Books Recommended by Michael Burry

Benjamin Graham (1894–1976), author of The Intelligent Investor, is widely celebrated as the "father of value investing" and a foundational figure in modern financial analysis. Born in London and raised in New York City, Graham’s expertise stemmed from decades as a Wall Street investor, Columbia University professor, and pioneer of systematic security analysis. His seminal works, including Security Analysis (co-authored with David Dodd) and The Intelligent Investor, established core principles like margin of safety, intrinsic value, and emotional discipline—cornerstones of value investing that continue to shape global markets.

Graham’s methodologies gained enduring recognition through proteges like Warren Buffett, who credits him as a primary influence. A Columbia graduate and founder of the Graham-Newman investment fund, he transformed financial theory by advocating data-driven decision-making over speculation. Beyond investing, Graham authored influential essays, patented financial calculators, and taught generations of analysts through his Columbia courses.

The Intelligent Investor remains a Wall Street classic, with over a million copies sold and translations in 15+ languages. Its revised editions maintain Graham’s original framework while addressing modern markets, cementing its status as essential reading for investors worldwide.

1. Prioritize margin of safety by buying stocks below intrinsic value
2. Ignore Mr. Market's emotional swings to avoid impulsive trading decisions
3. Maintain a 50/50 stock-bond split for balanced risk management
4. Analyze financial statements rigorously to uncover undervalued companies
5. Avoid speculative trading; focus on long-term value appreciation
6. Require current ratio above 1.5 for financial stability screening
7. Seek companies with consistent earnings growth over five years
8. Diversify with at least 40 stocks to minimize investment risks
9. Compare price-to-earnings ratios to identify overvalued or undervalued stocks
10. Reject companies with debt exceeding current asset values
11. Embrace market volatility as opportunity to buy undervalued assets
12. Define investment strategy as active or passive before entering markets

Joel Greenblatt, author of You Can Be a Stock Market Genius, is a renowned value investor, hedge fund manager, and financial educator celebrated for his expertise in high-return, special-situation investments.

A Wharton School graduate and adjunct professor at Columbia Business School, Greenblatt founded Gotham Capital, which achieved a 40% annualized return over two decades and a remarkable 50% annualized return during its first decade.

His book demystifies complex strategies like spin-offs, mergers, and recapitalizations, reflecting his hands-on experience in navigating high-risk, high-reward market opportunities. Greenblatt also authored the bestselling The Little Book That Beats the Market, which introduces his "Magic Formula" for identifying undervalued companies, and co-founded ValueInvestorsClub.com, an exclusive platform for elite investors.

As board chair of Alliant Techsystems and a Columbia faculty member, he bridges academic theory with real-world execution. Recognized as a definitive guide for experienced investors, You Can Be a Stock Market Genius combines rigorous analysis with actionable insights, cementing Greenblatt’s legacy as a pioneering voice in modern value investing.

1. Target spinoffs for outperformance due to forced selling and market neglect.
2. Prioritize merger securities for undervalued bargains from indiscriminate selling.
3. Follow insider participation in spinoffs to gauge management confidence.
4. Focus on small-cap special situations Wall Street ignores for asymmetric upside.
5. Use earnings yield and return on capital to identify undervalued quality.
6. Maintain concentrated portfolios with strict margin-of-safety criteria.
7. Exploit rights offerings by analyzing terms and avoiding dilution traps.
8. Seek bankruptcy reorganizations for mispriced debt-to-equity conversion opportunities.
9. Avoid overleveraging while capitalizing on corporate restructurings and liquidations.
10. Combine value investing principles with event-driven catalysts for amplified returns.

Ayn Rand (1905–1982), the bestselling author of Atlas Shrugged, was a Russian-American philosopher and novelist renowned for her advocacy of individualism and laissez-faire capitalism.

Rand's influential works include The Fountainhead, a landmark novel about architectural individuality, and Anthem, a novella envisioning a collectivist future. Atlas Shrugged, a dystopian fiction masterpiece, explores themes of rational self-interest, innovation, and the dangers of collectivism through the story of inventor John Galt and railroad executive Dagny Taggart.

Born in St. Petersburg, Russia, Rand’s early experiences under Bolshevik rule deeply influenced her rejection of statism, which she later articulated through her Objectivist philosophy in essays like The Virtue of Selfishness. A polarizing figure, she lectured widely and contributed to political discourse through platforms like The Objectivist Newsletter.

Atlas Shrugged has sold over 30 million copies worldwide and remains a cornerstone of libertarian thought, frequently cited in political and economic discourse.

