This is not to minimize the importance of mathematical ability in investing it s certainly necessary for financial success. It s just not sufficient . What s also needed is an historical sense of just how chaotic and random financial markets are. If you re going to invest your own money, or other people s money, you simply cannot learn enough about financial history. This will give you an idea of how the basic stock and bond classes behave.
Most investors make the mistake of focusing on historical long-term asset class returns.
The real utility of the historical record is the vivid picture it paints of the chaotic nature of security volatility. The descriptive history is the fun part. A History of Financial Speculation . If you ever have the opportunity to hear this man speak, you should avail yourself. Grant is even more entertaining and educational in person than in print, if that s possible.