Book Description

Hedge funds have long been viewed as mysterious, high-risk investments, unsuitable for most investors. All About Hedge Funds debunks these myths and explains how any investor can take advantage of the high-potential returns of hedge funds while incorporating safeguards to limit their volatility and risk. This clear-headed, commonsense guide tells investors:

• What hedge funds are--and what they are not
• Four key hedge fund strategies
• How to incorporate hedge funds into an existing portfolio
• Types of risk involved in hedge fund investing

Reviews (6)

Excellent
Not just for people looking for a hedge fund! This book is a great introduction to modern portfolio theory and gives excellent descriptions of most key concepts. If there's a 2nd edition, I hope he will include more clarity and discussion of key terms like Sharpe Ratio (there are 2 definitions in customary usage, it's an important and misunderstood number, and there is no occurrence of "sharpe ratio" in the index), Alpha, Beta, R-squared, etc. Nonetheless, this book is extremely helpful and highly recommended.

Great, Great, Great
This book is great!

I'm a Wall Street professional, but wanted to understand more about the hedge fund business. My initial concern was that this book was going to be too basic, but it was not. It provided excellent insights into the function of hedge funds in today's financial world, various types of investment strategies, the tools available to hedge funds and even went into regulatory and tax issues. It answered all the questions I had about hedge funds (and was afraid to ask). Yet while it was not too simplistic for someone already in the financial services world, it was also not too complicated for a layperson. This book will remain a valuable resource for me in the future.

Fantastic overview of the industry
This book presents a fantastic overview of the hedge fund industry. The intended target audience is hedge fund investors, which is reinforced by the author's credentials as an executive in a "Fund of Funds". In addition, the book would be very useful as an interview to financial markets, useful for business students interested in careers in trading or hedge funds.

The book starts with a broad overview of market theory, covering efficient markets, diversification theory and strengths and weaknesses of the "Random Walk" theory. The book then moves to an overview of the various investment tools available to hedge funds, such as going long and short on stock prices and volatility. (If you'd like to know in plain english what being "long volatility" means, this is a good book for you!) The book then covers legal, financial and operational details of running a fund. Lastly, it covers the various types of funds, such as equity funds and event driven funds. The scope of the material covers financial institutions such as investment banks and brokers that support hedge funds.

In summary, this was a very informative introductory text on both hedge funds and markets. It will be very useful to both new investors in hedge funds, as well as students of financial markets. The math is well explained, and there are only a few tough technical sections.

Enjoy!

Excellent Primer on Hedge Funds and the Industry
This book delivered what I was looking for and more. I needed an introduction to hedge funds and the industry and the book does an excellent job of providing this information in complete and concise detail. In addition, the book also gives a good overview of portfolio theory and how it relates to actual practice. There is also a section that describes the prevalent hedge fund strategies with historical performances. I highly recommend this book to those interested in starting their own fund or wishing to work in the industry.

Best book I've read on hedge funds
"All About Hedge Funds" is lucid enough for beginners, sophisticated enough for those in the know, and written with a clarity and intelligence rare in the world of money books. Jaeger avoids hype while providing plenty of insight into this often misunderstood investment tool. ... Read more

Amazon.com

David Bach's Smart Women Finish Rich is a homage to the financial wisdom of his grandmother; it's also an excellent foundation for women who are starting to get their financial lives in order. Bach's approach to money management is rooted in years of investment seminars for women and his work as senior vice president of investments at Morgan Stanley Dean Witter. During that time he recognized that "people rarely know what is truly driving them emotionally when it comes to money." In response, Bach has written a guide to money management for women based on his belief that "financial planning is as much an emotional issue as it is an intellectual one." Are you considering your values in your work and investing? What part of your daily work is driven by your goals in life? Is your latte habit preventing you from accumulating substantial wealth? Bach addresses tax strategies, wills, insurance, retirement plans, and investments in a highly accessible manner. Smart Women Finish Rich ably bridges the gap between simple saving strategies and preparing for widowhood and financial independence. --Brad Doll ... Read more

Reviews (88)

