
Under uncertainty people treat others' behaviour as evidence of correct behaviour, and Girard pushed it further: we copy the desire itself. In markets this turns price into its own justification, buying begetting buying until the loop snaps. The test is simple - if the strongest argument for a position is who else owns it, you hold a queue number rather than a thesis.
Crowd manias from the Mississippi scheme and South Sea Bubble to witch trials.
“The first couple of chapters of this book, which describes in detail the great financial and stock market manias of the eighteenth century, are essential reading for all serious investors.” — Barton Biggs
Source: Biggs on the first chapters as essential reading
Recommended by: Barton Biggs, Bernard Baruch, Peter Cundill and 2 others
How individuals lose judgement in a crowd and how leaders sway crowds.
“The Crowd, written in 1895 by Gustave Le Bon, is probably the most instrumental book in framing my ability to go against the grain of conventional thought and not feel insecure.” — Frank Martin
Source: Martin on the book that let him go against conventional thought
Recommended by: Frank Martin, Mohnish Pabrai, Peter Cundill and 1 other
Why mass movements of every kind draw the same frustrated people and use one method.
“My favourite book to recommend is The True Believer: Thoughts on the Nature of Mass Movements by Eric Hoffer. There is no discussion about investing, but it is extremely helpful in understanding…” — Joe Rosenberg
Source: Rosenberg on the book he most often recommends
Recommended by: Joe Rosenberg, Mohnish Pabrai and 6 others
Financial crises follow a repeated sequence of boom, mania, panic and crash.
Recommended by: Howard Marks, Li Lu
Six principles of compliance, from reciprocity to scarcity, and how sellers use them.
“…books I've recommended, highlighted to death, or forced on friends.” — Andrew Wilkinson
Source: Andrew Wilkinson's Bookshelf, neverenough.com
Recommended by: Andrew Wilkinson, Charlie Munger and 29 others
Speculation from ancient Rome and tulip mania to the 1990s, and its recurring traits.
Recommended by: Howard Marks, Mohnish Pabrai and 1 other
How psychology, not fundamentals, drove the stock and housing booms of 2000 and 2005.
Recommended by: Mohnish Pabrai, Andrew Lokenauth and 1 other
When groups judge better than experts, and the four conditions that make it work.
“Jim Surowiecki deftly articulated this line of thinking in his delightful book, The Wisdom of Crowds.” — Michael Mauboussin
Source: Contrarian Investing: The Psychology of Going Against the Crowd (Legg Mason Capital Management)
Recommended by: Michael Mauboussin, Mohnish Pabrai and 3 others
Techniques for handling people, being liked and winning others to your view.
Recommended by: Mohnish Pabrai, Alex and Books and 13 others
Mimetic rivalry, where rivals grow alike, and the violence it unleashes in societies.
Recommended by: Patrick Collison, Eric Weinstein and 1 other
Preference falsification: why people hide their views and how that hides change.
“So this is one of the all time great books. Incredible.” — Marc Andreessen
Source: Lex Fridman Podcast #458 transcript — Marc Andreessen
Recommended by: Marc Andreessen
Where you direct attention just before a message shapes how it is received.
Recommended by: Michael Mauboussin, Naval Ravikant
Common knowledge, where everyone knows that everyone knows, and what it does.
Recommended by: Bill Gates
Girard reading Dostoevsky; mimetic rivalry and resentment
Recommended by: Peter Thiel
Common knowledge and coordination; why rituals and advertising work
Recommended by: Mark Zuckerberg
Cialdini's persuasion research condensed into fifty applied findings
Recommended by: Mohnish Pabrai, Charlie Munger
Robert B. Cialdiniwrote 3 books here
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