Amit Raizada's Bookshelf, Part II

Amit Raizada

November 4, 2020

Just four months ago, I published an article on this very same blog detailing the books that have helped shape my investment philosophy. Since that time, the world has changed inexorably. Wildfires and hurricanes have ravaged large swaths of the country, protests against racial inequities have sparked a national conversation reckoning, and the coronavirus continues to kill Americans.

Economically, we have experienced both highs and lows. The stock market has oscillated between the bull and the bear, ultimately siding with the former. Congress has balked at the prospect of passing another fiscal stimulus package. Businesses around the country remain closed entirely or operating under significant restrictions.

Aspiring investors are facing a gauntlet.

As CEO and Founder of Spectrum Business Ventures, though, I’ve always sought to see the world differently, to discover lucrative ventures stepped in innovation where others see losses. During this difficult time, I strenuously encourage aspiring investors to think similarly.

As I’ve said before, one does not need an MBA from Wharton or Harvard to find success in venture capital and investing. Often, the most successful investors hone their philosophies and approaches by combining the lessons they’ve learned in the classroom with those derived from real life, hands-on experience. This list aims to help give you the first part of the equation. Equipped with new strategies and shifted mindsets, it’s up to you to put the second component into motion.

Think and Grow Rich by Napoleon Hill

Napoleon Hill published his magnum opus during the Great Depression. With millions of Americans out of work, his work—unfortunately—takes on a new resonance when read under these current conditions.

Inspired by his conversations with legendary entrepreneur Andrew Carnegie, Hill’s book propounds a series of principles, which he dubs “laws,” that induce success and invite prosperity. Hill argues that maintaining a positive mindset, defined by perseverance and desire, creates a positive feedback loop that begets success.

I’ve always sought to advance a similar philosophy. Shrewd investments are the result of a mental acuity spurred by measured confidence and determination. Mindset is integral to investment. Hill got this right more than 80 years ago, it’s time for us to apply it now.

Tools of the Titans by Timothy Ferriss

Sometimes, to join the best, you have to learn from the best.

That’s exactly what New York Times bestselling author Timothy Ferriss seeks to do in Tools of the Titans, a collection of wisdom derived from his more than 200 interviews with the world’s leading business, athletic, political, and artistic minds. In taking these lessons from the globe’s luminaries, Ferriss attempts to distill the essence of success.

I urge aspiring investors to closely read this work and evaluate how they can apply these principles to their pursuit of innovative, profitable ventures.

The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution by Gregory Zuckerman

Zuckerman’s book is another masterclass in learning from the best. Lauded by the Financial Times, The Man Who Solved the Market examines the rise of Jim Simons, the multibillionaire Wall Street financier who perennially delivers unthinkably high returns to his investors.

Zuckerman looks at how Simons’ background in mathematics helped him see opportunities and ventures differently. This mirrors the approach we employ at Spectrum Business Ventures, where we strive to invest in innovative opportunities in nascent markets. Like Simons, we believe in closely monitoring data and emerging market trends to gain footholds in the markets of the future.

With so much going on in the world, I find it comforting to turn to wisdom and ideas for some respite. I hope aspiring investors will take these recommendations to heart and seek ways to imbue their investment philosophies with the many great strategies, lessons, and outlooks articulated by these authors.

If you enjoyed our book series then please check out our Millennial's and Markets Parts 1,2,3.

Four Books to Read As The Economy Continues to Fluctuate

Amit Raizada

June 22, 2020

Having spent more than two decades as a venture capital executive, many of my friends in other industries often ask me if there are any books on investment and economics that I would recommend to aspiring investors or career professionals looking to spruce up their investment portfolios.

Reading is an excellent way to learn about books on investment and economics. One doesn’t need a Harvard MBA to start observing market trends and placing investments. Reading the right books can often equip an aspiring investor just as well as a course at a leading university.

As we near our fourth month of quarantine and I find myself with more down-time than ever, I decided to compile a list of the books on investment and economics that I find particularly appropriate for those looking to learn about investment.

Here are four selections from my bookshelf that I would recommend to anyone interested in venture capital, business, or even just economics in general.

The Intelligent Investor, by Benjamin Graham

Published in 1949 by Columbia Business School professor Benjamin Graham, The Intelligent Investor is the seminal work on value investing—the investment philosophy that emphasizes purchasing shares in companies that are undervalued by the market.

Value investing involves buying stocks in companies that, while sound in practice and in leadership, are experiencing some kind of downswing.

Patience is the key to successfully integrating value investing into your portfolio. Successful value investors look for undervalued companies with a plethora of upside, buy stock, and hold onto that stock until things begin to turn around.

Value investing is one of Warren Buffet’s key strategies, and he often credits Benjamin Graham for having developed the theory. This is why it is among the top books on investment and economics for any serious investor.

Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets, by Nassim Taleb

Finance is complex; and the best way to become a shrewd investor is to consider the myriad different academic disciplines and theories that the field encompasses. Fooled by Randomness, which concerns primarily the statistical and psychological facets of randomness, is a great example.

Taleb argues that the world is far more random than we perceive it to be. Sometimes the models and data upon which many investors depend can be impugned by little more than pure random chance.

I like to consider this when thinking about my signature investment strategy – looking toward the markets of the future. By closely watching emerging market trends and the preferences of young investors, I can help insulate my portfolio against randomness not accounted for in many forecasts.

Taleb’s work forces investors to consider the roles data science and psychology play in investment – critical for finding success in this field. It’s one of the must-read books on investment and economics for its insight into market unpredictability.

The Little Book of Common Sense Investing, by John C. Bogle

Written by John Bogle, the late founder and CEO of Vanguard, The Little Book of Common Sense urges aspiring investors to place their money into index funds.

Index funds, he says, are low risk, low cost, and track with the markets writ large. By investing in an index fund, your returns will mirror those of the index as a whole, rather than falling victim to the booms and busts of one unique stock.

Picking individual stocks can be arduous and time-consuming. Choosing an index fund means you won’t have to worry about shorting the market – just invest your money and let the S&P do all the work.

In many ways, this is an ideal strategy for a first-time investor or a recent college student. That’s what makes it one of the easiest-to-understand books on investment and economics for beginners.

Capitalism, Socialism, and Democracy, by Joseph Schumpeter

Another post-war investment classic, this book resonates with me for a different reason than what the title suggests. An economist and political scientist, Schumpeter devotes portions to explaining the differences between capitalism and socialism, but I prefer the second half, where he introduces his famed theory of creative destruction.

Creative destruction, he argues, is all about what we today call, “disruption.” Schumpeter holds that technological innovation stemming from entrepreneurs disrupts markets and destroys traditional monopolies, giving way to new firms that take over and reshape the field.

Some of today’s major tech firms, like Google, Amazon, and Netflix, began as startups with an innovative new idea that transformed the tech industry, forcing out the established firms like AOL or Blockbuster, and giving life to new verticals like streaming and on-demand online shopping.

 

This fits perfectly with my investment strategy of seeking cutting-edge ventures that offer footholds in the future of the economy. Investors should keep Schumpeter’s wisdom in mind when looking for opportunities. Which firms will be the one to dethrone some of today’s industry leaders?