The BEST Personal Finance Book Out There. PERIOD.
I've read about 90 books on personal finance, frugality, etc., in the past year. This is THE BEST. PERIOD. Bach doesn't tell you how to get rich. He talks to you, coaches you, cajoles you to figure out what's really important to you. And then he tells you how to fund those important goals. I've never seen such a beautiful blend of coaching and advice. After reading the couples version of this book, I got my husband to read it, and then we held a "Finance Night" in which we did all the exercises, talked them through, went over our budgets, insurance coverage, etc., and then came up with a 10-step action plan. This book motivated us to do all that! I've since read the version for women and am getting copies for every one in both our families for Christmas. I personally can't remember the specific financial advice Bach gives. Personally, I think financial strategies need to change as events and circumstances change. I don't need a book for specific strategies. I needed a book to help me figure out very specifically what we wanted out of life, and get me motivated to move in that direction! And that's what this book did.

Well written financial planning primer for women and men.
I am a Certified Public Accountant with a background in financial planning. In February, I purchased the book for myself. The information wasn't new, but it spoke to me in volumes. For Valentine's day, I purchased the book for my assistant and secretary.

I have finished the book once, and have now been going through it a second time implementing each of the seven items.

During tax season, many of my clients ask for advice? What should we be looking to invest our money in? What does the Roth mean? How much insurance do we need? How do we plan for retirement? Should we be making gifts to our children's college fund? Many times I am not able to spend as much time, during the tax season as my client will need to absorb the information provided then begin working on the plan. This book allows my clients the time to understand the basics of financial planning. Know the time requirements on both them and myself to become effective. This is a wonderful starting point.

I often recommend books that I have read on financial planning, but this was the first time that I not only have recommended the book I went out and purchased over a dozen additional copies. I have given them out not just to Smart Women, but young couples, and those looking toward retirement. The information is sound. It's easy to understand. If the steps are followed they will make any client Finish Rich.

Awesome, highly recommend
I picked up this book because I like to read as much as I can about investing. I thought I knew it all--but learned a ton from this book. This book is for every single woman out there. Being financially literate is as important as having good health. It is vital to get finances in order and this book explains how, is easy to followm and Bach makes the topic of money and saving a lot of fun. A must have in your library.

Perfect For Those Who Don't Have A Clue About Finances
I had tried asking others regarding finances but it was the usual in one ear out the other. Learning, hearing and asking questions about finances can be a confusing and frustrating task. I decided to give this book a shot and I was pleasantly pleased.

Everything was spelled out in the simplest terms and explained thoroughly. I can now discuss financial matters with the best of them. This book also pushed me to take those first steps to financial freedom without my old fears.
I also enjoyed the fact that the book discusses how our values are also important and made me think about more than just dollars and cents, but also about what I want out of my life.

I highly recommend this book and also the "Smart Couples Finish Rich". You'll be surprised how much you didn't know!!!

Very Insightful
This is a great book. I had gone to the bookstore to pick up a different book which they did not have. I came across this one and decided to buy it since the other one was not available. This book is very insightful and definitely helps you with your money. It gives steps and worksheets and advise. There are success stories and practical solutions. ... Read more

Book Description

This book describes the trading strategies used by a professional stock trader in his own trading.The ideas come both from friends who are successful traders as well as his own experience with SOES trading.The collection of trading patterns described represents one of the first full-fledged books of instruction on short term, swing and day trading in individual stocks.The author's intraday trend trading approach and his scalping method are both described in detail.He uses the setups daily in his own trading.This manual should prove valuable to the thousands of short term stock traders who seek to make their living from speculating on short term price swings.It is a toolbox for finding high probability trades for success as you trade the stock market.The technical ideas are primarily crafted around the personality of the NASDAQ market but may also be implemented in New York trades. ... Read more

Reviews (12)

Doesn't get any better than this
This book contains a gold mine of treasures. Each page contains nuggets of ideas that can be mined for trading success in the market. The four main sections of the book are broken up as follows: 1) Primary trading strategies - there is some repeat from Barry's first book, but many additional trading patterns are also covered. 2) Supporting tools & tactics - this covers what to look at in addition to daily charts to help with trading decisions. GOOD STUFF. 3) Real-World trade analysis and money management - Puts the whole trading process & thought patterns that go along with it under a microscope to summarize the analysis a trader must conduct to be successful. 4) The Psychology & Discipline of day trading. Know yourself before you trade! Things to analyze about yourself and know about yourself before you begin to trade.

