Of Permanent Value

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.

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;

Intelligent M&A

How can managers smartly interpret mergers and acquisitions? Instead of relying on facts, you can collect information.

You are probably familiar with the template of every business publication. According to various standards, it’s close to a disaster if your announcement lacks articles about mergers and acquisitions or (M&A). You as a representative of the company must form a team that will function in the service of the firm by designing (M&A) deals. Well, the rumor has it, that a proper merger deal will get along with financing, managing, and analyzing other companies, the same thing refers to an acquisition. The book covers a wide range of topics, from more optimistic deals to combinations that went wrong. In either situation, this classic presents examples and tips to follow for abandoning such unprosperous partnerships.

There is another perspective, from which all of these rumors and legends don’t leave a mark on the company as a result of simple ground rules. The steering wheel is in your hands, and the authors embolden organizations to accept the new intelligent strategy. As an illustration of this point, “Intelligent M&A, offers dozens of combinations each representing a separate stage of growth and desire to expand. Firms need to adapt to the environment before any merging or acquisition takes place. Regrets have no place in the modern era, due to their negative impact on the company’s morale.

Some M&A transactions are prone to failure more than others, but that depends on many factors. For instance, we can mention, market positioning, financial security, competition, political situation, etc. Surprisingly, not many companies have conducted these financial operations successfully in the past, and the explains the aversiveness existing when it comes to justifying the value of the deal. In spite of the risk, there is a big gain in taking ownership of another entity’s stocks, assets or enterprises.

However, as it is with most things – it’s easier said than done. Fortunately, this book enforces new perspective into your mind, a broader look that promotes growth and stimulates risk. Why go after mergers and acquisitions? It’s an efficient way of lowering down the operation costs, expanding the organization and increasing your market influence. On the other hand, M&A is not a phenomenon that can undergo a calculation and be measured precisely.

The authors Scott Moeller and Chris Brady provide an insightful guide filled with useful tips all leading to a smarter use of M&A. Someone may say, that the world doesn’t operate around mergers and acquisitions, that includes the business community, but you have to remember that investing is an integral part of any business operation – directly or indirectly.

Every organizational process gains momentum from well-designed strategies. The ability to make your way through the fluctuations caused by various factors is a rare skill. Team effort to burst that bubble of uncertainty is proven to be useful but not resourceful. Unfortunately, even now a significant numbers mergers and acquisitions do not live up to expectations due to unfavorable external and internal conditions. Not so often, they destroy both companies simultaneously.

An urge is often the reason for destruction. These deals or transactions consists of sensible information, therefore chasing deadlines, and conducting time-management strategies is a recipe leading to disaster. This book assists you in the pursuance of right deals. It helps you to learn some negotiations tricks and techniques that you can apply when you gather intelligence. GetNugget offers this magnificent classic to all people who are looking forward, and those seeking to learn the value of merging and acquisition transactions.

Who is this book for

These days, there are no shortages of possibilities, but the human nature tends to get a little needy – that’s a huge mistake. Analyze whether your deal is based on fantasy, or on detailed analysis, is an effective strategy to avoid making mistakes. A similarly designed theory is the one where the acquisition, relies on numerous opinions, assigns consultants to the task, and listens to what they have to say. By all means, one must take all matters into consideration.

This book is a perfect fit for investors, managers, leaders, and students whose eagerness to achieve success is on another level. Generally speaking, the transactions leading to a successful merger or acquisition are difficult to explain. The takeover is a complicated subject; this book attempts to resolve this matter in order to help you pick the best possibilities.

Authors’ expertise and short biography

Scott Moeller currently heads the Cass Business School’s executive education program. Before that, he was in charge of a venture capital fund, and also made his contribution in academia. Scott is the author of Why Deals Fail and How to Rescue them; Surviving M&A, etc. Chris Brady momentarily has a dean’s role at the Bournemouth University business school.

Key Lessons from “Intelligent M&A”

1.      No risk, no gain
2.      The ability to follow success depends on your preparation
3.      The power of questioning

No risk, no gain

Not even the most experienced investors can guarantee you success, in the early stage. If you come across such, too optimistic advisers, beware of their unrealistic point of view. Sometimes, knowing when not to make a move is actually a step forward.