1. Rational self-interest drives human progress and moral virtue in Ayn Rand's philosophy
2. Industrial creators embody heroism through innovation while looters exploit through force
3. Objectivism rejects self-sacrifice as moral duty and champions productive trade
4. Money represents honest exchange when earned through reason and achievement
5. Atlas Shrugged redefines selfishness as virtuous pursuit of rational goals
6. Government coercion crushes human potential according to Rand's capitalist manifesto
7. Mental clarity and purpose triumph over bureaucratic parasitism and emotionalism
8. Productive minds carry civilization's weight like Atlas holding the world
9. Achievement guilt stems from society's war against individual greatness
10. Looters vs producers: Rand's framework for analyzing economic morality
11. Ayn Rand's John Galt Speech condenses Objectivist ethics into radical manifesto
12. Atlas Shrugged equates romantic love with shared values and mutual respect

Jared Mason Diamond, Pulitzer Prize-winning author of Guns, Germs, and Steel: The Fates of Human Societies, is a polymath renowned for his multidisciplinary exploration of human history and environmental science. A professor of geography and physiology at UCLA, Diamond merges evolutionary biology, anthropology, and ecology to analyze the roots of societal development.

His groundbreaking work identifies environmental factors—not racial superiority—as the catalyst for technological and political disparities between civilizations.

Diamond’s expertise spans bestselling titles like Collapse: How Societies Choose to Fail or Succeed and The Third Chimpanzee, which examine humanity’s environmental challenges and evolutionary legacy. A National Medal of Science recipient and MacArthur “Genius Grant” fellow, he has delivered influential TED Talks and contributed to PBS documentaries.

His books, translated into over 35 languages, have sold millions globally, with Guns, Germs, and Steel remaining a seminal text in academia and popular science since its 1997 publication.

1. Geographic luck, not innate superiority, shaped civilization dominance.
2. The Guns, Germs, and Steel framework explains Eurasian conquest through material factors.
3. Domesticable animals were scarce outside Eurasia due to the Anna Karenina principle.
4. The Fertile Crescent’s crop diversity gave an agricultural head start to early societies.
5. East-west continents enabled faster spread of crops versus north-south barriers.
6. Epidemic diseases emerged from animal domestication advantages in Eurasia.
7. Technology gaps originated from food surplus, enabling specialization and innovation.
8. The collision at Cajamarca showcases germ superiority as a conquest accelerant.
9. Jared Diamond’s Guns, Germs, and Steel rejects racial explanations for global power.
10. Dense populations enabled by farming created bureaucratic states and armies.
11. Ultimate causes of conquest lie in geography, not cultural brilliance.
12. Writing systems and metal tools developed where agriculture flourished first.

Roger Lowenstein is the bestselling author of When Genius Failed: The Rise and Fall of Long-Term Capital Management and a leading financial journalist renowned for his incisive analyses of Wall Street crises. A Wall Street Journal veteran who penned its iconic Heard on the Street column, Lowenstein combines decades of market reporting with a talent for transforming complex financial events into gripping narratives.

His expertise spans hedge fund collapses, corporate governance, and economic history, themes central to When Genius Failed—a definitive account of the 1998 Long-Term Capital Management meltdown that remains essential reading for finance professionals and investors.

Lowenstein’s authoritative works include Buffett: The Making of an American Capitalist, a landmark biography of Warren Buffett, and America’s Bank, which chronicles the creation of the Federal Reserve. A director of the Sequoia Fund and former trustee of Lesley University, he contributes to Bloomberg News and authors the Intrinsic Value newsletter. When Genius Failed was named a BusinessWeek Best Book of the Year and is widely taught in business programs for its timeless insights into risk management and market psychology.

1. Leverage amplifies risks beyond mathematical model predictions during market turmoil.
2. LTCM’s collapse exposes hubris in Nobel laureate-driven financial strategies.
3. Markets prioritize panic over rationality during systemic financial crises.
4. Diversification fails when correlations converge under extreme stress conditions.
5. Academic models ignore human irrationality in pricing financial assets.
6. High IQ cannot compensate for emotional discipline in investing.
7. Excessive debt transforms minor losses into existential fund threats.
8. Institutional investors often follow herd mentalities despite expert analysis.
9. “Genius” fails when models disregard black swan event probabilities.
10. Counterparty risk multiplies when trust evaporates in volatile markets.
11. LTCM’s story warns against overconfidence in historical market patterns.
12. Financial engineering creates hidden systemic risks masked as innovation.