This book, like Barry's first book, contains no fluff. There are no wasted words. Barry concisely gets to the heart of the points he is making.

I own approximately 10 books on daytrading. After trading approximately 1 year the only two books I go back to to consolidate/refresh/ingrain ideas are Barry's books.

Sorry Barry. The rating system only goes up to 5 stars. I'd give this book a 6 star rating also.

Worth the Money
This book is great for anyone who wants to seriously trade stocks for a living, and it covers many crucial topics for persons just starting to make money day trading.

Once you are in the trade, Rudd does not just leave you to fend for yourself.

This book is about as close as you can get to understand how to make day trading successful.

I found this to be an honest and detailed look into the mind and procedures of a trader.

All in all, I have to give a strong recommendation to this book. It is well worth the money.

Solid, but hardly spectacular
Reading all the reviews below, I can see the view of both the positive and negatives. The publisher is Traders Press, who are known for their over priced books, huge pages, fonts and often minimal content. This is no exception. There are 200+ pages in this book, but half of the pages are just charts that may take 3 seconds to look over before moving on. I finished reading this book in about an hour with little effort.

I do like Rudd's style, he gets straight to the point with his pattern setups with very simple (sometimes vague) explanations. He uses typical TA that we already know - support, resistance, price targets, open, close, high, gap resistances. Nothing particularly special for an informed trader. I can't say this is a bad book, the price is reasonable compared to a Joe Ross book and a trader may pick up a thing or two that he isn't aware of.

Not very impressed
Although the book does contains some useful information, it could have easily been sold as a daytraders handbook of some kind for much less. 1/2 of the book is illustrations (overkill in my opinion). Later parts of the book simply repeat information presented in earlier parts of the book.

This could have easily been a 75 page handbook for [less money]. In my opinion, the [book is] severly overpriced. Because of this, I give a 2 star rating.

One of the best books for day trading
I have read almost 50 books on trading and have been a full time trader for 3 years. I find myself always going back to the basics that Rudd taught. He presents the key strategies to day trade, nothing fancy, just tried and true principles. No Elliot Waves, Gann lines (...). When I first read it, it didn't quite sink in, but on re-reading it several times, it has helped my trading tremendously. There are a lot of trading books out there that are pretty much worthless. I have read most of them but Barry's books are among the 8 key books that I keep for trading. Trading should not be too complicated and one should just focus on several key principles and have fun. Barry helped me to do that. ... Read more

Book Description

"Most of today's advisors are telling us to diversify into stocks, bonds, foreign stocks, and perhaps gold, to spread the risk; Loeb tells us to put all our eggs in one basket, and watch the basket." —from the Foreword by John Rothchild Financial columnist, Time magazine

In The Battle for Investment Survival, the turf is Wall Street, the goal is to preserve your capital at all costs, and to win is to "make a killing without being killed." This memorable classic, originally written in 1935, offers a fresh perspective on investing from times past. The Battle for Investment Survival treats investors to a straightforward account of how to profit—and how to avoid profit loss—in what Loeb would describe as the constant tug-of-war between rising and falling markets.

Acclaim for The Battle for Investment Survival

"About twenty years ago, I read Gerald Loeb's classic The Battle for Investment Survival along with Graham and Dodd's landmark work on security analysis. Ever since then, it has seemed to me, the investment books that have come across my desk have been a dreary collection of how-to-get-rich works that carry the same advice I had read in other books, or were simply filled up with meaningless information." —Ray Brady The Nation's Business

"This book is very special in my life. It is the very first Wall Street book I ever read. After reading 1,200 additional finance books, The Battle for Investment Survival's principles and concepts are still valid to consistent success." —Victor Sperandeo author of Trader Vic: Methods of a Wall Street Master

"What success investors eventually have is governed by their abilities, the stakes they possess, the time they give to it, the risks they are willing to take, and the market climate in which they operate.

