Reading List

I’m often asked for my suggested reading.  Here are some of the books that I’ve found especially insightful, listed by sub-topic.  I also include a favorite authors section – basically, I read everything by these people whenever they publish a new work.  This page will be updated from time to time as new books or authors come across my desk.

Introduction to Risk:

• Against the Gods by Peter Bernstein.  Excellent background on the history of how humans have approached and thought about risk.  This is a must read for everyone in the field.
• Value-at-Risk: The New Benchmark for Managing Financial Risk by Phillipe Jorion.  Every new employee at Investor Analytics gets a copy.
• Options, Futures and Other Derivative Securities by John Hull.  This has become the standard textbook for quants.

Understanding Statistics / Mathematics:

• The Drunkard’s Walk (How randomness Rules Our Lives) by Leonard Mlodinow.  Wonderful book about how we think about randomness and how it really works.
• Fooled by Randomness by Nassim Taleb. This one by Taleb is certainly worth reading. Full of stories of successful people who were fooled into thinking they had something to do with their success.

Behavioral Economics / Cognitive Studies:

• Mind of the Market by Michael Shermer.  This is a great book that surveys the various topics covered under “homo economicus”, “behavioral economics”, “human evolution” and “cognitive studies”.
• How the Mind Works by Steven Pinker.  This is a great introduction to recent advancements in cognitive studies by a leading figure in the field.
• Mistakes Were Made (But Not by Me): Why We Justify Foolish Beliefs, Bad Decisions, and Hurtful Acts by Carol Tavris and Elliot Aronson.
• Nudge: Improving Decisions About Health, Wealth, and Happiness by Richard H. Thaler, Cass R. Sunstein.  If the politics bothers you, skip it.  Otherwise, it’s full of interesting choices we make.
• Blunder: Why Smart People Make Bad Decisions by Zachary Shore
• Why Smart People Make Big Money Mistakes And How To Correct Them: Lessons From The New Science Of Behavioral Economics by Gary Belsky, Thomas Gilovich

Complexity Science / Systemic Risk Management:

• The Origin of Wealth: Evolution, Complexity, and the Radical Remaking of Economics by Eric D. Beinhocker.  Everyone in the world should read this book.
• Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets by Nassim Taleb.  While I disagree with quite a bit of what he writes, this book has some very good points.
• Complexity, Risk and Financial Markets by Edgar Peters

Evolution:

• The Beak of the Finch: A Story of Evolution in Our Time by Jonathan Weiner.  This is a fantastic book.
• Anything and Everything by Stephen J. Gould.  Seriously.
• The Greatest Show on Earth: The Evidence for Evolution by Richard Dawkins.  This is here because there are so many misconceptions about Evolution that I think it’s useful reading at least one book on the topic and I think this one’s excelent.  If Dawkins’ stance on religion bothers you, then I suggest you read this book instead:
• Why Evolution is True by Jerry Coyne.  And, of course,
• The Origin of Species by Charles Darwin.

Favorite Authors:

• Steven J. Gould
• Steven Pinker
• Michael Shermer

Podcasts / Blogs / Magazines that I read or listen to regularly:

• Radio Lab, an inquisitive and fresh production from National Public Radio’s New York station, WNYC.  Please support it if you like it.
• Scientific American (the first columns I always read are Michael Shermer’s and Steve Mirsky’s)
• National Geographic
• Geologic Podcast, a fresh and funny look at music, skepticism and life (warning: explicit content)