Man Group GAIN Volunteers on their recommended reads…
Looking for a new book to read? We asked employees at GAIN sponsor firm MAN Group to tell us about a book they enjoyed and would recommend to anyone starting out in their investment career.
Fortune's Formula: The Untold Story of the Scientific Betting by William Poundstone
Recommended by: Erlind Tusha - Graduate Analyst
Why they liked it: A really high level intro to information theory and the Kelly criterion. It gets you thinking about the fact that successful idea generation is not necessarily as valuable as your method of accumulating bets in financial markets. It talks about how to create a risk management framework which stops investors blowing up, while averting behavioural biases which are common in gambling. The Kelly criterion is pretty interesting although it isn't necessarily optimal, and it is a very light read.
More Money Than God by Sebastian Mallaby
Recommended by: Darrel Yawitch, CRO
Why they liked it: It’s a good telling of who is who in the Hedge Fund world.
Lean In by Sheryl Sandberg
Recommended by: Arina Bykova, Graduate Analyst
Why they liked it: A great book that lays out the building blocks for a successful career. As a young women, I found it incredibly relatable, though I would recommend it to anyone (in fact, my dad was next in line to read it!). The book shed a light on some things I always knew were there but was never able to pinpoint and provided some good advice on how to prevent these things from holding me back.
Market Wizards by Jack D. Schwager
Recommended by: Stan Whittaker, Graduate Analyst
Why they liked it: Much easier to read than most finance books, so much wisdom from the people you want to emulate – if you’re an aspiring discretionary investor, I would highly recommend reading this book.
Warren Buffet and the Interpretation of Financial Statements by Mary Buffet and David Clark
Recommended by: Jonny Minshull-Beech, Investment Writer
Why they liked it: It combined a very readable explanation of the three financial statements and how they work with a focus on what to look for in a good company and why certain characteristics on financial statements matter.
The Most Important Thing by Howard Marks
Recommended by: Henry Dixon, Portfolio Manager - UK Value
Why they liked it: A great intro and grounding in Investment management.
Extraordinary Popular Delusions and the Madness of Crowds by Charles MacKay
Recommended by: Peter Doane, Graduate Analyst
Why they liked it: The original study of bubbles and crowd psychology, written over 150 years ago and still relevant today. When Mackay describes the hysteria of the South Sea Bubble, with millions raised for “A company for carrying on an undertaking of great advantage, but nobody to know what it is”, its hard not to think of SPACs and crypto without a smile. A very fun book to read, with plenty to reflect on.
Freakonomics by Stephen J. Dubner and Steven Levitt
Recommended by: Alex Robarts, Portfolio Manager - US Equities
Why they liked it: Gives you different perspectives on economics , data and behavioural finance. Also easy to read!
The Rise and Fall of American Growth by Robert J Gordon
Recommended by: Amara Mulliner, Researcher
Why they liked it: This economic history book gives a thoughtful and analytical overview of the American economy since 1870, the "Special Century". The book is particularly interesting as it challenges the view that economic growth will continue - it attributes a lot of the historical growth to the five 'Great Inventions' that occurred between 1870 and 1970 (electricity, urban sanitation, chemicals and pharmaceuticals, the internal combustion engine and modern communication) and suggests that until an innovation of similar scale comes about, we are unlikely to have these historic levels of growth.
The book is lengthy but by covering topics such as productivity, growth, inflation, inequality and private & public debt it's a great way to grasp key economic concepts and employ them to think analytically about the current and future economy.