Grab that cash with both hands and make a stash.

August 17, 2006 6:31 PM

I'd like some suggestions for books about how Wall Street works.

I'm interested in books that can de-mystify Wall Street and the world of high-finance. Suggestions of both general texts and books on specific topics are welcome. I'm very interested in books about hedge funds and international finance & deals, especially those written by former Wall Streeters.

posted by thewittyname to work & money (11 comments total)

Confessions of a Wall Street Analyst: A True Story of Inside Information and Corruption in the Stock Market
posted by jak68 at 6:38 PM on August 17, 2006

Andy Kessler is pretty good.
posted by milkrate at 6:41 PM on August 17, 2006

Liar's Poker by Michael Lewis, Den of Thieves by James B. Stewart, When Genius Failed: The Fall of Long Term Capital Management, Barbarians At The Gate, The New New Thing
posted by Frank Grimes at 6:51 PM on August 17, 2006

Other People's Money. Nomi used to be a bond trader at Goldmans and gives insights both into the mechanics of how the system functions and the shortcomings thereof.

If you're after more of the theory than the practice, try the standard text: Brearley & Myers' Principles of Corporate Finance, a dry but informative read.
posted by dogsbody at 7:31 PM on August 17, 2006

I have a friend doing very well on Wall Street who loves Market Wizards. I've skimmed it, seems like "Inside The Actors Studio" for traders ... great insight into how they think and how they see themselves, though.
posted by lbergstr at 8:24 PM on August 17, 2006

Oh witty, you done stepped in it now. Big subject. Start with each of the above, particularly Grimey's recommendations. Except for Brealey/Myers and the LTCM book, each of the foregoing is on my "reread every couple of years list.

Also interesting is anything at all by Frank Partnoy, former derivatives salesman turned San Diego law professor. He's smart, lucid, and candid. FIASCO, like Liars' Poker above, is a (slightly lightweight) classic as well, and does a superb job of describing the power imbalance and knowledge gap between clients and bankers.

To get a sense of the mentality of young investment bankers, try Rolfe and Troob, "Monkey Business." It's a crappy little book, but the authorial voice tells you a whole heck of a lot.

Happy to provide a taxonomy to sort out the differences between bankers, traders, analysts, fund managers, brokers, etc. if you wish.

The Wiley Classics series is worth owning. Not a bad one in the bunch.
posted by Phred182 at 8:37 PM on August 17, 2006

Of the above mentioned Wiley Classics, don't miss "Where Are The Customers Yachts", by Fred Schwed. It was written over 60 years ago, by a Wall Street insider, and the truths within are as valid today as then.
posted by richg at 9:58 PM on August 17, 2006

Also in the Wiley series (Schwed is a great call richg) is one of the the "Adam Smith" books--I collected them over ten years, they've been out of print forever.

Adam Smith was the pen name of Gerry Goodman, as distinct from the "Wealth of Nations" guy.
posted by Phred182 at 12:01 AM on August 18, 2006

I liked Doug Henwood's Wall Street and it has the advantage that you can now download it for free. Henwood writes from a left perspective too, but he worked in Wall St for a while, so you get a kind of insider/outsider perspective that gives you a different way of seeing what the other books say.
posted by crocomancer at 1:01 AM on August 18, 2006

By Wall Street what do you mean? Investment Managment? Investment Banking? Trading? Stock Broking to the masses?

All of these books are good depending on whether you want to hear about the bitter humor of a too smart for his job 25 year old, or if you want a journalist telling you how evil Wall Street is.

Wall Street is a lot like the back of a butcher shop. The only way to protect yourself is know you are dealing with guys who's sausage you trust.

Also beware of hagiographies of "great traders" and read "When Genius Failed" and "Fooled by Randomness" You'll have even less respect for the 29 year old trader who made $5 milllion

My personal recc on the development of the modern fund management business is Peter Bernstein's "Capital Ideas". I've read all of the books mentioned above,and to me this gives the best insight into how most money is actually managed by professionals today.

I would note that none of the books mentioned will do anything for your own investment skills.
posted by JPD at 3:49 AM on August 18, 2006

HF Books - Really aren't any good ones. Mostly because smart hedge fund guys never talk about their business. Its bad Karma.
posted by JPD at 3:50 AM on August 18, 2006