I am certain that, depending upon the degree of proficiency with which they are applied, the experiences, ideas, guides, formulas, and principles outlined here can do no less than improve the readers' investment results regardless of what they might do." —from The Battle for Investment Survival

From the moment it first appeared in 1935, The Battle for Investment Survival altered the perceptions, attitudes, and strategies of investors all over the world. Sixty years and hundreds of thousands of copies later, it remains one of the most influential books on investing. Now, a new, updated edition of this all-time classic, including a foreword by John Rothchild, celebrates the extraordinary insights and timeless vision of Gerald M. Loeb.

While much has changed on Wall Street since 1935, the fundamental skills and knowledge needed to consistently make a profit remain as unchanged as the firmly anchored realities of capitalism's driving market forces. Organized in concise, easy-to-read chapters, the author offers everything an investor needs to know about sound investment principles. In The Battle for Investment Survival, the victor is the one who wields knowledge as a weapon. Distilled from over forty years of Wall Street experience as a stockbroker, Gerald M. Loeb's realistic approach offers readers neither short-cuts nor get-rich-quick formulas. Instead, it gives investors—whether novice or expert, individual or institutional—a sensible, uncompromising and deftly written firsthand account of how to realize significant financial returns in today's market.

The Battle for Investment Survival is a tribute to the long-term and incredible opportunities of the market as much as it is a guide to protect investors from common mistakes and pitfalls. Gerald Loeb's timeless and profound insights are sprinkled with humorous allusions and good-natured bluntness. Recommended for investors by investors, this is a book that every reader can learn from. ... Read more

Reviews (10)

A blunt appraisal of the rules of success on Wall Street.
I read this book on the advice of William J. O'Neil, undoubtedly one of the market wizards of our time. Gerald M. Loeb is an outspoken advocate of perfecting the art of cutting your losses and timing your buy and sell decisions. For those trading for rapid profits, he mentions the importance of concentrating in the "one outstanding, fast-trading leader that is jumping in the right direction". Detaching yourself from the crowd and realizing one's ditance from perfection is one of the many insights to be gained in this book. To me, the compassionate wisdom of Gerald M. Loeb more than justifies the cost of the book.

OLUMUYIWA OMOLOLU.

Perfect Crystallization of a Key Insight
Like many of the other reviewers, I read this book after seeing it in the bibliography of a Wm. O'Neil book. While the observation that "if you've read O'Neil's major works, you've already read Loeb" has some truth to it, I would argue that there is at least one point that Loeb expresses even more clearly than O'Neil, i.e. the fallacy of holding a declining stock because "it will come back." Suppose you were forced to sell the stock today, he asks. Now, suppose you were trying to figure out the VERY BEST investment to try to recoup your loss. Would it be to repurchase your loser? Almost certainly not. To me, that question crystallizes the argument for ruthlessly cutting losses better than I have ever heard it expressed.

The same point is recast in a number of different ways, e.g. the excellent chapter on "Sound Accounting for Investors", in which he advocates always "marking to the market", rather than ignoring "paper" losses or focusing on current income. "Gaining Profits by Taking Losses" and "The Ever-Liquid Account" bring additional perspective to the same theme.

In fact one of the nicest features of the book is the way it is broken up into almost 80 chapters. The main themes are repeated several times, but with different emphases. As a result, the more one browses and rereads selected sections, the more one appreciates the strength of the iconoclastic theory of investment that Loeb advocates.

Not much of a surprise ending
After reading this book, all I can say is "wow." That was one long book. It was full of so much information on stocks and when to buy and sell. But the information was not the same old stuff that I have heard before, I was introduced to a whole new theory of buying when everyone else says that you shouldn't because you have sound information on your side. Loeb also talked about putting a good amount of your available money in a smart investment, and watch that investment carefully. A main point that he stressed over and over was not to invest just to invest, only invest when you are going to put in the effort to make money. I thought that it was a difficult book to read because it was about economics, but I think that it might come in handy once I do get money to invest. It was written a long time ago, but I think that the advice that Loeb gives in the book can still be used today.

Timeless advice
This is one of the most helpful books you can read on stock investing because it provides, in my opinion, the best advice on selling. Loeb's advice to cut losses promptly helped to inspire me to develop the strategy found in my "Investing: More Success With Less Stress", which I consider to be an extension of Loeb's strategy, quantified. No matter what the pros say, the buy-and-hold strategy is obsolete.

