Rule 1 Summary

Rule 1 SummaryThe Simple Strategy for Successful Investing in Only 15 Minutes a Week!

Have you ever thought about investing? Have you wanted to learn the “science” behind it, but you thought you are just not right for it?

If you are reading this, you have most probably been there.

Most people think that only experts belong on the market and that not anyone can profit.

“Rule 1”, however, destroys these popular myths and instead presents you with a way to do what was once thought to be undoable: beat the market.

Keep reading our summary and learn what the only rule you should have in mind is.

Who Should Read “Rule 1”? and Why?

Let’s take a moment and be honest here.

You read the business section of the daily newspaper, you get the bulletins from Wallstreet, and you wish you knew how to invest. However, a big part of you thinks that investing is a gamble, and you would much rather find a low –risk solution for your earnings.

You may have had those thoughts until know, but Phil Town will change them all!

In his book “Rule 1” he gives you useful, practical and proven solutions for making a profit on the stock market.

We recommend this book to all wannabe investors and puzzled participants on the stock market. Live by Phil’s rule and start earning.

About Phil Town

Phil Town is a motivational speaker, author, and millionaire. In the past, he was part of the U.S. special forces in Vietnam, a dishwasher and a river guide. Then, he learned how to invest.

And, you know how they say – the rest is history.

“Rule 1 Summary”

When it comes to investing, there are only two basic rules: Rule #1(tm): Don’t lose money and Rule #2: Don’t forget Rule #1(tm).

Yes, we may have oversimplified it, but in essence, you will find that those are the bases for each investment.

Rule #1(tm) repudiates three famous market myths:

  • Only experts can work in the market
  • You cannot beat the market
  • Diversification and buy-hold strategies are the best methods for minimizing risk.

“Rule 1” offers you another reality.

What do we mean by that?

Here it is:

  • Investing is a snap, and you can ace it by working for 15 minutes a day on your stock portfolio.
  • It is not impossible to beat the market. In fact, you can figure out how to target underpriced stocks and get at least 15% returns on your investment.
  • Forget the banalities about diversification and buy-hold methods. Instead, use the Rule #1(tm) equation: Purchase stocks for 50 cents on the dollar and sell when the stock is trading at a dollar-for-dollar value.

The Rule #1(tm) fundamental point is: Don’t lose money. Indeed, there are no guarantees for anything in life, but you can limit risk by acquiring shares in good companies which are selling at bargain prices.

To do so, you have to stay aware of the “Four Ms.”

  • Meaning
  • Management
  • Moat
  • Margin of safety

How do we explain these “Four Ms”?

Well, to start with, put your cash where your heart and mind are and invest in profitable organizations which are significant to you. If you are a “foodie”, target firms operating in the food industry, if you are a fashion addict, invest in retail clothing shares.

Next, look for publicly traded corporations which are in possession of great management teams.

Furthermore, find companies that have barriers to entry and build walls around their profits.

Finally, invest securely by purchasing discounted shares that fulfill the other three “Ms.” You cannot lose much if you make sure you purchase stocks at low costs.

However, that is not all!

Next, we give you, even more, lessons which will help you comprehend the road to being a great investor more deeply.

Key Lessons from “Rule 1”:

1.      Buy Stocks With Pride
2.      Find the Moat
3.      Key Performance Numbers

Buy Stocks with Pride

If you are a Rule #1(tm) investor, you are not a market speculator. Instead, you are an investor who takes pride in owning great companies.

Your choices rank and endorse the companies you invest in. For instance, if you buy stocks in a firm that uses animal leather for making its products, your investment is equal to approval for that kind of production.

Hence, make sure that you align your choices with your values and ethics.

Find the Moat

Warren Buffett, one of the most famous billionaire investors, trusts in entry barriers, also called moats. An organization without a barrier to entry is equal to a stock price merely waiting to fall. High barriers to entry are hard to penetrate.

Rule #1(tm) investors should purchase shares in organizations with a high wall built around future profits and growth.

Mots can take up several forms. However, there are five basic types:

  1. High-profile brand names (The Coca-Cola Company, Adidas, and Disney).
  2. Trade secrets and intellectual property protection
  3. Gate-keeper products that control niche markets
  4. Expensive entrenched products where it is hard for users to swap for another brand
  5. Low-cost, category busters such as Wal-Mart, Target or Home Depot.

In case the company lacks some protective moat, maybe it is time to consider investing elsewhere.

Key Performance Numbers

You can use some specific tools and measurements to make sure that you invest in companies with financial strength and will allow you to get Rule #1(tm) returns. Such measurements are:

  • Return-On-Investment Capital (ROIC)
  • Sales
  • Earnings per Share (EPS)
  • Equity or book value
  • Free Cash Flow

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“Rule 1” Quotes

My advice: Go find a wonderful business at an attractive price and live like a king when you retire. Click To Tweet Rule # 1 investors buy when others are fearful and sell when others are greedy. Click To Tweet Figure out what the sticker price is and pay less. Click To Tweet Be proud of what you own. Click To Tweet Read the annual reports. Ask yourself: Is the CEO being compensated as an owner or as a mercenary. Click To Tweet

Our Critical Review

“Rule 1” is packed with helpful charts, understandable explanations, and useful financial insights. Phil offers a map for finding an investment treasure. Of course, like many other how-to books, “Rule 1” can get a bit repetitive from time to time, but the investment advice you will get in the end is worth going through the repetitiveness.

What Color Is Your Parachute? For Retirement Summary

What Color Is Your Parachute? For Retirement SummaryRetirement planning is harder than ever, especially for the American citizens. According to experts, the Americans’ savings rate days march towards certain defeat helped by the Social Security disaster.

We intend to give you a clue on how bad the situation is, so that you can alter your mindset, and change your future.

Who Should Read “What Color Is Your Parachute? For Retirement”? And Why?

By all means, Richard N. Bolles and John E. Nelson have enough expertise to assist you. We give this book thumbs up, due to its highly impartial and realistic point of view on the retirement programs worldwide. In other words, rating this classic wasn’t exactly as hard as the topic we are about to discuss due to its comprehensive, challenging facts linked to retirement planning.

I am too young to think about my old days. Don’t be so sure; the struggle starts even before you’ve engaged yourself in some activity. In general, we prescribe “What Color Is Your Parachute? For Retirement“ to all people, regardless of their status, or age.

About Richard N. Bolles & John E. Nelson

Richard N. BollesRichard N. Bolles was born on March 19th, 1927 and passed away 90 years later on March 31st, 2017. He left a legacy of good books, which changed the way people interpret life and retirement.

