GMO Letters : MAY 2011
Modern Portfolio Theory
1. Avoiding Losses Is One of the Keys to Managing Money (on Howard Marks of Oaktree Capital Management)
Understanding risk beyond volatility.
2. How concentrated should you be ?
The formation of tops Presentation on position sizing
Bank of Japan – Recent Surge in Global Commodity Price BoJ report on the major causes for the commodity prices run-up : ETFs, QE, Supply demand imbalance.
This Time is Different (Reinhart / Rogoff) – Outstanding charts & data. Text itself on the boring side.
The Intelligent investor Ben Graham – Classic. Slow reading, but worthwile.
The Ascent of Money (Niall Ferguson) – Excellent explanation of the birth of the modern financial system.
The bubble that broke the world [Garet Garrett] – On the 1931-1932 German credit bubble.