A good insight into financial markets

Quite an interesting book with numerous anecdotes and a lot of historical information in there. It provides an interesting insight into the late 80's and the 90's financial markets from the perspective of someone who was obviously high up in the organisation and would have seen what was going on.<br /><br />The book does seem to focus very much on the author's time at Morgan Stanley and Salomon/Citi though, with only a small amount of information on his time at Moore or Ziff Brothers which I would have liked to have seen more information on. <br /><br />Definitely worth reading but don't expect it to be another FIASCO or Liars Poker with lots of stories about greedy traders and salespeople.

Unleashing the power of Excel in Corporate Finance!!

In 2001, I was working for an investment bank in London where I was trying to come up with a consistent framework for my Excel models as applied to everyday corporate finance issues. My boss showed me this book he'd recently purchased in the High Street that set out a standardised methodology for developing models and unleashing the power of Excel. This book was Day's first edition and I had to have it but for some reason it slipped off my book purchase list. Try as I might, I was unable to find a copy these last six years (mainly because I'd forgotten the title & author!!).<br /><br />Anyhow, I finally tracked the book down (completely by accident) together with its counterpart"Mastering Financial Mathematics" recently on a trip back to London. This book is great for those seeking to develop intuitive models that are likely to endure and serve the needs of the business. The corporate finance theory is kept (deliberately) a bare minimum as the focus is on structuring a consistent framework that maximises the presentational aspects of modelling and at the same time minimises the potential for errors. The model templates serve as a springboard for in-house customization and the techniques used are both simple and intuitive. <br /><br />Although there may be superior Excel modelling books out there, I believe Day has truely laid out the stage for the common or accidental modelling analyst to deliver high impact corporate finance presentations using Excel.<br /><br />Highly recommended!!

Brilliantly written ! Makes very easy reading out of what are very complex issues.

I have had the advantage of reading the manuscript of this book in advance, and one of the comments on the cover is my own.<br /><br />Unlike other books on the subject, this one does not dive straight off into complicated areas such as return analysis, nor does it deal with such nebulous matters as the GP/LP relationship (indeed, the writer states that he considers this last topic to be something of a red herring). Instead, the book sets out to be a comprehensive account of private equity from first principles onwards, and will guide you steadily through the intricacies of the asset class until you find yourself quite happily using very complex analysis models to look at buyout and venture returns. More importantly, it focuses on explaining the principles which underlie all of this, so you will actually understand what you are doing, and why. As the writer says repeatedly"don't just look at the figures - try to think what lies behind them."<br /><br />Fraser-Sampson has twenty years experience of the private equity industry, and the depth and range of his knowledge shines through every page. I was a great fan (and a reviewer) of his first book"Multi Asset Class Investment Strategy", and ideally they should be read together. The first explains why you should be allocating 25% of your portfolio to private equity, and this one explains how you should actually go about it. Just as the first one came up with a whole new way of looking at investment in general, so this one makes some very innovative points, not all of which will make happy reading in some quarters. For example, he believes that private equity performance should be judged across an investor's whole allocation (what he calls Total Return investing) rather than, as presently, on just that small part of it which may be invested at any one time.<br /><br />Both books are brilliantly written and make very easy reading out of what are very complex issues. <br />

Priceless ideas from the mind of a genius !

Those lucky enough to read Philip Fisher's writings early in their investment lifetime, get by far the most logical advice ever formulated. The few who follow it tenaciously, are bound to enjoy it's results forever. Philip Fisher's investment mind-set allows you to think in terms of decades, not years, and focus on patiently finding the best companies, and owning them forever. Clear words from a timeless genius !

Wizard of Finance

Soros explains here his key analytical principle of reflexivity - essentially a positive feedback loop - in the context of boom-bust cycles in financial markets and economies, and its applications in his extraordinarily successful"global macro" trading system during the 1970s, 80s, and early 90s.<br /><br />He gives unique contrarian insights into our understanding of supposedly cut-and-dried economic and financial ideas, such as his trenchant denial of the efficient markets hypothesis and financial markets equilibria. He draws surprising links between economic phenomena which hitherto were supposed to be independent of each other, the best example being his emphasis on the propensity for bank lending to reflexively influence the collateral values of the financial assets which it finances in such a way as to lead to a boom-bust cycle. <br /><br />That mainstream economists would quibble with Soros's ideas are to be expected, for economists are known for being unreasonably disputatious and uncommonly sensitive to outsiders' criticisms of their theoretical sacred cows. But in the analysis of market trends and dislocations, and trading opportunities, I know where I would put my money, given a choice between academic economists and Soros.<br /><br />Success speaks for itself. Soros applied his theories so successfully that he became the most successful hedge fund manager ever, his flagship Quantum Fund generating an average annual return of 30%+ between 1969 and 1995.<br /><br />One cannot but admire his tremendous courage, for example, in taking on the Bank of England and breaking its back, as it were, in his famous 10 billion dollar Sterling short trade in 1992 which netted him a cool billion, and made him a legend among traders and feared by central bankers worldwide. His honesty in admitting his missteps, and coolness with which he analysed his failures, is equally impressive, and sets an example for all professional investors.<br /><br />George Soros is a not just a legend, but a genius with one of the finest analytical minds of his time. He elevated trading to a fine art, an alchemy of which he was an inimitable wizard.