My cornerstone on speculation and investment
I've read many recently published books on how to profit from the financial markets. Too many of them leave me feeling like I wasted my time and money.

I decided to go back to the "classics"--Schabacker, Edwards and Magee, Graham, Hamilton, Rhea, and of course, Gerald Loeb.

The more I read these "classics" of investment literature, the more I see the market hasn't fundamentally changed at all. All of those books have taught me something important, but I will always have Loeb's "Battle for Investment Survival" close to the top of my list.

Loeb demonstrates he is fundamentally honest. Unlike most books, that get you to think becomming a millionare through daytrading is easy, Loeb teaches that there is no such thing as "easy money" in the financial markets, nor are there "safe investments" (bonds) as the value of money is constantly depreciating.

He also teaches that there are NO guarantees, and that most people WILL lose money regardless of what they do. I think this is true, but most people cannot face it--even those "efficient market" types who advocate the buy and holding of index funds. (I believe Loeb would be a big fan of Exchange Traded Funds, however)

So, what is one to do in order to preserve purchasing power? His answer: intelligent speculation and the ever-liquid account.

To speculate intelligently, Loeb advises focusing on actively traded stocks--not illiquid "penny stocks" for your SPECULATIVE activities.

Let's be clear--Gerald Loeb is no "buy and hold" advocate. Loeb could be considered an advocate of the "relative strength" approach--before the concept of "relative strength" ever existed.

The moment your stock is failing to deliver superior profits, and you have no fundamental reason to believe its uptrend will continue, he advises you sell and look for another. If you can't find anything interesting, or the market is going down--you stay in cash. For Loeb, you MUST avoid catastrophic losses like those sustained in the crash of '29. A stock that doesn't rise (or fall if you like to short) is a waste to be avoided.

Loeb is not a fan of too much diversification. He thinks it is a crutch that guarantees mediocre performance.

His most important teaching would focus on money management (what we would now call "asset allocation"). Loeb would consider it foolish to allocate a significant (more than 50%) of your capital to stocks. You always need a cushion for those inevitable losses in trading operations.

I've taken Loeb's advice to heart. His advice is even more applicable to options trading.

By keeping a small amount of money in a volatile asset, and ruthlessly cutting losses, you give yourself a chance to match the market or even outperform, but with significantly less risk (volatility), due to the large cash reserves.

Loeb's advice isn't easy to follow. But making money isn't easy. And by following Loeb's advice, I'm quite pleased. ... Read more

Book Description

PRAISE FOR THE WARREN BUFFETT WAY
FIRST EDITION

"Nobody has described what Buffett practices better than Hagstrom."
–Time

"Simply the most important new stock book . . . If you think you know all about Warren Buffett, you have a lot to learn from this book."
–Forbes

"It’s first rate. Buffett gets a lot of attention for what he preaches, but nobody has described what he practices better than Hagstrom.Here is the lowdown on every major stock he ever bought and why he bought it.Fascinating."
–Fortune

"Almost anybody curious about the relationship between the behavior of economics, the performance of firms, and the ups and downs of the stock market will find something of interest here."
–The Economist

"The Warren Buffett Way is accessible to average readers because Mr. Hagstrom reduces the billionaire’s techniques to some easily understandable tenets . . . the book demonstrates the rewards that can come down the road."
–The Dallas Morning News ... Read more

Reviews (45)

Belongs on the list of all time investment classics.
Other reviewers have written that this book is undervalued and they are right. Right from the start Hagstrom gives us advice on the nature of the market. He then gives management tenants, how to value a business and all kinds of investment tenants. These tenents are so fundamental that its very difficult to see how investing can be done without them in one form or the other. This makes the book timeless. Numerous examples are given from real world cases of how these tenants are used. There is also an excellent appendix that gives examples of how a business is valued. This is very helpful. Some reviewers have criticized Hagstrom, saying that if the book is true, why isnt he rich? But this is not how information is to be judged. There are many books that contain solid gold advice, but there are few who master them. Buffett is among them. If one wants additional information on Buffets methods, I suggest reading "How to pick stocks like Warren Buffett" by Tim Vick. But The Warren Buffett Way is a classic and at the top of the heap.

