13. Lowenstein, Origins of the Crash (2005)

Constructs a systemic explanation of the American financial market’s fin-de-siecle crash. Beginning with growing public faith in equities during the 1980s, Lowenstein portrays the rise of ‘shareholder value’ (i.e., stock prices) and excessive executive compensation as the most important paving stones. Both worked against ethical, long-term decision making. During the late 1990s, business standards also slipped in accounting, stock analysis, and law enforcement (as the government was overwhelmed and self-disarmed by the repeal of Glass-Stegall). Although dot-coms were everywhere evidencing bad deeds as well as misjudgment, the worst offenders were Enron, Worldcom, and Arthur Anderson. The author is marginally confident that Sarbanes-Oxley and other reforms will prevent recurrence: has the culture changed? (Probably not, human nature being persistent.) The indictment is compelling, but for the curious tenet that the market permissively allows ‘too many’ companies to compete in certain segments, such as air travel. Ultimately, he seems to lean toward centralism or worse.

6. Lewis, Moneyball (2 Apr 2006)

Follows the back-office management of the Oakland As’ 2002 season to uncover how the small-market team defies baseball’s conventional wisdom. For GM Billy Beane, on-base percentage (i.e., not making outs) is superior to any other statistical measurement, and players (especially minor leaguers) can be acquired at a significant discount (or sold at a premium) to the market’s valuation. Joe Morgan emerges as the arch defender of the status quo. One corollary that’s not addressed: if you don’t allow runs you can’t lose — defense wins championships after all.

8. Lambert, Financial Literacy for Managers (15 Aug 2014)

Surveys core tools of financial management – income (P/L) statement, balance sheet, cashflow statement – showing how they are meant to work and identifying common intricacies which can distort a clear picture. The book then turns to evaluating costs, how the balance sheet (assets and debt) can be put to use, and assessing investment opportunities. A clear, concise reference that summarizes the Wharton exec ed course.