The Big Short: Inside the Doomsday Machine --- By Michael Lewis
Publisher: W. W. Norton & Company (March 15, 2010)
Michael Lewis is one of my favorite writers. In this book, he introduces you to several people who saw that 2007-2009 financial storm coming and went short against the mortgage bonds. These people are very interesting to me somehow. In particular, this one medical doctor, Dr. Michael Burry, struck a cord with me.
Dr. Burry is not a new name to me. The first time I heard about him was in the late 1990s. At the time, he had this "blog" about investing before the word "blog" was used.
I was learning about investing at the time and Dr. Burry's writing and real-time stock picks on the site showed me that there is an intellectual way of thinking about investment in general and stocks in particular. I may say that I have my networth today, to some extent, due to the intellectual framework formed at the time when I was reading his website.
For people who want to be an investment manager, I think it is important that they read about Dr. Burry's experience during the whole time he was short mortgage bonds by CDS.
Here is his writing about CDS and how he use CDS to short the worst of mortgage bonds. Scion capital CDS primer
Other characters in the books are also very interesting. I think many of readers on this website may identify themselves with the three guys from Cornwall Capital. These are people who have little money at the beginning but made big money (for private investors) by exploiting the inefficiency of the market.
This has to be the best book that I read this year. Don't laugh, I am not making this up. I do read about 40-50 books a year in my spare time.
If you don't mind reading in English, I think you would like this book.
但那日子、那時辰，沒有人知道，連天上的使者也不知道，子也不知道，唯獨父知道。 -------馬太福音24:36 住在東亞的人，我想沒有人能不注意到過去這三十年中間中國的改變。住在台灣的我們，只隔著幾分鐘飛機飛彈就可以飛過的海峽，感受當然更深了。但是即使是搬到地球的另一端...
1) Make decisions rationally 做決定時要理性的做決定 2) Invest in what we know 投資我們了解的標的 3) Worth with honest and trustworthy managers 跟誠實可靠的經理人同工 ...