Dan Loeb is the founder of the New York based hedge fund Third Point LLC, which manages $19.41 billion dollars at the time of this writing.
Last updated: 02/08/2021
The outspoken and prominent value investor founded the hedge fund in 1995 and is currently responsible for the business activities of Third Point. He is also the managing member and chairman of Third Point, LLC.
Dan Loeb is known for his explicit public letters regarding the performance and actions of other financial executives. His mocking letters are an entertaining yet the thought-provoking approach of addressing and disapproving a certain serious issue.
For more on Dan Loeb, head over to ValueWalk’s Dan Loeb Resource Page, where you can find a detailed rundown of his background, bio, and investment philosophy.
Dan Loeb: Recommended books
Reminiscences of a Stock Operator by Edwin Lefevre
Dan Loeb calls the book a classic. The book is the thinly disguised biography of Jesse Livermore, a remarkable character who first started speculating in New England bucket shops at the turn of the century. Livermore, who was banned from these shady operations because of his winning ways, soon moved to Wall Street where he made and lost his fortune several times over. What makes this book so valuable are the observations that Lefèvre records about investing, speculating, and the nature of the market itself.
You Can Be a Stock Market Genius by Joel Greenblatt.
Greenblatt’s book explains how best to invest such as spin-offs, mergers, risk arbitrage, etc. Loeb uses many of the strategies discussed in this book in his own investing strategy. Loeb is now alone in his admiration of the book. Seth Klarman also recommends Greenblatt’s book on his list of favorite books as detailed here.
Financial Shenanigans by Howard Schilit.
The author details various tricks that management have used, and will continue to use in the future. They consist of various manipulations of the income statement, and the cash flow statement.
The Art of Short Selling by Kathryn Staley.
A book about finding tricks used by management in financial statements, and using the information to short the company.
The Power of Story by Jim Loehr.
Loeb’s favorite “non-investing” book. Loeb stated that the book can “change your destiny in business and in life.”
Quality Investing: Owning the Best Companies for the Long Term by Torkell T. Eide, Lawrence A. Cunningham, Patrick Hargreaves
The best companies often appear to be characterized by an ineffable something, much like that of people who seem graced by a lucky gene. Think about those of your peers who seem a lot like you but somehow always catch a break. They are not obviously smarter, smoother, richer, or better-looking than you, yet they are admitted to their university of choice, get their dream job, and earn considerable wealth. Try to discern what they have that you don’t, and you are stumped. Chalk it up to fate or plain dumb luck.
Common Sense: The Investor’s Guide to Equality, Opportunity, and Growth by Joel Greenblatt
In Common Sense, the New York Times best-selling author Joel Greenblatt offers an investor’s perspective on building an economy that truly works for everyone. With dry wit and engaging storytelling, he makes a lively and provocative case for disruptive new approaches―some drawn from personal experience, some from the outside looking in.
Dan Loeb books listed without details
No Rules Rules: Netflix and the Culture of Reinvention by Reed Hastings, Erin Meyer
The Dynasty by Jeff Benedict
Columbia Contemporary Civilization Syllabus
Columbia Literature Humanities Syllabus
The Three-Body Problem by Cixin Liu, Ken Liu
Don Quixote by Miguel De Cervantes Saavedra
Mistakes Were Made But Not By Me by Carol Tavris & Elliot Aronson
Talent is Overrated: What Really Separates World-Class Performers from Everybody Else by Geoff Colvin
King Lear by William Shakespeare
War and Peace by Leo Tolstoy
The Count of Monte Cristo by Alexandre Dumas père
One Day in the Life of Ivan Denisovich by Alexander Solzhenitsyn
Man’s Search for Meaning by Viktor E. Frankl
Common Stocks and Uncommon Profits and Other Writings by Philip A. Fisher
Investing for Growth: How to make money by only buying the best companies in the world – An anthology of investment writing by Terry Smith
100 Baggers: Stocks That Return 100-to-1 and How To Find Them by Christopher W Mayer
The End of Accounting and the Path Forward for Investors and Managers by Baruch Lev, Feng Gu
The Big Money: Seven Steps to Picking Great Stocks and Finding Financial Security by Frederick R. Kobrick
Frankenstein by Mary Shelley
Sources
Third Point letters, Dan Loeb speeches, and his twitter account
