5 comments about Against the Gods: The Remarkable Story of Risk.

1. Risk Management has always been interesting to me, and learning about the history of it through this book has increased my understanding tremendously. The book is written very well, and it reads very easily for the material being discussed. I was pleasantly surprised as I delved further and further into the book.



2. There are two things that I really liked about this book, and one thing that I didn't. The good things:
   
   1) The author's vast knowledge of the financial markets, from most of a century of experience.
   2) His extensive and entertaining history of risk analysis.
   
   The bad thing:
   
   His attempts to explain math concepts that he apparently doesn't understand very well.
   
   His history of risk analysis was a pleasure to read -- from Fibonacci and Cardano, to Markowitz and Sharpe. My favorite, was his coverage of Francis Galton, the man who measured everything.
   
   Above all, the greatest value in this book is that it's packed with the author's knowledge of finance, from 63 years of experience. He's 89 years old now, and appears to still be going strong.
   
   This book is well worth reading.
   
   My favorite quote from the book:
   Today's hero is often tomorrow's blockhead.(pg 297)



3. Against The Gods is a popular account of the history of financial risk management. The author takes us through a journey of discovery spanning almost a thousand years, from the introduction of Arabic numerals and the concept of zero, to the most sophisticated derivative instruments of modern finance. At each point in history when a great leap forward was made, the personalities involved are introduced, and the advances they are credited with are explained. All throughout, mankind's age-old struggle to measure and control uncertainty is seen to stumble time and again against the same, seemingly insurmountable problem: There is no guarantee that what happened in the past will continue to happen in the future.
   
   The book is highly recommended for anyone seeking to understand the origins of modern risk management and what the concept of risk really means.



4. My friends and colleagues have a hard time believing that one of the most entertaining books I have ever read is about risk management and probability. Yet, Peter Bernstein's masterpiece bestseller is just that. By tracing the development of risk through the ages, he sets the personalities of the key innovators against the background of the times, and shows the practicality of what they did and how it changed the way we look at the world.
   
   Most of my favorite mathematicians are profiled here, in witty and digestible bites of prose that often read more like a novel than a business book. The chapter titles themselves bear witness to the delightful style of the author: The Man with the Sprained Brain, The Measure of Our Ignorance and The Fantastic System of Side Bets are just a few examples. The segues between chapters and sections are also very well-done - creating a bit of suspense and making this quite a page-turner.
   
   With apologies for seeming trite, there is a high probability, at little risk, of reaping a great reward from the story told by Mr. Berstein.



5. I read this when it came out and thought it was pretty good. The first half, about how people figured out how probability worked, was really entertaining. The end, about how the geniuses on Wall St. conquered risk, is so wrong it's hilarious. Bernstein is a victim of what Taleb calls the ludic fallacy -- mistaking well-defined games like craps for the truly unpredictable.
   
   So go read "The Black Swan" or "Fooled by Randomness" instead.

5 comments about Traders, Guns & Money: Knowns and unknowns in the dazzling world of derivatives.

1. Das will blow you away. This is insider information from a high-profile player in the shadowy world of the OTC derivatives market. It's a shocking front row seat account, written in a very accessible style. I could not put this book down. You want to know what's been going down in secret on Wall Street and in the global financial MMA cages, read this book. Then read Partnoy's "Infectious Greed." Then pour yourself a drink, and put all your money in CD's.



2. This is an awesome book for a person who is interested to know the truth in these markets...



3. This book has something for everyone that wants to learn how and why financial meltdown occurred. I have read many opinions but this book goes deeper and beyond most non-traders ability to fully comprehend, and yet it gives clear insight into the thinking of bankers and traders. It is not as necessary to understand how to do the trades,for most, as it is intereting to understand how the ambition, greed, lack of regulations, and intentional neglect of over seers led to this meltdown. I have recommended the book to my friends and colleagues who have all taken a shlacking in the markets to see how the "unknown unknowns" cannot be hedged by investing. The fact we are experiencing the unknown unknown and even Warren Buffet couldn't escape it, says we must take another look at our personal financial security and not get caught up in the reverie.