John E. NelsonJohn E. Nelson is considered to be an expert in retirement and pension planning.

“What Color Is Your Parachute? For Retirement Summary”

The society has compromised many aspects existing nowadays, including retirement. We can no longer feel absolutely sure, that we understand the exact meaning. In the old days, when we say old we referred to 50,60 years ago, workers from capitalist and communist countries had a special treatment from the companies or organizations where they created value.

Here’s the deal:

Their contribution served almost as a guarantee that at the end of the road, they will get their fair share of the Global dream.

The fundraising process began with personal savings, and added up to this program were the social security payments which kicked in to create a diversion. It’s worth mentioning that this so-called retirement program was embedded deeply in people mindset, unlike today.

Here’s the worst part:

The days of working in a single company for 50 years are unknown to today’s population. In the world of uncertainty, we can only say – How the world has changed!!   

Stay with us, to have a clue about what it’s actually happening:

These days, when the battle for survival has reached its point of no return, the ordinary people are always the underdogs, deprived of job security, that they once had. In the harsh world full of envy, pensions are perceived as an archaic instrument, entirely unnecessary.

The margin of error is very low, probably even not existing, leaving you stuck between two fires that can cause serious damage. People who want their struggle to be rewarded at the end of their professional endeavor, are now forced to worry too much. The planning process doesn’t leave room for making a mistake and thus contributes to the creation of an elaborate retirement plan.

First and foremost, we cannot run away from the aging process, just like any other person, one day your time will come. Do you prepare to welcome this day, with excitement instead of financial misery? If you are still on thin ice, Richard N. Bolles and John E. Nelson will help you stand firm on your feet, and do something about this issue.

You might be interested to know the modern age pros and cons:

The 21st century, brought many new things, including a unique perspective for creating a pension plan. As we said, one must not live under the same rules, as our parents or grandparents once used to. New financial metrics prompt a new way of life, filled with precarious employment and insecure retirement savings or investments. However, the modern society presents a couple of options for handling these issues:  

  • Starting a whole new career, and avoid the need for retirement
  • Invest your earnings and become a top-notch entrepreneur.
  • Renegotiating your status, so that you’ll only be engaged in tasks that you find attractive.
  • Going from full-time to part-time status in your company.
  • Begin your “revolving retirement,” program, where you can return anytime, and contribute periodically.
  • This adds to option number one, instead of retiring you can offer consulting services in the company, besides – What do you have to lose.

Key Lessons from “What Color Is Your Parachute? For Retirement”

1.      Manage your money
2.      Start planning today
3.      Facts are crucial

Manage your money

How to allocate your financial resources adequately, is a question of million dollars. In fact, the budget plan should include necessary expenses like loans, or mortgage and other utilities. But aren’t we forgetting something? – Of course, fundraising for the old days – approach it with utmost sincerity and openness.

Start planning today

The financial matter interests us the most, so let’s stick to it. While reading “What Color is Your Parachute? For Retirement”, you should ponder and imagine yourself being in a tight spot, in the hope of finding that inspiration to design a retirement plan.

Facts are crucial

Now, more than ever, you must engage in gaining access to trustworthy, reliable, information. Generally speaking, this makes the whole difference in the world, because it allows to evaluate your current status and make smart decisions while following a specific criterion. In fact, this is the only way to plan your retirement correctly and ultimately receive your “bonus”.

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“What Color Is Your Parachute? For Retirement” Quotes

I know that someday I will die, but I will never retire. Click To Tweet Because happiness can easily be packaged and sold to you as a product or service, the first level of retirement happiness is a very big business. Click To Tweet Retirement hogwash is a polite term for the persuasive messages that the retirement industry marketers use to lure you into buying their version of retirement. Click To Tweet It's easy to imagine moving for retirement, but it's not easy to actually make the move in a way that supports your retirement well-being. Click To Tweet

Our Critical Review

Unquestionably this book has a lot to offer. In spite of having all these books talking about investments and finance, how often do we find a classic which adjusts to the demands of the “no-retirement” era?

Get a Life Summary

Get A LifeSetting Your ‘Life Compass’ for Success

Take a look at your life. Do you like what you see? Do you think you live to your full potential?

No matter where you are at the moment, you can map your way towards a higher satisfaction and more significant success with navigational tools that can give you direction and a sense of purpose.

These tools are packed in the “Life Compass” package, which contains six points: career, mind/body, finance, relationships, fun, and contribution.

In this summary we will teach you these six points, we will show you how to use the “Life Compass” to gain control over your life.

Let’s begin.

Scroll down to our “Get a Life” summary, and find the answers to all your questions.

Who Should Read “Get a Life”? and Why?

If you are just starting out in the self-help genre, this book is perfect for you. Make sure you put it in sight so you can always go back to Bate’s recommendations and implement them in your life. If you follow his advice, you will become more motivated and ready to take your life into your hands. We recommend this book to people who want to reshape their lifestyles and learn how to balance between happiness, satisfaction, and productivity in each area of their lives.

About Nicholas Bate

Nicholas Bate is an author and a founder of Strategic Edge, a consultancy that helps people reach their full potential.

“Get a Life” Summary

In the modern, fast-paced world, you are swimming in a pool of commitments. You work a lot and have a little spare time. In that one-dimensional universe where you live, work is everything.

I know what you are thinking: there has to be something more to life than work, right? There is. Moreover, it is up to you to discover your life’s full potential.

Be honest with yourself about your objectives, dreams, and aspirations. Utilize your unrealized desires to make a “Life Compass.”

What is a Life Compass?

It is a navigational instrument that will enable you to coordinate your everyday life with a balance among work, family, finances, wellbeing, fun and community association. To use this compass, start with rest, growth and reflection.

Why do you need this compass?

Well, envision that you have been given an extraordinary get-away in an unfamiliar locale. Would you investigate it without a compass?

Obviously not.

However, you might stroll through your life, without a compass or even without knowing the direction. That makes it simple to get lost when you go after life’s opportunities.

To find your ability to “know east from west” and create your “LifeCompass,” ask yourself: What do I genuinely look for? How would I define achievement? What am I extremely enthusiastic about? Go past your comfort zone. Your capacity to take control of your life relies on how genuinely you answer these questions and how ready you are to accept accountability. Look for balance and concentrate on six major territories: career, mind/body, money, relationships, joy and community inclusion.

