Michael Goldstein wanted to learn more about investing and finance; after all, much of his day was spent earning money and managing his financial affairs, and obviously, being savvier about finance could be important and helpful. He started out by borrowing a textbook from his father-in-law, who was an accountant. But he gave up after two tedious pages; Michael was smart enough, but the fancy jargon and dense charts made his head hurt. Was he doomed to remain ignorant about financial matters?
Does learning about money have to be complicated and boring?
Simply Wonderful Books
I’ve made my way through many textbooks. Sometimes they offer the best way to learn a subject. But oftentimes, there are much less painful ways to learn, at least enough to get a broad picture of a topic. Many authors pack books with unnecessary information and needless jargon. Simplicity is the ultimate sophistication, and the most brilliant teachers are often those who can explain their subjects matter plainly. It’s often possible to learn from books or lectures that are both informative and enjoyable. Here are examples from my shelf of favorite books:
Buffett: The Making of an American Capitalist by Roger Lowenstein
This telling of investing legend Warren Buffett’s life story also offers an enjoyable primer on financial history, business operations, and investment theory. Lowenstein taps into Buffett’s gift for explaining complex economic concepts in simple words. Along with Buffett’s personal background, the book breaks down in plain English his investment philosophies, his perspectives on business growth and management, and the way the stock market works. Buffett is a fascinating person, full of folksy sayings, unique experiences, and, via his investment mentor, a warm connection to the Jewish people. All this combines into a light but very informative read.
Steve Jobs by Walter Isaacson
Steve Jobs, founder of Apple, was one of the most innovative people in modern history. Over decades, Jobs’s elegant and relentless execution of creative concepts has changed the physical world drastically. Through the lens of this industry icon’s life, the book also chronicles the rise of our era of explosive creative development and technological progress. Today, the most valuable companies are selling innovation and intellectual property. Every company is becoming a technology company, and creating these brainchildren requires a whole different set of skills and capabilities from producing physical goods. This book is quite lengthy but insightful, teaching readers via the story of Mr. Apple.
Moneyball by Michael Lewis
Moneyball is an entertaining book describing how data crunching revolutionized America’s favorite pastime, baseball. Before the broad spread of computers, decision-making in sports was based on individual observations and industry customs. But “moneyball” data showed, for example, that walking a base is much more valuable when it comes to winning than trying to steal one. The steady application of data-driven decision-making revolutionized professional baseball, altering a multibillion-dollar industry. I didn’t and still don’t follow professional sports, but this book’s bottom line resonates across all industries. Whether one is playing baseball, selling books, buying stocks, or prescribing medicine, it’s all about the data.
More Money by Sebastian Mallaby
While I advise most investors to keep it simple, this fantastic book highlights a world where hedge fund gurus earn billions through an array of complex investment approaches. Each section of the book is a tale describing a star investor’s unique path to building astronomical wealth, including Michael Steinhardt’s (Wall Street insider), George Soros’s (macro investing), James Simons’s (quantitative investing), and John Paulson’s (shorting housing bubble). Readers will gain a bird’s-eye view of hedge fund concepts, many unique anecdotes, and a recognition of how outmatched average investors are against these titans. And no, they will not invest your money!
Basic Economics by Thomas Sowell
Thomas Sowell is a renowned conservative economist whose presentations of the “dismal science” are anything but boring. Sowell’s multitude of books have significantly influenced my understanding of money, business, investing, and even politics. His classic Basic Economics explains sophisticated big-picture economics without resorting to complex charts or theory. Though a bit heavier than the others on this list, I highly recommend this book to those who want to gain a much deeper understanding of the financial world. Liberals hate Sowell for his devastating puncturing of their biased agendas, another reason frum readers tend to be taken with him.
Torah Bagoyim al Ta’amin
The above books are written by, about, and for non-frum people, of course. If you read them, perhaps consider the books from our worldview and perspective too. Buffett and Jobs both had strained relationships with their families. Jobs in particular was famous for being self-centered and harsh on anyone who disagreed with him or stood in his way. Does the all-out pursuit of the material have to come at the expense of the spiritual? Is it worth it to be so self-minded in financial or personal goals at the expense of one’s health and connections with loved ones?
Charity Begins Where?
What about the good that the billions can generate? Steve Jobs gave almost nothing to charity, but most billionaires do give vast amounts of charity during their lives or via their estates. But what do they give it for? Stenhardt supports Birthright trips to Israel which arguably have some kiruv value, but he also supports Yeffed’s anti-Torah campaigns. Buffett’s money is mainly headed for medical and education development; what does that mean for the charities’ Liberal-minded administrators and boots on the ground? As the Gemara says, you need zechusim for your money to be used for good causes. That requires knowledge of another sort.