chapter is a must-read for anyone who wants to understand the tax rules relating to donating different types of assets to public or private charities.

Forces For Good: The Six Practices of High-Impact Nonprofits

The authors posit that "it is the end of charity as we know it, and the beginning of high-impact philanthropy" and analyze the top six practices of 12 high-impact organizations.  For those among you who are interested in this topic, will find this to be one of the best written books on this topic, and a guiding light to help you evaluate your giving going forward.

How to Change the World: Social Entrepreneurs and the Power of New Ideas

As the author says in his opening, this is a book social entrepreneurs, people who solve social problems on a very large scale.  Bronstein takes the reader around the world as he chronicles the lives of a handful of a few very remarkable individuals who have indeed made the world a better place.  This should be an inspiration to us all. 

Mountains Beyond Mountains: The Quest of Dr. Paul Farmer, a Man Who Would Cure the World

In this fascinating book, Kidder tells the story of Paul Farmer, a Boston based physician who found his life's calling in infectious diseases. Not content to stay in a hospital in Boston, Famer seemingly lives in a plane, going from Haiti to Peru to Cuba and Russia.  If this does not prove that Margaret Mead was correct in saying "Never underestimate the ability of a small group of committed individuals to change the world", nothing will.

Philanthrocapitalism: How Giving Can Save the World

As many of you know, the "new new thing" in philanthropy is all about social entrepreneurship-the marriage of entrepreneurship and social good.  This new breed of philanthropists are applying their business talents to their giving, convinced that wealth creation offers the best route to social change, and skeptical about the value of traditional philanthropy.  Philanthrocapitalism explores this movement in great detail and provides many real life anecdotes of people like Bill Gates, Bill Clinton, Bono and others, which will surely educate and inspire the budding social philanthropists among you.

Philanthropy Heirs and Values, How Successful Families are Using Philanthropy to Prepare their Heirs for Post-Transition Responsibilities

We highly recommend this book for those who want to learn how to successfully use philanthropy to teach your children.  Using information gathered through interviews with over 3000 affluent families who transitions their wealth, the authors focus on the differences between successful and unsuccessful heirs.  The bad news is that they find no correlation between post-transition failure and tax laws, geography, culture or other economic parameters.  The good news is that this book provides valuable insights into what has worked for other families.

Raising Charitable Children

This practical, quick read addresses how and when parents should get their children involved in charity.  The author gives real life examples of projects big and small for families with very young children, to start teaching them about the “warmth that comes from giving more than receiving.”

Three Cups of Tea: One man's mission to promote peace one school at a time

Greg Mortenson, a former mountain climber, has dedicated his life to improving education in Pakistan and Afghanistan, building one school at a time with local materials and labor backed by small international donations.  Mortenson’s grassroots work in a troubled and critical part of the world is an inspiring example of how one person with limited resources can have a huge impact on individual lives- while building cross-cultural trust and friendship.

Hedge Hogging

This is one of the best books we have read on the subject of money managers in general and hedge fund specialists in particular.  Biggs is a long time Morgan Stanley executive, and hedge fund guy himself.  The book moves between ancient history and modern times, factual and fictional characters.  We found it immensely entertaining as well as enlightening about this rather esoteric field.  We think you will too.

The Portable Financial Analyst: What Practitioners Need to Know

Anyone looking for a technical analysis of today's investment practices should read this book.  Be forewarned however, the presumed audience are those who "dabble" in quantitative methods.

Searching for Alpha: the quest for exceptional investment performance

An easy and entertaining read on normally dry topics such as modern portfolio theory (which is, of course, no longer modern), behavioral finance, index investing, and risk arbitrage.  The book also covers topics such as the origin of professional football, the Civil War and whaling.

Best Intentions: Ensuring That Your Estate Plan Delivers Both Wealth and Wisdom

This really wonderful book is told from the point of view of heirs who inherit money. It really explains how people interpret wills from a personal point for view, and provides fascinating insights into this very complicated topic.

Beyond the Grave: The Right Way and the Wrong Way of Leaving Your Money to Your Children (And Others)

This book is designed to open the reader's eyes to the myriad of family issues and problems that occur in the inheritance arena-we believe that it will.   Hopefully, those who take the time to read this book will be able to avoid some of the more common problems and conflicts that typically arise when family wealth passes to the next generation.  And, at the very least, this book should demystify the numerous complicated terms often used by professionals in this area.

The Blessings of a Skinned Knee - Using Jewish Teachers to Raise Self-Reliant Children

Another highly recommended book on raising children, this one is not as dark as some.  Whatever your religion, if you are a parent of young children, we think you will appreciate this book’s wonderful insights and suggestions for raising self-reliant offspring.

Children of Paradise, Successful Parenting for Prosperous Families

Written in 1990, this book is as relevant today as it was then. It attempts to answer the age-old questions of whether wealthy parents can avoid spoiling their kids, and whether successful, ambitious parents can instill motivation in their children.  Of course, the author thinks that the answer is yes.  We do too.  And, we think few issues are more important to one's ultimate legacy.  The parents among you should take the effort to track down this book and give it a read.

Choking on the Silver Spoon: Keeping your Kids Healthy, Wealthy, and Wise in a Land of Plenty

This is undoubtedly one of the most honest of the many books we’ve read on this topic.  In our opinion, it’s also the best.  It’s light and easy to read, funny and sad, and filled with practical advice and tips that we think all parents should consider.

Navigating the Dark Side of Wealth: A Life Guide for Inheritors

This is an excellent but rather dark book, and some may be offended by the strong religious overtones.  However, readers struggling with how to raise children in a too plentiful world will find it insightful.  Born into great wealth and now a counselor, Thayer shares her own experiences and insights as well as stories about her clients.

Wealth in Families

This is the best book we have read to date dealing with raising children in wealthy households. It is an excellent book on a critical topic.

A Thousand Acres

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Bridge of Sighs: A Novel

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East of Eden

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The Flanders Panel

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The Girl with the Dragon Tattoo

The Lighthouse

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Loving Frank

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The Man in the White Sharkskin Suit: A Jewish Family's Exodus from Old Cairo to the New World

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Nancy Drew: The Secret of the Old Clock

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Ragtime

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The Women: A Novel

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