one of the most popular investment reads
This book is for anyone whether you are trying to understand investing for the first time or an experienced investor refreshing yourself with the principles of fundamental analysis. Hagstrom answers all the questions of what makes Buffett one of the most successful investors of our time. He talks about Buffett's childhood as a boy ambitious to turn a profit in selling Coca Cola as well as his philosophy behind which he makes his decisions on buying a particular stock. The refreshing part about investing like Buffett is whether you buy millions of dollars worth of stock or just a few shares of stock, you can still use the same principles that Buffett uses in making a decision. The methods are straight-forward and bring common sense approach to picking stocks. In it you buy stocks as if you were buying groceries and not as if you were buying perfume. It is not even necessary to know any complicated formulae about how to determine the value of a stock although some elementary math is required. If you only had to pick one book to read about investing and burn all the other books I would recommend this book. It is more informative that many other textbooks out there read by college students filled with unnecessary math and financial theory.

Worth the read
Forget B-school, read this book. Seriously, a great introduction to value investing and the Buffett mentality of risk.

Hagstrom's analysis is very easy to read and understand... a book everyone should read.

What if Mr. Market goes really crazy?
If you are reading this book just to be better informed, I think you will get your money's worth. I feel I got a five-star education. But if you are going to read it to make a decision to buy or not to buy Berkshire Hathaway, you should keep these two points in mind: First, almost everyone considers Warren Buffet to be the world's greatest investor. This special attribute of Mr. Buffet might be reflected in the price of Berkshire Hathaway stock. If Warren Buffet were no longer around, what would that do to Berkshire Hathaway? Hasn't Mr. Buffet's greatness built in a premium in Berkshire Hathaway stock?

Second, this book proves that Mr. Buffet beat Mr. Market most of the time under normal circumstances. In abnormal circumstances, Mr. Market could beat Mr. Buffet. Abnormal circumstances would exist if Mr. Market went into a long, deep depression (like he did in the 1930's and dropped in value by 90%). And could a second terrorist attack similar to 9/11 cause Mr. Market to panic and create abnormal circumstances in the economy?

No matter how good the company, Mr. Market can and will hurt the value of its stock. If there is another terrorist attack like 9/11, Mr. Market will panic and Coca Cola, Washington Post, GEICO, etc., would all suffer terribly.

Once Again, Take It With A Grain of Salt
I am not Warren Edward Buffett. Unlike Mr. Buffett, who has the delightful headache of trying to figure out where to put his steadily growing billions, I am a non-investor, sitting on the sidelines, wondering what all the fuss is about. Like most readers of this book, I have been told incessantly to invest for retirement, and not knowing exactly how I should do so, I figured it might be a good idea to glean a few secrets from a proven successful investor. Hence, I read The Warren Buffett Way from cover to cover, hoping to learn a few things.

And what did I learn? I learned that I am not Warren Edward Buffett. Unlike Mr. Buffett, whose circle of associates includes all of the Beautiful People of Corporate America, I am surrounded by ordinary people, more than a few of whom are looking for a way to get rich quick. Whereas Mr. Buffett is patient and thoughtful with his investments, most of the people I encounter are thoughtless and reckless with their gambles. These two things, which I increasingly began to ponder as I read this book, distinguish me from the Oracle of Omaha, and quite possibly from most readers of this book.

The book consists of nine chapters, and is mostly historical in nature. It details many of Buffett's past exploits in the stock market, mostly the good moves but also some bad ones, and offers some of the principles guiding Mr. Buffett's stock investing strategy, grouped into three classes called Management, Financial and Market Tenets. The first four chapters of the book delve into the early history of Berkshire Hathaway, the key influences on Mr. Buffett which helped to shape his investment philosophy, Mr. Buffett's perspective on the financial markets, and the principles by which he goes about purchasing a business. The last five chapters of the book give example after example of some of Mr. Buffett's past stock moves, and tries to show his Tenets in action.

