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(Economics major and longtime econ book/paper reader here) I very much enjoyed The Cartoon Introduction to Economics as an introduction to microeconomic concept

(Economics major and longtime econ book/paper reader here) I very much enjoyed The Cartoon Introduction to Economics as an introduction to microeconomic concepts: http://standupeconomist.com/cartoon-intro-microeconomics/ http://standupeconomist.com/cartoon-intro-microeconomics/ It's extremely readable and funny and covers most of the situations in real life where you can apply economic concepts to understand why something is the way it is. Understanding why countries and economies grow (and why some grow faster than others!) doesn't always fall under the "economics" umbrella but is really useful for informing policy (and a useful reminder these days, when both US presidential candidates rail against trade agreements). "From Poverty to Prosperity" lays out a very readable and convincing argument for how countries have grown and become rich. https://www.amazon.com/Poverty-Prosperity-Intangible-Liabilities-Scarcity/dp/1594032505/ref=sr_1_1?s=books&ie=UTF8&qid=1474597828&sr=1-1&keywords=from+poverty+to+prosperity+kling https://www.amazon.com/Poverty-Prosperity-Intangible-Liabili... For finance I very much enjoyed The Intelligent Investor, which also (apparently) inspired Warren Buffett's investing philosophy. https://www.amazon.com/Intelligent-Investor-Definitive-Investing-Essentials/dp/0060555661 https://www.amazon.com/Intelligent-Investor-Definitive-Inves...

atdrummond 10y ago
Indeed, Buffet worked at Graham's (the author of The Intelligent Investor) partnership.
blobbers 10y ago
This is a common misunderstanding. Buffett Partnership Ltd., Buffett's initial hedge fund, was very much was guided by the cigar butt style investment principles of Graham. When Buffett bought Berkshire Hathaway a few years after closing the partnership, his investment philosophy had changed. Your best bet to understand his investing is to simply read his letters. He may come across as a bit folksy or country bumpkin, but he's fairly clear in his methodology. Here are some links you may find helpful: http://www.rbcpa.com/WEB_letters/WEB_Letters_pre_berkshire.html http://www.rbcpa.com/WEB_letters/WEB_Letters_pre_berkshire.h... http://www.berkshirehathaway.com/letters/letters.html http://www.berkshirehathaway.com/letters/letters.html Enjoy.
- marklgr 10y ago
  What's your take on it?
- thanatropism 10y ago
  I mean, much of Graham's "investment philosophy" has been thoroughly invalidated by the Modigliani-Miller theorem published in the 1960s. But like Deepak Chopra, he's still around!
  - tim333 10y ago
    I'm not sure how a theorem is even supposed to invalidate a philosophy. Invalidation is normally done by experimental evidence not making up a theorem.
    - tim333 10y ago
      Aside from that modigliani-miller's theorem "that in the absence of taxes, bankruptcy costs, agency costs, and asymmetric information, and in an efficient market, the value of a firm is unaffected by how that firm is financed." has basically nothing to do with Graham's idea that in the real world with bankruptcy costs, agency costs, asymmetric information, and an inefficient market you should seek a margin of safety in investment. Graham's ideas have much empirical evidence and are completely unlike Chopras nonsense. See The Superinvestors of Graham-and-Doddsville for details, written by Warren Buffett who has quite a good record in this stuff https://en.wikipedia.org/wiki/The_Superinvestors_of_Graham-and-Doddsville https://en.wikipedia.org/wiki/The_Superinvestors_of_Graham-a... http://www8.gsb.columbia.edu/rtfiles/cbs/hermes/Buffett1984.pdf http://www8.gsb.columbia.edu/rtfiles/cbs/hermes/Buffett1984....
  - soVeryTired 10y ago
    How well do the assumptions behindd modigliani-miller match what happens in the real world? I think 'invalidated' is a little strong. Do be aware that within economic models, the map is not the territory.
    - 10y ago

atdrummond 10y ago

Indeed, Buffet worked at Graham's (the author of The Intelligent Investor) partnership.

blobbers 10y ago

This is a common misunderstanding. Buffett Partnership Ltd., Buffett's initial hedge fund, was very much was guided by the cigar butt style investment principles of Graham. When Buffett bought Berkshire Hathaway a few years after closing the partnership, his investment philosophy had changed. Your best bet to understand his investing is to simply read his letters. He may come across as a bit folksy or country bumpkin, but he's fairly clear in his methodology. Here are some links you may find helpful: http://www.rbcpa.com/WEB_letters/WEB_Letters_pre_berkshire.html http://www.rbcpa.com/WEB_letters/WEB_Letters_pre_berkshire.h... http://www.berkshirehathaway.com/letters/letters.html http://www.berkshirehathaway.com/letters/letters.html Enjoy.

marklgr 10y ago
What's your take on it?
thanatropism 10y ago
I mean, much of Graham's "investment philosophy" has been thoroughly invalidated by the Modigliani-Miller theorem published in the 1960s. But like Deepak Chopra, he's still around!
- tim333 10y ago
  I'm not sure how a theorem is even supposed to invalidate a philosophy. Invalidation is normally done by experimental evidence not making up a theorem.
  - tim333 10y ago
    Aside from that modigliani-miller's theorem "that in the absence of taxes, bankruptcy costs, agency costs, and asymmetric information, and in an efficient market, the value of a firm is unaffected by how that firm is financed." has basically nothing to do with Graham's idea that in the real world with bankruptcy costs, agency costs, asymmetric information, and an inefficient market you should seek a margin of safety in investment. Graham's ideas have much empirical evidence and are completely unlike Chopras nonsense. See The Superinvestors of Graham-and-Doddsville for details, written by Warren Buffett who has quite a good record in this stuff https://en.wikipedia.org/wiki/The_Superinvestors_of_Graham-and-Doddsville https://en.wikipedia.org/wiki/The_Superinvestors_of_Graham-a... http://www8.gsb.columbia.edu/rtfiles/cbs/hermes/Buffett1984.pdf http://www8.gsb.columbia.edu/rtfiles/cbs/hermes/Buffett1984....
- soVeryTired 10y ago
  How well do the assumptions behindd modigliani-miller match what happens in the real world? I think 'invalidated' is a little strong. Do be aware that within economic models, the map is not the territory.
  - 10y ago