The ability to follow success depends on your preparation

Instead of pursuing success blindly, there are tools available that can lead you upstream to ultimate victory. The final act of success reveals itself when an executive or any other decision-making body of the organization is capable of identifying the right opportunities and able to separate them from the unprosperous ones

The power of questioning

When you are not sure, whether the deal is the right one for the company, the next best thing is to stall the offer. Gather more intelligence and information about the stocks, assets, that you are purchasing.

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;

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;

Origins of the Crash

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;

The Equity Culture – Book Summary

As market trading had its ups and downs throughout history, counter-effects emerged: people learned the impact of risk, the probability of its arising, and evaluation of side-effects.

The stock market originates from ancient times, or precisely from the mighty power of ancient Rome. The early form of capitalism occurred in The Roman Republic. People divided lands and titles among their trusted nobles, which caused the occurrence of privatization. Even then, the desire for a leader or ruler drove people to initiate a process that created a powerful state. Roman law enforcement was so sophisticated back in those days that other countries even up to fifteen centuries later weren’t able to produce the same amount of law-effectiveness existing back then. The ability to collect taxes, build temples for worshiping their Gods and creation of private communities to share expertise on numerous subject is only a part of the Roman Advanced Culture. The word “Publicani” probably doesn’t ring any bells, but corporates know that this term started the corporate era.

The digital word derives from ancient civilization – the most prominent one of all is, of course, The Roman Republic whose influence has spread on three continents. Something very similar to corporations was discovered by the Romans, even though their methods were cruel, they inflicted knowledge and imparted wisdom on the people they’ve conquered. Investors had an opportunity to trade “partes,” near to the “Temple of Castor,” which was located in a neighborhood named the Forum.

The buying-selling process included “partes” as well as trading with slaves, land, ownership, ships, vehicles, foreign currencies – almost anything tangible in those days. According to historians, everything associated with market, and equity culture derived from Rome. When Rome fell, the economy collapsed, and the economic progress stagnated for many centuries. Romans used to say – while Egypt builds useless pyramids, we’ve invented an irrigation system that would go on for thousands of years. After Christians took possession of the newly established Republic, Europe started to starve. The markets were no longer able to satisfy the needs of the people. The black market took advantage of the situation because people could no longer afford the essential daily requirements.

The Bible enforced some strict rules which didn’t produce any effect on the community. People became more desperate and eager for change. Not everyone could enjoy the luxury of having a proper daily meal. To sum it up, economic progress and financial stability were not invented in the new days; they hail from ancient civilizations.

Smith demonstrates how, when, why trading took place. It examines the benefits of it, and why the world’s economy experienced its ups and downs. In the first place, ordinary people will place wars, culture, religious constraints, and unacceptable societal behavior as the greatest culprits who opposed prosperity. However, many more mysteries are buried beneath the surface – waiting to be excavated.

Interpret this masterpiece, like a walk through a market museum with a well-educated person (author in this case) as your only guide. The skeptical ones are entitled to their opinions, but they should at least give a chance to this beautiful, fact-filled book. All things considered, trading- mysteries surely are worthy of your attention, because whether we like it or not, the economy is a part of our collective evolution. The craft of trading gets even more amusing with dozens of anecdotes contained in the book. GetNugget warmly recommends this book to all people interested in economics, financing, and trading secrets.  

Who is this book for

“The Equity Culture” clarifies the drastic economic reform that the market has experienced and outlines the major financial setbacks that prevail today. There is no room for panic if the people are aware of the situation. Many quotes and examples from renowned market theorists, such as Harry Markowitz, Joseph de la Vega, Louis Bachelier are present in the book. Their influence extends on a global scale, targeting the greatest economies and affecting third-world countries.  

This book awakens the free-minded attitude in others, as a concise guide with an easily-digestible flow it targets only the most experienced economists, financiers, investors, bankers, etc. Come to the roots of the economy, don’t be afraid to exploit the mistakes of our ancestors. Markets nowadays have evolved due to numerous technological possibilities and solutions that exist. However, not even that can simply eliminate all the ancient techniques used by the Romans. The author – B. Mark Smith, starts with ancient Rome and continues to spread information about financial markets covering even the first years of the 21st century.