Good, but not for general business undergrads

A lot of lecturers 'play safe' by recommending Frank Wood, even for non-accounting business degree courses. I think it's good but over the top and far too detailed for such courses. I prefer a briefer, modular-based text such as Geoff Black's 'Intro to Accounting'.

Good overall guide to the stock market

A comprehensive guide to the main aspects of the stock market aimed at beginners. Good starting point for anyone thinking about buying shares, you need information, an entry and exit strategy plus a broker to execute and a good knowledge of how the market works.

EXCELLENT STUFF!

The chunky green book might seem a bit daunting at first to the options novice, but well worth the read. To really appreciate it, read it cover to cover more than once. Natenberg makes more sense the more you read it. Have a browse at other scary books on options to see what I mean!

Enlightenment on the issues surrounding the capital markets

Whilst I slightly disagree with the back cover comment that the book is written in a"jargon-free" style (a basic knowledge of Economic theory would be useful), I thought the book was highly useful in unravelling the mysteries surrounding the 'Northern Rock Crisis'. I studied Economics as part of an MBA course and this book improved my understanding of the dismal science. The book is article based which I wasn't aware of when I bought it, so if you're looking for a beginners guide, I recommend you look elsewhere. Try Sloman's Essential Economics or 'Free Lunch' by David Smith.

Good, but not the Investment Biker

I'm a great fan of Jim Rogers and his insights into the world economy, especially when his personal enthusiasm makes its way into what he is writing and his latest book on Investing in China is no exception.<br /><br />I'd recommend it as a good starter on the general situation in China and its comparison with the USA 100-150 years ago, though overall, despite being an interesting read, I know little more about how a normal investor like me can invest in China at reasonable cost, and if and when I should be doing it than I did before reading this. I also found he often talks about market highs and lows, but without any real help as to how we might identify them. Some charts showing performance of key indicators such as the major chinese markets / indexes, rises in commodity demand, etc. would have been very useful.<br /><br />One more thing about this book, it's the first mainstream publication I have ever read which appears to have utilised the services of Print-on-demand, and that probably tells us clearly where the publishing world is heading.

Simple - ideal for the novice

As an accounting dunce, I've tried to read a lot of books about basic accounting to help improve the skills I need in my business. In my experience, most of these books seem to use a lot of unexplained jargon or fail to put the information into a practical context. This book scores highly on both counts - everything is clearly explained and the examples have been very easy to relate to my own experience.<br /><br />Highly Recommended.

A superb book for technically-orientated traders

This book really opened my eyes to the power of technical indicators as real world trading tools. Dr Elder very clearly explains the important inidicators and how to adapt them to your trading method. He also explains some new indicators that he devised himself, as well as the importance of analysing markets in different timeframes. He also spends a huge amount of time on trader psychology which he is very well qualified to do being a professional psychologist. His psychological insights are fascinating and a must read for anyone serious about trading.

Simply the best!

Too often we see authors unnecessarily overcomplicate mathematics. Gatheral on the other hand does the reverse. By taking a difficult subject and presenting in a wonderfully concise and pedagogic style he shares with the reader his deep knowledge of volatility. Such an important financial quantity which still appears to be shrouded in fear, Jim Gatheral uses his enviable blend of master practitioner and brilliant academic to combine both the real-world finance principles together with the underlying mathematics to demystify volatility. <br /><br />The working is beautifully laid out, in a manner that is patient, friendly and approachable - and shows that quant finance need not look greek! This is the measure of a true genius!<br /><br />As a teacher of mathematical finance, I have no hesitation in strongly recommending this book to students, researchers and practitioners in the field of derivatives.<br />

Invaluable Market Insights

Nassim Taleb's book has become mandatory reading for all of the traders at our global derivatives trading house. More than just about options and derivatives, Dynamic Hedging teaches about market behavior better than any "text" I've seen. A must-buy for any trader, regardless of specialty.