You are what you read. I’ve always believe that statement. I do not think I am different than the average person in terms of intellectual abilities. But I do know I have some habits different than the average person. I like to read, not necessary any books, but books that you can learn something from. I don’t like to read novels, I used to when I was a kid. In fact, I really want to thank my mother for encouraging me to read a lot of books when I was young. I remember borrowing as many books as my library card allowed, finish them without a week or two weeks and going book for more books right away. That has set the foundation for my life.

But I haven’t been reading any new books lately. I’ve been re-reading old books. So in order for this article to fit the idea of a NEW recommended book, I have to find something new first , right? Certainly, let me tell you more about THE NUMBER: How The Drive for Quarterly Earnings Corrupted Wall Street and Corporate America after the jump.

For the last year or more, whenever I met someone who said he/she would like to start investing in stocks, I’ve recommended The Intelligent Investor (revised edition) to them. To me, anybody wanting to put money into companies must read chapter 8 of that book about capital preservation. It’s even recommended by the world’s most well-known investor, the only person on the Forbes 100 richest people to have made his fortune through investing, Warren Buffett.

Today, I’m recommending another companion book, one that is so well like by one of my highly regarded role models, Mark Cuban, that Mark asked to write the foreword himself. “The Number” is written by Alex Berenson, and focuses on the tricks that companies employ to hit/beat the number, and the corrupted attitude towards investing that prevails on Wall Street. People may find it curious why I’m recommending books about the bad side of wall street to people looking to get into the market. In the words of Mark Cuban,

“I may be a cynic [...] but I am an informed cynic”.

You cannot rush into things you don’t understand by looking for knowledge that helps in your attitude. But by being a cynic and wanting to find out the information contrary to your enthusiasm, you can uncover facts and information that will ensure you have a confident decision.

That’s what this book is all about. Even the most astute analyst on Wall Street will fall victim to the number. If anything, I hope this book demystifies the fact that you and me are no better or worse than the analysts out there – which is a positive. The number simply means the earnings per share that is referred to as such, by the pundits, analysts and brokers of Wall Street. So tightly focused on this one single number that its impact is felt for the CEO, the company board, the fund managers, the brokers, everybody involved in the process.

To me, The Number is a must-read for people who are getting into stock investing. So now I have 2 books that I will give to everyone as a package to enter into stock investing – The Intelligent Investor and The Number. Sounds more like John Grisham novels to me!