Author’s expertise and short biography

Mark Smith is mostly known for his stock-trading activities. He is also the author of Toward Rational Exuberance: The Evolution of the Modern Stock Market. Momentarily Smith lives in Manhattan.

Key Lessons from “The Equity Culture”

1.      Understand the stocks and markets
2.      Markets are evolving all the time
3.      The need for central banking

Understand the stocks and markets

The first ever theorist who undertook a scientific research to understand how markets actually function was Louis Bachelier. The Theory of Speculation – is more than some case study or theory because it relies on statistical analyses and techniques. He discovered that stock prices are random and changeable.

Markets are evolving all the time

No one stops the evolutionary progress of trading. The resistance will be meaningless – the best thing would be to reach out an acceptable accommodation. The world even now cannot identify how far this change is willing to go. However, the society must realize that markets have matured and periodic crisis are an integral part of that process.

The need for central banking

Many economists throughout the late 19th and early 20th century have realized that money needed central management. This operation targeted all the money in England because the capital supply line required improvement in order to reduce market inefficiency.

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;

More Than You Know – Book Summary

Sometimes market guided by its unpredictability has a habit of influencing all parties. Collection of first-class essays mixed up with first-class examples provide a more detailed explanation on the subject.

Investors rarely reveal their investment tactics, since the whole do/or don’t do process relies on secrecy and financial reliability. Likewise, there is no much room for improvement if the decision-making ability is unsatisfactory. Nowadays, people often face societal pressures – meaning that there is no shortage of issues (economic, legal, personal, etc.) How to behave on the market is a million-dollar question. No one can pull a rabbit out of a hat; the answer commits to research and studies. The way an ordinary person would interpret a stock information uncovers the mindset of that particular individual. It’s never easy to step-up and utilize some investment philosophy without proper preparations and research.

All aside, if during the process quality gets compromised, and emphasis falls on IQ, the odds of making a good decision decline. The right philosophy falls into the category of hard work, not talent. Warren Buffett once said – Investing is a matter of adopting the right attitude, not how smart you are. Such behavior is enough to gain a competitive edge and motivation to proceed forward. In fact, there is not starting nor stopping; as a long-lasting series of actions, investors should take the whole stock-purchasing process soberly and diligently.

Above all, comes the vision that desired outcome is overwhelmed by the right attitude and perspective. On the other hand, satisfactory results do not justify an unacceptable process. Think of it as a football game, if the team plays well, the short-term defeats will not suffocate the long-term progress. Making sound investment comes on top even if the end result doesn’t satisfy the requirements – simple as that.  

“More Than You Know” is a book consisting of 50 short essays – written mostly for new investors. Michael J. Mauboussin generously shares many useful methods, easily digestible even for those people not familiar with the terminology. Marked as one of the highly-appreciated writers on investing, he advocates for a multidisciplinary perspective that tries to get the idea of how markets behave. The fluid collection of essays, serves its purpose, not only with the versatility but also with its trustworthiness. The book covers many subjects related to finances given the author’s trust in conducting analyses as the only source for collecting information.

His book is no place for mysterious attitude; a fact-filled masterpiece that clearly defines many aspects of finance. Arguably the most complex subject with no strongly embedded routs in history. The author underlines the statement that it’s not even too important to understand the market. On the contrary, give priority to perceiving the market as it is, and get the best out of it. The most durable tool is being able to look with the eyes of hope, not judgment. GetNugget highly recommends this book as an excellent remedy for the societal disease caused by confidence in meaningless theories.

Who is this book for

Sadly, even experienced stock-brokers put the focus on the outcome and deceive the community to make rash and irrational decisions. This book will grant you a new reliable perspective on how to interpret investing. In reality, people tend to get “hungry” for more, which leads to neglecting long-term benefits. The secret lies in sacrifice – the real long-run tool for prosperity. Not in every case, but surely a large number of them. As society progresses throughout the ages with the help of technology, “the result” starts to act as a calculator for success. Market security is a term used only by ignorant personalities who don’t grasp the uncertainty of the world.

