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.
前一陣子在同事那裡看到一本書，書名叫做『國家為什麼會失敗』。這位同事介紹的書常常引人深思，所以我也去買了一本，但是因為家裡空間不夠，所以是在Amazon上買了本Kindle的電子書。 這書一開始就先舉例來反駁戴蒙(Jared Diamond) 在『槍炮，細菌與鋼鐵』一書中的看...
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