Category: Book Recommendations

Books Everyone Should Read on Psychology and Behavioral Economics

Earlier this year, a prominent friend of mine was tasked with coming up with a list of behavioral economics book recommendations for the military leaders of a G7 country and I was on the limited email list asking for input.

Yikes.

While I read a lot and I’ve offered up books to sports teams and fortune 100 management teams, I’ve never contributed to something as broad as educating a nation’s military leaders. While I have a huge behavorial economics reading list, this wasn’t where I started.

Not only did I want to contribute, but I wanted to choose books that these military leaders wouldn’t normally have come across in everyday life. Books they were unlikely to have read. Books that offered perspective.

Given that I couldn’t talk to them outright, I was really trying to answer the question ‘what would I like to communicate to military leaders through non-fiction books?’ There were no easy answers.

I needed to offer something timeless. Not so outside the box that they wouldn’t approach it, and not so hard to find that those purchasing the books would give up and move on to the next one on the list. And it can’t be so big they get intimidated by the commitment to read. On top of that, you need a book that starts strong because, in my experience of dealing with C-level executives, they stop paying attention after about 20 pages if it’s not relevant or challenging them in the right way.

In short there is no one-size-fits-all but to make the biggest impact you have to consider all of these factors.

While the justifications for why people chose the books below are confidential, I can tell you what books were on the final email that I saw. I left one book off the list, which I thought was a little too controversial to post.

These books have nothing to do with military per se, rather they deal with enduring concepts like ecology, intuition, game theory, strategy, biology, second order thinking, and behavioral psychology. In short these books would benefit most people who want to improve their ability to think, which is why I’m sharing them with you.

If you’re so inclined you can try to guess which ones I recommended in the comments. Read wisely.

In no order and with no attribution:

  1. Risk Savvy: How to Make Good Decisions by Gerd Gigerenzer
  2. The Righteous Mind: Why Good People Are Divided by Politics and Religion by Jonathan Haidt
  3. The Checklist Manifesto: How to Get Things Right by Atul Gawande
  4. The Darwin Economy: Liberty, Competition, and the Common Good by Robert H. Frank
  5. David and Goliath: Underdogs, Misfits, and the Art of Battling Giants by Malcolm Gladwell
  6. Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions by Dan Ariely
  7. Thinking, Fast and Slow by Daniel Kahneman
  8. The Folly of Fools: The Logic of Deceit and Self-Deception in Human Life by Robert Trivers
  9. The Hour Between Dog and Wolf: Risk Taking, Gut Feelings and the Biology of Boom and Bust by John Coates
  10. Adapt: Why Success Always Starts with Failure by Tim Harford
  11. The Lessons of History by Will & Ariel Durant
  12. Poor Charlie’s Almanack
  13. Passions Within Reason: The Strategic Role of the Emotions by Robert H. Frank
  14. The Signal and the Noise: Why So Many Predictions Fail–but Some Don’t by Nate Silver
  15. Sex at Dawn: How We Mate, Why We Stray, and What It Means for Modern Relationships by Christopher Ryan & Cacilda Jetha
  16. The Red Queen: Sex and the Evolution of Human Nature by Matt Ridley
  17. Introducing Evolutionary Psychology by Dylan Evans & Oscar Zarate
  18. Filters Against Folly: How To Survive Despite Economists, Ecologists, and the Merely Eloquent by Garrett Hardin
  19. Games of Strategy (Fourth Edition) by Avinash Dixit, Susan Skeath & David H. Reiley, Jr.
  20. The Theory of Political Coalitions by William H. Riker
  21. The Evolution of War and its Cognitive Foundations (PDF) by John Tooby & Leda Cosmides.
  22. Fight the Power: Lanchester’s Laws of Combat in Human Evolution by Dominic D.P. Johnson & Niall J. MacKay.

Rory Sutherland Offers 4 Interesting Reads

Rory Sutherland

I asked Rory Sutherland (Vice Chairman: Ogilvy & Mather) what books stood out for him last year. I’ve had the privilege of chatting with Rory a few times now and I think you’ll agree, like most farnamstreeters not only is he exceptionally smart but he’s an awesome person.

