100 books like Fooled by Randomness

This fascinating read tells the story of the rise and then spectacular fall of the once celebrated hedge fund Long-Term Capital Management.

What made LTCM so attractive to Wall Street investors was its stable of "dream team" quants and financial minds, led by the laconic John Merriweather. Merriweather (featured in the opening Chapter of Liar's Poker) was a former Solomon Brothers bond-trading guru, who after leaving the firm amid a scandal managed to assemble a team of financial powerhouses that included two Nobel Laureates as well as a cadre of respected traders.

From 1993 to 1997 LTCM's returns were first-rate; the sky seemed the limit for this small band of supertraders, professors, and modelers who arrogantly considered themselves a cut above the rest of The Street.

But in 1998, it all came crashing down...and right quick. Having believed their financial models could accurately predict price action not just in… show more.

I'm not sure when I have learned more about humanity than with the books of Yuval Harari.

I recommend this book as it is the first of the series, and I could read it over and over and still not have captured everything that Yuval Harari explores and teaches us.

A great historian who uses history to explore our future, Yuval Harari is one whose books I read every chance I have.

The opening of this book about how public transport systems have been designed to get men where they need to go (to the city center for work) but not women where we often go (all over neighborhoods caring for people) just blew my mind.

I loved how Criado Perez challenges so many things we take for granted – like why you can go out with a client after work and expense your steak and drinks but not the babysitter you have to hire. Her explanations of how the world is basically designed for men helped me understand why the voice control system in my car never seems to understand me and why there’s always a line for the ladies’ room.

Based on scientific arguments, this book shows how strongly incorrect drives are stuck in our brains, causing us to think that we are making a logical decision, while this is not the case.

The best example I tell everybody: Look at your attic that you want to clean out. You empty your cupboards, and almost always, a large part goes back into the cupboard because it is a waste. But if you are offered the same stuff for free, you usually don't want it.

The message of this example: Your brain finds it difficult to get rid of something you have, and it is a non-rational reaction that occurs in our fixed brain.

Carefully read (and read again, and then read at least a third and fourth time) both books by Jim Collins. He's rightly famous for his masterful distillation of the core qualities and strategies of the world's most successful organizations.

Once you understand key concepts like "Getting the Right People on the Bus" and what your "20-mile March" really is, and you have the grit to keep trying to apply the concepts and work through mistakes and sticking points, you will be able to lead your organization to new heights of growth and impact, when so many other organizations struggle just to keep the lights on.

Note that his “Good to Great for the Social Sector'' misapplies his concepts to the non-profit and is best ignored. The texts above apply perfectly well to the nonprofit sector, and this attempt at re-interpreting his principles fails badly.

I love this book because Ray is a master at building, evaluating, and improving systems and has taken the time to share his insights to help others do the same.

The principles he’s identified and described can simultaneously assist any investor to construct a better portfolio and any person to live a more successful and fulfilling life. This book offers a unique opportunity to learn from one of the most insightful people in history. 

More than thirty years ago, when I was conducting research on the psychology of altruism and moral development, a biologist recommended that I read The Selfish Gene. 

Reading Dawkins’ book caused me to change my theoretical orientation completely.  It enabled me to see that if I wanted to understand altruism and morality, I needed to understand how the genes that guide the construction of the mental mechanisms that cause us to help others evolved. 

Although the title of the book implies that we are selfish by nature, the contents explain how selfish genes can guide the development of unselfish animals.  

I loved how this “Little Book" gets right to the point and explains why every investor should include low-cost index ETFs in their portfolios. This is a great guide for beginners and old hands alike. It is a book devoted to simplicity.

I loved Bogle’s “Cost Matters Hypothesis” which is simpler and more relevant than the also important “Efficient Markets Hypothesis” that is taught in Finance 101 classes. 

I felt this book empowered me to take control of my financial life. It’s a book I always recommend to people who are looking to improve their financial lives. I learned a lot from Vanguard founder John Bogle's 80+ years of experience and wisdom. Invest just 60 minutes in this book and reap a lifetime of informed, confident investing decisions.

A primary reason to love math is because of its usefulness. This book shows two sides of math’s applicability, since it is so ubiquitously used in various algorithms.

On the one hand, such usage can be good, because statistical inferences can make our life easier and enrich it. On the other, when these are not properly designed or monitored, it can lead to catastrophic consequences. Mathematics is a powerful force, as powerful as wind or fire, and needs to be harnessed just as carefully.

Cathy O’Neil’s message in this book spoke deeply to me, reminding me that I need to be always vigilant about the subject I love not being deployed carelessly.  

Certainty is a black-or-white concept, either zero or hundred percent; uncertainty is something between zero and hundred percent, and this grayness is a difficult concept. In the context of dealing with uncertainty and making better decisions, I find Annie Duke’s use of poker in Thinking in Bets clever for two reasons: (1) People can engage with the concept that winning or losing in a poker game is neither exact science nor pure luck. (2) Given that poker games are so different from our everyday reality, there is no danger that people would expect decision recipes for dummies.