The style of the book is mostly active until the fifth chapter, whereupon it becomes plodding. The book is extremely repetitive at points, and as other reviewers have pointed out, key concepts are not fully explained up front, suggesting that the possible target audience for this book are those having a strong background in the general principles of economics and business.

In all honesty, I have previously encountered most of the content of this book in coursework or self-study. I previously read Mr. Hagstrom's The Warren Buffett Portfolio, and found the two books to be similar in some respects. That said, I still found this book to be very interesting and useful, primarily because it exposed me to an investment approach which utilizes these concepts in ways I had not previously considered. I also found it highly interesting on an anecdotal level, given that Mr. Buffett's investment career spans The Go-Go Years, The Nifty Fifty Stocks and the 80s and 90s Tech Stock Boom, and yet he never once participated in these tech-stock manias but handily outperformed tech stock investors nonetheless.

Like I said, I am not Warren Edward Buffett and I can not expect or even hope to do what he does, but that does not mean that I can not think like him. Even Mr. Buffett cautions the small investor in this regard, as there are things that he can do that none of little guys can do. Yet, he also has said that there are things the little guy can do that he can not do. That said, the book deserves to be read by any one lacking the ability to reason through the process of investing. However, readers at all levels should not stop with this book. Others have pointed out that one could get even more information straight from the horse's mouth- the Berkshire Hathaway website.

On the other hand, as this information details past moves for which the conditions surrounding them are most unlikely to come around again, I believe that the more astute reader looking to learn more should consult The Money Game by Adam Smith for a brief historical look at financial foolishness (albeit the late sixties but the resemblance to Right Now is striking), The Theory of Investment Value by John Burr Williams for Buffett's original basis for valuation, and The Intelligent Investor by Benjamin Graham for a more detailed explanation of the concepts of margin of safety, intrinsic value, and the benefits associated with ignoring the market noise. These three books will help one learn how to reason through the investment problem, as this is the most important step, aside from finding smart people (as Mr. Smith admonishes forcefully in The Money Game and Buffett has consistently done) and thinking more but acting less (as Buffett has said- do a few things right and screw everything else). ... Read more

Book Description

World-renowned economist and entrepreneur Paul Zane Pilzer shows you how to tap into the next trillion-dollar industry–– wellness. Already a $200 billion business, Pilzer predicts that sales of vitamin and other health-related items will grow to over $1 trillion annually within ten years. In The Wellness Revolution, he shows entrepreneurs and investors how to make their fortunes in this burgeoning industry.

"Paul Zane Pilzer has proven time and time again that he holds his finger on the pulse of our economy, and The Wellness Revolution is no different. Pilzer’s insights into the future of our healthcare industry are revolutionary and will empower you to the next level."
–– Anthony Robbins
author, Awaken the Giant Within and Unlimited Power

"In The Wellness Revolution, Paul Zane Pilzer reveals the most important secret for tomorrow’s successful entrepreneurs: where to invest their dream. Step by step, Pilzer shows entrepreneurs how to find where they fit in the mega-industry of the future–– wellness."
–– Randy Fields
cofounder, Mrs. Fields Cookies

"Like any machine, our body runs best when operated according to its design principles. Noted economist Paul Zane Pilzer shows how to promote–– and profit by–– the wellness revolution."
–– Michael J. Behe
Professor of Biology, Lehigh University; author, Darwin’s Black Box

"Paul Zane Pilzer has paid great tribute to J. I. Rodale, founder of Prevention magazine and the organic industry in the United States, by showing how Rodale traditions of individual and environmental health make sound economic investment sense in today’s world. If you’ve been looking for the next big, ground-floor opportunity, catch the wave of the future–– The Wellness Revolution!"
–– Ardath Rodale
Chairman of Rodale, Inc., publisher of Prevention and Men’s Health ... Read more

Reviews (19)

A Compelling, Cutting Edge Read
As a former television news health reporter, and someone who is already achieving success building an organization of people who distribute high quality wellness products, I believe Pilzer's book will be compelling reading for baby boomers looking for improved physical and financial health. For those willing to work hard to establish a foothold in this industry, Pilzer offers compelling reasons why the rewards -- both physical and financial -- will be worth it.

