100 Books Like The Random Character of Stock Market Prices

This isn’t a book about biology, but it makes the list anyway. Genes, chemistry, and mechanics stretch our conception of life. Still, there’s more needed to make sense of it all: the emerging understanding that dynamic interactions, feedback loops, and a bit of randomness make life alive. We need more books that lay this out; this was one of my motivations for writing my book.

Philip Ball’s very recent How Life Works seems masterful, and I’m sure it would make this list if I were writing a month or two later, after I’ve finished reading it. But since I can’t list either my book or his, I’ll list Gleick’s book, one of the best popular science books ever. It dives into the science of order and chaos, from the turbulence of Jupiter’s red spot to the unpredictability of weather, with a bit of biological pattern formation in the mix.… show more.

Readers of this list may be surprised that there are no books by Benoit Mandelbrot, the father of fractals. I found his books fascinating but frustrating. Feder’s book, by contrast, was readable and usable.

This book taught me how to do fractal analysis. While Feder’s book has nothing to do with markets, it has everything to do with applications. While I reuse much of Feder’s methodology in my books, readers will find it useful to see other practical applications of fractal analysis.

Fractals are a combination of chance and rules, randomness and order. This book gives us multiple examples of how important randomness and uncertainty are to evolution, adaptability, and innovation.

This book is not about the markets, but it does show us how the element of uncertainty that cannot be eliminated from investing is crucial to the functioning of markets and other non-linear dynamical systems. Since risk and uncertainty are closely tied, understanding how chance functions in the development of markets will help in the development of market strategies.

The Austrian School of Economics has been completely non-mathematical. Yet their concepts have direct analogies to complexity theory. Reading this book gives you fundamental economic ideas that tie back to the mathematical foundations of complexity, chaos, and fractals.

When dealing with markets, which are made up of people, after all, I have always found that basing your ideas on behavior rather than pure mathematics is always the way to go. Otherwise, you will not know when the markets have changed, and your ideas may no longer work.

This book also brings us back to the idea of cycles and explains them in an intuitive way. O’Driscoll and Rizzo also write well, so this isn’t a dry academic overview. It is a book that gives you both theory and intuition.

Diffusion is rarely taught in physics classes, yet it’s so important for biology.

I love Howard Berg’s first sentence: “Biology is wet and dynamic.” Few authors can make mathematics so engaging and meaningful.

This book is one of those little books that have a big impact. Diffusion is most important at small scales, so get ready to enter the fascinating realm of swimming bacteria and ions moving across cell membranes.

This is my go-to book for when I need to find proofs or examples of the theory or applications of probability. It’s an old book now, but it remains unsurpassed as an outline of the foundations of classical probability theory. The preface to the second edition says “in addition to an unexpected number of users, the book seems to have found friends who read it merely for fun; it is most heartening that they range from pure mathematicians to pure amateurs”. And that must surely be exactly right: I find myself re-reading it because of the insights and perspectives it sheds. 

A thread that ties together so many things.

Throughout science, math, finance, and your personal life… underlying almost everything is the concept of a random walk. I love how Mlodinow builds our intuition for this simple yet subtle idea. Yes, the expectation may be zero, but the variance grows without limit—it took me years of study to truly feel that statement and others in my bones, but Mlodinow shows this and much more through vivid, often hilarious examples. It is no exaggeration to say that after Chapter 6, you will understand conditional probability—where so many of us stumble when we think about real situations—better than you would after a whole course on statistics.

And although this is a science book, I challenge anyone to read the last five pages and end up dry-eyed. Years later, as I reread them, the impact is undiminished.

This book by "Adam Smith" (a tongue-in-cheek pseudonym) is a witty, irreverent dive into Wall Street's chaotic world. I was continuously laughing and learning both times I read this book.

It exposes the madness and irrationality of the financial decision-making of many market participants while debunking common myths and "get rich quick" schemes. I was left with a much deeper understanding of the actual game that is being played below the surface.

It was one of the first books that explained to me how "winning" doesn't always mean making the most money. It made me a much more aware investor. This unconventional book was decades ahead of its time, and it’s a fun, short, and highly worthwhile read.

Cuba occupies a place of undisputed fascination in the American psyche. This island nation remains a mystery to most Americans despite its proximity to America. Few Americans have traveled to Havana, and still fewer have traveled deeper into this isolated country.

Chris Messner, a photographer, is one of the few Americans who have been able to travel extensively throughout this island. In his book, Cuba Open from the Inside, Messner documents the character of Cuba's people, its rich history, and the country's vast culture.

As Cuba's leaders age and the possibility of travel to Cuba increases, this book acts as an exceptional resource for would-be travelers. Through multiple journeys, Messner has covered more than 4,000 miles on the back roads of Cuba. Through his words and pictures he provides a snapshot of this island nation and documents the Cuba of today—the 1950s time capsule country located 90 miles from… show more.

The Chauvet Cave in Southern France is a unique time capsule that gives us a glimpse into the imaginary world of humans living 30,000 years ago.

Dawn of Art is written by those who discovered the cave and recognized it as the earliest masterpiece of human-made art.

What I found most fascinating about the cave as described in this book is the fact that humans decorated it over a period of thousands of years, perhaps as many as two hundred generations.

This is a remarkable achievement of collective artmaking, with one generation passing down the required artistry to the next generation. It made me wonder whether we have lost the reverence for the past that our distant ancestors must have possessed.