Investing in small caps with courage and conviction

Published in 1925, 'The Great Gatsby' is a tragic love story, a mystery, and a social commentary on American life during the Jazz Age. The novel is narrated by Nick Carraway, who moves to Long Island and becomes entangled in the lives of his wealthy and mysterious neighbor, Jay Gatsby, and Gatsby's obsession to win back his first love, Daisy Buchanan. The story delves into themes of honesty, the temptations of wealth, and the struggle to escape the past, ultimately reflecting on the disintegration of the American Dream.

Liar's Poker is a non-fiction, semi-autobiographical book that details Michael Lewis's three-year tenure at Salomon Brothers, one of Wall Street's premier investment firms in the 1980s. The book provides a behind-the-scenes look at the culture of bond traders, highlighting the frat-boy camaraderie, killer instincts, and high-stakes games of bluffing and deception. Lewis describes the creation and use of mortgage bonds, the excessive bonuses, and the ruthless competition among traders. The narrative also touches on the author's disillusionment with the industry, leading to his resignation and transition into financial journalism.

The book tells the story of the Oakland Athletics' 2002 season, where General Manager Billy Beane and his assistant Paul DePodesta used advanced statistical analysis, known as sabermetrics, to assemble a competitive team despite a limited budget. The approach, pioneered by Bill James, focused on metrics such as on-base percentage and slugging percentage rather than traditional measures like batting average and runs batted in. This data-driven strategy allowed the Athletics to compete with teams having much larger payrolls, like the New York Yankees, and achieve significant success, including a 20-game winning streak and a playoff appearance.