Differ from the group, and go beyond the status of an average everyday spender. Investing doesn’t essentially mean purchasing stocks or houses. Buying groceries is also a part of the same team, even if that may not be looking like the outcome in this case. Beating the market refers to offering a better solution to customers’ problems. If you wish to make your entrance on that door, make sure that your commodities have that special ingredient. For this reason, the author outlines several strategies that will entice any reader or person keen to earn some extra money. Managers are the first on the list because they’re among those passionate characters who try to achieve this goal. Generally speaking, they differ from an average expert in any other industry.

Author’s expertise and short biography

Michael J. Mauboussin was born on February 19th, 1964. Despite being a writer, he also heads Global Financial Strategies – advising companies and individual investors on portfolio diversification. Michael also teaches at Columbia University’s Business School.

Key Lessons from “More Than You Know”

1.      Group of people can solve problems with utmost efficiency
2.      The changeable nature of economy
3.      Fight against stagnation

Group of people can solve problems with utmost efficiency

Recently conducted research discovers surprising facts – that a group of people without any particular knowledge can resolve issues equally well as individual experts. Take Ants, for example, they drift around without any leaders, and yet togetherly they manage to deal with hunger. The same thing goes with people.  

The changeable nature of economy

Things change on physical, societal, economical, and any other aspect. Systems that promote rigidity are omnipresent in every country. Due to massive innovations, people realized that nothing stays the same and flexible attitude is crucial for success.

Fight against stagnation

The ability to manage physical resources brought success to many companies in the past. These days the intellectual aspect has a little more significance. Ideas and innovations as representatives of this group share an all-encompassing package to combat the traditional mindset.  

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.

How to Retire Happy – Book Summary

Retirement plan still draws a lot of attention among the people. Despite various benefits, it has one primary objective: to help you remain active by maintaining close relationships with other people. However, you should know that retirement doesn’t come free of cost.

Not just America, but the entire world has suffered changes to the process of retirement. World population is also transforming each decade because people are living much longer than in the past. The system must be adapted to the newly presented living situation. Sometimes people start a second career as a result of the low pension income they receive. Driven by fear or a desire – it doesn’t matter. These life-dilemmas are occurring more often to each person once that individual reaches the stage for retirement. Retirement is aided by tax-deferred savings procedures and other pension funds. Banks now struggle to compete against these insurance funds, due to the interest rates these companies have to offer. Despite the financial point of view, the people are more concerned with the personal aspect of retirement – and how to get the best out of it. The easiest way to begin doing that – start planning.

Ask yourself questions about your future goals to decide on the best retirement approach for you. The author doesn’t concentrate only to those 60-year-old persons, but to everyone. Start the process by asking yourself – Am I ready to retire? Consider all the advantages and cons, depending on your current age, financial possibilities, momentary health, family situation, the complexity of your job, etc. A smart person will analyze the situation before making any conclusions. Take into consideration various factors affecting the process of a successful retirement and become fully informed. Once you have all the tricks up your sleeves, you are ready to decide your future.

Stan Hinden – the author of “How to Retire Happy,” contributes to the society by providing valuable pieces of information (or specifies where to look for them) to one of the biggest financial dilemmas of the 21st century. People in the U.S are facing difficulties related to their productiveness at work. Somehow the imperialism today enforce strict laws on the American society leading to the ultimate questions? When are you going to retire? Does your family support you? Are you going to be comfortable with the benefits that Social Security and pensions provide? Do you trust your company’s savings plans? Have you invested a sufficient capital for such occasions? Perhaps, the most awkward question of all – How would you manage to cover the expenses for medical treatment (if you ever need to)? Hinden’s generally straightforward and transparent writing style addresses the public concisely. You can forget about your financial plans which are meant to cover some of your expenses in the future. The emphasis is placed on the retirement process and everything associated with it. GetNugget prescribes this “retirement manual” to the entire American population; a book enriched with clear tips capable of guiding the Americans.

