Investing & Industry Book List

Richard Toad

Richard Toad

— 10 min read
Investing & Industry Book List

I get these questions all the time on “what’s the best book for XYZ”, so I will share my commentary on why certain books made it onto my curated reading list.

Disclaimer: These are affiliate links, meaning I earn a small commission if you make a purchase. Some books on the list are recommended by my audience.

Investment Starter Kit

If you put a gun to my head, read these books, and you’ll never need another investment book.

  • For understanding business competition, I recommend Competition Demystified by Bruce Greenwald and Judd Kahn or 7 Powers: The Foundations of Business Strategy by Hamilton Helmer.
  • For growth investing, I recommend Common Stocks and Uncommon Profits by Philip Fisher. While Peter Lynch’s book is great, I prefer Fisher’s because he dives deeper into the diligence process—most notably with his concept of “scuttlebutt.”
  • For the value investing mindset: I recommend Margin of Safety by Seth Klarman (which you can often find in PDF form online) and The Most Important Thing by Howard Marks. Both books transform you into rethinking what it means to be a professional stock investor. You don’t need to adopt value investing as a style to benefit from their lessons.
  • For capital allocation, The Outsiders by William Thorndike Jr. is the definitive text. The book profiles legendary capital allocators such as John Malone, Warren Buffett, Henry Singleton, and Tom Murphy, among others.
  • For understanding cyclicals, Capital Returns: Investing Through the Capital Cycle by Edward Chancellor is the best book I’ve read. My biggest takeaways were: 1) focus on supply rather than predicting demand (since demand tends to be unpredictable), and 2) long when there’s oversupply. Admittedly, I don’t remember all the lessons, so you’ll have to read it yourself—and I might reread too!
  • For valuation, Valuation by McKinsey & Company is the definitive text. It helps you understand the key drivers of value creation in a business.
  • For special situation investing, You Can Be a Stock Market Genius by Joel Greenblatt is a must-read. While the publication of this book made special situation investing more competitive, it’s still essential for understanding why many opportunities remain structurally undervalued due to institutional constraints.
  • The one resource that’s timeless, of course, is the Berkshire Hathaway Shareholder Letters by Warren Buffett. I’ve read all of them once, but true aficionados read them multiple times. You can learn everything you need from these letters, but if you’re time-crunched, I recommend starting with the other books first, as the Buffett letters are a mountain of wisdom to tackle.
  • The Manual of Ideas by John Mihaljevic: This is likely the only book explicitly focused on generating stock ideas. It leans heavily toward deep value, special situations, and traditional value investing strategies.
  • Mastering the Market Cycle: Getting the Odds on Your Side by Howard Marks: This is another work from Howard Marks. While it’s not as timeless as The Most Important Thing, it offers valuable insights on cycles, similar to Capital Returns. Since we are always at some point in a cycle, this book remains relevant. With a new president heading to the White House, and a likely shift from overregulation to deregulation, the lessons from this book are especially topical.
  • 100 Baggers: Stocks That Return 100-to-1 and How to Find Them by Christopher Mayer: My mentor might hate me for saying this, but she calls it a wildly underrated gem. If you’re into compounder investing, this is a must-read.

Equity Research

  • Best Practices for Equity Research Analysts by James Valentine is the bestseller of my affiliate book list. It’s the “secret book” that everyone seems to be looking for—a comprehensive insider’s guide to the profession, offering both technical skills and industry insight. It’s an invaluable resource for new entrants to the field and remains a timeless reference.
  • Everyone should read Confessions of a Wall Street Analyst by Dan Reingold.
  • Mike Mayo’s Exile on Wall Street is a fun read. He’s definitely a character. When I worked at Wells Fargo, I remember him giving a talk to research associates about succeeding on the sell-side. I can see why he’s made a name for himself.
  • Cityboy: Beer and Loathing in the Square Mile by Geraint Anderson

Event-driven

  • You Can Be a Stock Market Genius by Joel Greenblatt
  • Merger Masters: Tales of Arbitrage by Kate Welling and Mario Gabelli: I haven’t read this one yet. Mario Gabelli, a billionaire investor, built his fortune on his “value with a catalyst” philosophy, which aligns with event-driven and special situation investing. This book, structured as a series of case studies, seems promising. If you’ve read it, let me know if it’s worth staying on the list.