4. This is a fascinating book and a good read. Mr. Das does a great job of explaining in simple terms how some fairly complex financial instruments work and he does it with style. He is also an entertaining cynic, and he takes the reader through the underside of the banking industry in a very readable way.
   
   In some ways this is absolute comedy, and for a while I was caught up in the amusement of seeing a "Flashman" weaving his way through the world of high finance, but ultimately the tales of mendacity and sheer greed, unaccompanied by any focus on value to customers, tend to wear me down. Many of us knew the risks of these products, but credulous buyers bought the pitch whole.
   
   For a quality book, and this is one, there are a few miscues. Any book that mentions Warren Buffett as often as this one does (nine times in the index) should at least spell his name correctly.
   
   Also, Das does correctly note that the origin of currency swaps and interest rate swaps in the mid 1970's - the basis of modern derivatives --arose out of the parallel loan market (at 34-37), but he gets the first parties and transactions wrong. Starting in early 1976, a series of such agreements was done by Monsanto Company, the first of which was with Imperial Chemical Industries Limited, quickly followed by others with Rank Xerox, Hanson Trust and others. Interestingly, these were invented by a small group of lawyers in a London conference room to solve a legal problem and in fact to reduce risk - with no involvement by investment bankers. Of course, Goldman Sachs, who represented Monsanto (and maybe ICI too), saw a product that it could sell to others, and the market was off and running, leading to all kinds of variations and new risks. How do I know this? I still have a copy of the original swap. See my article on the origin of derivatives at http://www.gaiben.com.



5. You'll know what a credit swap is by the time you've finished the book. Be prepared to google some terms at the beginning if you're not a trader. You'll be able to hold forth like a fed chairman or a treasury secretary by the end.

5 comments about Personal Finance For Dummies, 5th edition.

1. Thought the book brought things to light I knew that I was in trouble this book just made me see more clearly how to try to fix things.



2. It's just amazing. Every other theme not too well understood is explained with clarity. Website references are a plus. If you have no idea of most financial concepts, what they mean and how to understand them this is a good starter tool.



3. This is such a great book, I will probably by a copy for my eighteen year old sister. The book provides valuable information that is valuable at any age, but even better if she can learn now. Great practical tips on debt management, saving, budgeting retirement, etc.



4. Ok...so I'm a smart guy, but the in's and out's of the financial world always seemed more like Harry Potter's dark arts class than something that would ever make sense to me. I'm happy to report that this book does a fantastic job laying it all out in a way that makes perfect sense. I now have greater confidence in assessing my financial options, which is all anyone really needs. I recommend this book strongly.



5. I like the book, but wish it were less repetitive. I think that Andrew Tobias' book, The Only Investment Guide You'll Ever Need, is more succint. I wish that he would update it given the new state of the economy. 3-4 years makes a huge difference in tax laws.

5 comments about Rich Dad's Advisors®: The ABC's of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss (Rich Dad's Advisors).

1. Very simple to read and understand. Practical sound writen plans for real estate investing. Do recomend this book for any one interested in learning the real life basic's in begining real estate investing as a business small to large. Realistic reading of expearance. Made very good since. A straigt forward book of good information.



2. This was a thorough book. The author has real-life experience doing exactly what he writes about. He gives excellent advice on how to find the diamonds in the rough, and how to do 99% of your research BEFORE you spend a dime. I recommend this book to anyone in the industry. Fabulous!



3. This is the first book in the Rich Dad series that actually tells you how to find, buy and manage apartment complexes. The author writes the entire step by step process of locating a good market and a good deal.
   
   The disadvantage is that the step by step process is written in paragraph form, not outline form, so that makes it a little harder to go back and find the step you are looking for after reading the book.



4. This is more of a book on how to run a real estate investment business than what you traditionally find in real estate investment books. I would not recommend this book for beginners or even amateurs because there's no way you'll be able to raise the millions needed for investing in huge complexes from investors without a lot of experience. I certainly wouldn't give a million dollars to someone that's never purchased and managed a large complex so they could learn with my money.
   
