A Random Walk Down Wall Street
by Burton G. Malkiel
Malkiel describes why the stock market is efficient—explaining how all the good or bad news related to a company is reflected in its stock price. So, no one really has a leg up. Anyone can become a good investor by putting his or her mind to it and doing the necessary homework. If you are looking to get a better handle on the basics, A Random Walk provides a terrific foundation.
Bad Blood: Secrets and Lies in a Silicon Valley Startup
by John Carreyrou
This is the definitive insider’s look at the rise and fall of Theranos, a company which promised to quickly provide a complete picture of one’s health using only a small amount of blood. Carreyrou is a two-time Pulitzer Prize-winning investigative reporter at The Wall Street Journal. For his extensive coverage of Theranos, Inc., Carreyrou was awarded the George Polk Award for Financial Reporting, the Gerald Loeb Award for Distinguished Business and Financial Journalism and the Barlett & Steele Award for Investigative Journalism in 2016.
Buffett: The Making of an American Capitalist
by Roger Lowenstein
This is a biography of Warren Buffett, the CEO of Berkshire Hathaway who’s widely recognized as the greatest investor of our time. One dollar invested with Buffett when he began his career back in 1956 is now worth $47,317—while a $1,000 investment over this same time frame would be worth a mind-boggling $47 million today. He amassed an enormous fortune on this simple premise—if you can’t explain a stock idea to a 6-year-old, move on. The book gives readers an appreciation for Buffett’s investment philosophy and genius and, along the way, provides an up close and personal look at a one-of-a-kind life.
Grit: The Power of Passion and Perseverance
by Angela Duckworth
Angela Duckworth is a psychologist and academic. Her book discusses the value of passionate persistence. IQ and talent is not the only factor in getting good grades/career accomplishments. More often than not, having grit or stamina to stick to a goal is a better predictor of success and performance. Life is marathon not a sprint, very similar to Ariel’s approach to investing.
Hit Refresh: The Quest to Rediscover Microsoft’s Soul and Imagine a Better Future for Everyone
by Satya Nadella
Microsoft CEO’s Satya Nadella discusses his childhood in India, his third child Zain who has cerebral palsy, and how his personal experiences have shaped his role at the company. He discusses how empathy and acknowledging his early mistakes help steer him professionally. He also discusses the opportunities created by technology and the digital era.
Long Walk to Freedom: The Autobiography of Nelson Mandela
by Nelson Mandela
The late Nelson Mandela was considered by many to be an international hero and one of the great moral and political leaders of our time. His lifelong dedication to the fight against racial oppression in South Africa won him the Nobel Peace Prize and the presidency of his country. Instrumental in moving South Africa toward multiracial government and majority rule, Mandela’s government focused on dismantling the legacy of apartheid by tackling institutionalized racism and fostering racial reconciliation.
Mastering the Market Cycle
by Howard Marks
Howard Marks is an investor, writer, and co-founded Oaktree Capital. He wrote a book to discuss the reasons behind market cycles and learning the rhythm of up/down. By studying past cycles, you can be more aware and prepared for the next one.
Misbehaving: The Making of Behavioral Economics
by Richard Thaler
Economist and Professor at University of Chicago Booth School of Business, Richard Thaler offers a deep discussion in behavioral finance. The book addresses that the study of economics assumes human act rationally, which is not often the case. It discusses how to make smarter decisions and has a humorous twist. At Ariel, we are natural contrarians and are students of behavioral finance.
by Michael Lewis
At first blush, this book appears to be about baseball, but really, it’s about value investing. Moneyball chronicles the career of Billy Beane, general manager of the Oakland A’s, who assembled consistently winning teams on a bare-bones budget by looking at stats instead of star power. Value investors analyze companies in much the same way that Beane sought out baseball players, looking for strong fundamentals and returns that can stand the test of time.
One Up on Wall Street
by Peter Lynch
Like Buffett, Lynch also follows a simple philosophy—invest in what you know. He looked for everyday products and services used in any economic environment.
Predictably Irrational: The Hidden Forces That Shape Our Decisions
By Dan Ariely
Contrary to common belief, smart people make irrational decisions every day. Dan Ariely believes such choices follow a foreseeable process and addresses these illogical “hidden forces shaping our decisions” in Predictably Irrational. His witty and original perspective on human’s economic behavior and thinking hammers home real-life examples. For instance, why do we often pay too much when we pay nothing? Why does dealing with cash make us more honest? Why is everything relative—when it shouldn’t be? Ariely’s book alerts people to their irrational tendencies, in hopes of improving their understanding of their own behavior and paving a path for them to make better decisions in the future.
The Invisible Gorilla: And Other Ways Our Intuitions Deceive Us
by Christopher Chabris & Daniel Simons
The title of this fascinating and broadly applicable book comes from a famous, provocative experiment Chabris and Simons ran to sharply challenge prevailing notions of human beings' observational abilities. This book studies six everyday illusions that "make us think that our mental abilities and capacities are greater than they actually are" because "we confuse how easily our minds can do something with how well they are doing it". The six everyday illusions The Invisible Gorilla identifies are the illusions of attention, memory, confidence, knowledge, cause and potential. After this quick read, you might find yourself far more comfortable with the limitations you and others have.
by Daniel Pink
Daniel Pink is an author, journalist and TV host. Daniel talks about how timing is everything; it’s a science not an art. He breaks down the methodology of why we chose when to do certain tasks and how it impacts our life. If you can make better timing decisions, you can be more productive.
by John Robert Caro
Robert Caro is a journalist known for his biographies of Robert Moses and Lyndon B. Johnson. Working details his interviewing style; how he learned to be a good listener and to ask the right questions to develop expertise in his subject matter and uncover new information. The book helped hone Ariel’s investment process, especially for our research team and their due diligence on companies.