Rundown your objectives for the following five, ten and 25 years. Create a list of things you had always wanted, ventures, errands and even feared tasks. Make sure you think clearly, by holding less in your mind. Utilize your list to design your daily agenda and to track your 10-year objectives. Assess it toward the start and end of every day. Begin now, find the motivation and do not wait for a moment of inspiration.

Truth be told there will never be enough time.

However, you will achieve many things if you start moving in the right direction.

At this moment, the direction you should move in is towards the key points of “Get a Life,” summarized below.

Key Lessons from “Get a Life”

1.      Career and Mind/Body Compass Points
2.      Finance and Relationships Compass Points
3.      Fun and Contribution Compass Points

Career and Mind/Body Compass Points

The career compass point regularly eclipses other areas, and you need to be clear where you stand and what you want to accomplish to change it. Concentrate on what you truly need versus what you think you ought to achieve. Better yet, erase cash from your list of things to get, since a resolute accentuation on money frequently prompts frustration. To define your career point, first do nothing for at least a few hours: no media, no email, no gatherings, no books.

Now, we know this information deprivation might be hard for you, but at the end of this process you will end up gaining useful insight.

Next, select a profession that you are interested in. Come up with a concrete objective and act to achieve it.

When it comes to the mind/body compass point, you have to remember that your brain and body are all you have. Your wage, work, and family all rely on the wellbeing of your body and mind. Everything depends on your vitality and health, including the inward tools you have for taking care of issues. Health relies on getting your “MEDS,” or “meditation, exercise, diet, and sleep.”

Finance and Relationships Compass Points

Create a mental fence with your vocation objectives on one side and your financial goals on the other side. This division is essential because an accentuation on cash will occupy or even destroy your efforts to accomplish professional specialization and personal fulfillment. Your career is more than an income stream and, in the long haul, cash is a questionable motivator. So, try not to mistake standard of living with quality of life.

Each relationship depends on “five A’s,” or, to be more specific on  “attention, awareness of differences, appreciation, affection, and action.” To live a better life examine how you presently allocate those assets, and if you can do it better.

Fun and Contribution Compass Points

Do not disregard the fun compass point, even when you face increased obligations. Joy and pleasure are vital. Happiness has positive effects on almost every aspect of your life. Obviously, you do not need to be happy all the time. In fact, that is not human. The truth is that everybody faces difficult clients, money problems or stolen time. However, instead of rejecting your bad feelings, examine them, and utilize them as maps that will show you what is wrong and what can be made better.

The last, community compass point, unlike the other compass points, is focused outward, on the big picture: community, nation, and the world. You live surrounded by layers of micro and macro frameworks that require substantial dosages of emotional intelligence. Your EQ represents your capacity to realize the long haul effect of your present choices. With refined EQ aptitudes, you can figure out how to defer gratification to serve your family or community.

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“Get a Life” Quotes

People wish for financial independence to get the freedom to ’escape,’ but if what you are doing is what you truly love, do you need to escape? Click To Tweet Do what you love and love what you do. Ensure that what you do is an essential part of your being. Click To Tweet Allow yourself to take some time out each day to stop the internal noise, to recharge. Click To Tweet Circumstances will never be ideal. Click To Tweet Never consider it too trivial to have fun. Click To Tweet

Our Critical Review

“Get a Life” is useful and practical, but just like many books of the self-help genre, it gets too repetitive at times. However, maybe that is the point of such books – to make you pay attention, and repeat the lessons until they become engraved in your mind.

Where the Money Is Summary

How to Spot Key Trends to Make Investment Profits

You have likely come across the term “the butterfly effect.” It is a hypothesis that argues that the small swing of a butterfly’s wings in the Amazon could change the breeze direction and flow in South America, could influence the clouds in the Pacific Ocean and could make it snow in Russia. Namely, seemingly unimportant occasions in a single place can have a significant impact elsewhere. The situation ruling with present securities exchanges have been a product of global patterns that can be explained by the butterfly effect. This shows the current condition of the modern world, characterized by two fundamental statements. First, the whole world is linked. Second, something that at first glance may look unimportant can start a chain response that produces unexpected outcomes.

The butterfly effect represents global patterns that influence each part of human’s life. Concerning business sectors, the butterfly effect implies that every market, wherever it is, is in some way associated. Globalization has turned past unconnected events into everybody’s issues. What does this mean for the business environment? Well, since business sectors are linked, even a minor occasion, for example, the wavering of Thailand’s currency, sets off a response in the form of a chain of events that spreads all over the globe. This butterfly effect will be responsible for the following five noteworthy worldwide patterns in the coming decade:

  • Economies and markets will globalize.
  • A technology revolution will happen.
  • Governments will scale down and privatize many government capacities.
  • Demographics will influence the market.
  • Corporate rebuilding, mergers, and acquisitions will go global.

These significant patterns are the foundation of the most prominent bull market that emerged so far, which is currently at its beginning. These worldwide trends will transform the markets and will help distinguish which industries and markets are most likely to benefit from the transitioning social, political and monetary circumstances. Another key point to mention is the impact demographic trends have in the global markets and the business sector. In each nation and geographical area, demographic trends directly influence social and financial trends. Such is the case because demographics affect what number of individuals need to buy specific items, and which products are sought after.

The current global marketplace divides the world into four districts: The U.S., Euroland, Japan and developing markets. The days when the worldwide economy fixated altogether on the United States, the world’s biggest market, and in Japan, the second biggest, are long gone. In the midst of the worldwide fall of socialism and the ascent of capitalism and privatizations, new markets have developed. The technology revolution, which gives the tools to link all of the global economies and markets in a free flow of timely data, has significantly modified the way worldwide markets function. The modern economy consists of local economies and markets which are all linked efficiently to each other.

Who is this book for

“Where the Money Is” is a highly instructive, never dry or dull, and profoundly coherent manual for understanding the transformation of the worldwide economy. It concentrates on the components that consolidate to build both major and minor economic trends. The author states that if you gain a comprehension of these trends, you can settle on wise investment decisions now and later in the future. Although, the author has incorporated a glossary of terms at the end of the book, unlike many books studying the topic of investment and finance, while reading, you do not drown in an ocean of insider, “expert” language.

The author succeeded in writing a readable book that demonstrates how worldwide trends and patterns link to each other. Additionally, he gives a further simple explanation on how it affects you both personally and professionally. Since local economies are profoundly affected by globalization, we recommend this book to everyone, regardless of your area of interest.

Author’s expertise and short biography

Dr. Robert J. Froehlich is a chief investment strategist of Scudder Investments and part of the company’s Global Investment Policy Committee. He is a regular guest on CNN, CNBC, and Fox News. He publishes his opinions and analyses with, The New York Times, The Wall Street Journal and Barron’s.

