Once in Golconda : A True Drama of Wall Street 1920-1938 (Wiley Investment Classics)
by JohnBrooks
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Paperback (10 September, 1999)
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Reviews (2)

Wall Street Lays An Egg...And You Are There
If ego is a drug, Richard Whitney was Wall Street's Tony "Scarface" Montana. More than $27 million in debt and trying to conceal bald-faced embezzlement, the broke stockbroker and former New York Stock Exchange president still managed to carry himself with a smug hauteur as he drew up new IOUs.

Approaching one broker with whom he was on a bad footing, Whitney "made no lame effort to ingratiate himself. Rather he announced brusquely that he 'wanted to get this over with quickly'...Then he said he wanted to borrow $250,000 'on my face.'"

He was denied that time, at least, but Whitney's arrogance was rewarded in other instances. When you were one of Wall Street's aristocrats of the 1920s and 1930s, life was like that.

Whitney is the central character in John Brooks' "Once In Golconda," an absorbing, picaresque account of the New York Stock Exchange's painful coming of age during the Jazz Age and Great Depression. Though there are some patterns watchers of today's stock markets may recognize in this account of the Great Crash of 1929 and its aftermath, some things are probably never to be repeated, probably for the best.

Wall Street in 1929 was a plutocratic fiefdom where might meant right and no one was righter than J.P. Morgan & Co., known by many as "23" for its Wall Street address. But the crash brought anger as it took the rest of the national economy down with it, and in time, calls for reform that the stockbroking elite ignored at their peril. Leading the resistance to change was NYSE President Whitney, who showed great bravery on Black Thursday by placing some stabilizing bids but remained inflexible despite growing demands for needful change.

"Once In Golconda" is a financial history anyone can pick up and enjoy. The terminology is not too technical, and Brooks writes with a real zest for the human equation. At the same time, you get a deeper appreciation for the market forces that dictated what happened on the Street; how the market was democratized, first by the influx of middle-class investors before the bubble burst, and then after, by the formation of the Securities And Exchange Commission; and how J.P. Morgan lost its supremacy to new-money upstarts like Merrill Lynch.

Brooks, writing in the late 1960s, clearly favored a closely regulated market, but he avoids coming off shrill by presenting both sides of the argument at all times. Not completely in the New Deal camp, he describes the theory of an early FDR economic adviser as amounting to populist voodoo economics. "To reverse the roles by trying to make gold prices affect commodity prices was like a man in a building lobby trying to move an elevator from floor to floor by pushing the indicator dial from place to place: it wouldn't work, and it could easily end up ruining the whole mechanism."

This is an excellent companion volume to Brooks' other classic, "The Go-Go Years," a contemporary account about the market's rise in the 1960s. It has the same elegant prose, the same attention to nuance and detail, perhaps an even larger-than-life cast of characters, and a wry wit that pierces through even the driest sensibility. Of one fabled stockbroker, he writes: "He published a book explaining his stock-market techniques - a tip-off that they were no longer working for him."

Somehow you wind up siding with the thiefs and charlatans
This is a very good book.

The book follows the 1920s and 30s stock market from the corner in Stutz stock (on which only people who were long originally gained) to the demise of the aristocratic Richard Whitney.

It could be fiction except that you see the similarities all around.

The description of 1929 is the best I have read.I wish I was there to see Whitney make the most famous bid in all stock exchange history (10 thousand US Steel at 205).I too would have fallen under his spell.And I too would have been shocked and scandalised by his eventual downfall.

Read this and make your judgement.Are you too taken in by the image of today's high flier? Or are you above that?Some people are.I am not sure I am ... Read more

Isbn: 0471357529
Sales Rank: 40568
Subjects:  1. Business & Economics    2. Business / Economics / Finance    3. Business/Economics    4. Finance    5. History    6. Investments & Securities - General    7. New York Stock Exchange    8. Stock exchanges    9. United States    10. Wall Street    11. Wall Street (New York, N.Y.)    12. Biography: general    13. Business & Economics / Investments & Securities    14. Economic history    15. Inter-war period, 1918-1939    16. Investment & securities    17. USA   

Insurance for Dummies
by JackHungelmann
Average Customer Review:
Paperback (22 January, 2001)
list price: $21.99 -- our price: $14.95
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Reviews (12)

Invaluable Insurance Tutorial
We bought this book well after we bought a home and cars, but just after buying umbrella insurance. We wish we had had it all along. Jack Hungelmann did a wonderful, thorough job in the daunting task of educating naive "dummies" like us who never did learn how the insurance pieces fit together and who never fully grasped the importance of protecting one's assets and future. Mr. Hungelmann obviously cares about his reading audience and wants us to learn how to protect ourselves. We grew up a little after finishing the book and attempting to correct some major gaps we had in our current coverages; these would have remained unrealized but potential financial disasters for us without Mr. Hungelmann's clarity.

Lacks Depth in Homeowners Insurance Discussion
I was looking for a book that discussed IN DETAIL homeowners insurance, and I didn't find it in thisone.

Claims, how to appeal a denied claim, mold, how to avoid being under-insured and/or cancelled--these subjects are ignored, even though they're important to me and most people I know.

This book is a WASTE OF MONEY if what you're looking for is in-depth info on homeowners insurance.

Not a Whole Lot on Homeowners Insurance
I bought the book thinking that I'd be getting detailed information about homeowners insurance but the author merely glosses over the subject matter.

I think he's an agent and, as such, doesn't have that much experience when it comes to the information I need, such as claims (particularly mold since I was just cancelled as a result of filing a mold claim), how to interpret specific policy language, etc. ... Read more

Isbn: 0764552945
Sales Rank: 10293
Subjects:  1. Business & Economics    2. Business / Economics / Finance    3. Business/Economics    4. Handbooks, manuals, etc    5. Insurance    6. Insurance - General    7. Management - General    8. Personal Finance - General    9. Risk And Insurance Administration    10. United States    11. Business & Economics / Personal Finance / General    12. Personal finance   

Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor
by John C.Bogle
Average Customer Review:
Paperback (06 October, 2000)
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Editorial Review

Invoking the words and spirit of Thomas Paine, investor-turned-historian John Bogle concedes that his ideas for revamping the mutual-fund industry are perhaps "not yet sufficiently fashionable to procure them general favor." But despite likening the "ills and injustices suffered by mutual fund investors" to those "our forebears suffered under English tyranny," Bogle--founder of the Vanguard Group--makes a strong case for index funds with this exhaustive study of investing.

He begins with primer-like essays on investment strategy, championing mutual funds for their inherent investment value, and then grinding each point home with a bevy of graphs, charts, entertaining anecdotes, and common sense. He repeatedly stresses time as a basic tenet for investing, listing these simple rules: "Time is your friend"; "Impulse is your enemy"; "Stay the course." And then he proceeds to blast fund managers, who have become marketers rather than managers.

The trade-off between the profits that accrue to fund shareholders and the profits that accrue to the fund management companies seems subject to no effective independent watchdog or balance wheel, despite the fact that the shareholders actually own the mutual funds.

