

10 Overrated Business Books (and What to Read Instead) - pg
http://www.bnet.com/2403-13070_23-160571.html

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Alex3917
Malkiel's book on investing is really good if you want to understand how the
markets work, but it's not really necessary if you all you want to do is
maximize the returns on your retirement fund. Dilbert's 9-point financial plan
gives the exact same advice, but in only 123 words:

[http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BBE5...](http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BBE57F0AA-03D9-4320-BC4D-83363B6372F6%7D&siteid=myyahoo&dist=myyahoo)

The only exception is that if you are young then instead of investing in the
index you'd probably be better to invest in the index of small cap stocks.
Your returns will probably be much better over time, although in any given the
variance will be much higher. You can't do this when you get older because if
you need the money and the market has been down three years in a row then
you're in trouble. The only other thing worth mentioning is that Roth IRAs may
be better than traditional IRAs depending on your tax bracket. (And also there
are some special retirement vehicles you have access to if you run your own
business, though I don't really remember the details.)

The Malkiel covers some technical stuff, like what it means to invest in
assets with a negative beta. (Negative beta securities tend to move against
the market, so for example when the index is down gold tends to go up.)
However there isn't really much reason to invest in these obscure securities
unless you're running a hedge, so knowing about them is really only good for
intellectual curiosity value.

~~~
mechanical_fish
Two thumbs up for the Dilbert financial plan. May it spread far and wide.

If you're the kind of person who can't bring himself to follow a simple and
sensible plan like Dilbert's, I have the book for you: William Bernstein's
"The Four Pillars of Investing".

[http://www.amazon.com/Four-Pillars-Investing-Building-
Portfo...](http://www.amazon.com/Four-Pillars-Investing-Building-
Portfolio/dp/0071385290/ref=sr_1_2/103-3892353-0078258?ie=UTF8&s=books&qid=1189716378&sr=1-2)

If you follow Bernstein's advice you will end up with Dilbert's financial
plan, except that instead of one giant index fund you'll have a bunch of
smaller index funds - some small-cap, some large-cap growth, some
international, and so on. Plus bonds, of course. In other words, you'll be a
Vanguard customer. But there's nothing wrong with that.

This additional layer of complexity might be good for an additional point or
two of growth. Or it might turn out to be a useless exercise in
micromanagement. But it's a nice safe way to satisfy your urge to pretend that
doing a lot of higher math and complicated bookkeeping is making you richer.
The book is careful to steer you away from stupid stock-picking strategies,
stupid stock newsletters, and advisers who work on commission (who are, by
definition, not on your side).

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bharath
This kind of stood out:

"Read this instead: 'The Prince' by Niccolo Machiavelli. Why: It will provide
you with the precise moral foundation you'll need to be successful on the
corporate ladder."

I dont recall PG ever bringing this up in his essays. But I think this is why
a lot of hackers gravitate towards startups. They cant get themselves to
follow the advice in that book.

~~~
byrneseyeview
Read it more carefully. It's satire.

 _Edit: I'm referring to "The Prince," not the list._

~~~
pg
I wonder how much it's really satire. You'd definitely be better off with
their replacements than the original list.

~~~
Alex3917
I think it's meant to be snarky, not satirical.

~~~
dood
I'd go for 'tongue-in-cheek'.

(not sure if that's largely an English phrase, or if there is a similar
American term) <http://en.wikipedia.org/wiki/Tongue-in-cheek>

_edit: oh, the book_

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justinsb
Talk about a straw man argument. The ten "over rated" books are - on the whole
- a pretty poor list. I'd also call them over-hyped, rather than over-rated
(who honestly would rate 'Chicken Soup for the Soul at Work' as a serious
business book)?

I'd have been far more interested in seeing books selected from the
'recommended reading' list used for (say) Harvard Business School, and then an
examination of the merits of those. It could also be very interesting to
compare the reading lists of the top b-schools to get a glimpse at their
emphasis and biases.

Like most 'top 10' lists, I suspect this was intended more as a space-filler
than as a serious contribution.

This just made #1 on my '10 Overrated Articles'. Now I just need to find what
to read instead...

~~~
Goladus
At the first company I worked at after graduating, many of the supervisor and
manager cubicles had little certificates on them saying that they completed
some sort of "Who Moved My Cheese" seminar. I remember seeing copies of "7
Habits of Highly Effective People" as well. Right before I left I saw someone
with a copy of a book like "Love 'em or Lose 'em" a book about how to keep
good employees. It's cover looked suspicious to me but I don't know much about
it.

Honestly, though, most managers simply did not read, and those who did
certainly didn't read anything about how to become a better manager, unless it
was forced on them from corporate. Even those who took the initiative to read
the bad books on that list will probably benefit.

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kashif
While 'The Prince' is a better read, I think the business community takes it
too seriously. The prevalent episteme at the the time of writing and the
audience for that book effect its interpretation. Today, we live in a
completely different world and that book is not suited for business, neither
is Sun Tzu.

PS: It is possible to find some advice, thought or concept in anybook which
you can apply to business.

Also, this list isn't the best list of over hyped business books.

~~~
Jd
Don't like Sunzi? Try the Book of Five Rings.

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karzeem
A lot of business books, like some of the ones on this list, suffer from
overly anecdotal arguments. All the books that have actually affected the way
I do things tend much more towards theory and frameworks of thought.

Our little startup has three holy texts: "Nonzero" by Robert Wright, "The
Paradox of Choice" by Barry Schwartz, and "Fooled By Randomness" by Nassim
Taleb (which is even more sanctimonious than "The Seven Habits...", but a lot
better, too).

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fnord123
These are debunked in "[How Mumbo Jumbo Conquered the
World]([http://www.amazon.co.uk/How-Mumbo-jumbo-Conquered-World-
Delu...](http://www.amazon.co.uk/How-Mumbo-jumbo-Conquered-World-
Delusions/dp/0007140975))"

------
jkush
Jesus CEO?