I think you’ll enjoy his reply:

Gerd Gigerenzer’s Risk Savvy: How to Make Good Decisions is a wonderful book; the concept of defensive decision-making which he describes within it is alone worth the cover price. As an additional bonus, you get a very valuable lesson in the interpretation of statistics, a field of mathematics which – I think it is now almost universally agreed – is given too little time and attention in schools.

Pathological Altruism, edited by Barbara Oakley et al, is a wonderfully broad book – but built around a single insight. That, just as apparently self-interested acts can have benign consequences, the reverse is also true. We tend to think that altruism is something to be maximised – but in fact it needs to be calibrated. A very important book.

Peter Thiel’s Zero to One: Notes on Startups, or How to Build the Future is an excellent book from someone who seems to understand what Fitzgerald called “the whole equation” of a business: in this case it isn’t movies but technology. A very enjoyable book of just the right length.

Finally I immensely enjoyed the manuscript of Richard Thaler’s upcoming book Misbehaving: The Making of Behavioral Economics. I have not laughed so much in ages as when reading his chapter describing how the Economics Faculty of the University of Chicago tried to agree on the allocation of offices in their new building. No, it did not go well.

Wall Street’s Must-Read Books of the Summer

 

Bloomberg asked a few prominent Wall-Street types what books were on their reading list. Participants were asked to give one recent book as well as an all time favorite. Never ones to follow the rules, some people have three recommendations.

What strikes me the most is what’s not on these lists. You won’t find The Three Marriages, Marcus Aurelius’ Meditations, or any philosophy for that matter. You won’t find any good books on meditation, stillness, or why managing your energy, not time, is the key to high performance. And you also won’t find books about happiness or meaning.

Stephen King says it better than I ever could:

Back in the days when I was an EW regular, I started a column titled ”25 Things That Piss Me Off.” I never finished, because I’m a fairly easygoing guy and I could only think of about a dozen. But on that abbreviated list, right between No. 7 (”When the Junior Mints fall off my toothpick”) and No. 9 (”People who think movies with subtitles are always works of genius”) was this, at No. 8: ”Snobby summer reading lists.” I’m talking about the guy who says he’s going to spend July rereading War and Peace or the woman who insists she’s finally going to dig into the complete works of George Eliot.

Really? Eliot or James Joyce while swinging in the backyard hammock? Maybe somebody thinks that’s the way to spend those lazy, hazy, crazy days of summer, but not me. … None of these novels will insult your intelligence, but all will take you away to new and interesting places full of excitement, danger, and maybe a few laughs. For me, that — and not A Complete History of Canada in Very Tiny Print — is what summer reading is all about.

Nevertheless there are some gems below.

Bill Ackman

Lloyd Blankfein

Jim Chanos

Mohamed El-Erian

Austan Goolsbee

Bill Gross

Sallie Krawcheck

Pablo Salame

Steve Schwarzman

Whitney Tilson

Take a minute and compare the list to the books recommended by the 2014 Re:Think Decision Making workshop or Bill Gates or Tyler Cowen.

The Seven Books Bill Gates Thinks You Should Read This Summer

Bill gates
Bill Gates is out with his annual summer reading list and, while longer than last year’s, it’s a great place to kick off your summer reading.

“Each of these books,” Gates writes, “made me think or laugh or, in some cases, do both. I hope you find something to your liking here.”

Hyperbole and a Half, by Allie Brosh.

The book, based on Brosh’s wildly popular website, consists of brief vignettes and comic drawings about her young life. The adventures she recounts are mostly inside her head, where we hear and see the kind of inner thoughts most of us are too timid to let out in public. You will rip through it in three hours, tops. But you’ll wish it went on longer, because it’s funny and smart as hell. I must have interrupted Melinda a dozen times to read to her passages that made me laugh out loud.

The Magic of Reality, by Richard Dawkins.

Dawkins, an evolutionary biologist at Oxford, has a gift for making science enjoyable. This book is as accessible as the TV series Cosmos is for younger audiences—and as relevant for older audiences. It’s an engaging, well-illustrated science textbook offering compelling answers to big questions, like “how did the universe form?” and “what causes earthquakes?” It’s also a plea for readers of all ages to approach mysteries with rigor and curiosity. Dawkins’s antagonistic (and, to me, overzealous) view of religion has earned him a lot of angry critics, but I consider him to be one of the great scientific writer/explainers of all time.

What If?, by Randall Munroe.

