Saturday, March 24, 2007

A Mathematician Plays the Stock Market - John Allen Paulos

Light and entertaining. Takes a look of the stock market from a
mathematician point of view (He specialty is in probability and logic.)

I recommend it to anyone who want a beginner's guide to pricing
equities. The main advantage is that the author consulted some academic
sources. Topics such as technical analysis (voodoo), fundemental
analysis (Buffet Watch), Modern Porfolio Theory (Greek for geeks), and
chaos theory (butterflys).

I didn't like the fact that the author sometimes goes on long tangents
unrelated to the topic. He has a complete obsession to the WorldCom
stocks he lost a bunch of money on -- in fact the book is almost an
elegy to his WorldCom losses. He also had a bunch of random stuff that a
better editor should have greened. He devoted several pages to an
imaginary moviescript he wanted to write about a mathematician turned
con artist. The reader is also privy to his personal life: he lied to
his wife about money, he buys books at Borders and invests with Swzarb.

In either case, a good primer, if it weren't so random.

No comments: