Anyone Read Any Good Finance/Investment Books Lately?

[BBHog]

Soros newest book sounds pretty interesting, haven't picked it up yet though.

[Masshog]

Two that may interest you. 

The first is "Mind of the Market" by Michael Shermer.  The first half was very good, the second half was Ok (so far), and I am hoping for a slam bang finish.  The book focuses on how evolutionary biology and the small group dynamic that defined human existence over 99.9% of our evolutionary history, shapes investment behavior.  Nice section on Adam Smith and free market economics.  Available in paperback for 20.00 bucks or so. 

The second is Behavioral Investing by James Montier of Soc. Gen.  This one is a must read for serious investors and those interested in how cognitive bias impacts modern investment thought.  I think its brilliant in that it gives explanation for many of the things that I have observed over the course of my investing career.  This is a bit expensive, but can be found on the internet for around 75.00.  Lots of value investing information to go along with the cognitive work.  It is a slog to get through so don't order it unless you are very serious.  I know that Barnes has it and before you purchase, I would suggest you sit in a chair and peruse for an hour or so.  I found myself looking up last Sunday and realizing that over two hours had passed.  But, I'm a financial goober of highest magnitude... so...     

[Masshog]

The Montier text also offers some solutions for combating these biases.  I think its brilliant stuff. 

[Masshog]

Mind of the market reviews:

From Publishers Weekly
Shermer (The Science of Good and Evil), columnist for Scientific American and publisher of Skeptic magazine, provides an in-depth examination of evolutionary economics. Using fascinating examples—from monkeys that balk at unfair distribution of rewards after completing a task to humans who feel cheated when offered $10 of free money if a partner is given $90—Shermer explores the evolutionary roots of our sense of fairness and justice, and shows how this rationale extends to the market. Drawing upon his expertise as a scientist and the works of noted economists, Shermer argues convincingly that human beings are not exclusively self-centered, the market itself is moral, and modern economies are founded on our virtuous nature. He explores how we mind our money, the value of virtue, why money can't buy happiness and whether we are really free to make choices. Though dense in places, this book offers much insight into human behavior and rationales regarding money and fairness and will be of interest to serious readers of science or business. (Jan.)
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved. --This text refers to the Hardcover edition.

Review

"[A] captivating raconteur of all the greatest hits of behavioral, evolutionary and neuropsychology, [and] provider of wonderful cocktail party material... Fascinating."—Los Angeles Times Book Review

"The book has no end of conversation starters, from capitalism as modern Darwinism to neuroeconomics that show that—biochemically, at least—a human brain is shockingly similar during smooth business deals and sex."—Boston Globe

"Have you ever wondered how people develop trust and live together peacefully? Michael Shermer's new book uses psychology and evolution to examine the root of these human achievements... [He] has earned the right to our attention."—Washington Post

"Drawing from research, and injecting his own wit, Shermer explains why people make bad decisions about money, why wealth can't buy you happiness, and why we love cooperating."—Psychology Today

"Compelling... Take us on an intimate tour of the best of the last half-century's work in behavioral economics and neuroscience."—New York Post

"Entertaining... a fascinating tour d'horizon of discoveries in several of today's cutting-edge sciences."—The Globe and Mail (Toronto)

"Well-written [and] highly entertaining.... Replete with thought-provoking examples and solid references, the book will start as many debates as it will end."—Choice

"[The Mind of the Market] provides a thorough account of what's going on in a branch of psychology dedicated to understanding the natural origins of economic decisions."—Science News

"Pure entertainment... Some of the most interesting economic research being undertaken these days draws on the disciplines of cognitive science and psychology, and [The Mind of the Market is a] highly readable contribution."—The Business Economist

"Eye-opening ... [The Mind of the Market] recounts truly fascinating experiments and discoveries regarding physiological components of our market decisions.... Filled with fun analogies and a smattering of funny lines."—Humanist

"Thoughtful and complete...You're certain to learn something new when you read it."—WestWord

[Masshog]

Montier reviews:

Review
"It is quite simply the best and most comprehensive treatment of the subject to date." (Financial Times, Monday 3rd December 2007) "The Year's most exhaustive, and often entertaining, coverage of the behavioural literature." (Financial Times, Saturday 15th December 2007) "...one of the few 'must read' books on the topic of investing." (The Herald - Glasgow, Saturday 2nd February 2008) "...a fantastic insight into how markets operate... [and] one of the few "must read" on the topic of investing." (The Herald, Sat 2nd February 2008)

"It is quite simply the best and most comprehensive treatment of the subject to date."  (Financial Times, Monday 3rd December 2007)

"The Year's most exhaustive, and often entertaining, coverage of the behavioural literature."  (Financial Times, Saturday 15th December 2007)

"...one of the few 'must read' books on the topic of investing."  (The Herald - Glasgow, Saturday 2nd February 2008)

"...a fantastic insight into how markets operate... [and] one of the few "must read" on the topic of investing." (The Herald, Sat 2nd February 2008)

Product Description
Behavioural investing seeks to bridge the gap between psychology and investing. All too many investors are unaware of the mental pitfalls that await them. Even once we are aware of our biases, we must recognise that knowledge does not equal behaviour. The solution lies is designing and adopting an investment process that is at least partially robust to behavioural decision-making errors.

Behavioural Investing: A Practitioner's Guide to Applying Behavioural Finance explores the biases we face, the way in which they show up in the investment process, and urges readers to adopt an empirically based sceptical approach to investing. This book is unique in combining insights from the field of applied psychology with a through understanding of the investment problem. The content is practitioner focused throughout and will be essential reading for any investment professional looking to improve their investing behaviour to maximise returns. Key features include:

    * The only book to cover the applications of behavioural finance
    * An executive summary for every chapter with key points highlighted at the chapter start
    * Information on the key behavioural biases of professional investors, including The seven sins of fund management, Investment myth busting, and The Tao of investing
    * Practical examples showing how using a psychologically inspired model can improve on standard, common practice valuation tools
    * Written by an internationally renowned expert in the field of behavioural finance

[john c]

Interesting video

http://www.youtube.com/watch?v=cL9Wu2kWwSY