📚☕Investment Library: The Money Game

Published in 1968, The Money Game by George Goodman (under the pseudonym ‘Adam Smith’) is one of my favorite books about the psychology and antics of professional investors. Goodman was writing at a time when a new generation of aggressive, growth-oriented investors was emerging and rebelling against the pervasive conservatism instilled by the memory of the Great Depression. “The strongest emotions in the marketplace are greed and fear. In rising markets, you can almost feel the greed tide begin. Usually it takes from six months to a year after the last market bottom even to get started. The greed itch begins when you see stocks move that you don’t own. Then friends of yours have a stock that has doubled; or, if you have one that has doubled, they have one that has tripled.” The 60s go-go bull market shared many similarities with the past few years, including a boom and nosebleed valuations in technology stocks and wild speculation in small (also: enterprising value investors built con

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• Derrick Li