   I believe this, and his Advanced Guide to Real Estate Investing, are great books for investors that are moving from single and multi-family residences to large complexes. But I just don't bite off on any Joe Blow being able to raise the capital to do what he's teaching.



5. After all its the 'ABC', for beginners. Would take a couple more books to get to 'XYZ'. Its great for those who are interested in the real estate investing and want to know what its about (this book only talks about rental apartments, not houses or condos). For people who are already in the business this book will only point out the obvious. It doesn't cover all of the aspects of real estate investing. Well, no book does. It serves more as a guide, touches on the surface of 1) finding deals, 2) how to investigate a property, 3) how to come up with the price of the property, 4) a little bit on how to manage rental apartments. It doesn't cover on other important topics such as 1) funding, bank loans, financing and morgaging your property 2) taxes and 3) market researching.

5 comments about Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications (New York Institute of Finance).

1. Even though it's been written 10 years ago, this book is still relevant today. I recommend it to anyone who's interested in technical analysis



2. This is the bible of technical analysis. Very thorough & makes a difficult subject easy to grasp.
   
   Good to read from cover to cover or just to keep as a reference guide.



3. This is an excellent book for those who want to understand technical analysis on a basic to intermediate level of expertise. That is why I gave it 5 stars.
   
   However, if you already have an expertise and are seeing a more technical or deeper understanding of TA, it is not here. I was frustrated to no end thinking I would expand my knowledge with this book. I was especially frustrated in the section on cycles because the author continually referenced the solutions found in another book without repeating them in this book. So I will return this book and get the books the author has referenced hoping the deeper knowledge is there!
   
   Again, if you are starting the path of TA and are looking for a great place to start, it is with this book.



4. I like the layout and manner of presentation. It's simple and easy to follow. Used along with the study guide, it's a pretty good book to study technical analysis.



5. If you take trading seriously you should probably invest in more specialised literature than a textbook. However, it might be good to have one textbook on the shelf. One textbook is enough and I would recommend Kirkpatrick's "Technical analysis". That book is better but has its own faults too. Textbook authors cannot be strong in a subfields. Murphy's book is okay and a unique benefit (for some) is its large font size.

No comments about Financial Armageddon: We are in a battle for our very survival....

5 comments about Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not!.

1. Excellent book for starters on the way to financial freedom or people who would prefer to be inspired by common sense approach intellect that provides a base to slingshot their financial freedom and start getting out of the rat race



2. Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not!
   
   Robert Kiyosaki has openned my eyes: after being 15 year working for several companies as Corporate Treasurer, Senior Operations Controller and responsible for starting-up several buisness units for my employer, I finally was inspired by Kiyosaki's Guide to investing and how you can create your own money, creating assets without buying them, going through a transformation process "trash to cash".
   
   I look at Financial Statements from a different perspective, not as a means of informing someone else of the company's performance, but as someone who would be an inside investor.
   
   This book is really great!!



3. I really liked this book. If you liked Rich Dad, Poor Dad, then you should get this book. It is very informative and interesting.



4. I like Robert Kiyosaki's idea of an eight-part model for a business. He calls it the BI Triangle, which says that a business is a system of systems. The BI Triangle is a big leap forward for all aspiring entrepreneurs. It establishes finite boundaries on what it takes to run a successful business. As far as I know, no other writer has been able to express these boundaries so succinctly.
   
   The BI Triangle's power comes from its unprecedented combination of comprehensiveness, finiteness and simplicity. Before Mr. Kiyosaki, nearly all business books were written by two categories of writers:
   
   1)Overly-specialized, non-comprehensive-thinking employee-or-consultant-gurus who couldn't see the forest for the trees, or
   2)Overly-generalized, non-educator-entrepreneurs who could see the forest but couldn't describe it in a way that was understandable to others.
   
   Seldom (if ever) is a business book written by an entrepreneur who also happens to be an educator. As a result, the business sections of most bookstores are vast collections of specialized "marketing" books written by self-proclaimed marketing gurus, "strategy" books by strategy gurus, "sales" books by sales gurus, and so on. None of these overly-specialized authors have been able put the entire concept of business together into a universal, comprehensive and succinct package - none except Robert Kiyosaki.
   
