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Welcome to the inaugural issue of "What's In Your Library?" Each week I will interview a money manager, analyst or trader about what books have been the most influential on their careers. I am going to keep these articles short and sweet. One paragraph to introduce the interviewee, and then I will ask them what books have had the most influence on their careers and why. They will then have a few sentences to explain each choice.
To get the ball rolling, I'll start with my picks. To introduce myself, I am Wayne Nef, President of Sniper Research and author of The Sure Shot Letter. I have worked on the Street for over twenty years with stints at Value Line, Merrill Lynch and Circle T Partners. For the past ten years I have worked as a consultant to hedge funds through my company Nef Value Research.
So, what's in my library?
A Random Walk Down Wall Street by Burton G. Malkiel Love it or hate it, the book lays out a lot of reasons on why most investors would be better off buying an index fund. Although I don't believe this academic totally proves his point; There are a number of managers out there that beat the market year in and year out fairly consistently (i.e. trend followers). Even so, the book does a great job relating market history and showing how hype has driven the market and individual stocks to great heights in the past, only to lead to crushing losses as reason takes hold and the bubbles burst. All said, this is a great book for anyone interested in market history.
Innumeracy - Mathematical Illiteracy And Its Consequences by John Allen Paulos
This is a great read! Although you would think a book about statistics and probability would be a cure for insomnia, Paulos does a good job of keeping his examples interesting. Innumeracy shows how many common misconceptions occur due to people's lack of understanding of probability and large numbers. He makes a good case that many government policy blunders are caused by innumeracy as are many confused business and personal decisions. This book will be a real eye opener for those too lazy to look past the headlines!
Candlesticks Explained by Martin J. Pring Simply the best book I have read on technical analysis in general and candlestick chart reading in particular. I keep a copy of this book on my desk as a reference for when I come upon a chart that looks like it has potential, but I just can't put my finger on why. A great book for beginners and pros alike!
How To Make Money In Stocks - A Winning System in Good Times or Bad by William J. O'Neil
This book came out when I was just getting out of college and it is one of the first books I read on investing outside of the classroom. I loved the C-A-N S-L-I-M formula and still like to see many of those same signals in my stocks today. Who says that Value and C-A-N S-L-I-M can't mix!
The New Money Masters by John Train
My father always said, "Try to learn from the best." This book allows you to do just that. Train has chapters dedicated to the investment strategies of legeneds such as Soros, Lynch, Rogers, Neff, Wanger and Steinardt. The book is both lively and informative. Well worth the time it takes to read!
Well, there are five books to keep you busy! I have a large library and many favorites so at some point I may come back to you with a second list. Being the author of the blog has its privileges! In the meantime, I will have a new interview for you next week. If you are interested in buying any of the books mentioned above, just click on the Sniper Book Bin button at the top of the blog and it will take you to my store on amazon.com. Or just click
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