10 Strategy Books Every Finance Manager Should Read Once In A Lifetime

The constant evolution of the FinTech industry makes it imperative for finance professionals to stay on top of industry trends and innovations. While the Internet does bring you the latest news from the industry, a deeper knowledge and understanding of the subject matter is what helps you make a difference. And there is no better teacher than books.

But which book to go for? Fret not, we are here with a list of 10 must-read books to get you started.

1. The Intelligent Investor

The first in the list is The Intelligent Investor written by Benjamin Graham. Warren Buffett, while describing the book, said, “…by far the best book ever written on investing.” The author has successfully put the seemingly difficult concepts of investments into terms that are understood easily. As you flip the pages of the book, you get rid of your poor investment habits and learn the art of risk management with asset allocation and diversification. Along with maximizing probabilities with valuations, you also learn a disciplined approach to prevent consequential portfolio errors.

2. Common Stocks And Uncommon Profits

Authored by Philip A. Fisher, Common Stocks and Uncommon Profits is teeming with knowledge on stock investment. The whole of the book has been divided into three major sections. The first one talks about the basics of buying and selling stocks. The second part highlights the four dimensions of conservative investment. In its last section, the book unveils chapters on judging the market so as to build an investment philosophy. A proven resource for the stock investors, the book covers all the factors and aspects that an investor should know of and learn about.

3. The Secret Of Economic Indicators

As you turn the pages of this book written by Bernard Baumohl, you help yourself to translating the economic data into knowledge for informed decision making. The book boasts of new insight into what all today’s economic indicators mean, and how they can be used to make an intelligent choice. In the book, you come across a slew of economic markers which include those that monitor web searches, gambling and even shifts in freight traffic. The book has an excellent readability. Now it even comes with new graphics that indicate currency values, stock prices, bond prices, etc. Get your hands on this invaluable resource if you look forward to understanding latest economic trends.

4. Competitive Strategy: Techniques For Analyzing Industries And Competitors

Written by Michael E. Porter, the book has been translated into 19 languages! This is one book that has revolutionized theory and practice of business strategy everywhere in the world. Porter, in his book, describes the most powerful competitive tools which are focus, lowest cost, and differentiation. On reading, you understand how competitive advantage can be defined in terms of relative price and relative cost. On the whole, with the help of this book, you develop a new perspective on how profit is made and divided.

5. Manias, Panics And Crashes: A History Of Financial Crises

The seventh edition of the book has been co-authored by Robert Z. Aliber and Charles P. Kindleberger. This edition has been comprehensively revised and expanded. In the book, Robert, who is a prominent economist, explains the concept of financial crisis. You learn and understand that the global financial crises are not independent events, but a consequence of an instability in the international system. The readability score of the book is quite high and the same keeps the readers glued to the book.

6. Barbarians At The Gate

The book conceals a true story of a failed takeover attempt in the 1980s. Barbarians At The Gate by Bryan Burrough unveils the various aspects of the fight to control RJR Nabisco. For the world, it was a mere takeover but the book has altogether a different tale to tell. Know the ultimate story of greed and glory, of publicity flaks, and of an industrial powerhouse which became a victim of the ruthless financial style of the decade.

7. Irrational Exuberance

Written by Nobel Prize winner Robert J. Shiller, Irrational Exuberance, was originally published in the year 2000. It, then, put forth arguments to prove how stock markets were overvalued at that time. Co-incidentally, the stock market collapsed in the very same year. The second edition of the book came in 2005 and described the real estate bubble burst. It was in the year 2007–08 that the same thing took place. The third edition of the book rolled out in 2015. In this edition, Robert warns of risk attached to holding long-term bonds. He also warns that US stock prices are high and the prices of global houses are in bubble territory. Considering Shiller’s ability to predict the future crises, this edition is something that finance managers should definitely not miss.

8. Thinking Fast And Slow

In his book, Thinking Fast and Slow, Daniel Kahneman explains two systems that influence our thinking and decision making. First is fast, intuitive and emotional. The second is slow and more logical. So, what can the finance managers expect from the book? The author links these two systems with the impact of loss aversion, challenges of calculating the risks, effect of cognitive biases on purchasing and selling stocks, etc. The book has been so written that you don’t just read it, you rather engage in a lively conversation with the author and learn how fast and slow thinking influence our decisions and judgment.

9. Liar’s Poker

If you believe, books from finance genre are quite serious and they always talk about investments, risks, stocks, and ROIs, here is an exception. Liar’s Poker by Michael Lewis is sure to tickle your funny bone with its humorous take on an unprecedented era of American business brimming with greed and outrageous fortune. In the first section of this semi-autobiographical book, Michael tells you how the traders and salesman of bonds work and about the various traits of their personalities. As you advance in the book, you are introduced to the history of Salomon Brother (the firm where Michael worked first) and a general overview of the Wall Street. This section also features quotes drawn from the interviews of some of the prominent personalities.

10. Freakonomics

Co-authored by Steven D. Levitt and Stephen J. Dubner, the book is packed with forceful storytelling and insights that tell readers that at the root, economics is all about the study on incentives. When you read the book, you know how people get what they wish for. Freakonomics also explores the hidden side of everything. It establishes an unconventional base that if morality means how the world should work, economics means how it actually does work. From a chapter on discovering that cheating applied to teachers, as well as Sumo wrestlers to a chapter on the socioeconomic patterns of naming children, the book is sure to have your undivided attention till its very end.