Recently, I asked my close friends to send me their book recommendations, including books they have recently read and enjoyed, with a brief synopsis. I am sure everyone can find a book to read in this diverse list of books on all different economic and financial topics!
Annikas Recommendations:
Liars Poker by Michael Lewis
This book is the book that I read which inspired me to pursue a career in finance. “Liar’s Poker” is a semi-autobiographical book by Michael Lewis that follows his journey with the Solomon brothers on Wall Street. The story begins when Lewis is a fresh college graduate starting his career as a bond salesman and finishes when he is a successful trader.
In addition to offering insight into the culture of a bulge bracket bank, other interesting side plots and numerous memorable anecdotes are followed. One notable story is the rise of mortgage-backed securities, a financial innovation which later, with other factors, would contribute to the 2008 crisis. I highly recommend this book to anyone considering a career in banking and finance; it is funny, interesting and educational.
I would also recommend looking at the author’s other books; some of my favourites include the infamous Big Short and Flash Boys.
The Deals That Made the World by Jackes Peretti
"The Deals That Made the World" by Jacques Peretti delves into the major financial deals and decisions that have shaped our modern world. Through detailed analysis and compelling storytelling, Peretti looks into how these pivotal deals have influenced the global economy and our daily lives.
The book covers various topics, from famous mergers and acquisitions to the rise of big tech and the impact of globalization. Peretti provides an insider's look into the strategies and motivations behind these monumental deals, shedding light on the key players and their roles.
The book is also educational about the financial world, including interesting side plots and many anecdotes. One notable story is Facebook’s acquisition of Instagram, which highlights the strategic manoeuvres and foresight made by the tech giants of today who now dominate our world and daily life.
I highly recommend this book to anyone considering a career in banking or finance or someone with a keen interest in macroeconomics. It contains a series of short sections which can even be read as short standalone tales.
Josie's Recommendations:
Capital and the Common Good by Georgia Levenson Keohane
This book discusses a branch of business which has only recently been used: Innovative finance. The book splits this up into five sub-sections: green bonds, health, access to capital, risk management and finally how innovative finance is used in certain communities in the United States. Keohane evaluates the sustainable development goals stating that it would cost $3.9 trillion a year to achieve all 12 goals despite current public funding only having $1.4 trillion to do so, as such she explores different paths to achieve said goals, using sustainable finance as a vehicle to do so. At the outset, the economist assesses the worth of green bonds and delves into the consortium formed in 2014-15 investment banks (including JP Morgan Chase, Bank of America, Citi, Goldman Sachs, HSBC and SEB) hand in hand with investor group called Ceres where that stated that green bonds “encourage transparency, disclosure and integrity”. This group accomplished a range of goals which arguably changed the lives of millions of people, such as the City of Los Angeles Streetlights Project, and offered financing for the Antioch United School District in California to purchase solar panels, amongst others. Keohane explores the initiatives made possible by both creative and visible hand investments into global health in the following chapter, something she calls innovative finance. Throughout the book, she uses case studies and accessible explanations for the titles, yet she returns to the same line of argument: “An Ounce of Prevention is Worth a Pound of Cure”. I encourage those who are aspiring to reform their previously formed ideologies to read this book and prepare to be amazed!
Phishing for Phools by George A. Akerlof and Robert J. Shiller
I would like to preface this review by stating that Shiller is a renowned finance professor at Yale University and is a fellow in Yale SOM’s (School of Management) International Center of Finance and has a brilliant course on Coursera about how to ‘Manage Your Money’ efficiently which I recommend to all those looking to study economics/business/finance. Phishing for Fools discusses the “economics of manipulation and deception” through the lens of free market admirers. It allows the reader to understand why one purchases and spends so much money on products one does not need. The play on words in the title refers to the coined phrase “phish”, which, according to the Oxford English Dictionary, is the act of “perpetuating a fraud on the internet to gain personal information from individuals, esp. by impersonating a reputable company” whilst the phools are those who allow themselves to get “phished” in both the psychological and informational venues. The economists evaluate how people’s naïveté will enable us to sweep deception under the rug and use behavioural economists such as DellaVigna-Malmendier and Gabaix-Laibson to show how some consumers are sophisticated. The others are myopic, and firms have the opportunity to “shroud” prices of add-ons (using credit cards as an example). Throughout the text, they evaluate the different forms of financial trickery and what one can do to be more receptive to these economists’ warnings. Akerlof and Shiller conclude by stating that we must change people’s focus, and as a result, we can change their decisions.
Zoe’s Recommendations:
The Psychology of Money by Morgan Housel
The Psychology of Money by Morgan Housel offers insightful and practical lessons on the behavioural aspects of finance. Housel was a former columnist at The Motley Fool and a partner at the Collaborative Fund and presents important principles on topics such as personal finance, long-term thinking, and the risk and luck involved in finance. The book focuses more on the psychology and behaviour behind financial decisions rather than the technical financial details. Housel uses personal anecdotes and stories to illustrate his points making it easier to understand complex financial concepts even if you don’t have a strong background in finance. I strongly recommend this book for those looking to learn about the human behaviour behind financial decisions and the lessons in this book can also be applicable to improve your own financial decision-making and understanding of money.
Hope you find a book here you would enjoy reading - Annika
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