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;

Snap Judgment

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.

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;

Hot Commodities

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.

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;

Money for Nothing

Real Wealth, Financial Fantasies and the Economy of the Future

Creating real wealth and a successful country has always asked for hard work. However, in recent years, the society has adopted a money-for-nothing mindset where investors get rich in a blink of an eye. This wealth is created on speculation-driven markets, operating in a world economy focused on intangibles. Accordingly, goods are no longer the prime mover of the modern economy. But, after the dot-com economic mess in 2000, investors have come to realize that speculation driven markets are not stable. In fact, they could disappear in a split second, just the way they appeared. It is a new paradigm, indeed, to try to gain riches by a simple rise in stock prices. But, the world must move away from that fantasy world of rapid reaches. The real value is rooted in a prosperous, productive society.

The history of the world economy is full of bubbles of inflated estimates. The stock and housing bubbles are just a modern embodiment of old principles. Bubbles go back as far as the 1630s when Dutch tulips were priced as much as a modest home. Even though they had no actual value, people continued buying them led by the reasoning that they must be valuable since their price kept rising. The same thing happened not long ago. In the dot-com era, when stock prices rocketed even though the companies had no profit and no solid business plans. The previous is just an example of how when expectations outrun value; the actual value is no longer a player in price-setting.

Nowadays, housing seems to be the new bubble. The same way that soaring predictions fueled the dot-com speculation market, sky-high expectations have pushed investors to embrace the housing bubble. What was once stock-trading is now house-buying. According to the basics of economy, the rising demand and shortage of property are making prices increase. Some of the housing enthusiasts argue that property prices won’t drop since long-term market trends won’t affect short-term prices. Contrary to their argument, Japan, Hong Kong, France, Australia, etc., have all witnessed plummeting property prices.

Developed countries all face the threat of falling prices. Inflation, which was once a real danger, has given its way to deflation, which may surface as a new menace to the corporate world. If prices fall, most probably wages will follow. An extended period of deflation could destroy the housing market. The logic behind this is simple: if wages fall, mortgage holders will no longer be able to make their mortgage payments.

In the meantime, although the housing bubble is still striving, the world’s economy starts moving its attention towards knowledge. Biotechnology and software industries are progressively flourishing. This phenomenon is called the “intangible revolution”. The prime valuable of these technologies is knowledge, which is a renewable resource with an endless supply. The knowledge revolution means that even if it comes to the destruction of institutions, new generations can restore society. Countries that refuse to accept technological advancements cannot achieve prosperity. Indeed, states have to be careful what trends they follow, but at the same time, they have to keep pace with the newest developments. Otherwise, they won’t be able to escape economic ordeals.

Conversely to this trend of trading intangibles, some industries cannot get separated from the physical world. Such example is food production. But, other sectors are hugely e-commercialized. You can already download music, transfer payments electronically, purchase travel tickets and reserve accommodation online, etc.

Who is this book for?

Ten or so years ago, Roger Bootle accurately predicted an extended period of low inflation. Using this credibility, he writes about the bubbles the world economy is in the midst of. He explains the dot-com era and the bubble whose bursting created a problem not so long ago. He continues describing the position the economy is in at present, naming the current trends as a real estate bubble. He argues that the stock-market gains and speculation markets are not a lasting way of creating wealth. He continues explaining the knowledge-based economy and the future that awaits us. Stock market enthusiasts won’t enjoy Bootle’s predictions. The deflation and the burst of the housing bubble have yet to take place. Conversely, investors who are interested in a pragmatic debate on the world economy will surely enjoy this book.

Author’s expertise and short biography

Roger Bootle is a Specialist Adviser to the House of Commons Treasury Committee, and an Honorary Fellow of the Institute of Actuaries. He was formerly Group Chief Economist of HSBC and, under the previous Conservative government, he was appointed one of the Chancellor’s panel of Independent Economic Advisers, the so-called “Wise Men’. In 2012, Roger along with a team from Capital Economics won the Wolfson Prize, the second biggest prize in Economics after the Nobel. Right now he runs Capital Economics, which he founded in 1999 and is known as one of the City of London’s best-known economists.

Key Lessons from “Money for nothing”:

1.      Get real and cut expenses
2.      Be patient
3.      Analyze your investment decision

Get real and cut expenses

Don’t ignore the effects of inflation and deflation. Calculate investment returns, adjusting the numbers to actual developments.

Be patient

Don’t fall for stories of rapid riches in different segments of speculation-driven markets. Even though those fortunes are possible, they are not as real as they seem. Pure trading, consisted of buying for the sake of reselling is just a short-term source of wealth. In the long run, these markets are bound to disappear.

Analyze your investment decision

Make sure that once you decide to invest, you do it for the right reasons. Study if the company offers something that is worth the investment. Is it providing superior goods or services that other venture capitalists haven’t discovered yet? Does it possess good management? Make sure that you don’t gamble with your money.

