29 books like The Man Who Solved the Market

Carol Loomis has edited Buffett’s widely read Letter to Shareholders for many decades. She is also an outstanding journalist who was a writer and editor at Fortune for 60 years. Her book is a compilation of many of her interviews with Buffett over the years, with some additional commentary. As the book subtitle indicates, the book covers “practically everything” in a conversational format so it is sort of a quasi-biography of Buffett.

This is a beautifully written story about bankers who rise, and fall spectacularly – into crime, in this case insider trading, with the loss of money, status, and prestige that followed.

What’s particularly fascinating is the historical, ethnic, and sociological backdrop. The book begins with a scene in which Indian-born Rajat Gupta, having come to the US and ascended to the highest echelons of the US business world, was attending a White House dinner for India’s Prime Minister.

The book ends as some people who had been on top are dealing with the aftermath of trials that went very badly for them. The word “Shakespearean” has been used to describe this book, and aptly so.

I started working at Depository Trust Company in New York in September 1987 – a month later the “Black Monday” stock market crash happened! At the time, it was very difficult to see exactly what caused it. “When you are up to your neck in alligators, it is hard to remember why you drained the swamp!” This book explains how Wall Street banks hatched all those alligator eggs by hiring MIT math-whizz-kids and turning them loose without explaining the simplest thing about the stock market to them. One of the errors in their models was that they did not take bank holidays into account when calculating the time value of stocks and option prices.

A relatively new arrival on the list, Dreyfuss’s diligently crafted book is the most in-depth look at one of Wall Street’s most spectacular, if lesser-known, collapses in 2006.

The book takes us through the rise of two forces in energy trading embarking on a collision course that would be the ruin of one and an immense windfall of the other. Amaranth hedge fund was an up-and-comer and darling of the hedge fund space. Boasting stellar returns on its several billion in capital, it was able to raise massive sums to hand over to its wunderkind energy trading guru, the Canadian Brian Hunter.

Hunter had set out to dethrone John Arnold at Centaurus (the former Enron whiz kid and youngest member of the Forbes 400) as the biggest energy derivatives trader on the Street. Hunter’s ego soon got him into trouble when a series of disastrous and massively overleveraged bets collapsed,… show more.

I found this book absolutely thrilling as a real-life story of one of the biggest bullshit busts in history. Bernie Madoff’s Ponzi scheme ran for almost 18 years without much concern or investigation by the U.S. Securities and Exchange Commission (SEC). But, Harry Markopolos, a little-known number cruncher from a Boston equity derivatives firm, was onto Madoff after looking at Madoff’s financial records, several years before the bust made headlines. Page by page, Markopolos details his pursuit of the greatest financial criminal in history, and reveals the massive fraud, governmental incompetence, and criminal collusion that has changed thousands of lives forever-as well as the world’s financial system. All the while, no one, including the SEC, would listen. As such, the book is the quintessential example of how spellbinding bullshit can be. 

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.

A history of hedge funds might seem like a weird recommendation by someone who has written a paean to passive investing.

But my favourite books use a subject to tell a much broader story, and Mallaby’s definitive book on the hedge industry manages to show how even the most illustrious investing careers can fizzle out as market regimes ebb and flow.  

In Storm Lake, published in 2018, Pulitzer-winning editor, publisher, and author Art Cullen writes with passion, insight and humor about immigration, family, community and the history and future of this part of Iowa – and, to an extent, much of America.

His family’s newspaper, the Storm Lake Times Pilot, serves as a model for local coverage and investigative reporting in an era when hedge funds and out-of-town chains have left many parts of the country without newspapers or with “ghost papers,” shells of their former selves. 

In this book, Ray Dalio shares the invaluable knowledge he has gathered throughout his career.

He believes that principles of life, management, economics, and investing can all be systematized and understood like machines. With hundreds of practical lessons that revolve around his principles of "radical truth" and "radical transparency," Dalio highlights the most effective ways for individuals and organizations to make decisions, approach challenges, and build strong teams.

He also describes the innovative tools that his firm uses to bring idea meritocracy to life, including "baseball cards" for employees that distill their strengths and weaknesses and computerized decision-making systems that make believability-weighted decisions.

While the book provides novel ideas for organizations and institutions, Principles also offers a clear, straightforward approach to decision-making that Dalio believes anyone can apply, no matter their goal.

This is an authorized biography of Warren Buffett. I am not sure this is the best book to read if you want to learn to invest like Mr. Buffett, but it gives a fascinating view of his life. There are many great lessons we can learn from Mr. Buffett that go far beyond investing, for example about honesty and treasuring one’s reputation. But I thought this book was important for a very different reason: it shows that Warren Buffett is not a perfect human being and that we can also learn from the maestro by not repeating his mistakes. He achieved his unparalleled success in his business life at the expense of his personal life.

I find myself wanting to work 24/7. I bring my laptop home, or start reading The Wall Street Journal on my iPad at the dinner table – and my work life starts pushing out my… show more.