Who is this book for

Even the most skeptical portion of the American society will find this magnificent book amusing and educational. Author’s valuable tips and hints are meant to take you up to a whole new level of understanding retirement. Even though we think that the country we live in, is obligated to deal with this matter, it’s not always so. You are the manager of your pension fund; take care of your future by investing in education. Every individual in this world is responsible for its life-savings including pension. To afford the best possible retirement period start planning now. Many tax-deferred and pension fund savings programs facilitate retirement; it’s up to you to choose the best one for yourself. First analyze the reasons which drive you to adopt such an action, including to decide what will you do after you enter the period of rest. Overcome your doubts and start investing in yourself and family. Face your fears and retire happy, even if it is not your time yet, start preparing. This is the best-equipped book if retirement is your primary concern!

Author’s expertise and short biography

Stan Hinden is a prominent writer who worked at the “Retirement Journal,” in which he focused on dilemmas related to the issues and challenges of retirement. The American University School of Communications has granted him honors for his endless financial reports from which small and big businesses have benefited. A new perspective was born related to retirement and the possibilities linked to it. Before retiring, he spent more than two decades at the Washington Post, including several years as a financial consultant and columnist.

Key Lessons from “How to Retire Happy”

1.      Is now a good time to retire?
2.      Should I continue investing after my retirement?
3.      How to withdraw my money?

Is now a good time to retire?

Your next decision is critical. Don’t rush into conclusion and carefully approach the seriousness of the retirement process. The only question worthy of your time and effort is – Have I raised enough funds to make this retirement possible or should I continue to invest? What would be my monthly income? Answer these two questions, and you’ll become aware of your present financial situation.

Should I continue investing After my Retirement?

Evaluate your total retirement savings to find financial gaps. Once you discover their existence, you can adopt a new money-saving policy by investing somewhere else. The new system must represent your interests; don’t run away from risks, depending on your financial knowledge consult yourself with someone more experienced on the subject.

How to withdraw my money?

There are two main types which reflect two different kinds of personalities. One of them known as payment from the employer indicates a system in which you take the sum that you require. The other one, relatively familiar to each American is monthly payment (according to different saving plans). There is no rule to follow, think about your needs and make your decision.

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.

Dealing with Financial Risk – Book Summary

Prepare yourself for a battle just like those highly decorated generals who were fighting. Risk managers must embrace conflict even if they are not ready for them.

At the beginning of the 70s, the Yom Kippur War which engulfed the region made a mess of the world. The Arab countries took advantage of the situation as devoted members of the Organization of Petroleum Exporting Countries (OPEC) and embargoed oil supplies to other nations which led to a massive petroleum-boom (referring to the price). According to experts, the middle east has planned this operation in order to inflict new policies on the Westerners including both the U.S. and Great Britain. After the Great Depression that demoralized the world in the early 30s, a new crisis set foot on different place affecting everyone. Companies could no longer afford the privilege of importing oil, because of the price which was continually rising. The all-around effect was devastating; the world economy was seconds from a total collapse. The rising cost of oil produced new prices for other products and services that most of the people could not afford. To make matters worse, the oil producers’ bank deposits had a tremendous effect on the world development. These banks had money, without investors interested in bank loans. Something had to be done; the capital was trapped between rich oil-producers and the difficulty of finding a profitable business in the new crisis.

Bankruptcy was out of the question, many companies refused to sign these papers and postponed the inevitable end. Banks started one dangerous strategy, the worst nightmare for every creditor. Operating on the belief that third-world countries mostly from Eastern Europe and Latin America would manage to avoid going bankrupt. As a consequence of the new philosophy, money was not lent to creditworthy investors or countries – putting the oil-producers’ capital at high risk. In the early 80s, the U.S. and Great Britain attempted to confront the inflationary spiral by raising the interest rates to previously mind-boggling levels. At some point, the Interest rates on the dollar hit an incredible 22 percent. Desperate to avoid total economic collapse, these two countries created an issue for the state debtors. High-interest rates logically create a greater demand by the people – a contra effect is lower dollar value which is exactly what happened. Only the Latin countries benefited from foreign exchange.

