Spent the past couple of hours reading “You can be a Stock Market Genius” by Joel Greenblatt. A hokey title, I know but actually said to be a very good book for people who want to work in hedge funds.
Here’s a little secret. I know nothing about finance. Absolutely nothing. Which makes me nervous about joining the FF investment fund soon. (More about that later) Just reading up on the basics. And I mean real basics. It’s unbelievable how much I don’t know.
FYI – My new job is an industry postdoc which is essentially a research position and the focus won’t be on finance, making trades or whatever it is that hedge fund guys do. It will be more like a think-tank position. But still. They probably expect that I’ll know something about finance when I start.
And “You can be a Stock Market Genius” is the right book for that. Things I learned so far:
– there are other kinds of investors — global macro, activists, quants, event driven, long-short, merger arbitration.
– this book explains value investing which means looking for stocks that trade for less than their intrinsic value. In other words, the secret to being good at hedge funds means finding stocks or businesses that are valuable but people don’t believe them to be valuable.
Hmmm. Poppy needs to read this book vis-a-vis her dating life, which we have been arguing about a bit lately.