It's an interesting concept: smart, reasoned investors can all but secure their financial future, but the system itself, run unchecked by fund managers, needs a major overhaul. And considering the amount of reasoned, historically based support he includes, readers will have a hard time finding fault with the sometimes controversial Bogle. Equal parts instructional and crusade, Common Sense on Mutual Funds deserves the attention it's likely to receive. Recommended. --Rob McDonald ... Read more

Reviews (51)

Common Sense yields Average Investment Returns
This book should be required reading for the novice and intermediate mutual fund investorMr. Bogle makes a host of important points about mutual funds, not the least of which are:
1. There is no reason to buy mutual funds with front-loaded sales charges; they only hurt short and long term performance.
2. At least half of all mutual funds fail to beat the market even before expenses and other charges.
3. Mutual fund investors who do not have a tax-deferred vehicle, e.g. IRA or 401(k), are at a significant disadvantage because of the taxable gains passed thorough to them each year.
4. Small, successful funds eventually become large mediocre funds due to their inability to continue to own small growth stocks without affecting the price every time they buy or sell.
However, this book should with a warning label: "This man founded the largest index fund in the country and he wants you to buy shares in it."At every turn, Mr. Bogle interprets his not insignificant quantitative analysis in a way that supports his seemingly pre-determined conclusion that mutual fund managers cannot beat the odds over the long run, and you can't tell who will be a winners and who will not. The fly in the ointment is that Mr. Bogle assumes that all investors are buy and hold investors, sometimes for ridiculously long periods of time, e.g. 25 or 50 years. His strategy is perfectly suited only to Rip Van Winkle or to a blind trust. Mr. Bogle demonstrates that funds in the top quartile of performance during the 1970s, underperformed the averages in the 1980s. This boggles (Bogles?) the mind. Who can compare the bull market of the Reagan years to the stagflation impeded market of the Nixon/Ford/Carter years?Apparently the possibility that different funds are appropriate for different market or economic conditions was not considered.
As an example of the book's subjective analysis of data, Mr. Bogle cites a study by Goetzmann and Ibbotson (p. 212) that looks at two year intervals and concludes "past top performers had a 60 percent chance of being winners over the two subsequent years." (Actually the difference between 60% and 50% is statistically significant and a good quant could make a lot of money with that knowledge.) However, Bogle simply goes on to say that "the chance of a fund's being better in four subsequent two year periods would have been about one in eight." (If you ask the right question you can get the answer you want.)
But what prudent investor in this age of internet bubbles wouldn't review and adjust his portfolio for ten years? In the investment world, ignoring market trends and holdings for ten months, let alone ten years, would be foolish in the extreme. What investor wouldn't revert to the mean (at best) if he blindly pursued one style of investing through bull and bear markets, through the stagflation of the `70s, the low inflation, high growth, technology driven market of the 90s and the post millennium hangover?
Once you've got the basics that Mr. Bogle offers, a much more interesting read is "The Research Driven Investor" by Timothy Hayes, which relates various styles of investing, e.g. small growth and large cyclicals, to market conditions such as whether you are in an early or late bear market. Mr. Bogle clearly identifies the forest and tells you what kind of predators to look out for, but with the "Occams Razor" metaphor (Chapter Two) Bogle clearly signals his intention to ignore the trees. Little wonder then that he finds the average performance of an index fund so appealing. But the prudent investor is well advised to review and re-balance his or her portfolio at least annually or to hire a qualified professional to do so.

A Clever, Yet Deceptively Effective Advertisement
Mr. Bogle would like you to believe that history will repeat itself.He believes that the market performance is indeed repeatable.He also believes that the unmanaged index fund will continue to outperform the majority of its managed peers by a sound margin, which will compound over time.The outcome of next year's stock market performance, much like which baseball team will win the World Series, is certainly unpredictable, yet we still try to predict the outcome, even though we can not ask what will happen in many repetitions over the years.Next year's market performance, like the World Series winner, will happen only once under a unique set of conditions, most of which we may never see again, and even if we do, will not be present at the same time.

As an answer to the question of market performance next year, or for that matter, any other year, if probability measures what would happen if we did something many, many times, Mr. Bogle's position is neither a probability nor a certainty, though it is wrapped up in many impressive statistics.Probability is based on data about many repetitions of the same random phenomenon.Mr. Bogle is giving us something else when he makes the case for the index fund- his personal judgment.This is why I say that Mr. Bogle's book is a clever, yet deceptively effective advertisement.

While it is true that you are following and measuring the same number, total return, over time, the conditions used to generate this number are not the same, thus you can not use the rules of chance to determine what the total return will be going forward.You can not even use the rules of chance, which tell us what the likely outcomes would be under the same conditions done repeatedly, to tell you even what the average total return would be, nor could you use it to give you a reliable range of returns.However, you can use the tools and techniques of descriptive statistics to tell you the distribution of total returns in the past,but you could not use them to make inferences (that is, to draw conclusions) about the future.To do this, you would have to assume that future will be like the past, and you have to assume that prevailing conditions today will also be the same tomorrow.Both assumptions are ridiculous.There were some conditions prevalent in the past that we will most likely never, ever see again, and do much to explain the impressive performance, expressed as annualized total return, of the stock and bond markets.Mr. Bogle's analysis considers only market performance.It does not consider the demographic, socio-economic and political trends underlying this market performance.

As an anwer to the question of relative performance between the index fund approach and the managed fund approach, first let me say that Mr. Bogle is not the first to point out that an unmanaged index outperforms its managed peers.Indeed, the first to point this out was a Mr. Cowles, who created the Cowles Commission sometime around the Great Depression.The Cowles Commission was devoted to looking at the nature of stock market returns among managed (then held by various banks, insurance companies and brokerages) funds versus the broader market.The work of the Cowles Commission was later absorbed by Standard and Poor's, and more than a few big name academics at the University of Chicago (Fama and Markowitz just to name a couple) got their start doing work with the Cowles Commission.It comes as no surprise to me, or for that matter, to market insiders, that most managed index funds fail to beat a benchmark index (though over the years, the proportion that has failed to do so has steadily fallen).

Second, the indexing approach does have merits, but in my mind, it works best for bonds, simply because one requires a lot of cash (usually 100K) to get a piece of any one particular issue, otherwise trading costs are prohibitive, and good diversification at those amounts would run into the millions.Moreover, returns on bonds do have an upper bound, and when the bonds come due, the principal is all you get.This is especially true for corporate bonds, but less so for Treasuries.Fees (expenses and loads), combined with taxes and inflation do the most damage to bond funds, because the return is limited, so using a bond index to limit one's costs seems like an intelligent move to me, so long as one pays close attention to the credit rating of the issue and in the case of the bond index fund, the average number of years to maturity.

Third, the stock index approach works best for those who have better things to do than pick stocks, and look upon the activity as being about as fun as having a root canal without an anesthetic.While any individual electing to take the index approach will not ever get the highest possible return, those returns, in most periods will likely be better than those obtained by any managed fund.

You need a relatively strong background in mathematics, especially in the areas of statistics and elementary calculus, to understand this book.Mr. Bogle argues for low cost (and preferably indexed) funds in any style category or asset class and elaborates on their inherent superiority; after all, he operates a low cost fund, so he should know, right?Basically, what you the investor need to know boils down to this:if you intend to 'play' the market, you might as well be the market, or at least the closest facsimile of it you can be.However, as Mr. Buffett has pointed out, by becoming the market, you get the good, as well as the bad, and if you can stand mediocrity, more power to you.Given that mediocrity tends to outperform sophisticated stockpicking over time, it may not be that bad, after all.

This book should be retitled as "The Case for the Index Fund".

Repetitive, Common Knowledge
He just sells one point in the book:

"Buy low cost Index funds."

And he supports it with examples and historical analysis. But completely disregards the fact that actively managed funds can beat the index in bull market and good managers have a track record on not nose diving in bear market.So low cost and diversification should be a high priority, good management and strategy are also equally important. You don't have to always follow the index, people do outperform it in long term with low cost. The catch is P/E ratio. ... Read more

Isbn: 0471392286
Subjects:  1. Business & Economics    2. Business / Economics / Finance    3. Business/Economics    4. Finance    5. Investments    6. Investments & Securities - General    7. Investments & Securities - Mutual Funds    8. Mutual funds    9. Business & Economics / Finance    10. Investment & securities   

The Go-Go Years : The Drama and Crashing Finale of Wall Street's Bullish 60s (Wiley Investment Classic)
by JohnBrooks
Average Customer Review:
Paperback (10 September, 1999)
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Reviews (6)

It Begins And Ends With A Texan
This book begins and ends with a rather peculiar hero from Texas, H. Ross Perot, who during the smashing sixties built up a phenomenal growth company, watched a phenomenal sum of equity wealth evaporate before his eyes in a single day, and later played the role of the white knight saving a rather fickle (and foolish) damsel in distress- Wall Street's Patrician securities industry.All in all, the book took a very high-brow snapshot of one brief but heady period of financial history orchestrated and overseen by very low-brow types masquerading as new wealth Gatsbys, high performance quants, hot-hand gunslingers, and (anything but) 'Proper' Bostonian businessmen.It is an odd mix relayed to us in the droll but refined and witty style of the late Mr. Brooks.

