Understand business from a strategic perspective. Senior executives routinely share and discuss strategy with marketing directors, operations chiefs, and other direct reports.  A recent investigation into this question concluded most managers don't understand enough about strategy to be useful. Asked to take a basic strategy exam—a test that any CEO or senior manager should easily ace—a representative sample of U.S. managers from C-level executives to supervisors scored an average of only 23%.

Economics is a highly relevant subject in our everyday lives, with its understanding instrumental in lifting humanity out of poverty since the Industrial Revolution. Economics is a social science that deals with decisions about the allocation of resources and provides a conceptual framework for understanding the decisions of firms and consumers.

Saving and investing in the stock market is the best way to become wealthy. Beta and Capital Asset Pricing Model can reduce risk and increase returns through diversification and portfolio theory. The equity risk premium is the extra return that investors require above treasury bonds, which are risk-free. Investors receive additional returns to compensate for the higher risk of investing in stocks. Every company listed on the stock market has a different risk profile, and equity risk premium helps measure and compare their relative risk.

To be a great investor, it's important to engage with the essential tool of the 10-K, which Warren Buffett enjoys reading. Savvy fund managers regard 10-Ks as riddles, and individual investors can benefit from learning what to look for when selecting companies for their portfolios. If you don't enjoy reading 10-Ks, investing in individual stocks may not be the best use of your time. This book can help you learn to love the process of analyzing companies and become a great investor.