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;

Your Money and Your Brain – Book Summary

The impact of neuroeconomics on making lucrative investment choices and decisions. Critical thinking is not just for fun, but also for profits.

From Benjamin Graham to Warren Buffett, investing contradicts the conventional wisdom emerging from the old-fashioned investors. Financial experts in the 20th century, adhered to several unproven, misleading theories which made the society believe in the wrongly managed processes. Even so, the world and especially the U.S. continued to evolve in all matters of human life. That system walks the same road now again because no investor has yet found a definition – that will calculate everything. You can start with cost/benefit ratio, ROI, Break-Even Point, or any other economic feasibility but neither one of them will generate results credible in all aspects. Some methods will cover long-term perspective; others may focus on the upcoming results and so on.

Many people even nowadays have a strong affection for talent, or skill whatsoever, but the real value comes from analyzes. The idea that hard work pays off is no strange to anyone; it also works with stocks. Eagerness and desire to learn more, are the only ingredients for success. Don’t look far to find the culprit for your failures; it’s right there in front of you.

Sometimes, а correlation between understanding, knowledge, and hard work doesn’t have to coexist in order for the process to unfold effortlessly. There is no shortage of exceptions, that’s for sure. Even Nobel laureates who have dug deep into the financial logic of investing, admitted that mistakes are unavoidable. This statement embraces or includes all successful investors. It all starts with knowledge and preparation, but it relies on motivation, research, durability, and persistence. In pursuance, of prosperity people neglect some major steps that are vital for getting there. The human brain doesn’t function on good/bad mode; the decision-making process sure is more complicated than monetary gains and losses.

In addition, it’s vital to mention the versatility existing in different sections. Readers will be utmostly pleased to specialize in cognitive science and investment matters. Of course, the duration of this process can never be clearly identified, but that doesn’t put you in an awkward position. The material is right there in front of you, every person interested in personal development and growth will be keen to explore the benefits of adopting a proper approach on the market.

Whether you are a beginner or a pro in personal finance, doesn’t matter. This book has no shortage of quality strategies that even the most experienced investors could find intriguing. Don’t lose self-control when dealing with personal investing. Just like anything else, practice makes perfect – you don’t need any particular background to be an ideal fit. To sum it up, GetNugget promotes this magnificent masterpiece because of the valuable information that the author has to offer. As such it is highly recommended for any person who wishes to take the next step in investment-related topics.

Who is this book for

Have you ever been caught off guard and why did that happen? Search your mind, and you’ll see that external influences don’t ask for permission to run your life. Indeed, get the big picture by focusing only on matters that you can affect, and leave the others one aside. These factors often tend to make us nervous, but on the other side, they are all beneficial. The good part refers to exposing your handling-pressure potential, which is a complete rarity in this world. Surprises at work, conflicts, risk, intuition, emotions, are some stuff that comes uninvited. Don’t blame feelings, nor any other element – somehow everything out there is shaping you into a better person/investor. Understand how to use them, and don’t look for a guilty party.

The author of “Your Money and Your Brain “Jason engage in two daunting subjects – financing and neural research. He succeeds making them both available and intriguing to the general audience. This outstanding book is not the first in line – among materials written to demonstrate cognitive and behavioral research theories that apply to personal investing. Nevertheless, it occupies а respectable position due to its high-quality examples and methods of dealing with market uncertainty. Not even the competition can deny the fact – that this book has its place among the comprehensive and credible content ever written. Given these points, there is not much to say except that “Your Money and Your Brain” is a book without restrictions designed for everyone.

Author’s expertise and short biography

Jason Zweig currently works as a senior writer and part-time a guest columnist for CNN and Money Magazine. He edited the Intelligent Investor – a book written by Benjamin Graham. Many books stand by his name like “Where Are the Customers’ Yachts” “A Good Hard Look at Wall Street” and others which he co-authored.

Key Lessons from “Your Money and Your Brain”

1.      Forecasting power
2.      Understand what makes a reasonable investor
3.      Being overly confident it’s not advisable either

Forecasting power

It may seem strange, but even now people still believe in homework effect. This method indicates that stock knowledge lies on earlier preparations – an entirely false theory. Several reasons support this claim. First, stock price relies on millions of analysts, second – transaction costs and other expenses influence the overall market – so you cannot have a total knowledge.

Understand what makes a reasonable investor

Being an investor It’s not a backbreaking work, under any circumstances. Time allocated to education is time well-spent, however, it never ends there. Investors prefer the term rational analysts, as its name implies this is a concept that emphasizes the hard work element of investing.

Being overly confident it’s not advisable either

Numerous studies illustrate that people quite often overestimate their capabilities by ignoring the facts. Self-esteem is an essential part of life, but neglecting knowledge and access to valuable information as some secondary elements is a strategy leading to financial collapse.

