Books on Investing: My 15 Favorite Books to Learn Investing

19 minutes

One of the best ways to learn about anything is reading. Books about investing get a bad rap for being boring, but I am here to tell you that is just not true.  Below is a list of my favorite books on investing. They range from beginners to more advanced books. They are all well written and very informative and have been a tremendous influence on me as well as countless others. Some of them are extremely well-known and are some of the best of investing classics. But they are still amazing and should be read by everyone.

I have said this before, and I will repeat it again. Learning about investing is like learning a new language. Reading is one of the best ways to immerse yourself in that language. As you learn more you will want to find out more; it is very addicting in that way. As you learn the language and build your knowledge, these following books will help you create more blocks to continue your learning.

There are affiliate links for these recommendations and based my choices on my opinion and the influence they have had on me and my journey. I hope you enjoy them as much as I have and am confident that you will benefit from them as well.

1. The Education of a Value Investor

One of my first books that I read about investing. Written by Guy Spier who is the manager of the Aquamarine Fund, which is a hedge fund that he runs out of Switzerland.

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Latticework of Mental Models: Better Decisions, Better Investors

14 minutes

 

latticework of mental models

How do we become better investors? Better decision makers? Having a latticework of mental models to hang our thoughts and choices on is a great start. Creating these models is how we learn to become better decision makers. Before creating our latticework of mental models we need to create the mental models that we will use. We must explore the big ideas from the major disciplines.

Physics, biology, psychology, philosophy, literature, history, sociology, and others.

These are the big disciplines that we call the models.

Our goal is not to remember facts and be able to repeat them, like on a test in college. The goal is to hang these models on a latticework of mental models with concrete examples in our head to help us remember them. And apply them in our life.

The latticework of mental models puts them in a form that we can use analyze a wide variety of situations. This enables us to make better decisions. When these big ideas from multiple disciplines all point toward the same conclusion. Then we can begin to make the conclusion that we have come across an important truth.

Charlie Munger and the latticework of mental models

This idea of a latticework comes Charlie Munger, co-chairman of Berkshire Hathaway. Munger is one of the greatest cross-disciplinary thinkers in the world.

I could try to explain his thoughts on worldly wisdom, but I would fail miserably. So instead we will use his words.

Well, the first rule is that you can’t really know anything if you just remember isolated facts and try and bang ’em back. If the facts don’t hang together on a latticework of theory, you don’t have them in a usable form. Continue reading “Latticework of Mental Models: Better Decisions, Better Investors”