Marek Fuchs
You really can't miss Security Analysis by Benjamin Graham and David Dodd. What is there to say here? If it is Warren Buffett's bible, you need to at least delve in reverently and reserve a place of honor for it on your shelf. Here's what you have to keep in mind: Even if their fundamental analysis does not hold you or appears outdated or not relevant to stronger markets, realize that this is a tested method. That does not mean, by any token -- mine or yours -- that you need to adopt the method as your own, as Buffett did, with his own tweaks.
Just realize that every investor, while building in flexibility, must also derive a method, an overriding, overarching theme for how to invest. If this tome puts you in the spirit of developing a method, which will make you more capable and less prone to sloppy mistakes made on that awful enemy of all good investors -- emotion -- then it has done its job once again. Forgive it the stilted writing. My final recommendation is One Up on Wall Street. Peter Lynch offers an alternative method in this classic investment guide, where the writing and advice is not stilted but rather occasionally too-folksy-by-half. Since it offers such a good point/counterpoint, it should be read before or after Graham and Dodd. And again, understand that Lynch is not offering an easily imitated road to success. In fact, some of what he recommends -- following your children through malls, investing in what you know -- is a bit simplistic. And certainly it does not account for Lynch's built-in advantages as a Fidelity money manger who corporate officials would beg to have audiences with to talk about the inner workings of their businesses intimately. Moreover, investing in what you know can be limiting. An investor, like a journalist, does not have to be a know-it-all. But they can and should be a learn-it-all. If you don't know about technology, but the world is changing and there are great opportunities, well, take the time to learn. But again, Lynch has a method that works. As do Graham and Dodd. There are no set answers, but everyone needs a set method. Your method can be better informed by your sense of how Wall Street works, thanks to Lewis and Bronson. Just be careful not to misread the news because journalists don't get math. And whatever you do in this late summer heat: Don't go mad with the crowd.
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