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.

Think and Grow Rich – Book Summary

Not many people have the capacity to use the power of positive thinking. Meaningless mind-chat cannot break the chains of poverty, low self-esteem and lack of creativity.

How often do people hear that phrase, think positive and good things will follow? Unfortunately, many of us continue being faithful to the old, self-destructive habits and thoughts, neglecting the transformation call. The author of “Think and Grow Rich” – Napoleon Hill clarifies that his formula for success derives from the legendary financial expert Andrew Carnegie. Life waits for no one, as soon as you are full grown, important decisions are lurking behind the corner – something that Andrew shared with a little boy called Hill – back in the days. The legendary corporate leader sensed something special in him, and unselfishly “cut the pie” into two pieces by giving out the fortune-generating formula. This early advice motivated the young boy to become the next self-reliant “secret-holder”. In this book, the formula is torn down to shreds in order to explain the point in details.

Shortly after the first meeting, Andrew challenged him to write, design, and publish a book which will cover all of the necessary financially related, mind-blowing aspects of his formula. Bonded by a promise, Napoleon Hill had no other choice than to start fulfilling the promise he gave that day. It took him around two decades to study people’s behavior, habits, philosophies, etc. The research was an exhausting process that ultimately produced the long-expected results. Studying their every day, ordinary, man/women is one thing, but his energy and attention were aimed towards those so-called corporate stars. He spent countless of hours, investigating their daily routine, how they cope with pressure, and what tactics they use to make their businesses run right.

Among the stars, names like Theodore Roosevelt, John D. Rockefeller, F.W. Woolworth emerged from somewhere. They were the guys who pulled strings; politics met entrepreneurship on controversial ground generating the same results. The most compelling evidence of their leadership abilities lies within their decision-making nature. Carnegie spoke and underlined few of the world’s greatest contributors at the time and explained Hill, what it takes to be listed among those individuals. “Every Big Journey Begins with the First Step” – that first step indicated a simple idea. Thoughts are the most reliable tool if used with utmost care. With this in mind, a person may evolve only if that individual is able to interpret failures as experiences.

Such an approach has fully transformed the young and passionate Napoleon Hill. He felt a wave of inner-call and love which no words can describe. The author of this 1920s classic will give you guidance like a father would do to his only child. In honor of his mentor, this book covers first-class breath-taking collection of lessons – all originate from the critical-thinking skills of Andrew Carnegie. These tips range from – daily practical things to mystical interpretation of universal powers and influence. Don’t get bored if some of the content gets a little repetitive because repetition is the only way to impart wisdom on others. GetNugget prescribes this classic compendium to every person on this planet who is “stuck in the corporate prison” with little room for a getaway.

Who is this book for

The 21st century, known for its self-help madness, is a mere reflection of the 20th-century uniqueness. A hundred years ago, Napoleon saw the little magic emerging from one’s mind. He then, gently improvised, examined and observed the surroundings to get a realistic picture of what the society desperately needs. With the help of Andrew, a success formula was developed which later on will represent the foundation of every self-help material ever created.

For the most part, the author refers to real life-examples which people find them attractive, logical, and in some rare cases even laughable. A time to expose your bad habits has come, don’t run away for cover – because instinctively the mind forces you to do precisely that. For instance, if you’re working from sunrise to sunset, burning the midnight oil once in awhile, then you are the perfect candidate for reading “Think and Grow Rich”. Whatever your story might be, if you are not feeling happy, don’t waste any time – use Andrew’s formula. “The world needs a new race of people, called the happy ones. If you want to join the club, transform your mindset and become in-tune with yourself.

Author’s expertise and short biography

Napoleon Hill was born on October 26, 1883, and passed away 87 years later on November 7th, 1970. He was an American-born newspaper reporter, self-help writer, and a lawyer. Andrew Carnegie played a big part in Hill’s life; his ideas motivated him to write the “Think and Grow Rich” book.

Key Lessons from “Think and Grow Rich”

1.      Master your mind and feel the power
2.      Sexual energy has business purposes
3.      Guide yourself by your Imagination

Master your mind and feel the power

The mind has no shortage of layers. Group cohesion is better than any individual talent that separates from the team and works individually. The combination of thoughts, plans, ideas, vision, strategies is proven to be one very resilient force, which can lead people to prosperity.

Sexual energy has business purposes

Sexual desire has stimulant effects on businesses, not to mention happiness. The ability to transfer your sexual energy into organization tasks can lift up the company in so many ways. If properly applied, there is little room for failure because passion can drive your business forward, better than anything else. Use this vigilant energy, to evoke change in others as well.

Guide yourself by your Imagination

Nothing in this world can even compare with the impact of imagination. It acts as a mind-factory which plays on two fields: rationality and creativity. Merging of these two can create a “deadly” force for improving the generating-ideas potential.

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.