BOOKS EVERY MBA FINANCE STUDENT MUST READ!
The world of finance has provided the backdrop for many dramas, from mergers and acquisitions and Wall Street shenanigans to Tulip Mania, and most importantly, the financial crisis. Finance obviously has no lack of gripping topics for authors to write about. These finance books have significantly impacted the awareness of MBA students about valuing companies. The books are often called mind modellers because of the frameworks they offer. Then there are the books which are called required tools, those really required to do the job of a financial analyst. For finance experts who want better understand the history of their business and better grab the basics essential of its diverse dramas, here are some significant suggestions. Nearly all of these books have stood the test of time and are all worth reading. Common Stocks and Uncommon Profits and Other Writings by Philip A. Fisher and Kenneth L. Fisher Philip Fisher is a growth investor. In his book, he records fifteen points that illustrate his investment beliefs, known as "scuttlebutt." Security Analysis: 6th Edition by Benjamin Graham & David Dodd Though this book ought to be read exactly after The Intelligent Investor because it builds upon the information of that book, it is not simple to absorb. The book is quite extensive and technological. But, as each one of the chapters builds upon that which leads it, those who make it to the ending find out a lot. The Five Rules for Successful Stock Investing by Pat Dorsey and Joe Mansueto From the name, one would imagine that the book discusses the matching points mentioned in the preceding books. Conversely, a pair of elements make this book exceptional: Chapter 12 provides a 10-minute test to establish if its important, investigating a definite stock in detail. Chapters 14 to 26, provides a sector examination of numerous industries, as well as healthcare, banks, asset management, and insurance. He covers not only how the industry functions, but also the significant factors that impact its past performance. Best Practices for Equity Research Analysts by James J. Valentine This book is a necessity for any student attracted to a career as either a sell-side or buy-side analyst. With 16 years of work experience on Wall Street, James takes the reader all the way through producing a research report on a publicly-traded company. He elucidates how and where to get information and how to efficiently write those findings in a report. Investment Valuation: Tools and Techniques for Determining the Value of Any Asset by Aswath Damodaran and Valuation: Measuring and Managing the Value of Companies by Tim Koller, Marc Goedhart, David Wessels and McKinsey & Company Inc. Both of these books are very important to when it comes to an understanding and putting into use investment valuation methods, detailing economic cash flow models and relative valuation models. They talk about identical topics but serve as companions to each other because one discusses some significant points not covered by the other. For example, Investment Valuation has a section on equity of distressed companies, while Valuation talks about valuing flexibility. Interpretation and Application of Generally Accepted Accounting Principles by Steven M. Bragg Given recent scandals, it is of assistance for financial analysts to improve their accounting expertise. The book details each element of financial statements. The Secret of Economic Indicators by Bernard Baumohl This book talks about a wide collection of economic signs pursued by Wall Street. The book looks at economic indicators, how to view their pressure on the market and what they speak about the future. Competitive Strategy: Techniques for Analyzing Industries and Competitors by Michael E. Porter Porters study of industries talks about the intricacy of competition through five fundamental forces: the power of buyers, the power of suppliers, opposition, the danger of new entrants, and menace of substitutions. Moreover, Porter introduces one of the most influential viable tools yet developed: His three general strategies — lowest cost, demarcation and focus — that make up the job of calculated positioning. A must for finance professionals, this book helps an equity analyst recognize how a company creates and undermines its gung ho benefit. Barbarians At The Gate by Bryan Burrough and John Helyar In 1989, Bryan Burrough and John Helyar wrote the ultimate history of these financing types when they narrated the effort involving the leveraged buyout of RJR Nabisco, a now-defunct food and cigarette corporation. The writers initially covered the story as journalists for the "Wall Street Journal." Security Analysis by Benjamin Graham and David Dodd Benjamin Graham and David Dodd wrote the "bible" of basic equity investing in this classic, first published in 1934. If the reader is attracted in the practice of value investing, an advance favoured by Warren Buffett, then he is assured to profit from this book. The Intelligent Investor by Benjamin Graham Benjamin Graham has also written this extremely helpful guide to long-term investing approaches. First published in 1949, "The Intelligent Investor" has been modernized time after time over the past 65 years, as well as most recently by the financial writer Jason Zweig, as Graham died in 1976. Graham uses his book to map out and advocate for his preferred value approach to investing. Common Sense on Mutual Funds by John Bogle John Bogle, the founder of the Vanguard Group mutual fund company, came out with his guide for mutual fund investors in 1999. Bogle makes a case for the importance of index-based investing, and his book is full of rational financial counsel, such as noting that the less that one pays someone to manage his investments, the more of his money he will keep. A Random Walk Down Wall Street by Burton Malkiel Initially published in 1973, Princeton economist Burton Malkiels book counsels readers on a variety of types of investments. Whether the reader is just kicking off his professional financial career, or if he is looking for advice on managing his money or if he is a recognized professional who wants to spread out his investment profile, Malkiels book, which has gone through 11 editions since publication, is an immense foundation for market basics. Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay One unvarying constant of financial markets is that they endure periods of shared greediness and panic, which has resulted in such tragedies as Britains South Sea Bubble and the Netherlands Tulip Mania of the 1630s. The British correspondent Charles Mackay investigates these and other crises in his 1841 classic. The reader should not think that Mackays book has no significance to modern times, as the manias, he documents offer dedicated insight into modern events like the dot-com boom and bust of the 1990s and early 2000s. The Alchemy of Finance by George Soros Famed hedge fund celebrity George Soros is well-known for his academic and practical insight on financial trends dating back to 1992 when he collected a large amount of wealth and consequently brought the Bank of England to its knees. Crippling Great Britains financial system in a single day made him one of the most influential and lucrative money managers in the financial world. In his book, The Alchemy of Finance, Soros explains his theory of inclusive reflexivity and innovative investment practices of how to make the market work for the reader. Liars Poker by Michael Lewis Michael Lewis used his knowledge as a bond salesman in the heyday of Salomon Brothers for this legendary 1989 book. He records his own work experiences and also shows a big-picture take on Wall Street during a good time when the mortgage-backed security market caught fire. A loose sequel of sorts was Lewis "The Big Short," in which he described the part Wall Street played in the 2000s housing market slump. Freakonomics by Steven D. Levitt and Stephen Dubner This 2005 book by economist Steven D. Levitt and journalist Stephen Dubner looks underneath the facade of diverse daily (and not so everyday) situations and breaks down how things work. For example, does the reader think that he is receiving the most excellent deal if he is a homeowner who hires a real estate agent to put up for sale his house? The book also looks at the economics of the worlds of drug dealing and Sumo wrestling, among a broad range of topics. Competitive Strategy by Michael Porter In this 1980 book, Harvard Business School lecturer Michael Porter looks at what makes a viable advantage in a particular industry. Since many financial professionals use their days analyzing companies, industries and their strategies, Porters book makes available an idyllic opening point. Manias, Panics, and Crashes: A History of Financial Crises by Charles Kindleberger Charles Kindleberger, a former MIT economics professor, investigates the temperament of financial crises in this 1978 book. Its most freshly modernized version, from 2011 (revised by Robert Aliber, as Kindleberger died in 2003), looks into the grounds of the 2007-2008 financial crisis that started the international economic downturn Finally, we can conclude that the world of finance is a source of never-ending material for writers and has resulted in enthralling stories. If the reader is a finance professional who wants to sharpen his deal-making skills or if he is a shareholder looking to advance his strategies, he should think about spending time with some of these books.