Key Lessons from “Where the Money is”

1.      The Technology Revolution
2.      Government Downsizing
3.      Long-Term Trends in a Short-Term World

The Technology Revolution

The technology boom will have an even more significant effect on our lives compared to the industrial revolution. The focal point of this technology revolution is the Internet, the most exceptional creation in our lifetime since its uses are numerous. Unlike other assets, the Internet is not limited by shortage – it is an intellectual asset, not a physical one, so you can replicate it and download it infinitely. As far as its market impact is concerned, the technology revolution is established on society’s expanded capital expense for better PC equipment and programming, which prompts higher productivity and efficiency.

Government Downsizing  

The overall global tendency toward cutting back on and privatization of government capacities will have worldwide resonations. Privatization and government downsizing will profoundly influence markets all over the world. Privatization implies rivalry, and that consequently means motivation for better administrative services and increased responsibility, productivity, and efficiency.

Long-Term Trends in a Short-Term World

With such fast changes in the environment, technology, and trends, everybody is living in a transient world. The best investments will be those made in long-haul trends. Specific standards can enable you to invest wisely in long-haul patterns while living in a transitory world. As you comprehend the worldwide trends and improvements that will drive the world’s business sectors, you will understand that time is the most critical element for the success of these long-term patterns. Long haul speculators can get back what they lose after some time since they concentrate on long-haul trends and advancements. On the other hand, short-term investors who primarily react to dread or eagerness, disregarding long haul patterns, rarely find opportunities to get back the cash they have lost.

If you feel like this is the book for you, feel free to contact us for further information. You can download our mobile app and share your experiences with us. Between you and your book, there is a one-click delay – check it on Amazon;

Inside the Investor’s Brain Summary

The Power of Mind Over Money

The world’s history is full of names of reasonable, knowledgeable and intelligent individuals who had money related problems. You must have asked yourself numerous times, if transcending minds can make colossal financial mistakes, what are the chances that you avoid such slipups? Neuroscience gives useful lessons when it comes to this subject. It can provide you with insight on how you decide, mainly when unpleasant decisions take place, such as those who include monetary gains and losses. It argues that psychological inclinations lead most of the investors adrift. To improve the situation, you have three choices. First, gather better data, utilizing propelled research techniques. Second, enhance the way you process the data, so you achieve accurate conclusions. Third, address the behavioral predispositions that lead you to misuse data.

Many components can affect your investment choices, but, in reality, when it comes to investments, two frameworks exist in the investor’s mind. The first one is looking for rewards, while the other one avoids risks and misfortunes. Your desires, life, and educational experience influence both of them. You measure your achievements comparing it to your expectations, and the gap that stretches between them dictates your emotional responses. In fact, stress is born there – in that hole and leads to both physical and mental responses. Furthermore, you assess your execution taking the execution of those around you into consideration, so you feel upbeat or miserable, based on how well you compare to others.

Humans reshape events in their worldviews until the point when the image in their minds concurs with their beliefs about reality. Hopeful and optimistic assumptions can lead to a “placebo effect” that prompts positive execution, while negative convictions deliver a “nocebo effect,” a prophecy of disappointment and frustration. Making sense of why the market moves in a specific course is difficult because practically everybody included participates in “motivated reasoning.” They are too invested in the outcomes, which creates bias. “Projection bias” happens when you anticipate that your current emotional state will continue forever. Overcoming such projections is genuinely challenging.

Since feelings shade and alter your perspective of the world, you may not have the capacity to tell when and how they are influencing you. Disgust influences people by making them want to get rid of a specific object, regardless of the possibility to sell at a loss. Sadness awakes the wish to change and improves, driving people to purchase. Anger creates the illusion of readiness to act. Fear produces feelings of loss of control, which debilitates decision making and empowers information gathering. Fear may provide a useful reaction in a hazardous circumstance because it can push you to look for answers for your issues. To utilize fear adequately, figure out how to remain calm. Frenzy can be an awful feeling. It can make you act somehow, anyhow, without thinking, so that you can immediately get away from your circumstances.

In spite of the fact that feelings mutilate your reasoning, you should not hope for an entirely rational financial planning, since it is inconceivable. Instead, be reasonable in the research and planning stages of your preparation for decision making. At the point when the ideal opportunity for settling on the final decision arrives, allow your instincts to help you. Investing, when you do it in this way, utilizes the two sides of the brain, both the rational and the emotional part.

Who is this book for

“Inside the Investor’s Brain” is a helpful, compelling and entertaining book. Author Richard L. Peterson examines an expansive scope of emotional and intellectual factors that play a role in making investment decisions. Some are more common than others, and most of the readers, including novices, will recognize them. There are some factors, on the other hand, that are subtle to the point that they surprise even knowledgeable and experienced investors. The author incorporates and condenses neuropsychology and behavioral analyses and clarifies them using clear writing. Furthermore, he explains them more in-depth by delineating them with illustrations taken from investors’ lives, their successes, and disasters. We recommend this book to those who are interested in behavioral economics or want to get better at making investment decisions.

Author’s expertise and short biography

Richard L. Peterson is the CEO of the MarketPsych group of companies and is called “Wall Street’s Top Psychiatrist” (Associated Press). He has been published with his financial psychology research in leading academic journals, textbooks, and profiled in NPR, CNBC, the Wall Street Journal, the Financial Times, and the BBC. Richard has earned cum laude degrees in arts, medicine (MD) and electrical engineering, from the University of Texas. He has performed post-graduate neuroeconomics research at Stanford University and is Board-certified in psychiatry.

Key Lessons from “Inside the Investor’s Brain”

1.      Characteristics that Define Good Investors
2.      Cognitive Issues and Investing
3.      Managing Influences on Your Investing

Characteristics that Define Good Investors

“Extroversion versus introversion”: Extroverts are active and outgoing, and like sharing experiences and time with others, while introverts lean toward quiet and isolation. Extroverts have exit plans for a scope of possible market situations, and as statistics show, generally, have higher returns than introverts.

“Neuroticism versus emotional stability”: Neurotics feel tension, depression or outrage and are inclined to frequent mood swings. They are not good investors since they tend to stress too much. However, even though they fear (and expect) negative results, they are passive worriers that don’t create exit strategies.

“Conscientiousness versus impulsiveness”: If you are scrupulous, you will probably have a restrained approach to your investments and cutting losses rapidly.

“Openness to new experience versus traditionalism”: Openness to new thoughts benefits investors in a similar way as extroversion does. Remaining flexible and responsive to new ideas is crucial for succeeding in the market.

Cognitive Issues and Investing

Various difficulties and predispositions shape your venture choices. All investments carry a potion of risk, and investors must pick the amount of risk they can endure. The vast majority of people are not good at judging probability and most of the time they overestimate the likelihood of both unusual and familiar situations. Such is the case because intense feelings can mutilate objective reasoning.

Managing Influences on Your Investing

To benefit from the bits of knowledge on neuropsychology, do a self-assessment. Identify your characteristics, find your investment patterns, and get aware of your qualities and shortcomings. Then, work on improving your weaknesses.

If you feel like this is the book for you, feel free to contact us for further information. You can download our mobile app and share your experiences with us. Between you and your book, there is a one-click delay – check it on Amazon;

Of Permanent Value Summary

The bottom line is that Warren Buffett is the most prominent middle-class multi-billionaire. After years of uncertainty, Warren Buffett finally reveals his “Buy low, don’t sell” secret.

Many factors indicate, including Warren Buffett’s testimony that his encounter with “finance” started soon after the 1929 – Economic Crisis. He was stunned by the stock market crash” in those days and embarked on a journey to figure out, what happened precisely and what caused the economic collapse. It’s equally important to mention that, Buffett bought his first stock when he was a just a young boy – 11 years old. The pull for “playing” on the stock market awoke an intention, which later transformed into a “full-time job,” to learn as much as he can from the most experienced investors in years to come.

Let’s take a step back; the irony is that Warren’s father was a stock salesman in those days. Despite the early signs of failure, and the implication to remain careful with the variability of stocks, young Warren’s future was already forged into decision-maker, even before he made his impact on the world’s economy. One thing led to another, and Buffet became one of the wealthiest persons on the planet. As an illustration of his passion towards finance, the author presents the “metal moneychanger” – Warren’s favorite toy.  

The little boy was all about making money and analyzing the risk-benefit ratio of every investment. In spite of the economically weakened America, he found the strength to undergo a series of money-making processes, which will ultimately lead to success. Unlike brokers, financiers, and other financial experts, he was not motivated by the idea of becoming rich. You would probably disagree right away, but take a moment to consider all options. Due to the upcoming crisis in the 1970s, Buffet yet again stood firm with the theories he realized earlier. Such perspective enabled him, deal with all the mess, economic fluctuations, wars, reforms, law enforcement, etc.

Now we go a couple of decades backward, in the past, discussing Warren’s childhood and his Coca-Cola endeavor. Even personalities like Warren itself, are entitled to be a little generous, especially as kids. The first ever business journey that he embarked upon, was doing a favor for a fellow, who’ll later become one of the Coca-Cola’s top shareholders.

Although, this looks like an accurate biography of the world’s greatest investor, Andrew Kilpatrick kind of disagrees with this notion. According to him, the ability to surpass all the challenges is more like a life-advice than a biography. The book’s genre is not so important; the eye-opening element consisting of tips conveyed in this classic about the world’s wealthiest, investor Warren Buffett, surely is significant – on the other hand. In other words, the message shared takes the driving seat! In the same manner, like Warren, Kilpatrick contradicts the basic chronology order, presented in most portraits, and showcases a new 890 pages, filled with a mind-blowing, easy-to-read content.

The content doesn’t follow any particular order because, in that way, there are no disruptions in adding a dose of magic in this detailed and satisfying life journey. Filled with plenty of insights, the readers will be utmostly thrilled to take a peek into Buffett’s life. GetNugget doesn’t want to deprive anyone of the opportunity to read this classic, even though it’s best equipped for people involved in finances.

Who is this book for

Who stops you from getting there? – As he was fascinated by money, you can make your presence felt with the tools you have at your disposal. One of them is time, the other one creativity. These free instruments are indeed a profit-making machine, it all depends on how you use them. They are particularly useful when combined with financial creativity and open mindset.

This book is not an all-encompassing adventure, it strictly points out what we must do, in the money-pursuit process. It underlines both financial motivation, and vision as the greatest assets in reaching the top. Your highest priority describes your personally and professionally. In either case, time allocated to investment is not time lost, because it alludes to all aspects of human development. Generally speaking, this classic is a perfect fit for stockbrokers, financiers, investors, inventors, innovators, students, and all other people with a decision-making capacity.

Author’s expertise and short biography

In 1994 Andrew Kilpatrick published the first edition of this book by himself. Four years later, in 1998, Andrew produced a new McGraw-Hill. Other than being an author, he was also a U.S. Naval officer while serving in the Peace Corps.

Key Lessons from “Of Permanent Value”

1.      Battling down old-fashioned concepts
2.      The birth of a new little genius
3.      Billionaire lifestyle/ or not

Battling down old-fashioned concepts

As a consequence of his knowledge-thirsty approach, Warren Buffett’s reputation became a synonym for wealth. Perhaps, his biggest strength was, that he disregarded and neglected all those conventional methods and belief systems.

The birth of a new little genius

Only six years old, Warren came up with an idea, a funny one by today’s standards, but effective in the digital time as well. He purchased a six-pack of Coke each day, and by using the power of retail, he used to sell them for five cents a bottle, leading to 20% returns with minimum risk. At the end of the day, instead of spending money, little Warren was earning money. The 20% returns, became his signature tool, during further investments.

Billionaire lifestyle/ or not

Even though almost every person in the world is aware of Warren Buffett’ financial situation, the one thing nobody knows is his, casual appearance. He doesn’t own any lavish offices or expensive suits; he’s one of those who put more emphasis on playing with money, rather than using the money for personal pleasures.

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Snap Judgment Summary

When to Trust Your Instincts, When to Ignore Them, and How to Avoid Making Big Mistakes with Your Money

How many times have you done something because “you had a feeling” about it? How many times have you heard other people explain their behavior in such ways? Intuition is an indivisible part of each human on this planet. Prehistoric humans, for example, completely trusted their instincts and made quick decisions in possibly dangerous situations, when their lives were at stake. Humans also developed the capability to read social hints, analyze words, and differentiate between enemies and friends in a second. They can decipher language cues, vocal signals, and can discern each other’s moods. Gut instinct is quite valuable when it comes to social situations.  However, it is not as useful when it comes to more complex cases.

Intuition may indeed work in simple scenarios. However, it will not be of any help when you are selecting the best retirement plan when you are assessing investments or deciding to enter a new market. In fact, trusting instincts when you need to make a decision works against you and your best interests. People who are overly self-confident frequently make wrong choices. Their confidence blinds them and is not allowing them to see the whole picture of a particular situation. Also, they sometimes utilize wrong rules of thumb to simplify and understand complicated cases.

The way that people despise losses more than they like gains influences their decisions as well. They make an effort to stay away from mishaps, even to the degree of indulging in unsafe conduct. Behavioral economics, which, pretty self-explanatory, includes both psychology and finance, finds that snappy judgments are useless for picking stocks. Stock buyers need to gain a deeper understanding of what inspires different investors and how they are probably going to act. Wise investments are not significant on an individual premise only. They additionally secure the economy from the development of market bubbles that can harm the global and local markets. Feelings also confuse people and push them towards reckless decisions. People will more likely burn through cash when they feel troubled than when they are at rest.

Now that we have explained the way intuition may stop you from making wise decisions, it is time for some good news: you can control your urges. That is right; people can take control of their instinctive inclinations and intentionally move from System 1 to System 2 reasoning. This change pays well when you are making investment decisions, or you are deciding on important life issues. Knowing when to run with your intuition and when to be more rational and analytical is vital for a decent life full of fruitful decisions.

Who is this book for

All people, no matter their professional position, place a significant amount of focus on their intuition whenever the time comes to make decisions. The results from such conduct are usually disastrous. Behavioral economist and author David E. Adler studies the reasons behind this human behavior: making important decisions based on gut feelings, urges, habits or snap judgments instead of being more rational and using analytical reasoning. In this book, Adler presents many engaging cases that unravel the dangers of trusting instincts when it comes to complex decision making. Having in mind that we all make decisions each day of our lives, we believe that everyone should read this book. Accordingly, it may prove especially useful to investors, managers and other executive decision-makers that need to change their thinking.

Author’s expertise and short biography

David E. Adler is a writer for Financial Planning and has published with Barron’s, the New Republic, and Psychology Today. He devotes his time to financial journalism, economics research, and television. In addition to Snap Judgement, he is also the co-editor of the anthology Understanding American Economic Decline.

Key Lessons from “Snap Judgement”

1.      Investment Decision Making
2.      Additional Judgments and Decisions  
3.      The Limits of Intuition

Investment Decision Making

Bob Arnott, an expert money manager, employs a nonintuitive technique for deciding on investments. Just like other financial advisers, he utilizes models, yet if they coordinate with his instinct, he becomes suspicious. At that point, he goes the other way. He says that he uses intuition but in a twisted way. He clarifies that following others is common. However, it does not function admirably in the world of investments, where following patterns prompt “atrocious” timing. It additionally pushes individuals into the most widely recognized “impulse driven” investment blunder: purchasing high and selling low.

Additional Judgments and Decisions

You might think that a U.S. Secret Service agent’s gut instincts about who is or isn’t a threat would be a great tool when protecting presidents. You probably think that a U.S. Secret Service agent relies on his gut instinct to determine who is and who is not a threat to the president he protects.however, former agent Joseph A. LaSorsa, indicates that it is seldom the case. He furthermore argues that examining practical information is the best tool for specialists when figuring out who may pose a danger. In this sense, bodyguard techniques should serve you as a parallel on how you should make financial decisions.

The Limits of Intuition

Hardly anyone anticipated the 2008-2009 financial crash. Most experts believed that the financial system was resilient and shockproof. However, they were off-base. Why? Because of psychological reasons. Namely, human instinct is capable of handling simple inquiries, such as, “Is it rain?” or “Does he like me?”. However, the destruction of the financial system is too complicated to envision or predict. It drifts outside of standard thinking. When it comes to substantial economic issues that influence numerous markets (or, on an individual scale, your future security), instead of trusting your gut instincts, go with detailed analysis.

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The (Mis)Behaviour of Markets

A Fractal View of Risk, Ruin, and Reward

Benoit Mandelbrot had a rough childhood. He first tells the story of his father, and how he, as a prisoner in France during the WWII, managed to escape his demise. Mandelbrot also presents how these past situations link to not so distant events, connected to his profession. To be more precise, his past has made him so intuitive, that he could see relations between things that everyone else saw as unrelated. For example, he could easily compare the floods of the Nile River with the stock-prices on Wall Street.

As a young fellow, Mandelbrot decided to drop out of the elite Ecole Normale Superiore and enlisted into the Ecole Polytechnique. He then continued his education at the California Institute of Technology, at the Massachusetts Institute of Technology and the Institute for Advanced Study in Princeton. At last, he ended up working at IBM Research. That job was quite atypical for an academic of Mandelbrot’s family. However, that was not the only “atypical” thing he did. Additionally, he took an interest in researching business sectors, the appropriation of wealth, stock markets, bubbles, cotton prices and other monetary phenomena.

An interesting fact about Mandelbrot is that he was anything but conventional. The widely acknowledged doctrine about finance exhibits a pretty much discerning, precise, stable assortment of thought and practice. Mandelbrot’s work debilitated this establishment of the train and proposed what he calls “Ten Heresies of Finance.”

First: Markets are untamed seas, and just like deep waters, they are turbulent: some days, prices do not change, and at different times, they bounce like crazy. Second: Financial theories are not able to capture the full scope of market risk. Third: Market timing makes sense – Mandelbrot’s study shows that market moves tend to group and that a couple of large up and down movements are at fault for most profits and losses. Fourth: Prices do not move gradually and consistently, on the contrary, they frequently jump. Hence, markets are much riskier than one can assume. Fifth: Market time expands, and contracts and prices mount with time. Sixth: All markets are the same. Seventh: Bubbles will continue to happen. Eighth: Markets delude. People like seeing patterns. However, patterns do not exist. Ninth: Volatility is simpler to anticipate than prices. Efforts are underway to forecast volatility the way meteorologists predict the weather. Tenth: Value is not the most important in financial markets.

Who is this book for

Finance is not an easy subject, and not many readers get excited by reading about it. However, co-authors Mandelbrot and Hudson, have written a book that talks about math, packed in compelling characters and dramatic situations. Some aspects of the book will not be unknown to most financial experts, but even common information is stated interestingly. Mandelbrot’s most crucial financial work was in the 60s. However, his theories about leptokurtosis and fractals have gotten a considerable amount of attention in trading rooms and insignificant colleges. Along these lines, maybe, it is merely a matter of telling a compelling story, which this book presents Mandelbrot as a lone, clear-thinking prophet battling against a visually impaired and antagonistic economic doctrine. The authors have spun a fantastic adventure about familiar things, explained in a new way. We recommend this book to finance professionals and business writers and journalists.