The subtitle of the book is “Serious Scientific Answers to Absurd Hypothetical Questions,” and that’s exactly what it is. People write Munroe with questions that range over all fields of science: physics, chemistry, biology. Questions like, “From what height would you need to drop a steak for it to be cooked when it hit the ground?” (The answer, it turns out, is “high enough that it would disintegrate before it hit the ground.”) Munroe’s explanations are funny, but the science underpinning his answers is very accurate. It’s an entertaining read, and you’ll also learn a bit about things like ballistics, DNA, the oceans, the atmosphere, and lightning along the way.

XKCD, by Randall Munroe.

A collection of posts from Munroe’s blog XKCD, which is made up of cartoons he draws making fun of things—mostly scientists and computers, but lots of other things too. There’s one about scientists holding a press conference to reveal their discovery that life is arsenic-based. They research press conferences and find out that sometimes it’s good to serve food that’s related to the subject of the conference. The last panel is all the reporters dead on the floor because they ate arsenic. It’s that kind of humor, which not everybody loves, but I do.

On Immunity, by Eula Biss.

When I stumbled across this book on the Internet, I thought it might be a worthwhile read. I had no idea what a pleasure reading it would be. Biss, an essayist and university lecturer, examines what lies behind people’s fears of vaccinating their children. Like many of us, she concludes that vaccines are safe, effective, and almost miraculous tools for protecting children against needless suffering. But she is not out to demonize anyone who holds opposing views. This is a thoughtful and beautifully written book about a very important topic.

How to Lie With Statistics, by Darrell Huff.

I picked up this short, easy-to-read book after seeing it on a Wall Street Journal list of good books for investors. I enjoyed it so much that it was one of a handful of books I recommended to everyone at TED this year. It was first published in 1954, but aside from a few anachronistic examples (it has been a long time since bread cost 5 cents a loaf in the United States), it doesn’t feel dated. One chapter shows you how visuals can be used to exaggerate trends and give distorted comparisons—a timely reminder, given how often infographics show up in your Facebook and Twitter feeds these days. A useful introduction to the use of statistics, and a helpful refresher for anyone who is already well versed in it.

Should We Eat Meat?, by Vaclav Smil.

The richer the world gets, the more meat it eats. And the more meat it eats, the bigger the threat to the planet. How do we square this circle? Vaclav Smil takes his usual clear-eyed view of the whole landscape, from meat’s role in human evolution to hard questions about animal cruelty. While it would be great if people wanted to eat less meat, I don’t think we can expect large numbers of people to make drastic reductions. I’m betting on innovation, including higher agricultural productivity and the development of meat substitutes, to help the world meet its need for meat. A timely book, though probably the least beach-friendly one on this list.

Here is the video gates showed explaining the reads:

Stephen King Shares His (Long) Reading List

At any question and answer session, a reader inevitably asks  Stephen King what he reads. Everyone, myself included, wants to know what’s on Stephen King’s reading list.

Now we know.

In On Writing: A Memoir Of The Craft, he writes:

I’ve never given a very satisfactory answer to that question, because it causes a kind of circuit overload in my brain. The easy answer—“Everything I can get my hands on” —is true enough, but not helpful. The list that follows provides a more specific answer to that question. These are the best books I’ve read over the last three or four years, the period during which I wrote The Girl Who Loved Tom Gordon, Hearts in Atlantis, On Writing, and … From a Buick Eight. In some way or other, I suspect each book in the list had an influence on the books I wrote.

As you scan this list, please remember that I’m not Oprah and this isn’t my book club. These are the ones that worked for me, that’s all. But you could do worse, and a good many of these might show you some new ways of doing your work. Even if they don’t, they’re apt to entertain you. They certainly entertained me.

There are about a hundred books that entertained and taught him, but here is Stephen King’s reading list. (Think combinatorial creativity applied to writing – You’re not going to be a great writer if you only read books from one genre.)

