Jeremy Grantham, the renowned investor and co-founder of Grantham, Mayo, & van Otterloo (GMO), has recommended a number of books over the years.
Here are five book recommendations from Jeremy Grantham. These book recommendations can be found in various interviews, speeches, and writings by Grantham:
“The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor” by Howard Marks. In this book Marks shares his insights and wisdom about investing, drawing from his extensive experience in the financial markets. He provides valuable guidance to investors, emphasizing the importance of critical thinking and thoughtful decision-making in the face of uncertainty.
“The Black Swan: The Impact of the Highly Improbable” by Nassim Nicholas Taleb. The term “black swan” is used as a metaphor for an event that is highly unexpected, has a severe impact, and is often rationalized in hindsight. Taleb argues that such events are more common than people tend to believe and that they have a profound influence on our lives, economies, and societies. He criticizes the human tendency to rely on deterministic models and projections while underestimating the significance of uncertainty and randomness.
‘The Ascent of Money: A Financial History of the World” by Niall Ferguson. In this book Ferguson delves into various aspects of financial history, starting from the origins of money and its role in early societies. He examines the development of banking, the rise of credit, and the emergence of financial markets and institutions. The book covers a wide range of topics, including the role of currencies, the influence of government policies on the economy, the impact of stock markets and bonds, and the role of globalization in shaping financial systems.
“The Big Short: Inside the Doomsday Machine” by Michael Lewis. In this book Lewis provides a detailed account of the financial instruments and practices that led to the housing bubble and subsequent economic crisis. Lewis explains the complex financial products, such as collateralized debt obligations (CDOs) and credit default swaps (CDS), that played a significant role in the crisis.
“Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets” by Nassim Nicholas Taleb. In this book Taleb challenges the conventional wisdom that attributes success or failure solely to skill and intelligence. He argues that people tend to underestimate the role of luck and randomness in determining outcomes, particularly in complex systems like financial markets. Taleb presents various examples and anecdotes to illustrate how randomness plays a significant role in our lives and in the financial world.
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