July 2017 Meeting Investment Committee Agenda + Items

Selected Highlights of the July 12, 2017 Meeting

Jonathan Gray of Blackstone to Speak – Item 10

Real Estate Policy Revisions – Item 15

2017 – 2018 Business Plans across Plan – Item 20

Private Equity Investment Policy – Item 21

Co-Investment Plan Review – Item 22

CIO Christopher Ailman Report as of April 30, 2017 – Item 11

Includes Summer Reading List

Listed below are some of the best investment books on the market. This book list has been compiled over the years from lists of seasoned investment professionals from coast to coast.

While a long list, keep in mind that Amazon carries 110,579 books that touch on “investment” and another 258,274 that focus on money. It is very important to note, this list does not imply that CalSTRS, nor the CIO endorses any of these publications. It is merely a list of books, nothing more.

The LEGENDS of investment theory:

Benjamin Graham, The Intelligent Investor, Harper, 1949.

Graham and Dodd, Security Analysis, Harper, 1951. (The reported bible of value investing.)

Gerald Loeb, The Battle for Investment Survival, Random House, 1957. (One great idea; Put all your eggs in one basket and stare at that basket.)

John Kenneth Galbraith, The Great Crash, 1929, Houghton Mifflin, 1961. (Good study of the crash of ‘29.)

A. Frost, The Elliott Wave Principle, R. Prechter. New Classic Library: 1978. (Important to helping understand Fibonacci charts and theory of technical analysis through charting.)

Peter L. Bernstein, Against the Gods: The Remarkable Story of Risk (John Wiley & Son) in 1996 published most of his best-known books in the last 20 years of his life.

John C. Bogle, The Little Book of Common Sense Investing: The Only Way to Guarantee Your

Fair Share of Stock Market Returns (Little Book of Big Profits), Wiley & Sons, 2007

(Amazon’s Editors top investment pick for 2007. Cap’t. John Bogle is the founder of Vanguard.)

2017 Trending Topics: Behavior Economics & Risk

Richard H. Thaler, Misbehaving: The Making of Behavioral Economics; 2015; Prof. Thaler is Professor of Economics and Behavioral Science at the University of Chicago’s Booth Graduate School of Business; an Amazon best seller.

Daniel Kahnema, Thinking Fast and Slow, 2011; Selected by the New York Times Book

Review, the UK Globe & Mail, and The Economist as one of the ten best books of 2011

Charles P. Kindleberger, Manias, Panics, and Crashes: A History of Financial Crises; History doesn’t repeat, but it hums the same tune, this provides a critical history lesson that human emotions control markets.

Nassim Nicholas Taleb, The Black Swan: The Impact of the Highly Improbable; A New York Times bestseller that outlines the theory of randomness and unpredictable events that rock the world.

Charles Mackay, Extraordinary Popular Delusions and the Madness of Crowds, 1841; reissued by Metro Books: 2002. (An ancient classic, but still worth a read.)

William Bonner, Mobs, Messiahs, and Markets: Surviving the Public Spectacle in Finance and Politics, Wiley & Sons, 2007 (The most recent account of books on mob mentality, entertaining and packs a serious punch according to one review.) Modern era All-Stars:

Roger Lowenstein, When Genius Failed: The Rise and Fall of Long Term Capital Management,

Fourth Estate; New Ed edition, 2002. (Great look into the culture and history of an early hedge fund collapse that nearly took the market with it.) William N. Goetzmann, Money Changed Everything: How Finance made Civilizations

Possible, Princeton University Press, 2016. (Fascinating intellectual adventure across history in the concepts of money and human interaction, from 3000 BC to present day.)

Martin S. Fridson, It Was a Very Good Year, Wiley & Sons, 1998. (Investment history book on the great market years and their culture.)

Keith P. Ambachtsheer & Don Ezra, Pension Fund Excellence, Wiley & Sons, 1998 (one of the few books on pension governance and Trustee excellence.)

Jim Ware, Investment Leadership: Building a Winning Culture for Long-Term Success, Wiley Finance, 2003 (The best and latest book on how to lead an investment office and establish a successful culture.)

Peter L. Bernstein, Capital Ideas: The Improbable Origins of Modern Wall Street; (Free Press) in 1991.

Kate Kelly, “Street Fighters: The Last 72 Hours of Bear Stearns, the Toughest Firm on Wall Street”; Ms. Kelly who covered the saga for the Wall Street Journal captures the events like a suspense thriller.

Larry Swedroe, Wise Investing Made Simple, Charter Financial Pub Network, 2007. (Author of over 10 books on investing, this author has a popular following due to his simple style and longterm advice.)

 

 

 

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