Authors’ expertise and short biography

Benoit Mandelbrot is a Professor of Mathematical Sciences at Yale University and a Fellow Emeritus at IBM’s Thomas J. Watson Laboratory. He has invented fractal geometry. Richard L. Hudson is a former editor of The Wall Street Journal’s European edition.

Key Lessons from “The Misbehaviour of Markets”

1.      The Legs of the Contemporary Financial Doctrine
2.      Weaknesses of the Three-Legged-Model
3.      The Multifractal Model  

The Legs of the Contemporary Financial Doctrine

Risk analysis as a need for financial market analysis in the 1960s, based on the work of a French mathematician Louis Bachelier. He studied costs on the Paris Bourse amid the twentieth century and realized that prices changed randomly, and therefore could not be predicted. However, he concluded that he could analyze them by calculating a mathematical probability. Expanding Bachelier’s work, the economist Fama presented the Efficient Markets Hypothesis (the first leg), which, in simple words, states that it is practically impossible to “beat” the market. The second leg originated from Markowitz, who connected statistics to creating efficient portfolios, that would have the best return to risk ratio. The third leg originated from Sharpe, whose Capital Asset Pricing Model simplified Markowitz’s computations by expressing a stock’s risk level by a single variable (beta).

Weaknesses of the Three-Legged-Model

These economists did not propose a model without value, but it has some notable shortcomings. In any case, when pundits pointed at these weaknesses, defendants of the model only invented different patches. Rather than giving the actualities a chance to guide them toward multifractal showcase investigation, scholars and practitioners fixed their old, deficient doctrine with statistical techniques by the name of Generalized Auto-Regressive Conditional Heteroskedasticity (GARCH). Because of financial specialists’ dependence upon out of date and weak hypotheses and patches, the world has approached financial fiasco at various events in recent years.

The Multifractal Model

You cannot be sure you understand something until you can explain it in simple words. Similarly, the best science finds the least complicated clarification for the vastest scope of phenomena. The financial world does not need new “fixes.” Instead, it needs a new model: multifractal model. A fractal is a pattern that rehashes itself in bigger or smaller scale. Fractal math offers conceiving better tools for developing superior portfolios, conducting investment analysis, and better alternative valuation models.

If you feel like this is the book for you, feel free to contact us for further information. You can download our mobile app and share your experiences with us. Between you and your book, there is a one-click delay – check it on Amazon;

Hot Commodities Summary

How Anyone Can Invest Profitably in the World

Amid the peak of the 1920s, prices of shares kept increasing, before people could envision the lingering of the Great Depression. At some point in 1929, presidential consultant and financial specials Bernard Baruch, haltered for a shoeshine while he was going to his office. The guy that was shining his shoes begun giving him energetic stock tips. Baruch understood that even the shoeshine kid had become a stock showoff. When he returned to his office, he sold each share in his possession.

In the mid-1970s, author Jim Rogers was talking to a Harvard Business School graduate who was administering an investment fund. Rogers argued that the time has come to invest in energy. Just a couple of months after the conversation, the OPEC oil ban happened, and stock prices soared.  In 1998, it appeared as though prices of certain tech shares were rising, even though others were beginning to plummet. After a broad study of the situation, Rogers realized that commodities were exceptionally underestimated, contrasted with high profile, high-tech stocks. They were in such a position that even the biggest brokerage was shutting down its practice. So, while everyone focused on Wall Street, Rogers got into commodities. He made “The Rogers Raw Materials Index Fund,” based on the Rogers International Commodities Index (RICI) – 35 essential products vital to the worldwide economy. Some time after the dot-com bubble popped, and Rogers’ index increased by 190% in 2004.

What differentiates stock and commodities investments is how much cash you have to put up. Venture capitalists must pay half of the share’s cost to buy it. 5% to 10% is the most typical “initial margin,” but when it comes to commodities, it can even be as low as 2%. Taking advantage of that leverage is quite inviting, which is the reason why some investors lose enormous amounts of money in commodities. Hence, if you have to stay away from that hazard, try not to purchase on margin.

There are a number of commodities to be aware of. Firstly, gold has enjoyed a steady increase over the last years, even while supplies of some other commodities have decreased. Owning gold is a smart move, at least as a sort of security. Next, lead, although history proves its usefulness, is widely bad –mouthed because the effects it has on human health. Even though people condemn it, lead is an essential component in lead-acid auto batteries, which account for 70% of the globe’s lead consumption. The automobile market development in India and China will surely result in increased demand for lead. In 2002, China manufactured 750,000 cars. The next year, that number became four million. It is not hard to see that the balance between dwindling lead supply and the rising demand for lead is a little off.

Furthermore, sugar is another commodity that will most certainly face a growing demand. Not only it is demanded as a pure sugar, but Brazil, its most significant producer, has started using it in the production process of sugarcane ethanol. The increasing demand for oil around the world ensures the rise of sugar consumption. The positive side of commodities is that while prices of shares and bonds can plummet, especially in times of inflation, products will always possess some value. What it means is that the overall risk is lower compared to stocks.

Who is this book for

This book bears some similarity to enthusiastic ads that try to make you invest now. The difference is, however, that Jim Rogers supports his enthusiasm with facts. His personal history as Quantum Fund’s co-founder should tell us a thing or two. You don’t need to be extensively educated in these matters to forecast China’s insatiable appetite for goods. However, when a person with so much experience like Rogers states it, this forecast becomes more real and immediate. He most probably wrote this book for the general public, since some parts of it are full of investment basics. Nonetheless, these basics may be just what the reader needs – if it is the first time he encounters the notion of commodity investment. We recommend Roger’s book to everyone who is interested in diversifying their portfolios and starting investing in commodities, which, according to Rogers, are the future of investing.

Author’s expertise and short biography

Jim Rogers is the author of Investment Biker and Adventure Capitalist. He grew up in Demopolis, Alabama, received a scholarship from Yale University and served in the Army. After that, he went to work on Wall Street. He retired early, at age 37 after co-founding the Quantum Fund, a portfolio that gained more than 4,000% in the 1970s.

Key Lessons from “Hot Commodities”

1.      Overcoming Objections
2.      Commodity Basics
3.      Long and short selling

Overcoming objections

Experts have shown some displeasure when it comes commodities. First, they argue that products are risky since people need to have specific knowledge to make the investment work. To back up this objection, they state examples of people that lost most often because they purchased on a margin. Commodities can never lose their value. Second, the world is full of technological advancements. However, commodities are linked with the basic human needs, and they can never stop existing, unlike technology that can get outdated. Third, although speculations can have some effect on the prices, they cannot control the long-term demand, which is most evidently growing.