David Shirreff was one of the first people out there, brave enough to conclude techniques on how to fight the oil-crisis. The financial risk existed even in ancient times, although the countries back then didn’t know much about it. “Dealing with Financial Risk” is a book that covers many topics related to the management of finances. The materials for this financial guide were collected from the author’s published articles that he wrote during the 1990s (a period of progress and digital innovation). GetNugget highly recommends this magnificent financial book to financial professionals, potential investors and to the overall audience eager to learn more about handling a financial crisis.

Who is this book for

The economy has a significant influence on our behavior. As people living on this planet, we’ve experienced hard times which forged us into something more profound (capable investors and financially orientated professionals). The Great Depression and the oil crisis in the 70s helped us to understand how the economy actually works. A new term – inflation appeared before WW2, by now the people should probably comprehend how to control both inflation or deflation. Nevertheless, even today we fight against these financial predators. Banks place inflation at the very center of happenings since its power can overthrow any government or business. Are you an artistically orientated person, even if the economy is not a subject interesting to you, you should not miss the opportunity to educate yourself. The easiest way to do it is by reading “Dealing with Financial Risk” a book which acts more like a financial-guide. Dealing with the world starts when you support all those things which serve in your interests. David Shirreff allows you space to carefully choose the chapters you find amusing; you are not compelled reading the entire book. Don’t trust too much in the economy, place confidence in your financial forecasting abilities which are about to be sharpened by David’s inspiring methodology.

Author’s expertise and short biography

David Shirreff was born in 1947 shortly after the end of WW2. During his career, he spread the financial knowledge to other people unselfishly. Currently, he has a responsible role as a Frankfurt correspondent covering business and finance topics. Back in the days, David worked as the capital markets editor of The Economist located in London. He wrote the book Euromoney, and in 1987 co-founded the Risk magazine.

Key Lessons from “Dealing with Financial Risk”

1.      Play smart, don’t rely on others
2.      Find the best option
3.      Deal with the unexpected risk

Play smart, don’t rely on others

Indeed, the unexpected happens quite often, perhaps even on a regular basis. Banks have lost their power; the same thing goes for the financial system. Banks and insurance companies, for instance, are competing against each other. Playing on “forbidden” fields trying to lure other clients.

Find the best option

A possibility is equal to choice. The financial tool known as an option gives everyone a choice, referring to a possibility to purchase some commodity. Market’s variableness is known to each one of you when the price of some goods fluctuates as a consequence of various factors – the contra effect is triggered.

Deal with the unexpected risk

Banks and regulators have difficulties managing the process related to the adoption of valuable standards willing to contribute to the risk management preparations. However, the history has displayed the financial systems’ inaccuracy when trying to invent quantitative models for dealing with the unprecedented risk.

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;

The Snowball – Book Summary

The fascinating bio of Warren Buffett has one particular picture which stands out from the rest of them: a portrait of a child playing with its favorite toy – a moneychanger.

What is the first thing that comes to your mind when you think of Warren Buffett? Just another millionaire who inherited the wealth of his parents. On the contrary, he earned every penny by himself. Warren is not living amid Wall Street’s bustle. Instead, he spends most of his time working in Omaha, Nebraska, a rural town in the U.S. heartland. Throughout his professional life, Omaha has been Buffett’s base for decades, even though the rest of the civilized world and business community sees it as just another second-class town of no particular importance. From an early age, Buffet reconsidered his decision on how to earn more money and ultimately build wealth. His focus was placed on studying the stock market and trading secrets (commerce), inspired to learn as much as possible about global companies (industry leaders), their financial situation and potential for growth. You cannot describe these methods as a learning task; it was his pleasure to implement that hard-earned knowledge which he gradually did. The results were evident, the path he chose was his guiding light. Inch by inch Warren became and still is among the richest persons in the world. His investment approach or philosophy is only the result of Benjamin Graham’s legacy as an investment guru and his mentor. He often used to say – Seek for firms whose stock values have a lower price than the organization’s “inborn” value and invest your capital accordingly. Buffett endorses the theory – A smart investor would not worry too much about stock market’s momentary ups and downs.