They say that history repeats itself, and this book is Exhibit A.All of the ills of today can be found within its pages chronicling yesterday- corporate hucksters and frauds, technology stock enthusiasts, drugs (hard and soft, legal and illegal) on The Street, hot-today-but-gone-tomorrow fund pros, and a whole host of other ills.Change the names, dates and places and one would think that one is reading today's news.

My favorite part of the book is the old refrain that all whistleblowers inevitably hear, and occurs on page 45 of the second chapter entitled 'Fair Exchange' (again, now as well as then, anything but).The regulator asks our erstwhile whistleblowing hero, "Now what do you know about what's going on upstairs?"Thoughts of Enron and MCI, Tyco and the FBI spring readily to mind...

While Peter Lynch lures the gullible investor with the notion that the novice has an advantage over the professional, Mr. Brooks, after recalling 355 pages of bawdy and rapacious greed and gambling during the 1960s Go-Go years, admonishes the reader with the following words of caution:

"Thus, in the nature of things, the amateur investor remains and probably will remain at a certain disadvantage in relation to the professional.Perhaps his best protection is knowledge of that fact itself."

Plus ca change, as the French say, or, the more things change the more they stay the same.There is really nothing new in the 'creative accounting' adopted, the wholesale manipulation of naive investors, stock price manipulation, and mind-boggling messes in both corporate boardrooms and so-called 'securities boutiques'.The financial dance always begins and ends in the same way, with the same old characters screaming for blood, the same old participants battered, bruised and bloodied, and the same tired old refrains for reform.And yet the dance begins anew, the past a dim and bittersweet after-taste.

Though somewhat difficult to read because of the author's high brow presentation style, it nonetheless deserves to be read for both enjoyment and enlightenment.All of the usual suspects and standard props of financial foolishness throughout the ages will be found here, but the characters who peppered this particular 'New Era' in US financial and economic history are beyond a doubt unique.Who would have thought that reading about yesterday could be so informative about today?

Caveat emptor, people.Buyer beware.

Colorful Tales of Wall Street Glory and Shame
"The Go-Go Years" is a largely a collection of New Yorker magazine articles (and some pieces written especially for the book) by John Brooks, who in it covers a crucial period in the history of Wall Street, the 1960s, which includes the rise of conglomerates, mutual funds, and hedge funds, i.e. players at the heart of our economic situation today. Reading this book is instructive for that alone.

But the book is far more than a prescient account of today's market forces. It's a vivid rogues gallery of people who rode the tides of fortune, had their days at the crest of their profession, and then fell back. Some, like stockpicker extraordinaire Gerald Tsai, the first Asian to rise to NYSE prominence, were undone by fortune and circumstance. Other less savory characters had only themselves to blame.

There's an early look at Ross Perot, described vividly at the book's outset as losing a half-billion in a single day (April 22, 1970) and more or less shrugging it off. Perot's priorities were solid and he knew what he was about. Not so Eddie Gilbert, "The Last Gatsby" as Brooks calls him, who parlays small victories into outrageous defeats, dragging along a coterie of privileged friends into more and more nefarious investment schemes. Brooks sees Gilbert's get-rich-quick attitude as too emblematic of Wall Street in the 1960s, and his narrative never tires of pointing these out.

Brooks' elegant prose has a way of leaping out at you without disrupting the narrative flow. About the trend for all investment strategy to come unglued: "The dumb money could take bitter comfort in the company it had among the smartest of the smart money - or former money." On Tsai: "...so swift and nimble in getting into and out of specific stocks that his relations with them, far from resembling a marriage or even a companionate marriage, were more often like that of a roué with a chorus line." On the numerous bailouts undertaken by the Street as the '60s went sour: "Save the broker in order to serve the customer: it was Wall Street's version of the trickle-down theory."

Brooks's writing feels timeless. His is a lapidary style of almost accidental eloquence, blending facts in a seamless way as he tells his tale. It's like Roger Angell's baseball writings for the same magazine - I kept thinking about Angell's great essays in "The Summer Game," which focuses on roughly the same period as "The Go-Go Years," albeit on a different sport.

While Brooks's disapproval with Wall Street in the 1960s is obvious, and his genteel liberal disdain for a status quo that allows the market to manage itself shows up now and again, he never loses his focus on the people, and allows them to breathe in his narrative. He doesn't quote from them much, but he obviously spoke to many of the principals at length and weaves their insights into the story. As much as the then-nascent trend toward conglomeratization bothers him, he allows himself to show some sympathy for one of its more outrageous practitioners, Saul Steinberg, who in one of the best chapters finds himself thwarted by the bluebloods while attempting to acquire Chemical Bank. "I always knew there was an Establishment - I just used to think I was a part of it," Steinberg says.

It's not a connect-the-dots style history of Wall Street in the 1960s. It's too episodic for that. But if you are studying the facts and figures of the Go-Go Years and want a deeper look, or simply enjoy the human drama all-too-often overlooked in American business journalism, "The Go-Go Years" is a book that has only appreciated in value over time.

Outstanding Review of the 1960's Boom and Bust
Wiley Investment Classics typically fall into two categories, fascinating troves of banking wisdom that are well-written and insightful, and painful diatribes that while full of good intention are best put on the shelf for display."The Go-Go Years" is definitely the former - this is an incredibly well written book about what has really become one of the forgotten times in American financial history.While the booom of the 1920's and resulting crash, as well as the excess of the 1980's are frequent subjects of many financial authors, Brooks has picked a relatively infrequently discussed portion of our financial history, the booming 1960's and the resulting crash of the early 1970's.

There are many outstanding sections of the book; the introduction to Ross Perot in the first chapter, the history of Gerald Tsai and Fidelity, the rise and fall of the conglomerates, the description of the back-office and its staff, and finally the description of Wall Street that begins Chapter 5, which is without question the best description of the area ever written.These few pages (104 - 111) are simply an outstanding piece of prose.

There are just too many good things about this book to fit into a 1,000 word review.Too many of the lessons from only 40 years ago are maddeningly similar to the lessons many dot-com and IPO investors are learning now, and the structure and actions of many Wall Street establishments are all too easily explained with this simple peace of previously "missing" history.If you are up to date on the current view of the 1929 collapse, and the bull market of the 1980's, then this is the book that goes a long way towards filling out the major events that shaped the markets in the interim.

Go read this book.

Favorite Excerpts:

"Goaded by stock underwriters eager for commissions or a piece of the action owners of family businesses from coast to coast - laundry chains, soap-dish manfacturers, anything - would sell stock in their enterprises on the strength of little but bad news and big promises." - Brooks (page 28)

"Some accused him of being a habitual liar; they forgave him because he seemed geniunely to believe his lies, especially those about himself and his past." - Brooks (page 63)

"In the nineteen twenties, Wall Street's last great era before the present one, it was a kind of super university as well as a marketplace." - Brooks (page 105)

"'We were all sheep,' one of them would admit, sheepishly, years later." - Brooks (page 120)

"A smooth operator with a streak of the gambler; a company more interested in attracting investors than in making real profits; the resort to tricky accounting; the eager complicity of long-established, supposedly conservative investing institutions; the desperation plunge in a gambling casino at the last minute; the need for massive central-banking action to localize the disaster; and finally, reform measures instituted too late - we will see all of these elements reproduced with uncanny faithfulness in United States financial scandals and mishaps later in the nineteen sixties." (page 125 - 126)

"Economics have never been my strongpoint" - Salinger (page 273) ... Read more

Isbn: 0471357545
Sales Rank: 122966
Subjects:  1. Business & Economics    2. Business / Economics / Finance    3. Business/Economics    4. Finance    5. Investments    6. Investments & Securities - General    7. United States    8. Business & Economics / Investments & Securities    9. Economic history    10. Investment & securities    11. USA    12. c 1960 to c 1970    13. c 1970 to c 1980   

Money: Whence It Came, Where It Went
by John Kenneth Galbraith
Average Customer Review:
Hardcover (01 December, 2001)
list price: $33.00 -- our price: $21.78
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Reviews (3)

A rare book
More and more books on economics are just based on political opinions so it is refreshing to read economics based on historical facts. Of course facts are interpreted and Kenneth Galbraith, as a leftist, is not unbiased, nevertheless he tries to be honest and didn't hesitate to be critics towards the US Central Bank. He qualified as Burton effect the veneration of scholarships towards this institution which is unjustifiable for him. For example, he is maybe the only one who reveals that the Central Bank has refused to save the 1929 crash but a state bank unknown from the public. The FED is in private hands although created with public agreement by Congress.