   This lack of succinct comprehensiveness within the business world is the main reason why entrepreneurship has been so scary for so many. This must have been how the mariners of Europe felt before the voyages of Columbus. Starting a new business, just like sailing off into the sunset, used to seem like a never-ending dangerous quest into an unknown (and unknowable) abyss. That's why most mariners used to stay within sight of the shore. To them, the risk of sailing into the sunset was infinite because the scope of possible outcomes was also infinite. This isn't surprising since many of them thought the earth was an infinitely-extended flat plane.
   
   But something amazing happened when Columbus returned from his adventures. He proved to his fellow mariners that the earth was finite, not infinite - he showed them that the earth was actually a sphere, and not an infinitely extended plane. The others quickly understood the meaning. That is, a spherical earth meant that it was now impossible to sail off into oblivion. In one swift stroke, this knowledge massively reduced the risk (and the fears) of sailing into the sunset. What was unknown and unknowable became knowable and most importantly, doable.
   
   Robert Kiyosaki is the Columbus of the business world. He has shown that a business, like the earth, is also a finite entity. Just as there are definite boundaries to the earth itself, there are also definite boundaries to a business. This is a monumental finding - don't be fooled by its simplicity.
   But there is an important difference between the boundaries of the earth and the boundaries of a business: the former is mainly physical, and the latter is mainly metaphysical. In other words, the boundaries of the earth can be apprehended by the senses; the boundaries of a business can only be apprehended by the mind.
   
   The key to understanding Mr. Kiyosaki's ideas is the ability to see with the mind's eye. The business world of the Information Age is a collection of inherently invisible, inaudible and weightless principles. To apprehend them we must learn how to transcend the obvious physical inputs from our senses. For example, it's "obvious" that the sun "moves" across the sky. It's "obvious" that the earth is flat. But is that really happening? The mind's eye reveals a different reality. If you want to succeed in business, then learn to embrace the version of reality from the mind's eye, not from the senses. Robert Kiyosaki's books are an excellent place to start.
   
   If you really want to understand the way Kiyosaki thinks, then I suggest you read Buckminster Fuller's books as well.



5. I have read most of the books in the Rich Dad series, and this last one has been on my bookshelf for seven years. I finally read it this week, looking for some insight into the current (10/10/2008) stock market and financial crisis.
   
   This book was harder to understand and less complete than the other books in the Rich Dad series, and the chapters on the different classes of investors was basic to me, but that is probably because I've attended a half-dozen Rich Dad seminars over the years, read the other books in the series and I've played the Cashflow game, which I highly recommend.
   
   However, I don't particularly recommend this book. This is the only Rich Dad book in which I found the writing to be stilted and phony, particularly when Kiyosaki is recreating his childhood and young adulthood interactions with his 'Rich Dad.' Instead of speaking to me deeply as the earlier books did, I found the first part of this book to be highly irritating, preachy and annoying.
   
   Any other Rich Dad book is worth buying, except for this one. Rich Dad Poor Dad will set your life on fire and change the way you think about wealth and money. This one will put you to sleep.

5 comments about Financial Armageddon: Protecting Your Future from Four Impending Catastrophes, Revised and Updated Edition.

1. 1. Hedge funds are structured around a performance-based compensation system. Hedge fund advisors are paid an incentive fee based on how well they do. Hedge fund advisors get a 20 percent cut above a preset benchmark, in addition to a 2 percent fee, of the total funds under management. Many hedge funds have become comfortable using large amounts of debt to boot returns. Many on Wall Street switch sides and became a hedge fund. The goal is too generate the highest possible returns in the shortest period of time, ignoring any long-term consequences.
   
   2. The pricing of options is dependant on time remaining until maturity, interest rates, and investor expectations on market volatility.
   
   3. According to Towergroup, US brokerage firms expected to generate $33.2 billion from derivatives-related revenue in 2006.
   