Warren Buffett emboldens every person, by believing – that everyone has the capacity of becoming a multi-billionaire. Despite his current financial situation, he prefers a humble way of life. Annually he receives around 100,000 dollars, income suitable for an average middle-class person. Warren lives in the house he bought in 1958 for 31, 500 dollars located in Omaha, Nebraska. People often see him wearing an old gray, rather than an expensive brand. Surprisingly in the early days of Buffett’s success, when he was “only” a multimillionaire, Buffett used to wear shoes with big holes. According to his beliefs, a man should strive to make money, not to look fancy because the wardrobe doesn’t matter. Besides, who else has the credibility to speak like this? He has a freedom to do what he finds appropriate. By the Forbes Magazine in 2008, Warren Buffett earned the title of the globe’s richest man, with an estimated net worth of astonishing $62.3 billion. The author of “The Snowball” Alice Schroeder does an excellent job of analyzing Buffett’s unbelievable, inspiring life. Schroeder is an expert research analyst who displays Buffett’s successful investment philosophy and his business approach. Many financiers, students, and economists praise Schroeder’ shrewd skills not only as a researcher but also as a writer.

Who is this book for

The Snowball is undoubtedly an unconventional work capable of resolving mysteries linked to investment and finances. If you think that finances are not your area of expertise you are still living in the medieval period. Every person should expand its knowledge concerning investments and how to manage its capital. ROI is what matters, but the today’s unpredictability makes the brokers and investors feel skeptical. According to Buffett this theory is nonsense, you as an individual should eschew worrying about the changeable nature of the stock market. A good investor must easily disregard the ups and downs by understanding the stock market uncertainty. Alice Schroeder advises you to indulge the whole economic process by “playing” you – the investor versus the business community. Enforce a proper philosophy which will overcome problems like cash deficiency. It is a rarity to find a book adaptable for all audiences especially for professionals engaged in the economic sphere of influence – that is the case here.

Author’s expertise and short biography

Alice Schroeder was born on December 14th, 1954 in Dallas, Texas. She is a columnist, former insurance analyst, and the author of New York Times bestseller – The Snowball. In the late 70s, Alice received her BBA and MBA from the School of Business at the University of Austin. Soon after graduation he immediately started working as a CPA for Ernst, and Young in Houston. From 1993 till 1998 she changed several jobs all linked to insurance investment and analyzes. Initially, Alice impressed everyone with her amazing writing style (clear and concise), and on Warren Buffett’s behalf, many individuals insisted that she deserves a full-time writer status instead.

Key Lessons from “The Snowball”

1.      Buffett continues to increase its wealth
2.      Susie’s charities
3.      Find your path to prosperity

Buffett continues to increase its wealth

As the years passed, Warren without stopping continued to keep getting richer and richer; alongside with his trusted partners and fellow investors. In the 80s Buffett shifted from a millionaire to a multi-millionaire and ultimately reaching a billionaire status by 1985. At that time, his estimated net worth was around $2.1 billion, placing him among the ten richest people in the United States.

Susie’s charities

Buffett is not a greedy man; he made every person around him wildly rich by using the same philosophy he applied for himself at the stock market. Susie Buffett started her charitable activities on behalf of Omaha’s poor African-American community. She also tried as a part-time singer to support the community, meanwhile remaining passionately supportive of her husband’s work.

Find your path to prosperity

It is not easy to find the right answer on what techniques to use if a person wishes to become a millionaire. Probably, the best way to resolve this mystery is to look at one of Buffett photographs, the one in which he proudly holds his favorite toy –  the change maker.

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;

The Great Boom Ahead – Book Summary

Have you ever heard of the baby-boomers’ spending patterns? If the answer is yes then, you are among those rare individuals capable of predicting the economy, be aware that depression is lurking around every corner if you quit spending.

Don’t take for granted every economist, who fiercely hold on to the theory (and endorse it) – that the economy is and has always been elusive and unpredictable. New techniques which evaluate the boom’s effect generated by the people –  on the economy, advise that probably the U.S. is in for a lengthened economic growth (despite nation’s debt), predicted to last throughout the coming decade also. The pessimists are so wrong because they think – some business cannot lure investors from various reason, which are entirely false. The greatest economic boom in history positioned the U.S. somewhere in the middle between prosperity and debt. Financial analysts identify these long-term trends as easy to foretell.  