Money, come back!
This is JKG holding forth on that most perennially fascinating of topics. The subtitle ("Whence it Came, Where it Went") may bear a relation to the question on everybody's mind during the early and mid-seventies: why is our money behaving so badly?

"In the twenty years before the founding of the [Federal Reserve] System there were 1748 bank suspensions; in the twenty years after it ended the anarchy of unstable private banking, there were 15,502."(p144)

"...the Democrats...could authorize it [the central bank] without being suspected of evil."(p239)

"...the [German] inflation of 1923, with its euthanasia of the "rentier" class...had almost certainly a far greater [than the 1945 inflation] effect on relative wealth....The loss of assets makes a deep impression on an impressionable class of people.The loss of jobs is accepted more philosophically."(p303/304)

"... the higher oil price [in 1973] was considered highly inflationary ... in fact, it was deflationary ... the revenues... accumulated in unspent balances.Thus they represented a withdrawal from current purchasing power..."(p363) (The rest of the paragraph is relevant.The basic point is that the oil producers took money out of circulation, since they made it far faster than they could spend it.)"

And the piece de resistence:"To see economic policy as a problem of choice between rival ideologies is the greatest error of our time."(p368)

MONEY

OK, do I have your attention? Well, this book will not demystify money - like love it is resistant to that, but like love we can't let it go. And its progress through our culture is a fascination, attended by hopes, frauds, inventions, and, not least, desperate invocations.

Galbraith is a writer of enormous wit, intelligence, learning, and sympathy. But he is, of course, a liberal, so to many anything he says will be suspected as not arising out of a proper deference to the efficacy of pure market forces. Just as daunting, his strong, ironical style requires a neophyte a few pages to adjust to syntax shock. Once comfortable with the language, though, one can sit back and enjoy the colorful cavalcade of rogues and fools, madmen and prophets, as they invent and wreck institutions, impoverish whole nations, and pay for wars with worthless paper.

A Harvard economist, a former ambassador, and a leading Keynesian in the Roosevelt administration, John Kenneth Galbraith is at home in the twentieth century's public life as few others are, and has a firm intellectual grasp of his sometimes slippery subject. This book is a witty, but intellectually serious, history of a concept absolutely central to what we are pleased to call modern life, and how it has grown and changed from exchanging pieces of something shiny to now encompass powerful banks, puzzling foreign exchange markets, and tottering Ponzi schemes. Vast frauds separated by centuries appeal to the same base motives and use the same crude stratagems to separate us from our bit of money in hopes we'll get more. With money, like love, it seems we will never learn. But there is much enjoyment in the lessons, anyway.

It's about time banks were explained Foolishly
Galbraith explains banks & money as wittily as the Motley Fool demystifies stocks & Wall Street. Too bad Galbraith was way ahead of his time. Too bad it is out-of-print. Please bring "Money..."back ASAP. ... Read more

Isbn: 0735100705
Sales Rank: 205720
Subjects:  1. Business & Economics    2. Business/Economics    3. Economic history    4. History    5. Money    6. Money & Monetary Policy   

A Random Walk Down Wall Street, Completely Revised and Updated Edition
by Burton G. Malkiel
Average Customer Review:
Hardcover (01 April, 2003)
list price: $29.95 -- our price: $19.77
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Reviews (30)

Sound analysis for most of us
I've just finished reading all the other reviews of this book; taken together, they present a fair assessment. I'll only add two points:

1) The following has been mentioned, but probably not enough. Malkiel, at most, presents a semi-strong case for efficiency. The core of his argument is that while inefficiencies exist, they are short-lived and of a nature such that only professionals can reliably exploit them. Therefore, for all practical purposes, the average non-professional should act as if the market is efficient. This, in essence, is his case for indexing.

2) The most vituperative reviews are written by technical analysts - confirm for yourself below. I'll say only this: it may not be coincidence that these particular reviewers are uniquely incapable of spelling correctly and occasionally edge toward incoherence. Draw your own conclusions - I'll say no more.

All-around sound advice
Mr. Malkiel provides an outstanding all-in-one stock book for the educated but non-technical investor.He includes overviews of the financial, economic and psychological foundations for stock markets, as well as entertaining summaries of the history of stock markets in the world and in the U.S.Mr. Malkiel takes a sensible, long-term approach to investing with stocks and bonds, at the same time pouring cold water on various market theories.He approvingly quotes the phrase "the stock market is like a casino in which the odds are rigged in favor of the player" which is probably the best summing-up I've ever encountered when thinking about stocks.Some of his more salient and direct advice includes these gems:

*"A simple 'buy-and-hold' strategy typically makes as much or more money than technical strategies" (p 151).

*"No technical scheme whatever could work for any length of time and ...even if they did work, the schemes would be bound to destroy themselves" (p 167).

*Regularities in stock market movements are arbitraged away over time; whoever spots such a regularity would not tell everyone else, but instead would keep it to him- or herself to get rich (p 168).

*Many analysts are incompetent or are compromised by institutional conflicts of interest (pp 181, 183).

*"The evidence from several studies is remarkably uniform.Investors have done no better with the average mutual fund than they could have done by purchasing and holding an unmanaged broad stock index" (p 187).

*Don't ignore small cap companies: "smaller firms tend to have higher rates of return" (p 239).

*Investors should look for stocks with relatively low P/E ratios and low values relative to their book values (pp 239, 261).

*The only market-timing strategy that makes any empirical sense is to purchase stocks that have had relatively poor recent performance (p 257).

*The stock market goes through manias but is fundamentally logical (p 258).

*Your tolerance for risk should be judged by how well you can sleep at night with your portfolio (p 280).

*Zero coupon bonds can be a good investment if the tax aspects are adequately addressed (p 299).

*"I recommend low-expense bond index funds" (p 300).

*"I now believe that if an investor is to buy one U.S. index fund, the best general U.S. index to emulate is the broader Wilshire 5,000-Stock Index, not the S&P 500" (p 360).

Excellent Primer for Young Investors
The message the author makes here is IMPORTANT to young investors.Most investors are putting their money in mutual funds.Why pay high fees for marginal performance when you can pay small fees to match the market with an index fund?The point makes excellent sense for young investors.
The author makes a wonderful case and some very good points.The end of the book includes recommendations that you can use to build your portfolio.I truly enjoyed and used the information in this book. ... Read more

Isbn: 0393057828
Sales Rank: 143638
Subjects:  1. Business & Economics    2. Business / Economics / Finance    3. Business/Economics    4. General    5. Investment Finance    6. Investments    7. Investments & Securities - General    8. Personal Finance - Investing    9. Random walks (Mathematics)    10. Stocks    11. Investment & securities    12. Personal finance   

The Intelligent Investor: The Definitive Book On Value Investing, Revised Edition
by Benjamin Graham Jason Zweig
Average Customer Review:
Paperback (08 July, 2003)
list price: $19.95 -- our price: $13.57
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Editorial Review

Among the library of investment books promising no-fail strategies for riches, Benjamin Graham's classic, The Intelligent Investor, offers no guarantees or gimmicks but overflows with the wisdom at the core of all good portfolio management.

The hallmark of Graham's philosophy is not profit maximization but loss minimization. In this respect, The Intelligent Investor is a book for true investors, not speculators or day traders. He provides, "in a form suitable for the laymen, guidance in adoption and execution of an investment policy" (1). This policy is inherently for the longer term and requires a commitment of effort. Where the speculator follows market trends, the investor uses discipline, research, and his analytical ability to make unpopular but sound investments in bargains relative to current asset value. Graham coaches the investor to develop a rational plan for buying stocks and bonds, and he argues that this plan must be a bulwark against emotional behavior that will always be tempting during abrupt bull and bear markets.