Commodity Basics

Anyone who thinks about investing in commodities should think hard about his weaknesses and strengths. At the same time, don’t stop there, and continue to research your targeted product. Ask the right questions. Try to predict how the commodity’s price is going to move in the near time. Think about the same deal elements that future deals have: quantity, description, delivery terms, and payment.

Long and short selling

There are two types of outcomes to your investment: you can either sell short or sell long. Selling long means that you buy the commodity hoping its price will increase in the future. The goal is to sell it more than you bought it. Selling short is a bit more confusing. When you sell short, you set a date in the future to sell something you are not in possession of yet. Then, you wait for the value of that good to decline. If your guess is correct, and the price drops than you can purchase it at a lower price than the one you sold it at. The difference between the two rates is the profit. Of course, prices may not go down as you expect them to. In sell short – deals, in such cases you are stuck. You can decrease the risk by issuing a stop order, which means that you limit how much money you are prepared to lose beforehand.

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Origins of the Crash Summary

The Great Bubble and its Undoing

From the end of the 20s until the beginning of the 80s, stocks were not a concern of most ordinary people. The great crash of 1929 brought forth the need to implement financial reforms. The creation of stricter disclosure laws was supposed to prevent the corruption and surplus that marked the 20s to recur. Undeterred by these improvements, the norm more or less stayed the same. The changes did prevent fraud, but connections remained the primary way top executives got their jobs.

In the late 70s, during raised inflation and a weak market, takeovers started to occur. By the beginning of the 80s, the LBO (leveraged buyout) became the new trend. The falling stock prices empowered these acquisition strategies even more. Corporate executives, being threatened by this situation, started thinking about ways to raise their stock prices. They created an approach that allowed them to they were able to stimulate the demand for stocks artificially, and consequently to raise their prices. Laying off employees, selling off branches and buying back their sold shares were all part of this scenario. They masked these steps with words such as cost cutting, share buybacks, and downsizing.

As a result, stocks became everyday commodities and ordinary people suddenly got interested in the stock market. The bad news started immensely affecting the companies’ stock prices. Under these circumstances, businesses changed their priorities. Now, the most important thing to them was rising stock prices.

With this intention in mind, companies started linking the CEOs’ compensation to the stock prices. However, this pay-for-performance reform did not bring companies any good. Executives received large option grants embodied in extravagant severance packages. In a case of a drop in stock prices, the executives got option grants at a low price. Accordingly, when the stock prices increased, they could make a considerable amount of money, even if cases where the new price didn’t top the previous level. In the end, what the pay-for-performance strategy did, was rewarding CEOs even if they didn’t do much. On top of that, no one ever penalized them. Accordingly, since they didn’t have anything to lose, they took more chances.

By the mid-90s, the market was blooming more than ever before. Investors started to appreciate shareholder value, more than business sustainability. After Netscape went public, another trend emerged. Venture capitalists invested in new companies with limited history, trying to be first on the market. Concepts like profit which were once an essential variable for investors were labeled as belonging to the old economy. Everyone wanted to be part of the new craze – the Internet stock – market, which seemed to have a bright future ahead.

However, the future seemed brighter than it was in reality.

Who is this book for?

Robert Lowenstein tells a captivating thriller-like story that timelines of the rise and fall of the market craze in the late 90s. The narration follows the bloom of creative accounting practices, the evolution of the dot-com era, and the fictitious shareholder value. He writes of a society that allowed ordinary people to pay the price for the burst of a bubble created by the rich wanting to get richer.

This book is not a typical narrative which offers tips on how to ward off fraud, but it works more as a cautionary tale. It is recommended to anyone that suffered from the bubble burst or is interested in the topic.  

Author’s expertise and short biography

Roger Lowenstein reports for the Wall Street Journal Journal, where, more than ten years ago, he wrote the columns “Intrinsic Value” and “Heard on the Street.” He also writes for The New York Times Magazine and is a columnist for SmartMoney magazine. He is the author of the bestselling Buffett: The Making of an American Capitalist and When Genius Failed: The Rise and Fall of Long-term Capital Management.

Key Lessons from “Origins of the Crash”

1.      Market Mania Beginnings
2.      The Birth of the Internet Bubble
3.      The End of The Golden Years

Market Mania Beginnings

The market mania started when companies tried to survive the falling price of the stocks. Even though it started slowly, it soon led to coming up with activities that were on the line of being legal. Linking executives’ gains to the fluctuation of stock prices made many people rich overnight, but companies wanted more. They started coming up with creative ways of doing business and reaping a profit while they did nothing to raise the actual value of their companies. They stopped caring about sustainable value, and all they cared about was stocks. Stock prices could be manipulated, and they did that, first up till a point, and after, they took even illegal measures. Thinking it would last forever, they set their own trap in which, not long after, they were bound to get caught.

The Birth of the Internet Bubble

In 1985 InterNorth and Houston Natural Gas merged into creating Enron. As soon the merger happened, Enron tried to reestablish itself into a trading company, instead of continuing as an energy distributor. For these purposes, the company’s executives used creative accounting methods. The CFO created SPVs (special purpose vehicles) to move debt off balance, to make Enron eligible for more credits. Furthermore, the head of trading launched new businesses, fostering a culture of entrepreneurial spirit. The company’s CEO, on the other hand, was focused on making political connections and promoting Enron’s credentials.

These activities turned into fraud by 1997. Enron used shell partnerships to self-sell assets and made a fictional profit. Next, they started selling broadband fiber and waited for the right moment to enter the telecom industry. They did that with WorldCom. WorldCom used mergers to raise its share prices, which is a pretty unsustainable strategy.

But by then executives only cared about stock prices. Even at the cost of illegality.

The End of the Golden Years

The first time a merger showed its real ugly face was when Time Warner and AOL merged. Two months later, in March 2002, the internet bubble burst. The price of internet shares plummeted to 90%. Telecom shares didn’t drop as fast. They continued rising for another year, while insiders sold their socks, knowing their value is only fictional. Enron started tumbling at the beginning of 2001. Executives continued to artificially raise the value of the stocks, making their decline slower. However, in the meantime, they sold their shares, until the end of the year, when the company went bankrupt. The market fell, and scandals continued to appear. In reality, ordinary citizens were the ones that were left to bear the consequences of other people’s fraud.

If you feel like this is the book for you, feel free to contact us for further information. You can download our mobile app and share your experiences with us. Between you and your book, there is a one-click delay – check it on Amazon;