What do you know about the Generation Wave? Have you heard about the relation between economy and “The Generation Wave”? The “Wave” is not just a part of financial secrecy, but also it represents a good way to understand the concept of economy entirely. For instance, every other economic revolution or trend is just a branch; the roots belong to it. The Generation Wave demonstrates how people adapt to new economic times and how is the economy influenced by people from different ages. As you can clearly see, the cycle remains predictable. Each generation contributes to the society by inventing something new; new values are being formed – whether technological, financial or social it doesn’t matter. Just like in 1928, a year before the Great Depression, the spending power has reached its peak once again. This situation undoubtedly stimulates the birth of a modern economic boom. USA has the greatest economists who see the Generation Wave as just another tool responsible for the current U.S. prosperity, a true representative called – the baby boomer.

Harry S. Dent, Jr.’s masterpiece is unique both for the precise predictions and for the simple model upon which those prognoses depend. Written in the early 90s, it alleges a theory concerning the big family of “trend” books written by vocabulary geniuses of Alvin Toffler and John Naisbitt. Their work foresaw the digital era of super dynamic markets, which is predicted that it will continue in the years to come. The term or sentence “The crystal ball drops a few items” has a meaning incomprehensible to many. It indicates that several years have passed since the first publication. Even so, it provides the people with an accurate macroeconomic forecast, and it is an “investment device.” If you’ve just felt an urge, or if you sense some eagerness to learn more about the New Economy, this is the perfect book for you. “The Great Boom Ahead” is a classic masterpiece, highly recommended for those people keen to understand the United States’ period of record-breaking economic prosperity (and Japan’s difficult times).

Who is this book for

Perhaps the new generation has more possibilities, lots of things to enjoy, so you should ask yourself – Can the population handle the new Boom, which is “raging” ahead. Regardless of the economy and its ups and downs, the population must find a way to answer the difficulties of today. The straightforward projections of the new baby-boom generation spending fee will lead to a massive economic expansion in the first half of the 21st century. Don’t take hold of this theory blindly; the prosperity carries its own “taxes” which we as a population must pay. The banks support the imposed need for something – which by now is a part of our genes (technological needs, for pleasure, or real estate), they look for credit-worthy persons to make the world spend and lend money unpredictably. By using the proper tools as Harry S. Dent, Jr. advises, you can precisely predict the economy. As said earlier, this book is not just an answer machine for economists. To comprehend every aspect of the modern economic boom, you should study the Generation Wave of population growth, and in what way people spend their money – analyze their behavior.

Authors’ expertise and short biography

Harry S. Dent, Jr is an American-born financier and a newsletter writer. He was born in 1950 in Columbia, South Carolina – his father Harry S. Dent, Sr was involved in politics. After receiving a college degree from Harvard University, Harry started his personal business as the Founder of HS Dent Investment Management – company located in Tampa, Florida. He is also a person who uses its business experience to influence and manage a few small businesses. There is nothing predictable about him, known for his controversial approach and innovative techniques; he explains his mission as: “Allowing people to see and understand the change.

Key Lessons from “The Great Boom Ahead”

1.      The New Wave and its features
2.      The Birth of an Idea
3.      Human Model Forecasting is not trustworthy

The New Wave and its features

The occurrence of the Generation Wave led to the creation of another: The newly established Innovation Wave. Each generation must contribute to the common technological good. These innovations are guided by an “S” curve – an innovation stage with restricted adoption, a growth stage, and ultimately maturity stage – representing stability.

The Birth of an Idea

No other factor has that much influence on the economic growth as the birth rate. For instance, if you project the birth rate fifty years in advance, you will recognize any given generation’s peak of financial activity or Spending Wave.

Human Model Forecasting is not trustworthy

Predicting the future is not an easy thing to do. However, the projecting of trends is a job for the Human Model of Forecasting, which by the way provides not very reliable predictions. The process is merely logical – economy improves, the gain increases.

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.