Since it was first published in 1949, Graham's investment guide has sold over a million copies and has been praised by such luminaries as Warren E. Buffet as "the best book on investing every written." These accolades are well deserved. In its new form--with commentary on each chapter and extensive footnotes prepared by senior Money editor, Jason Zweig--the classic is now updated in light of changes in investment vehicles and market activities since 1972. What remains is a better book. Graham's sage advice, analytical guides, and cautionary tales are still valid for the contemporary investor, and Zweig's commentaries demonstrate the relevance of Graham's principles in light of 1990s and early twenty-first century market trends. --Patrick O'Kelley ... Read more

Reviews (34)

I liked Zweig
Some of the other reviewers have noted how annoying Zweig was, and that he ruined the book for them.

I disagree.Zweig acts as a cheerleader for Graham, and gives us recent examples to support Grahams ideas.This is important, because without this, it would be easy to dismiss Graham by saying "he died 30 years ago, surely I can find a more relevant book".Towards the end, I found myself skipping the Graham section and diving right in Zweig.

My recommendation: go look at a bookstore, flip to Zweig's parts (easy to find, since it's always in a different font than Graham's parts) and see if you find his writing style annoying.If so, get the Graham only hardcover version.Otherwise, you're basically getting two good books for the price of one.

Extremely useful
This book really changed my way of looking at stocks. Using the principles that I learned about value investing I ended up with a "25" ranking in marketocracy simulations, re-entered the market, stopped losing money in real life and actually made some money in the year and a half since I read it. I still go to it frequently and use it as an ideological reference to remain focused. The comments by Mr. Zweig are excellent and worth reading all by themselves. If this is the only book you ever read about investing in stocks you could do very well for yourself. It's ideas on defensive investing are first class. Enjoy.

Solid Investment Book
Not the quickest read or "investment for dummies" simplicity, but if you take the time to read through anyone can understand the basic value concepts.Tried and true, this is a classic and a must have for all value investors. ... Read more

Isbn: 0060555661
Subjects:  1. Business & Economics    2. Business / Economics / Finance    3. Business/Economics    4. Finance    5. Investment Finance    6. Investments    7. Personal Finance    8. Personal Finance - Investing    9. Securities    10. Business & Economics / Investments & Securities   

Virtual Money: Understanding the Power and Risks of Money's High-Speed Journey into Electronic Space
by Elinor Harris Solomon
Average Customer Review:
Hardcover (01 September, 1997)
list price: $35.00 -- our price: $35.00
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Editorial Review

For most of us, the term virtual money means financial transactions into the Internet. But virtual money has been around for decades, since the first electronic-funds transfer. Even the mundane automatic teller machine runs on virtual money. Yet, as Solomon points out, until virtual money hit the Internet, most of us considered the topic deathly dull. Now that it's grabbed the headlines, she takes the opportunity to show us how it's been truly fascinating all along.

The book begins with a brief but firm grounding in how money developed, from the days of barter, through gold and currency, to plastic and electrons. She goes on to paint today's monetary world as a system both intricate in its complexity and Zen-like in its sensitivity, where corrections must be made with a light touch and where attempts to control it result in loss of control. She also looks at the intriguing cases that crop up as each new innovation gives the unscrupulous new ways to cheat the system and she examines how clever safeguards are eventually put into place.

Then, Solomon goes on to explore the still-developing future of virtual money. Here, we see not only the conveniences and benefits that will result but also the mechanics behind them, as intricate and mesmerizing as watchworks. Yet Solomon never overloads us with so much detail that tedium sets in. Instead, she shows us the pieces coming together like some organic, self-organizing puzzle and lets us both enjoy and anticipate its emerging form. ... Read more

Reviews (3)

OK, it's a bit academic, but I found it helpful.
Speaking as a layman who had practically no knowledge of e-commerce I found the book to be a good introduction to the world of electronic money and of what the future of money will probably be (Personally, I don't like what I see). Along with the history of money, and the development of the Internet, the book contains a lot of detail on the nuts and bolts of the whole complex network; and I don't know how interesting that is to the average person. I read this book not for pleasure, but as research for a paper I am now composing on a related issue. Regarding the topic of virtual money, the author seems to discuss the problems and risks surrounding it rather than give concrete solutions. But neither the publisher nor the author described the work as an "answer book". From what I can see, the write up on the book's dust jacket is an accurate summary of what the book contains.

Vague babble
This was a real disappointment.The book is almost unreadable.Terms are defined and then not used properly or are jumbled together--you never can tell what she's talking about.Too many vague generalities.Sentencesoften make no sense.This book desperately needs an editor.I don't thinkthe author has anything interesting to say about "virtual money,"but it's hard to tell. A confusing jumble of babble.Click on to the nextbook.

Disappointing
This book had a lot of promise.. I was very interested in learning more about the world of Electronic Commerce and how local and global economies are being impacted. This book made a few interesting points, but for themost part was tedious to read, and never got into enough detail on any onesubject to be interesting.

I'm still looking for another e-commerceroadmap... ... Read more

Isbn: 0195097475
Subjects:  1. Banks & Banking    2. Banks and banking    3. Business & Economics    4. Business / Economics / Finance    5. Business/Economics    6. Capital movements    7. Data processing    8. E-Commerce - Online Banking    9. Electronic Funds Transfer Systems    10. Electronic funds transfers    11. Financial Markets    12. Money & Monetary Policy    13. Applications of Computing    14. Monetary economics    15. Personal finance    16. USA   

Credit Card Nation: The Consequences of America's Addiction to Credit
by Robert D. Manning
Average Customer Review:
Paperback (24 December, 2001)
list price: $18.00 -- our price: $12.24
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Editorial Review

No interest for one year! No annual fee! No minimum payments for six months! And, if you want to believe Robert Manning, there's no way out of the debt that we find ourselves in, as individuals and as a country. Credit Card Nation combines debt of every kind--consumer, corporate, and governmental--and creates a vast landscape of profit-spewing lenders and struggling debtors present at every level of economics. Appalling statistics set readers off on a depressing journey: the years between 1980 and 1994 saw annual consumer charges skyrocket from $170 billion to $581 billion, with the average household carrying over $4,000 in revolving debt. Accompanied by the erasure of nearly $100 billion in corporate debt and tremendous tax cuts for ever-merging conglomerates, the end of the 20th century seems to be just the beginning of an overwhelming cycle. While Manning's book is extensively researched, it is also extremely readable. Individual stories of junk bondsmen, corporate raiders, and middle-class consumers are threaded throughout the pages of charts and statistics, with a few surprises. While most media would have us believe that students who rack up charge accounts are totally irresponsible, the reality is that some of these students are helping their families with cash-advance loans to make mortgage or insurance payments. Emphasis is also placed on the tremendous advertising budgets of credit card companies: Manning comments on "how quickly the cultural norms have changed in the Credit Card Nation," we see a poster insisting "money can't buy you love, but a credit card can get you started." This is not a self-help book, and Manning has no 12-step program for debtors at any level. Credit Card Nation simply tells it as it is. --Jill Lightner ... Read more

Reviews (20)

Revealing.This should be a wake up call to Congress
Dr. Manning is pointing out a societal problem that is growing like a cancer.Most of us are products of what we have learned from the media advertising about credit cards, and even the most educated believe the lies the industry propogates.Even members of congress are being duped.What isn't well known is the purposeful targeting of people who are headed for financial trouble, by credit card companies.In this book, and in a number of others, it is well documented that credit card companies and the banks behind them are seeking to profit from people on the edge financially by issuing them credit cards and coaxing them into financial ruin with false promises.They are squeezing the middle class families out of every dollar they can muster, through illegal practices such as issuing credit cards to minors.While other practices are extremely immoral and unethical, but legal, in their contract formation when issuing credit card agreements.

They are even now on the brink of skyrocketing profits from the newly passed Bankruptcy Bill of 2005, that will leave many needy middle class families without a fresh start.This will most likely increase homeliness, demand for welfare from the state, and utlimately a need for even higher taxes.Our leaders in Washington are ignoring basic economics, which is illustrated in Mannings U.S. Triangle of Debt.We have had a generation that fell victim to the illusion of wealth through the use of debt (or leverage) and are leaving the next generation with the bill.Our government, corporate LBOs, and consumers have all been duped by the banking industry.We haven't read the contracts we have signed, and now we are about to learn what is in them.Are you a trailing baby boomer and post baby boomer?Get ready to pay the bill.It is coming due.