IB/PE

  • Investment Banking: Valuation, LBOs, M&A and IPOs by Joshua Rosenbaum and Joshua Pearl: This classic needs no elaboration. It’s a staple for anyone wanting to break into IB.
  • Monkey Business: Swinging Through the Wall Street Jungle by John Rolfe and Peter Troob: One of the most entertaining Wall Street memoirs I’ve read. It’s a humorous yet insightful look into the life of a DLJ junior investment banker.
  • Barbarians at the Gate: The Fall of RJR Nabisco by Bryan Burrough and John Helyar: This is still a must-read for today’s finance aspirants. It features all the OGs—Henry Kravis, George Roberts, Blair Effron, John Gutfreund, Tom Hill III, Bruce Wasserstein, and more. What could possibly go wrong in what was then the biggest LBO in history?
  • King of Capital by David Carey and John E. Morris: A fascinating read about Steve Schwarzman and the evolution of Blackstone. Funny how Schwarzman now just makes social media reels eating sandwiches—oh, how times have changed.
  • King Icahn: The Biography of a Renegade Capitalist by Mark Stevens: This is the only book on Carl Icahn that he allowed to be published. Considering Icahn’s reputation and his army of lawyers, this book provides a rare insider look at the ruthless legend of deep value investing, corporate raiding, and modern-day activism.
  • The Iron Triangle: Inside the Secret World of the Carlyle Group by Dan Briody: Recommended by my audience, this book offers a deep dive into the workings of the Carlyle Group, one of the most influential private equity firms.
  • The Accidental Investment Banker: Inside the Decade That Transformed Wall Street by Jonathan A. Knee: Another audience-sourced recommendation.

Short-selling read list

  • The Art of Short Selling by Kathryn F. Staley: This is the book to read on short selling. It’s packed with stories and case studies, featuring legends like Jim Chanos. A must-read for anyone looking for a book on shorting.
  • Dead Companies Walking by Scott Fearon and Jesse Powell: While not as foundational as The Art of Short Selling, this book is a solid read, offering valuable insights into spotting companies on the brink of collapse.
  • Financial Shenanigans by Howard Schilit and Jeremy Perler: The definitive book on uncovering accounting tricks. This is an essential resource for anyone wanting to avoid (or profit from) companies that manipulate their financials.
  • Billion Dollar Lessons by Paul B. Carroll and Chunka Mui: Sourced from my audience, this book examines major corporate failures and the lessons they offer.

Fixed Income Reading List

  • Distressed Debt Analysis by Stephen G. Moyer: Often referred to as “The Moyer book,” this needs no introduction. It’s a classic that serves as the go-to resource for both distressed and high-yield investors.
  • The Credit Investor's Handbook by Michael Gatto: There never has been a credit fundamental analysis book until Gatto's book. This is a must read.
  • LSTA’s Complete Credit Agreement Guide: I haven’t read it and don’t plan to, but a senior credit investor recommended this as essential reading for anyone serious about a career in fundamental credit analysis. It’s probably dry but invaluable for the role.
  • A Pragmatist’s Guide to Leveraged Finance by Robert Kricheff: another audience recommendation

Wall Street stories

  • Thinking, Fast and Slow by Daniel Kahneman: If you can connect the cognitive biases Kahneman, Nobel laureate in Economics, describes to stock market situations, you’ll have a significant edge. I guarantee it.
  • Money Masters of Our Time by John Train: A classic survey of successful hedge fund managers.
  • More Money Than God by Sebastian Mallaby: To a lesser extent, this also offers a fascinating look at the evolution of hedge funds.
  • The Man Who Solved the Market by Gregory Zuckerman: A compelling profile of Jim Simons and the rise of Renaissance Technologies, a must-read for anyone curious about quantitative investing.
  • Liar’s Poker by Michael Lewis: A classic Wall Street story about the rise and fall of Salomon Brothers.
  • The Big Short by Michael Lewis: Focused on the 2008 crisis and the individuals who saw it coming. This book was adapted into a hit movie, and the fictionalized CEO John Tuld was inspired by a real-life big bank executive from that era.
  • Straight to Hell by John LeFevre: Supposedly written by the person behind the infamous @GSElevator Twitter account, this book is filled with outrageous tales from Wall Street.
  • The Buy Side: A Wall Street Trader’s Tale of Spectacular Excess by Turney Duff: One of my favorite Wall Street memoirs. Turney Duff shares his experiences as a trader at Galleon Group. The book features candid stories about the highs (and lows) of Wall Street culture, with plenty of lessons on relationship-building.
  • The Greatest Trade Ever by Gregory Zuckerman: I haven’t read it yet, but it’s about John Paulson’s monumental bet against subprime mortgages, and since it’s by Zuckerman, I assume it’s great.
  • When Genius Failed by Roger Lowenstein: A detailed account of the spectacular collapse of LTCM.
  • Julian Robertson: A Tiger in the Land of Bulls and Bears by Daniel A. Strachman: The only book about Julian Robertson, the legendary hedge fund manager behind Tiger Management. I haven’t read it yet but plan to—it’s on my to-do list.
  • Caesars Palace Coup by Sujeet Indap and Max Frumes: An engrossing read about a high-stakes creditor fight. It gets technical quickly but remains entertaining thanks to the involvement of some of Wall Street’s biggest players.
  • Damsel in Distressed by Dominique Mielle: A unique perspective from a female partner at Canyon Partners. This book offers insight into what it’s like to work at a credit hedge fund as a woman, with Canyon’s roots tracing back to Drexel Burnham Lambert through founders Joshua Friedman and Mitch Julis.
  • The Predator’s Ball by Connie Bruck: In my opinion, this is more entertaining than Den of Thieves. It vividly captures the rise of Mike Milken and the junk bond era.
  • Den of Thieves by James B. Stewart: An award-winning, meticulously researched book about the corporate raiding era and Mike Milken’s downfall. While highly detailed, it became a bit tedious for me toward the end as it delved deeply into lawsuits and legal proceedings. However, for anyone wanting to understand Milken’s immense influence in the 1980s, this is the definitive book.
  • The Bond King by Mary Childs: A recent publication that has received great feedback from my audience. It is about Bill Gross of PIMCO.
  • Confidence Game by Christine S. Richard: This gripping account details Bill Ackman’s famous campaign against MBIA, showcasing his persistence and conviction as he went against a financial giant.
  • Fooling Some of the People All of the Time: A Long Short Story by David Einhorn: An intricate narrative of David Einhorn’s battle against Allied Capital. The book gets dense as Einhorn meticulously breaks down his findings, tranche by tranche, showcasing the depth of his research.
  • The Smartest Guys in the Room by Bethany McLean and Peter Elkind: A definitive account of the Enron scandal. It’s so compelling they turned it into a critically acclaimed documentary.
  • Bad Blood: Secrets and Lies in a Silicon Valley Startup by John Carreyrou: A chilling expose of the Theranos scandal. This book is a masterclass in investigative journalism and a warning tale about Silicon Valley hype.