Abrahams, Peter: A Perfect Crime
Abrahams, Peter: Lights Out
Abrahams, Peter: Pressure Drop
Abrahams, Peter: Revolution #9
Agee, James: A Death in the Family
Bakis, Kirsten: Lives of the Monster Dogs
Barker, Pat: Regeneration
Barker, Pat: The Eye in the Door
Barker, Pat: The Ghost Road
Bausch, Richard: In the Night Season
Blauner, Peter: The Intruder
Bowles, Paul: The Sheltering Sky
Boyle, T. Coraghessan: The Tortilla Curtain
Bryson, Bill: A Walk in the Woods
Buckley, Christopher: Thank You for Smoking
Carver, Raymond: Where I’m Calling From
Chabon, Michael: Werewolves in Their Youth
Chorlton, Windsor: Latitude Zero
Connelly, Michael: The Poet
Conrad, Joseph: Heart of Darkness
Constantine, K. C.: Family Values
DeLillo, Don: Underworld
DeMille, Nelson: Cathedral
DeMille, Nelson: The Gold Coast
Dickens, Charles: Oliver Twist
Dobyns, Stephen: Common Carnage
Dobyns, Stephen: The Church of Dead Girls
Doyle, Roddy: The Woman Who Walked into Doors
Elkin, Stanley: The Dick Gibson Show
Faulkner, William: As I Lay Dying
Garland, Alex: The Beach
George, Elizabeth: Deception on His Mind
Gerritsen, Tess: Gravity
Golding, William: Lord of the Flies
Gray, Muriel: Furnace
Greene, Graham: A Gun for Sale (aka This Gun for Hire)
Greene, Graham: Our Man in Havana
Halberstam, David: The Fifties
Hamill, Pete: Why Sinatra Matters
Harris, Thomas: Hannibal
Haruf, Kent: Plainsong
Hoeg, Peter: Smilla’s Sense of Snow
Hunter, Stephen: Dirty White Boys
Ignatius, David: A Firing Offense
Irving, John: A Widow for One Year
Joyce, Graham: The Tooth Fairy
Judd, Alan: The Devil’s Own Work
Kahn, Roger: Good Enough to Dream
Karr, Mary: The Liars’ Club
Ketchum, Jack: Right to Life
King, Tabitha: Survivor
King, Tabitha: The Sky in the Water (unpublished)
Kingsolver, Barbara: The Poisonwood Bible
Krakauer, Jon: Into Thin Air
Lee, Harper: To Kill a Mockingbird
Lefkowitz, Bernard: Our Guys
Little, Bentley: The Ignored
Maclean, Norman: A River Runs Through It and Other Stories
Maugham, W. Somerset: The Moon and Sixpence
McCarthy, Cormac: Cities of the Plain
McCarthy, Cormac: The Crossing
McCourt, Frank: Angela’s Ashes
McDermott, Alice: Charming Billy
McDevitt, Jack: Ancient Shores
McEwan, Ian: Enduring Love
McEwan, Ian: The Cement Garden
McMurtry, Larry: Dead Man’s Walk
McMurtry, Larry, and Diana Ossana: Zeke and Ned
Miller, Walter M.: A Canticle for Leibowitz
Oates, Joyce Carol: Zombie
O’Brien, Tim: In the Lake of the Woods
O’Nan, Stewart: The Speed Queen
Ondaatje, Michael: The English Patient
Patterson, Richard North: No Safe Place
Price, Richard: Freedomland
Proulx, Annie: Close Range: Wyoming Stories
Proulx, Annie: The Shipping News
Quindlen, Anna: One True Thing
Rendell, Ruth: A Sight for Sore Eyes
Robinson, Frank M.: Waiting
Rowling, J. K.: Harry Potter and the Chamber of Secrets
Rowling, J. K.: Harry Potter and the Prisoner of Azkaban
Rowling, J. K.: Harry Potter and the Sorcerer’s Stone
Russo, Richard: Mohawk
Schwartz, John Burnham: Reservation Road
Seth, Vikram: A Suitable Boy
Shaw, Irwin: The Young Lions
Slotkin, Richard: The Crater
Smith, Dinitia: The Illusionist
Spencer, Scott: Men in Black
Stegner, Wallace: Joe Hill
Tartt, Donna: The Secret History
Tyler, Anne: A Patchwork Planet
Vonnegut, Kurt: Hocus Pocus
Waugh, Evelyn: Brideshead Revisited
Westlake, Donald E.: The Ax

The Best Books of 2014: Your Overall Favorites

From how to read books and raise kids to philosophy and finance.

best reads 2014

The third annual (2012, 2013) look at your favorite reads featured on Farnam Street. You’re a well-read bunch.