This book looks at this problem from a sociological perspective, and though there may be some evidence that exists to prove it wrong, there is far more evidence proving that it is right on the money (no pun intended).From 1980 through the Internet crash in 2001, the macroeconomic trends simply cannot be disputed.We are all stretched too thin.Time will prove this book true.

not worth reading
The basic thesis of this book, in case you need to be told, is that evil credit card companies are fleecing America and getting away with it, and that those "revolvers" who carry interest from month to month on their credit cards are, well, idiots.

Alas, after having waded through the whole of the book, I would not recommend it to others, even those who are passionate about the issue.While the material is well-written and well-researched, the author seems incapable of making his subject matter come alive, or writing efficiently or effectively.The whole performance is more or less forgettable.

Sure, it's an important issue, but after the first twenty pages or so, you pretty much "get it," and all the anecdotes and graphs after that are essentially superfluous.

Manning, furthermore, certainly has a bone to pick.And while agree with pretty much his entire position, I couldn't help feeling this makes him less than trustworthy.

To wit:subscribing, as he obviously does, to the Puritan notions of saving, paying-as-you-go, the shame of bankruptcy, etc., he reveals nothing but disdain for the outrageous way the world seems to work these days.In the end I felt this book was much more effective as a lament for the lost virtue of prudence rather than a sober analysis of "the consequences of America's addiction to credit."

Nearly all of his "case histories," for example, are negative.So-and-so was ruined by his improvident use of plastic.So-and-so recklessly lived for the moment.

But what Manning de-emphasizes -- or even ignores -- are the many cases in which credit cards frequently allow members of the underclass to travel, complete their education, change jobs, extricate themselves from some unforeseen difficulty, etc., and then pay dearly for it later, or perhaps even Chapter 10 it away.No, all of that stuff is shunted aside in favor of focusing on how disgraceful everybody's behavior is.

In summation:not as jam-packed with insights and interesting facts as I thought it would be.Further, what "facts" the book does have to offer, unfortunately, are so unremarkable and tendentious that they could probably be sketched out, at least in their general thrust, by one who has simply been apprised of the author's stance, without actually having read the book himself.

What Manning is saying
I think reviewers are overlooking the central theme of Manning's book, made up of two observations by which he reaches his conclusion.

First, he is telling us that our society has changed from the time when a person was known for his/her personal character, and Puritanical thrift was the rule to guide all. In times past, most people couldn't begin to afford to create an image or build their persona from non-essential purchases. Only minimal credit was available to Joe Average and that usually from a local merchant who sold essentials. As my dad (born 1898) used to tell me: never use credit except for a house and a car. He exploded with rage when credit cards began arriving unsolicited in the mail as he saw it as an extreme danger to society.

Now, people are known for their lifestyle. They present themselves as an image built through their possessions. Revolving credit has been slipped into the toolbox of the average citizen through the careful marketing of the credit providers as an aid, an essential one, for the non-wealthy to participate in the culture-wide activity of individual identity creation and the maintenance of "success".

Conclusion from the above: to participate in American culture, literally to be somebody (sad to say), you have to put up an image based on possessions. If you have money you do it effortlessly. If you don't have money, you do it with revolving credit. In other words, for those without money, credit is the foundation for being socialized into popular culture, in addition to being a lifesaver for status when a job is lost, or becomes part-time.

It is not simply a matter of the individual being foolish to choose to get into debt, as it was back in the old days of "a penny saved is a penny earned." Manning is NOT dismissing individual responsibility to keep one's head above water financially. He IS saying that self-creation through possessions is a social demand that has been fed heartily by the self-interested financial services companies, who are eager to see the "individual responsibility" model kept in the spotlight in order to keep attention away from what those companies are really doing: subsidizing one group of people by preying on the habits of another group. This process involves two groups who, in the eyes of a creditor, should not be differentiated. This is the outrage that Manning identifies.

To be specific, those who use credit for convenience get interest-free short term credit at the expense of those who pay dearly for the use of money from the same provider. Person A pays off his/her $2000 credit card balance in one month and has had that $2000 to use for free for any purpose, most likely something that could have been bought with cash. Someone else may need the $2000 for a rent payment, clothes and medicine. They borrow the same amount, for the same one month period, but since they don't pay it off they must pay a high interest rate. The less well off can use money foolishly, just as anyone can, but the point is: everyone should pay the same for the use of the same amount of money from the same provider for the same period of time. As it is, those least able to pay do so while others who could easily pay get free credit and convenience. The clear solution is: you borrow money for a period of time, you pay for it - nobody pays for anyone else.

Credit Card Nation is a great book and a historical reference for how we got into the situation we are today. ... Read more

Isbn: 0465043674
Subjects:  1. American    2. Business / Economics / Finance    3. Business/Economics    4. Consumer Behavior - General    5. Current Affairs    6. General    7. Personal Finance - General   

The Wall Street Journal Guide To Understanding Personal Finance
by Kenneth M. Morris Alan H. Siegel
Average Customer Review:
Paperback (29 November, 2000)
list price: $15.95
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Editorial Review

Kenneth M. Morris and Virginia B. Morris update this now classic handbook to the fundamental principles that govern personal financial management. The Wall Street Journal Guide to Understanding Personal Finance covers the basics of banking, credit, home finance, financial planning, investing, and taxes in a concise and unambiguous manner. The details--amplified by graphics and peripheral data that consistently make its points easier to understand--range from the pros and cons of different types of banking institutions and the various kinds of checking accounts they offer, to the methods available for handling credit-card billing errors and the steps to employ when deciding how large a mortgage one can afford. Obviously, a book of this nature cannot fully answer all questions that might arise in every area it addresses; this one, however, goes a long way toward providing the relevant information that most readers will need to make knowledgeable decisions on their own. --Howard Rothman ... Read more

Reviews (10)

Beginners Complete Book to Finance
This book is filled with illustrations and is great for beginners or for those who are more visual learners.I personally didn't find this book extremely helpful because I have a background in finance but the illustrations and information is helpful for tutoring and explaining some of the concepts.It is also a good review tool or handy reference guide when you have a quick question about finance matters.In addition the range of material covered is great.You won't find this much investment information in one place so concisely organized.

Limited introduction to finance...I expected more from WSJ
I've just graduated from college and wanted to learn how to not be poor anymore. I bought this book because I knew about Wall Street Journal's reputation for expertise and in-depth analysis of the economy etc. What I didn't expect was a book equivalent to a children's primer on personal finance. It's not bad, per se, it's just not what I expected from the Wall Street Journal.

The book covers a broad range of topics from paper money to mortgages to stocks and bonds. Unfortunately, the coverage is shallow, mostly giving definitions of what things are. The book consists of teen magazine-like layouts of pictures, graphs, and diagrams. Some of the information is helpful while some of it is interesting but trivial, and all of it is in colorful, bite-sized portions. While it's entertaining and easy-to-understand, it's also quite "fluff"-y at times.

