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.
孟格先生是真正令人佩服的人物! 但是老人家今年已經九十一歲了，我想或許這次波克夏股東會將是他一生最後幾次出現在公開場合裡。人人都有心中的英雄，看到自己的英雄或許將要離開，真是令人難過。 在2014年的給波克夏股東的信中，從第39頁起有孟格先生對波克夏之所以會有卓越的成就的看法...
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 ...