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Aug 12 14 tweets 5 min read Twitter logo Read on Twitter
American hedge fund billionaire Bill Ackman is a big fan of self-studying investing.

"You can learn investing by reading books."

Here is the 11-Book-List that he recommends to everyone who wants to learn about Investing👇 Image
1. Quality of Earnings by Thornton O’Glove

Earnings are one if not the most important driver of investment performance.

Thornton o'Glove does a phenomenal job of explaining how to analyze earnings and their sustainability/quality. Image
2. Security Analysis by Benjamin Graham and David L. Dodd

Written by Buffett's mentor, the so-called Father of Value Investing, this is a valuation classic.

It might be too complex for beginners but is a necessary read for more experienced investors. Image
3. Fooling Some of the People All of the Time by David Einhorn

David Einhorn was one of the few investors who foresaw the 2008 financial crisis.

This book was published a year before, in 2007.

It advocated for effective government regulation, free speech, and fair play. Image
4. Margin of Safety by Seth Klarman

This book is similar to Graham's The Intelligent Investor.

However, I find it easier to read because of its modern touch.

By the way, it costs over $2000. But I've heard that there's a PDF online...🤫 Image
5. Confidence Game by Christine Richard

Another investor who called the 2008 crisis was the person that recommended all these books, Bill Ackman.

He made over a billion dollars when the collapse happened.

Christine Richard takes the reader on that exciting journey. Image
6. Beating the Street by Peter Lynch

Lynch wasn't just the most successful fund manager of all time. He's also a great author.

This book is full of investing wisdom and a great start into the investing world. Image
7. The Essays of Warren Buffett by Warren Buffett & Lawrence A. Cunningham

This book contains the fundamental concepts of decades of Warren Buffett’s shareholder letters.

A must-read for every Buffett fan and aspiring investor. Image
8. The Intelligent Investor by Benjamin Graham

This book is known as the Bible of Value Investing.

It lays the foundation for intelligent investing.

According to Buffett, it’s the best investment book ever written. Image
9. You can be a Stock Market Genius by Joel Greenblatt

A practical guide to investing in the stock market.

It explains where individual investors should look for opportunities and how to exploit them.

Focus on:
- Spin-offs
- Restructurings
- Mergers
- Risk Arbitrage Image
10. One Up on Wall Street by Peter Lynch

Even more famous than Beating the Street is Peter Lynch's first book.

One Up on Wall Street is specifically aimed at retail investors and how they can beat well-trained and highly-paid Wall Street bankers. Image
11. The Warren Buffett Way by Robert G. Hagstrom

Robert Hagstrom spent a lot of time profoundly analyzing Buffett's investing and business concepts and wrote them down as "the Buffett Way." Image
Those were eleven book recommendations by Bill Ackman.

To find even more, by Buffett but also Munger, Marks, Pabrai, and more, check out the "Bookshelf" on my Website:
https://t.co/7DsUfL7X4mdanielmnke.com/p/bookshelf-in…
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More from @MnkeDaniel

Aug 13
Aswath Damodaran is the ‘Dean of Valuation.’

For almost four decades, he has been teaching valuation at NYU.

He also teaches millions of people online.

Here are 7 Key Valuation Lessons from Aswath Damodaran👇🏼
(+PDF of his Class Presentation) Image
1. The Bermuda Triangle of Valuation

There are three things that will ruin your valuation from the get-go.

1.1 Perception of Value Beforehand:

If you have an idea of value before your valuation, you’re already biased.

Your valuation will inevitably be close to that number. Image
1.2 Thinking of Valuation as a Science:

Whenever numbers are involved, people feel like there should be a clear right or wrong, as if it is a science.

But valuation is not a science. It combines numbers and stories.

You make assumptions and come up with numbers.
Read 14 tweets
Aug 9
Buffett, Munger, and countless other Superinvestos consider Investor's Psychology the most important factor.

Here are 7 MUST-read Psychology Books:

1. Thinking, Fast and Slow

The most comprehensive book I've ever read on psychology by Nobel Prize winner Daniel Kahneman. Image
The Art of Thinking Clearly

This book is a masterclass in elaborating how you can make more rational choices.

It does so by using common psychological errors that we all fall prey to in everyday life. Image
Think Again - The Power of Knowing What You Don’t Know

Adam Grant is a psychology Professor at Wharton and is well-known for his TED talks and podcast "ReThinking".

In this book, he is once again superb at teaching psychology to its readers. Image
Read 9 tweets
Aug 8
Ray Dalio turns 74 years old today!

He founded and ran one of the world's biggest and most successful hedge funds.

For years, he's been sharing lessons on life and investing.

To celebrate his birthday, here are some of his greatest lessons👇 Image
1. Power of Not Knowing

No matter how confident you are, there's always the possibility you're wrong.

Being aware of that is a superpower. Only then you can protect yourself.

Look for the smartest people that disagree with your opinion and hear them out.
2. Independent/Contrarian Ideas

In investing, big money is in contrarian ideas.

Focus on becoming an independent thinker and seek those contrarian ideas.

It's important, however, that you don't force them.

The consensus is mostly right and being contrarian and right is rare.
Read 8 tweets
Aug 6
Rakesh Jhunjhunwala is one of the most successful investors of all time.

He turned ~$10,000 into $5.8 billion and never managed outside money.

That's a 43% CAGR over 37 years(!)

I read through hundreds of pages of transcripts and interviews of him.

Here's his Strategy 👇 Image
1. Coping with Mistakes

Don't be afraid to make a mistake.

Only ensure you make one that you can afford so that you may live to make another.

You can never completely avoid mistakes, but you can choose to only invest when the worst outcome isn't deadly.
2. Judgement

Good judgment comes from experience.

Experience comes from bad judgment.

You can and need to learn the theory of investing, but the best teacher is experience.
Read 11 tweets
Jul 30
Mohnish Pabrai is a successful investor and an avid reader.

He taught himself how to invest by reading books instead of going to business school.

Here are 6 books he studied to learn Investing👇🏼 Image
1. Damn Right! Behind the Scenes with Charlie Munger

One of the things I admire most about Munger is that he lives the life lessons he preaches.

This wonderfully written biography illuminates these lessons and get's you as close to Munger as possible. Image
2. Deep Value Investing: Finding bargain shares with big potential

A 200-pager explaining how to find bargain-priced stocks of high-quality businesses.

A great book for everyone who wants to understand the fundamentals of smart investing. Image
Read 9 tweets
Jul 14
Michael Mauboussin is a phenomenal Investment thinker and researcher.

He worked for Morgan Stanley, Legg Mason, and other big players.

He's also a Professor at Columbia and has written numerous fantastic books and articles.

Here's a list of his Book Recommendations👇 Image
1. Superforecasting: The Art and Science of Prediction

This book is a masterclass on decision-making written by Wharton Professor Philip Tetlock.

Making predictions is inevitable in investing.

Thus, learning that skill is essential. Image
2. Thinking in Bets

The author Annie Duke is a former World Series of Poker Champion who then went into the finance and investing world.

This book offers a great framework for making decisions under uncertainty and the involvement of luck. Image
Read 9 tweets

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