   4. Credit Default swaps make up the fastest growing segment of the $415 trillion derivatives market. "The credit derivative has one party making periodic payments to other and receives the promise of a payoff if a third party defaults. The former party receives credit protection." (Wikipedia)
   
   5. Credit Default Swaps can be used to manage risk without selling the corporate bond or government bond. Credit Default Swaps are a form of insurance for banks, pensions, and hedge funds (Party A) too protect themselves against the companies they invest in against debt default.
   
   6. Insurance is bought to protect against loss. Without insurance, if company X defaults on debt, the bond value is lost. For example, a pension fund (Party A) buys a CDS and pays a 2% premium per year broke up over four quarterly payments, payable too a derivative bank; on the books, the risk of default is eliminated by the insurance; and CDS coverage lasts 5 years.
   
   7. Since the CDS is not tie to a physical asset it can be bought and sold. Speculation on the credit-spread works drives buying and selling of CDS contracts. Without a CDS, a third party profits by identifying, a company with weak financial performance and offers to pay $900k for a $1 million bond from party B and profits $100k, if the company paid its debt. With CDS, party B profits: "Alternatively, one could enter into a credit default swap with the Party B, by selling credit protection and receiving a premium of $100,00. If the company does not default, one would make a profit of $100k without investing anything." Speculation profits are on the margin. Swap prices decline as credit quality increases and rise when quality worsens. "Some who believes that a company's credit quality will change could potentially profit more from investing in swaps than in the underlying bonds."
   
   8. Problem: Party A buys the CDS from Party B, Party B can assign the insurance contract to another party; the final party may or may not be in a position to pay the bond's full value in the case of Party A default. If companies default on their obligations, buyers of credit default swaps would lose money, banks would tighten credit, and interest rates would rise.
   
   9. In 2006, at least $200 billion of General Motor's CDS were estimated to exist, covering $30 billion of bonds. There is a risk that major financial operators are in over their heads leading to dangerous systematic pressures. The danger occurred in 2005 when 100,000 CDS had been verbally agreed to but not settled.
   
   10. According to the US comptroller, JPMorgan Chase, Bank of America, Citibank, Wachovia, and HSBC accounted for 96 percent of the $100 trillion of derivatives controls outstanding among the 836 US banks. JPMorgan being the largest derivate player. Fannie Mae and Freddie Mac had $1.5 trillion of derivates to hedge against risk in their portfolios.
   
   11. "Credit derivatives have never been tested in times of acute market stress, such as a collapse of the real estate market, a cratering economy, or a 1987 type stock crash."



2. If you care about your family's future financial well being, this book is a must read. This is the second edition of the work, but Panzer made some predictions in the first edition, written a few years ago, that have come to pass alrady. While, I hope we never see the "armageddon" that Paznzer lays out, I do believe that we are poised for a massive recession or depression due to the recent credit and houing bubbles. Panzer lays out a series of events led by a weakening dollar, national trade budget shortfalls, and credit derivative misuse that could ultimately change the face of America and our current way of life. I would also recommend "The Demise of the Dollar" as a follow on read to this work.



3. I seldom buy financial books because most of them are simply print "scams". I bought this one because of the reviews and a recommendation by someone, and Mr Panzner's credentials. He certainly has the background to write a meaningful book on the subject. However, I was stunned at how extraordinarily superficial the book was, and thus felt compelled to write a review. The book takes some similar events in history and paints a potentially very scary future. And that future may come to pass, but you've got almost 200 pages of extrapolating those historical events into the future and very little else. Seems little more than an attempt to sensationalize and commercialize what "can" and possibly will happen. There is little digging into what precipated some of the events, and the "advice" offered is really pathetic. The fact that this got such high ratings is either a testimony to how many friends he has in the industry or how ill informed and poorly read our society is. The one thing for sure is that there was indeed a wealth transfer that occured here: my wallet to his. But other than that, there is absolutely no reason to purchase this book. Given his credentials, I would have thought he would have been mildly embarrassed to pen this. He could undoubtedly do better.



