Michael Lewis’s The Big Short
One of the very best business books I have had the pleasure to read is The Big Short: Inside the Doomsday Machine which was written by one of the very best business writers working today, namely Michael Lewis. After starting it late last year I found it almost impossible to put down. Think of the book this way. It’s about a group of corporate world misfits, outsiders, and loners who after carefully analyzing the financial data available to everyone went out on a limb and bet the ranch on a housing market collapse of biblical proportions.
Now what makes the story so compelling is that after they laid their bets two or three years before the collapse, they then had to sit tight for 24 to 36 months while everyone else was scoffing and telling them that they were fools for being contrarians. Not many people have to backbone to stand up to public opinion for that long.
These guys did.
The movie has a superb cast with Christian Bale (as Michael Burry), Steve Carrell (as Steve Eisman), Ryan Gosling (as Gregg Lippmann) and Brad Pitt (as Ben Hockett). Bale may have the most interesting role as the autistic former medical doctor turned trader Michael Burry.
Watch the trailer:
If you read the book and want to find out even more about these guys, I also highly recommend The Greatest Trade Ever by Gregory Zuckerman.