In no particular order:

Fiasco: The Inside Story of a Wall Street Trader

FIASCO is the shocking story of one man’s education in the jungles of Wall Street. As a young derivatives salesman at Morgan Stanley, Frank Partnoy learned to buy and sell billions of dollars worth of securities that were so complex many traders themselves didn’t understand them. In his behind-the-scenes look at the trading floor and the offices of one of the world’s top investment firms, Partnoy recounts the macho attitudes and fiercely competitive ploys of his office mates.

Getting to Yes: Negotiating Agreement Without Giving In

Since its original publication nearly thirty years ago, Getting to Yes has helped millions of people learn a better way to negotiate. One of the primary business texts of the modern era, it is based on the work of the Harvard Negotiation Project, a group that deals with all levels of negotiation and conflict resolution.

It’s Not All About Me: The Top Ten Techniques for Building Quick Rapport with Anyone

Despite the age-old saying, individuals everywhere still have a hard time realizing that it’s not all about them. Robin Dreeke uses his research and years of work in the field of interpersonal relations and behavior to help readers focus on building relationships with others in “It’s Not All About Me: The Top Ten Techniques for Building Quick Rapport with Anyone”. As the head of the FBI’s Behavioral Analysis Program within the Counterintelligence Division, Dreeke has used the techniques listed in “It’s Not All About Me” with skilled professionals within the FBI as well as with sales professionals, educators and individuals across the country and world.

Collected Maxims and Other Reflections

Deceptively brief and insidiously easy to read, La Rochefoucauld’s shrewd, unflattering analyses of human behavior have influenced writers, thinkers, and public figures as various as Voltaire, Proust, de Gaulle, Nietzsche, and Conan Doyle.

Letters from a Self-Made Merchant to His Son

A must read.

How Children Succeed: Grit, Curiosity, and the Hidden Power of Character

Why do some children succeed while others fail? The story we usually tell about childhood and success is the one about intelligence: success comes to those who score highest on tests, from preschool admissions to SATs. But in How Children Succeed, Paul Tough argues that the qualities that matter more have to do with character: skills like perseverance, curiosity, optimism, and self-control. How Children Succeed introduces us to a new generation of researchers and educators, who, for the first time, are using the tools of science to peel back the mysteries of character.

Letters of Note: An Eclectic Collection of Correspondence Deserving of a Wider Audience

This spectacular collection of more than 125 letters offers a never-before-seen glimpse of the events and people of history—the brightest and best, the most notorious, and the endearingly everyday.

Influence: The Psychology of Persuasion, Revised Edition

You’ll learn the six universal principles, how to use them to become a skilled persuader—and how to defend yourself against them. Perfect for people in all walks of life, the principles of Influence will move you toward profound personal change and act as a driving force for your success.

How to Read a Book: The Classic Guide to Intelligent Reading

Originally published in 1940, this book is a rare phenomenon, a living classic that introduces and elucidates the various levels of reading and how to achieve them—from elementary reading, through systematic skimming and inspectional reading, to speed reading. Readers will learn when and how to “judge a book by its cover,” and also how to X-ray it, read critically, and extract the author’s message from the text.

Meditations: A New Translation

Marcus Aurelius Antoninus (a.d. 121–180) succeeded his adoptive father as emperor of Rome in a.d. 161—and Meditations remains one of the greatest works of spiritual and ethical reflection ever written. With a profound understanding of human behavior, Marcus provides insights, wisdom, and practical guidance on everything from living in the world to coping with adversity to interacting with others. Consequently, the Meditations have become required reading for statesmen and philosophers alike, while generations of ordinary readers have responded to the straightforward intimacy of his style.

Seeking Wisdom: From Darwin to Munger, 3rd Edition

Seeking Wisdom is the result of Bevelin’s learning about attaining wisdom. His quest for wisdom originated partly from making mistakes himself and observing those of others but also from the philosophy of super-investor and Berkshire Hathaway Vice Chairman Charles Munger. A man whose simplicity and clarity of thought was unequal to anything Bevelin had seen.

Confessions of a Sociopath: A Life Spent Hiding in Plain Sight

Confessions of a Sociopath takes readers on a journey into the mind of a sociopath, revealing what makes them tick and what that means for the rest of humanity. Written from the point of view of a diagnosed sociopath, it unveils these men and women who are “hiding in plain sight” for the very first time.