If i am going to buy a rental house for 100k annd rent it for 1000 dollars a month. Why should I not pay cash for it? Becuase if it costs 6% to get money from someone else, shouldnt i save that 6% and pay for it myself and hopefuly make 3-4 more on top?

Insane resource, sincere thanks to Art and everyone else

Recommendations for Technical Analysis books?

Looking on Book websites in the UK the Murphy book is difficult to get hold of without paying a lot for it second hand. What would be the next best book for someone new to TA?

Thanks.

I've finished working through my list built from a book recommendation thread about a year ago so I'm glad that I've found this thread, there doesn't seem to be a lot of overlap outside of Taleb. Freakonomics has been the first read and it could have been skimmed in one sitting, there was a ton of filler. Next I'll take a crack at Security Analysis and New Ideas from Dead Economists. I'm in sponge mode so I'd better stick with the gold standards. Also going to echo the request for a good book on business etiquette.

ty for thread.

Incredible thread. Will order most of these books from the 1st page!

But before I got here, I was planning to order The Wealth Of Nations. I was kind of surprised that it wasn't mentioned on the 1st page, is it still applicable to today's economy ? Or is it more of a must read due to it's historical importance?

art, does your blog still exist? link didn´t work for me

Hopefully, I will be able to explain what I mean, but I am wondering what subjects should a beginner concentrate on?

The first post had a lot of recommendations for beginners, but also, in a wide range of subjects, economics, trading, investing, etc. But, what subject(s) should a beginner be focusing on if he/she is unsure of whether he wants to trade, long term investing, etc.

Is there a topic that someone should have pretty good knowledge with before concentrating learning only on trading/investing?

Anyone go trough: "Being Right or Making Money" by Ned Davis? I wold like a review if you have.

http://www.amazon.com/Being-Right-Ma.../dp/0970265107

im almost done beating the street by peter lynch, and I gotta say so far its pretty useless. My favorite part is how he explains the fannie mae securitization model and why its so great.

In Natenberg's book "Option Volatility and Pricing" on pg 48 under the "Interest Rates" section, he writes:
"The interest rate component plays two roles in the theoretical evaluation of options. First, it may affect the forward price of the underlying contract. If the underlying contract is subject to stock-type settlement, as we raise interest rates we raise the forward price, increasing the value of calls and decreasing the value of puts. Secondly, the interest rate may affect the cost of carrying the option... as we raise interest rates we decrease the value of the option"

So I understand the logic of the 2nd reason. Since there is a cost of carry... as interest rates rise, the theoretical value of the option decreases. It is less valuable because the money we invested in the option could have grown at a higher rate of interest in a savings account or something.

But what about the first? How do interest rates affect the forward price of the underlying? I don't get the logic there? He makes no mention of this anywhere else previously in the book. Can somebody explain this to me?

Anyone have good books on sales techniques and being a salesperson? Thanks.

bump

A friend of mine had recommended a few books to read and i was just wondering if anybody had opinions on them. I think they're geared toward beginners, which describes me exactly.

1. Bogleheads Guide to Investing
2. The Little Book of Common Sense Investing
3. The Four Pillars of Investing

I havnt read them but ive heard four pilars is good for beginners. If you are a poker player (or even if you're not) i highly recommend reading the intelligent investor as well.

by interest rates rising he means the risk free rate has increased. when this happens the arbitrage free price we can make for a stock using forwards equals the purcahse price times the risk free rate. so all else being equal, that is the price we expect the stock to trade at in the future. so increasing the interest rate increases the expected future price, and calls are worth more.

Many thanks.

Started reading "How to win friends and influence people". It's first published in 1937. Is it still concidered a good book?
It seems solid advice to me.

This is an old post ...

but assuming an ideal world; 100% occupanc rate, no late rent payments and your unlikely scenario of 1k rent on 100k property (nice distressed property pickup if so!), the answer is leverage.... which is also almost always people's downfall.

http://www.quantnet.com/goldman-sachs-reading-list/

/thread

Can I read The Intelligent Investor as a beginner or will I miss half the content?

I think this would be a fine place to start. Not too intense at all.

Just finished "The Big Short" By Michael Lewis.

Highly recommend! A very entertaining and informative look at the subprime crisis. A real page turning and hard to put down. Lewis is always pretty entertaining and he doesn't disappoint here.

Just read Bogleheads Guide to Investing, and I highly recommend it. While it doesn't provide a lot of depth, it gives good starting points on a range of topics from asset allocation to tax efficiency to insurance. A good resource for when your portfolio becomes big enough or complicated enough for you to do much better than all-in-one funds (like Vanguard target retirement).

Actually the answer is you buy four houses and put 75% mortgages on them. Your ROI goes from 12% to 24% annually. This assumes all the information in the quoted post is accurate, but the principal applies any time an investment's returns are higher than the cost of capital.

What should I read first if I am interested in trading and also what would prepare me best for summer trading internship interview?