4. We are in perilous times. Now (i.e., late September 2008), we all realize it. Several years ago, virtually alone, Panzner predicted (in great detail) exactly what has now actually come to pass over the last few years, and---perhaps much more importantly, he warned us exactly what is coming in the near future.
   
   Several years ago, he was regarded as being "an alarmist"; now, we recognize that he was (and is) a PROPHET!
   
   I believe we all should read this book very carefully, and use it to plan for our families' futures. Buy copies of this for your friends---they'll soon be very grateful that you did.



5. If you think that the perfect storm is total collapse of the economic system, this is your book. Probability of everything outlined in this book actually happening? Not very likely - but one should be cautious with how one structures one's affairs... So it was for me more of a checklist - not necessarily one of impending doom.

5 comments about The Secrets of Economic Indicators: Hidden Clues to Future Economic Trends and Investment Opportunities, 2nd Edition.

1. Very good book to get an idea about all the economic indicators that can make or break the economy.



2. This is an esaly introduction to economic indicators, mainly the american ones. It contains some interesting tips about indicators, like "thumb rules" in some cases. It briefly introduces each of the most important indicators to the US economy (as well to other major economies) and it's effects on the markets. Those interested in detailed information of some indicator will need to go deeper looking for it's original sources.



3. Secrets of Economic Indicators is an excellent book on what drives and affects the economy and the markets. From inflation,consumer spending,unemployment,housing, to the Federal Reserve. Each section explains market sensitivity and why. Would not recommend this book for market-timing necessarily but to understand why the markets go up and down. The last 2 chapter have websites for U.S. and International Economic Indicators for further information. Well done.



4. This book really made market indicators simple and easy to understand. I appluad the author for his format. If you need to understand all of those fancy indicator lingo this is the book to read.



5. This book offers nothing that can't easily be obtained by a simple internet search. The book reads like a manual with no soul whatsoever. I could have written the same book with mere copy and paste technique. The high reviews given to this book were given by 10 year olds. Don't waste your time and definitely your money!
   
   I wish I could give a 1/2 star on this!!

5 comments about SPIN Selling.

1. ...this may help. It is one of a few books to use as a resource.



2. When I first read "Spin Selling", shortly after its introduction, I found it enlightening. At the time I had been in office automation sales for 10 years and management for 5 years, and the book solidified many of my thoughts and theories on selling. Since then, I have read a lot of other selling books but none really deal with the underlying theory of selling as well as Neil Rackham's book does. Even now as I am self employed, I still re-read the book occationally to brush up. For those who feel that the author hasn't the field expereince to be credible, obviously they have never coached or mentored someone in complex sales. And for those reviewers who blame Kodak's current lack of succsess to SPIN, they might find it shocking that Microsoft uses SPIN too.



3. Being involved in complex sales processes for years, I found the SPIN concept elegant and very effective at the same time. It is one of the best books written in the area of major sales. Absolutely a classic!



4. I've read over 200 books on sales and marketing in my career and SPIN Selling is without question one of the best out there. No tactics, techniques or processes (those never work) like other sales books. Excellent for relationship selling. I am seeing the author Neil Rackham in one of his very rare live appearances in December of 08 (www.MoveAhead1.com) and highly recommend that everyone reading this gets tickets to see a true sales giant.



5. As a sales and marketing trainer and coach for professionals, I discovered Neil Rackham's book while looking for a simple way of explaining the techniques that distinguish larger, more complicated sales from small quick sales.
   
   This book provided exactly what I was looking for. SPIN is an easy way to remember to ask more questions--and more meaningful questions--and the discussion of how to raise the level of need from "implicit" to "explicit" and then sell to the "explicit" need was a brilliant way of explaining what the best professionals I've worked with have learned to do.
   
   In my own book,The High Diving Board: How to Overcome Your Fears and Live Your Dreams, I used a simple 10-step template like this to help people overcome the fears that keep them from doing what they need to do to be successful.
   
   Rackham supports his template with hard research, but anyone who watches top professionals sell their services can instantly recognize the accuracy of what he presents.