Sector book list

If you are looking to ramp on a specific sector, take a look at my curated reading list by sectors:

Consumer

Energy & Material

Energy

Material

  • The Mining Valuation Handbook — Victor Rudenno
  • The World for Sale — Javier Blas, Jack Farchy
  • Material World — Ed Conway
  • The Rare Metals War — Guillaume Pitron
  • The War Below — Ernest Scheyder

Financials

  • The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance — Ron Chernow
  • Liar's Poker: Rising Through the Wreckage on Wall Street — Michael Lewis
  • The Anatomy of the Swipe: Making Money Move — Ahmed Siddiqui
  • A Piece of the Action: How the Middle Class Joined the Money Class — Joseph Nocera
  • The Founders: The Story of PayPal and the Entrepreneurs Who Shaped Silicon Valley — Jimmy Soni
  • Money and Power: How Goldman Sachs Came to Rule the World — William D. Cohan
  • Fatal Risk: A Cautionary Tale of AIG's Corporate Suicide — Roddy Boyd
  • Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market — Scott Patterson
  • Blue Blood and Mutiny: The Fight for the Soul of Morgan Stanley — Patricia Beard

Real Estate

  • Am I Being Too Subtle?: Straight Talk From a Business Rebel — Sam Zell
  • Creating the Urban Dream: Tackling the Affordable Housing Crisis with Compassion — Clay Grubb
  • The Cult of We: WeWork, Adam Neumann, and the Great Startup Delusion — Eliot Brown
  • Skip the Flip: Secrets the 1% Know About Real Estate Investing — Hayden Crabtree
  • The Big Short: Inside the Doomsday Machine — Michael Lewis
  • The Liar's Ball: The Extraordinary Saga of How One Building Broke the World's Toughest Tycoons — Vicky Ward

Industrials

  • Lessons from the Titans — Scott Davis
  • Skunk Works — Ben R. Rich
  • AeroDynamic — Kevin Michaels
  • Railroader — Howard Green
  • Testosterone Inc: Tales of CEOs Gone Wild — Christopher M. Byron
  • Makers: The New Industrial Revolution — Chris Anderson
  • Elon Musk — Ashlee Vance
  • Power Play: Tesla, Elon Musk, and the Bet of the Century — Tim Higgins
  • The Box — Marc Levinson

Healthcare

  • The U.S. Healthcare Ecosystem — Lawton Robert Burns
  • Health Insurance and Managed Care — Peter R. Kongstvedt
  • The Innovator's Prescription — Clayton M. Christensen
  • The Pharmagellan Guide to Analyzing Biotech Clinical Trials — Frank S. David MD PhD
  • The Pharmagellan Guide to Biotech Forecasting and Valuation — Frank S. David MD PhD
  • The Great American Drug Deal — Peter Kolchinsky
  • The Billion Dollar Molecule — Barry Werth
  • Genentech — Sally Smith Hughes
  • For Blood and Money — Nathan Vardi
  • Bottle of Lies — Katherine Eban

Technology

  • The Innovator's Dilemma — Clayton M. Christensen
  • Crossing the Chasm — Geoffrey A. Moore
  • The Gorilla Game: Picking Winners in High Technology — Geoffrey A. Moore
  • The Master Switch: The Rise and Fall of Information Empires — Tim Wu
  • Zero to One: Notes on Startups, or How to Build the Future — Peter Thiel
  • Modern Monopolies — Alex Moazed
  • Measure What Matters: OKRs — John Doerr
  • Chip War: The Fight for the World's Most Critical Technology — Chris Miller
  • Cable Cowboy: John Malone and the Rise of the Modern Cable Business — Mark Robichaux
  • Losing the Signal: The Untold Story Behind the Extraordinary Rise and Spectacular Fall of BlackBerry — Jacquie McNish

If you have book recommendations, let me know! I will talk to you next week.

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