It's a good introduction to personal finance for someone who doesn't know much about how money works beyond how to buy things. It may be ok for new high school or college grads, either as a reference or a first book on personal finance but it's not at the level for anyone who actually wants to start investing and already knows the basics. Ironically, it seems to be below the level of Wall Street Journal readers. I have since given my copy away. For someone who already knows the basics but wants a introduction to investing, I enjoyed "The First Book of Investing: The Absolute Beginner's Guide to Building Wealth Safely" by Samuel Case. It's the only other book on investing I've read (I bought it on sale on a whim), but it was clear and informative, albeit a little optimistic.

a great introduction, but that's all
this book is a great introduction to personal finance, including banking, loans, investing, taxes, and retirement planning. it covers all of the basics, provides a nice, clear description of the processes and the structures of documents, and a glossary of important terms.

however, it's just an introduction. the book doesn't spend more than a few pages on any subtopic (ie the structure of a paycheck, the basics of a tax form). for details you'll have to go elsewhere, so keep that in mind.

as such, i'd reccomend this book to someone who is just learning the basics of money and the world of personal finance. it's a big world, you don't need to start with all of the details, so this is a good place to start. but very quickly you'll find you need more information, and you'll outgrow this book. ... Read more

Isbn: 0743216962
Subjects:  1. Accounting - General    2. Business & Economics    3. Business / Economics / Finance    4. Finance, Personal    5. Personal Finance    6. Personal Finance - General    7. Business & Economics / General   

The Essays of Warren Buffett : Lessons for Corporate America
by Warren E. Buffett
Average Customer Review:
Paperback (11 April, 2001)
list price: $25.00 -- our price: $21.25
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Editorial Review

Buffett, the Bard of Omaha, is a genuine American folk hero, if folk heroes are allowed to build fortunes worth upward of $15 billion. He's great at homespun metaphor, but behind those catchy phrases is a reservoir of financial acumen that's generally considered the best of his generation. For example, in an essay on CEO stock options, he writes, "Negotiating with one's self seldom produces a barroom brawl." This is his way of saying that an executive who can give himself compensation totally disproportionate to his performance surely will. There are uncountable gems of financial wisdom to be harvested from these essays, taken from the annual reports he writes for Berkshire Hathaway, his holding company. Just to pick one more, here's a now-famous line about those he competes with when making stock-market investments: "What could be more advantageous in an intellectual contest--whether it be chess, bridge, or stock selection--than to have opponents who have been taught that thinking is a waste of energy?"

While Buffett has a policy of seldom commenting on stocks he owns--he feels public pronouncements will only lead to the public's expectation of more public pronouncements, and he likes to keep his cards close to his vest--he loves to discuss the principles behind his investments. These come primarily from Ben Graham, under whom Buffett studied at Columbia University and for whom he worked in the 1950s. First among them is the idea that price is what you pay and value is what you get--and if you're a smart investor, the first will always be less than the second. In that sense, the value of the lessons learned from Buffett's Essays could be far greater than the book's price. --Lou Schuler ... Read more

Reviews (48)

buffett's writings
The most famed investor of his time, Warren Buffett, has never written a book. Although there are dozens of books that are written about him, this is the only book in Buffett's own words. This collection of Buffett's writings on different topics come from his annual reports. It is true that you could go to the Berkshire Hathaway website and look at the annual reports yourself, but not everyone wants to flip through 15 annual reports. Moreover, this book is organized by topic and not by year, unlike the annual reports.

This is an invaluable for both investors and managers. I emphatically recommend this book to CFOs, investment bankers, financial analysts, and anyone else interested in corporate finance and business valuation.

For those people that wish to learn about Buffett's philosophy this is the book to read. Who better to learn about Buffett than from Buffett himself?

GREAT BOOK~! Graham+Fisher COMBINED~!!
This book contains the Investment philosophy of Benjamin Graham and Philip A Fisher combined. If I had known this earlier, I would not have bought the 'Intelligent Investor' and 'Common Stocks and Uncommon Profits'

Word of caution: if your looking to make quick BIG bucks in Wall Street this book is not for you.

A good investment
There is little doubt that Warren Buffett is one of the most successful business men of our time. The track record of Berkshire Hathaway speaks for it self, as does Warren Buffett. He has made a point out of speaking frankly and openly at the Annual Meetings for the shareholders and printing the yearly reports will give you all his thoughts throughout the years.

This book organises his thoughts very well into a number of key areas and thereby leads you through the Buffett Universe. It is a very intelligent and surprisingly unsofisticated one, build on a set of core values the corporate businesses should take a careful look at.

If you like investing yourself, this also gives you a few hints on what to focus on and what not to focus on.
The Oracle from Omaha is always entertaining and this book makes that very obvious and is well worth a read.

Be aware......it is not a normal business book, you may find yourself laughing from time to time.... ... Read more

Isbn: 0966446119
Subjects:  1. Business & Economics    2. Business & Economics / Accounting / General    3. Business & Economics / Consolidation & Merger    4. Business & Economics / Investments & Securities    5. Business / Economics / Finance    6. Business/Economics    7. Corporate Finance    8. Accounting    9. Consolidation and merger of corporations    10. Corporate governance    11. Corporations    12. Finance    13. Investments    14. Stocks    15. United States   

Extraordinary Popular Delusions & the Madness of Crowds
by ANDREW TOBIAS CHARLES MACKAY
Average Customer Review:
Paperback (25 July, 1995)
list price: $14.95 -- our price: $10.17
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Editorial Review

Why do otherwise intelligent individuals form seething masses of idiocy when they engage in collective action? Why do financially sensible people jump lemming-like into hare-brained speculative frenzies--only to jump broker-like out of windows when their fantasies dissolve? We may think that the Great Crash of 1929, junk bonds of the '80s, and over-valued high-tech stocks of the '90s are peculiarly 20th century aberrations, but Mackay's classic--first published in 1841--shows that the madness and confusion of crowds knows no limits, and has no temporal bounds. These are extraordinarily illuminating,and, unfortunately, entertaining tales of chicanery, greed and naivete. Essential reading for any student of human nature or the transmission of ideas.

In fact, cases such as Tulipomania in 1624--when Tulip bulbs traded at a higher price than gold--suggest the existence of what I would dub "Mackay's Law of Mass Action:" when it comes to the effect of social behavior on the intelligence of individuals, 1+1 is often less than 2, and sometimes considerably less than 0. ... Read more

Reviews (41)

must read for all investors.
here's a book thats entertaining as well as informative. if you had read this book before the stock market crash of 2000, you would have realized that people have been exhibiting this sort of frenzied behavior for centuries.

Having trouble sleeping?
This is a great sleep aid.Too long, and he uses too many complicated words when simple ones would have worked just as well.I suggest skimming through it instead of trying to read it cover to cover.It contains some interesting information about alchemy, haunted houses, the crusades and other things, but you have to wade through his verbage and unneccessary details to get to it.

bubble, bubble, toil and trouble
The thrust of this classic can be summed up in a single quote. The South Seas bubble of England took inspiration directly from John Law's Mississippi scheme in France, and though Law crashed and burned, the directors of Seven Seas fancied themselves smarter:

"Wise in their own conceit, they imagined they could avoid his faults, carry on their schemes for ever, and stretch the cord of credit to its extremest tension, without causing it to snap asunder."

And so goes most every bubble to this day, as bankers, politicians and the investing public continue to fancy themselves smarter than their kind of yesteryear. Mackay's revered tome is as much an endorsement of Austrian Economics as it is a documentation of mob psychology. The boom and bust cycle is fueled by easy credit, let loose in hopes of keeping the party going. As the velocity of money increases, ever more disjointed arguments are trotted out to justify ever higher valuations. The frenzy intensifies to a point of unsustainability, the true believers falter, and then it all comes crashing back to earth again.

Mackay also touches on the nature of bubbles as a wealth transfer mechanism from the many to the few. As in all bubbles, a handful of individuals walk away with dubious fortunes intact, leaving the scene (and often the country) before the tide turns. Simple observation shows why the public must always lose: if a bubble is based on credit and speculation rather than real productivity and real gains, the excess valuations are not supported by any sustainable means, and the temporary wealth effect is actually just a crowd of people sending inflated sums back and forth. Like musical chairs, the only way to win this game is to stop playing before everyone else does.

There is another amusing aspect to the book: the attempt of some academics to prove Mackay's bubbles justified, to say that fundamentals supported the valuations. This incredible stretch seems more herculean than attempts to maintain respectability for the flat earth society. Whether or not a tulip bulb's DNA is sufficiently rare, regardless of the South Sea company's genuine trade prospects, only an ivory tower academic could be so willfully obtuse as to dismiss the sheer frenzy of the times. During the South Seas bubble -which touched off a number of lesser speculative schemes- a small fortune was collected (and spirited from the country) on the strength of the following prospectus: "a company for carrying on an undertaking of great advantage, but nobody to know what it is." Does that ring a dot com bell or what?

It's easy to look back and think, "How could those people be so stupid? Surely we couldn't be that stupid today?" But stupidity is not necessary for the inflating of a bubble. All you need is a positive situation with compelling fundamentals (and even the fundamentals are optional, if you have conditions that create an illusion of their existence). If the fundamentals justify rational valuation R, then the bubble inflates as multiples are notched up to R x (HC / P), where H = hype, C = credit flows and P = prudence. As greed kicks in, a good story morphs into an amazingly incredible story, rationalizations abound, and the hand is inevitably overplayed. Easy credit fuels the fire as investors play ring around the rosie. Eventually they all fall down.

