Classic Books That Drive the Debate
NCF’s mission is to drive the policy debate on the important emerging issues by formulating arguments, developing options, and influencing thinking in an effort to move the American business agenda forward. As part of that mission, we consulted with industry specialists and Chamber staff to select a list of books that both advance our agenda and challenge our thinking.
The following are our two highly recommended reading selections by leading think tanks, business leaders, and policy experts.
The Intelligent Investor
by Benjamin Graham
The classic bestseller, perhaps the greatest investment advisor of the 20th century, has taught and inspired hundreds of thousands of people worldwide. Since its original publication in 1949, Benjamin Graham’s book has remained the most respected guide to investing, due to his timeless philosophy of “value investing,” which helps protect investors against the areas of possible substantial error and teaches them to develop long-term strategies with which they will be comfortable down the road.
Over the years, market developments have borne out the wisdom of Benjamin Graham’s basic policies. Here he takes account of both the defensive and the enterprising investor, outlining the principles of stock selection for each, and stressing the advantages of a simple portfolio policy. Among the book’s special features are the use of numerous comparisons of pairs of common stocks to bring out their elements of strength and weakness and the construction of investment portfolios designed to meet specific requirements of quality and price attractiveness.
Extraordinary Popular Delusions & the Madness of Crowds
by Charles Mackay, LLD
Why do otherwise intelligent individuals form seething masses of idiocy when they engage in collective action? Why do financially sensible people jump lemming-like into hare-brained speculative frenzies–only to jump broker-like out of windows when their fantasies dissolve? We may think that the Great Crash of 1929, junk bonds of the ’80s, and over-valued high-tech stocks of the ’90s are peculiarly 20th century aberrations, but Mackay’s classic–first published in 1841–shows that the madness and confusion of crowds knows no limits, and has no temporal bounds. These are extraordinarily illuminating,and, unfortunately, entertaining tales of chicanery, greed and naivete. Essential reading for any student of human nature or the transmission of ideas.
In fact, cases such as Tulipomania in 1624–when Tulip bulbs traded at a higher price than gold–suggest the existence of what I would dub “Mackay’s Law of Mass Action:” when it comes to the effect of social behavior on the intelligence of individuals, 1+1 is often less than 2, and sometimes considerably less than 0.
Do you have any suggestions for Classic Books That Drive the Debate? Please let us know at ncfevents@uschamber.com.
