Charlie Munger: The Complete Investor
by Tren Griffin
Charlie Munger (1924-2023) was vice chairman of Berkshire Hathaway for 46 years, working closely with Warren Buffett. This book is about their approach to investing, sprinkled with quotes from Munger, Buffett, and others.
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Entrepreneurship: A Primer
by Eamonn Butler
“Entrepreneurship is the unseen factor of production. Land, labor, and capital produce nothing until they are actively put to work. They need to be directed and focused by some human mind—an entrepreneurial mind that realizes how they can be used to create value.”
“British philosopher and economist John Stuart Milll (1806-1873) identified entrepreneurs as people who assume both the risk and the management of a business. Today, economists focus on the role of entrepreneurs as innovators or in spotting opportunities or taking risks in a world of future uncertainty.”
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Decisionscape: How Thinking Like an Artist Can Improve Our Decision-Making
by Elspeth Kirkman
“Knowingly or not, we often draw on the logic of pictorial space as a metaphor for our decisions. We use phrases like getting things in perspective or blowing them out of proportion… And we implore one another to zoom out or see the big picture.”
Elspeth Kirkman is a behavioral scientist who uses the analogy of art making to explain the psychology of decision making. “I call this mental representation the decisionscape… The central idea of this book is that we could improve our decisions, whether personal or professional, by constructing and analyzing it deliberately, just as an artist approaches the canvas.”
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WCVB-TV Boston: How We Built the Greatest Television Station in America
by Robert M. Bennett (1927-2016)
In this memoir, the highlight of television executive Bob Bennett’s career was launching and growing WCVB-TV, Channel 5 in Boston. A major theme is his commitment to locally-produced programming. Another theme is Bennett’s leadership style, whereby he encouraged new ideas and risk-taking from his lieutenants, and inspired a sense of pride which brought out the best in people at all levels of the organization. It’s also a high-risk, high-reward story that could have turned out very differently.
The book is comprised of Bennett’s recollections interspersed with commentary from former colleagues.
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Why Can’t You Just Give Me the Number? An Executive’s Guide to Using Probabilistic Thinking to Manage Risk and Make Better Decisions
by Patrick Leach
Decisions can be based on a deterministic calculation only in conditions of certainty, that is to say the input parameters are known quantities. But strategic decisions are often made in a context of uncertainty and complexity, where a definite answer is unknowable, so we must turn to probabilistic thinking.
Uncertainty. “I make the case that all value generated by business executives comes—directly or indirectly—from how they manage uncertainty. Without uncertainty, a share of a company’s stock is effectively a bond, with guaranteed future cash flows. Guaranteed bonds don’t need management. But stocks (or rather, companies issuing stock) certainly do.”
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HBR Guide to Buying a Small Business: Think big, buy small, own your own company
by Richard S. Ruback and Royce Yudkoff
This book provides a methodology to find, evaluate, finance, and acquire a small business. The autonomy of entrepreneurship is compelling to many, but the failure rate of start-ups is high—more than two-thirds of them never deliver a positive return to investors. In contrast, this approach seeks to buy and manage an existing “enduringly profitable” business. The authors teach a course in entrepreneurship through acquisition at Harvard Business School.
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The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness
by Morgan Housel
Financial success is a soft skill, writes Morgan Housel, “where how you behave is more important than what you know.” This is a book about developing the mindset of a long-term investor, with a realistic attitude towards risk and reward. The book is conspicuously free of financial jargon and math. Here are some key points.
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Risk Savvy: How to Make Good Decisions
by Gerd Gigerenzer
Gigerenzer makes a distinction between risk and uncertainty. He uses the term risk “for a world where all alternatives, consequences, and probabilities are known… Most of the time, however, we live in a changing world where some of these are unknown: where we face unknown risks, or uncertainty. The world of uncertainty is huge compared to that of risk… We have to deal with ‘unknown unknowns.’”
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How Finance Works: The HBR Guide to Thinking Smart About the Numbers
by Mihir A. Desai
This is an outstanding book which presents some complicated topics in a clear, well-organized manner with real-world examples. The author, a professor of finance and taxation at Harvard Business School and Harvard Law School, includes some sidebar commentary from two CFOs, an investment banker, and a hedge fund manager.
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Small Business Finance and Valuation
by Rick Nason and Dan Nordqvist
A finance professor and a CPA have teamed up to explain finance and risk management concepts specifically for small business, defined as assets under $5 million. They acknowledge that the objectives of small business owners often differ from those of a Fortune 500 CFO, whose focus is typically maximizing shareholder value. Freedom, peace of mind, and other quality of life issues may be more important to a small business owner.
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