Mackay's bubbles will always be with us; the necessary conditions for their forming are rooted in the human condition. New innovations and new growth stories -biotech, the rise of asia, demographic shifts etc- will change the world in the long run while inspiring cyclical frenzy in the short run. The willingness of bankers, politicians and wall streeters to provide easy money is perhaps at a high point in history, and the public, as always, shows a remarkable lack of restraint with no sign of wising up. Game on. ... Read more

Isbn: 051788433X
Subjects:  1. Delusions    2. Early works to 1900    3. Impostors and imposture    4. Occultism    5. Popular Culture - General    6. Psychology    7. Social History    8. Social Psychology    9. Sociology    10. Swindlers and swindling    11. History / General   

Kiplingers Personal Finance
Average Customer Review:
Magazine
list price: $42.00 -- our price: $14.97
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Reviews (6)

The Best Mass Market Personal Finance Magazine
I have subscribed to "Kiplinger's" for a number of years now, and will continue to do so into the foreseeable future. The magazine is inexpensive, timely, and authoritative, and conveys complex financial concepts in easily comprehensible terms. The magazine is very in favor of long term, high quality stock market investing, and on a monthly basis covers something relevant to current investment issues in the stock market. It also covers important information on taxes, retirement, paying for tuition, mortgages, and making good car buying (or leasing) decisions.

The magazine is a great source of news as it is related to your financial life in ways that are sometimes obvious, and sometimes less so. For instance they have articles on annuities, which you would expect, but also on drug costs, which you might not. They also have extremely useful mutual fund performance charts in every issue, which I find to be among the best features in the magazine. With the passage of different tax laws, "Kiplinger's" writes on the practical implications of the Federal tax code changes as well as regularly looking at state tax issues.

There are many personal financial magazines covering many different areas available today. If you want only one that will give you the overall most valuable information per page, "Kiplinger's" would be tough to beat.

Balanced? Decent market advice, but...
We used to subscribe to Kiplingers Personal Finance.We no longer do, because we couldn't help but notice a definite bias toward stock/bond purchasing over any other type of investing. This advice continued in the face of lower interest rates, the overpriced bull, then bear, market, and record low mortgage rates. Articles urging us to keep putting money into the market continued to appear regardless of market conditions. A quick look at the regular advertisers provides an explanation. In five years of subcribing, some of these same regular advertisers (whose results in the market were below par) never appeared in the "Poor or Worst" performers columns. For an overall, balanced view of things for the average investor, one of the personal finance magazines such as Money or Smart Money might be more helpful.

Not as boring as it sounds
My retirement plan sends me a magazine, which is so boring that I don't even bother to open it anymore; Kiplinger's isn't at all like that.The best part of Kiplinger's is that it describes how real people with average salaries, kids, and debts can invest for the future.There are also some great articles for parents about how to teach their kids to manage their money.Everything seems practical, but I've yet to try any of it.The magazine is broken into four sections: `Ahead' short articles about finance news and current event, `investing' about investing mostly stocks, `your money' about ways to invest your money though not as technical as the investing section and more diverse, and `spending' which is basically general interest about new fun technologies and other ways to spend all the money saved or made through investing. ... Read more

Asin: B00005N7R5
Sales Rank: 61
Subjects:  1. Business & Investing    2. Finance    3. Economic History And Conditions (region)    4. Business    5. Personal Finance   

Forbes
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Magazine
list price: $129.70 -- our price: $29.98
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Editorial Review

Many magazines publish lists, ranking best and worst and most improved, but Forbes alone can claim its readership is on the list. Each year, the magazine names the richest people and the biggest companies, and those very folks subscribe to this nervy and sly business pub. Forbes covers global business stories with insight, solid sourcing, and the sort of groupie zeal usually reserved for fanzines. No merger, new ad campaign, or lawsuit goes unnoticed and stories always focus on the movers who are shaking things up. Read Forbes to make sense of today's volatile market--or just for the sheer pleasure of reading good reporting. --Edith Sorenson ... Read more

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Watch out for the subscription department
The content of this magazine is equivalent in quality but has a different focus and style than the other major business publications.The editorial pages are best ignored unless you have views that coincide with the publisher.
The main problem with Forbes is the over-aggressive subscription department. Shortly after you subscribe, you'll receive weekly notices that your subscription will expire and you need to renew immediately. If you don't renew three months ahead of expiration, they will stop your subscription and you will miss some issues for which you paid but they will refuse to give you credit.

Excellent
I am young businesswoman and I have found this magazine informative, invaluable and inspiring. I recommended it for anyone who takes pleasure in reading about the triumphs of the most intelligent and resourceful men and women of our time.

Not as good as it used to be
i've been a Forbes reader for more than 20 years. They used to be the best; especially in exposing crooks.but in the last two or three years, they have started mixing political content into the news pages. Their columnists are interesting and have every right to express an opinion - and that's where i expect to find the opinions. but news articles are tending to look more like product placements, written to support a certain point of view instead of to tell both sides of a story impartially. It has becoome the moral equivalent of Fox for business. Fine if you want to read politics, but not where you go for the whole story. ... Read more

Asin: B00005N7QA
Subjects:  1. Business & Investing    2. Management    3. Commerce    4. Business   

Wall Street Journal Guide to Understanding Money and Investing (Wall Street Journal Guide to Understanding Money & Investing)
by Kenneth M. Morris
Average Customer Review:
Paperback (02 August, 1999)
list price: $15.95
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Editorial Review

This handy fact-filled book initiates you into the mysteries of the financial pages -- buying stocks, bonds, mutual funds, futures and options, spotting trends and evaluating companies. For those who are curious but intimidated by everyday financial jargon, this guide offers a literate, forthright and lively alternative. Recommended. ... Read more

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Investing for Dummies
I cant believe that I went through college without taking business or econ classes (except for political economy). This is a way for me to catch up.
I like this book because it is easy to read and understand. So easy even an elementary school kid could understand....ok maybe junior high.
Eventually I would hope to read the Intelligent Investor.

Excellent basics
This book is excellent for learning the basic concepts in investing and finance.If you would like to iniciate in this area, i recommend this book as an entry door with the basics.

The Best
As many have said in their reviews, this is a great starting point for those new to investing and financial markets.In fact, it's the best I've ever found and I've looked a lot.The simple, plain English explanations are what makes this book stand out.For the nuances and more detailed information regarding the topics in the book, look to a textbook from a college finance class.But for the person who knows very little, start with this. ... Read more

Isbn: 0684869020
Subjects:  1. Accounting - General    2. Bonds    3. Business & Economics    4. Business / Economics / Finance    5. Business/Economics    6. Investments & Securities - General    7. Mutual funds    8. Personal Finance    9. Personal Finance - General    10. Personal Finance - Investing    11. Securities    12. Stocks    13. United States    14. Business & Economics / Personal Finance / General   

Personal Finance for Dummies
by Eric Tyson
Average Customer Review:
Paperback (15 March, 2000)
list price: $21.99
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Editorial Review

Personal Finance for Dummies offers sound and practical advice for those who want to get control over their personal financial lives. Author Eric Tyson points out the most common mistakes that we all make in our approach to money and prescribes ways to save and invest for a secure future. Using worksheets, the book helps you to measure your own financial health by looking at factors such as how much debt you carry, your savings rate, as well as investment and insurance checkups. The book looks at how you should invest your retirement account, approach taxes, and provides a good overview on how to buy real estate. ... Read more

Reviews (71)

Basic (at times TOO basic) Advice
Well, for starters, this book lives up to its title.This really is very basic stuff.I mean, there is even a section on eating your vegetables, and other extremely basic life lessons.

Unfortunately, while there is a lot of information in the book, it doesn't go to into detail about the different financial plans and services you should get into.More time is spent on nutrition than on, say, the Roth IRA.And, the main problem with finance books is once the book is published, it becomes outdated.Things change every day.Finance magazines are more up to date

But one part of the book REALLY bothered me.

At one point, the author ar