Highly Recommended!
Paul Zane Pilzer is an economist with a vision. Pilzer sees technological advances remaking the way Americans think about health. In his eyes, scientific breakthroughs are ushering in a revolution that will transform our current healthcare system - which Pilzer describes as the sickness industry - into the proactive, lifestyle-based wellness industry. His book describes this revolution in two parts. The first half, which will appeal to a wide range of readers, analyzes the current state of healthcare and advances in biology and cellular biochemistry. In the second half of the book, which takes a more dollar-minded approach, Pilzer attempts to identify business and investment opportunities that will arise from the Wellness Revolution. Thus, we from getAbstract heartily recommend this book to both camps: the general-interest reader, and the entrepreneur or investor on the hunt for new opportunities.

Read this book for health & wealth
I won't go over Paul Zane Pilzers credentials as other reviewers have, I believe that if you found your way to this webpage, you already know his credentials.

But the fact is that Pilzer has predicted other trillion dollar industries. He knows what of he speaks. Personally, I am a baby boomer and in a company that is predicted to become the next billion dollar company. I have also had some health problems and hardly a day goes by when I talk to other baby boomers where the subject of health & wellness doesn't come up.

Pilzer has something here. Worth a read for both your health and your wealth.

I'm sold!
Last year, I began wondering why everyone around me was sick and on prescriptions. I didn't remember growing up that way. I had a friend with fibromyalgia and I just began thinking all of this sickness was directly related to the food we eat. I searched for products that would help my friends feel better. I found a liquid vitamin/mineral complex, bought it and shared it with her. She cut her prescriptions in half the first two weeks. My family started feeling better also.
It was at this point that I began my journey into the "wellness industry". I believe that God created our bodies to function a certain way and when we give it unnatural, processed foods, it can't function the way it was intended.

I was glad to find this book after I stumbled upon my personal discoveries. I know now that I am not alone. And, I was so overcome with the lives that are being changed through good products, I got into the industry myself. I've been a Vision For Life distributor for the past year and am helping so many people, both with their health and their wealth. I highly recommend this book for it's facts, figures and knowledge. People definately want to feel better. When you don't feel good, no amount of people telling you to exercise will help. By supplementing with good nutritional products (not like centrum where you feel good just "knowing" your taking it- I mean where you feel good BECAUSE you're taking it) you start to feel better, you start to do more and it becomes much easier to exercise and get more accomplished.

I feel better than I did when I was 19 (thank goodness, I'm much the smarter now too! LOL)

Stay Well Rather Than Cure Sickness!
The main problem with The Wellness Revolution is that the brilliant Paul Zane Pilzer has stretched a magazine article's worth of information on healthy living and ways to develop businesses around that theme into a book. If you know nothing about how nutrition, water and exercise affect your health, you will probably love this book. But you can find better books. If you have been paying attention to those areas, you will find the book to be superficial and limited. As for investing, the ideas are pretty broad. Basically, you should make the economics of your business serve wellness and anti-aging.

What will be new to some are the details of how you can use high deductible health insurance and tax-advantaged medical savings to cut your cost of sickness while having some money left over for wellness activities (like exercise and better food). If you regularly read investment or business magazines, chances are you will know about these ideas too.

For entrepreneurs, the stories of Steve Demos (Silk soy milk), Paul Wenner (Gardenburger), Jill Kenney (Club One fitness), Dr. Frank Yanowitz (The Fitness Institute), Dr. Tod Cooperman (ConsumerLab.com), and Stuart Johnson (facilitating wellness products being provided through network marketing) may help inspire a new business thought or principle. Professionals can look at pages 188-189 for specific examples that apply to them.

Those who want stock purchase ideas won't find much here, although you'll probably have an itch to buy stock in whomever first specializes a whole company in wellness insurance.

As a result, the "how to" part of the book's subtitle is quite misleading.

There is a fine book that can be written on this subject, but unfortunately, this isn't it.

After you finish this book (if you choose to read it), I suggest that you find ways to make your working and investing more health-enhancing for you and others. If nothing else, walk on a treadmill while you watch the financial news at night to pick out companies that enhance health! ... Read more

Book Description

"Everything you need to know to make millions by investing in real estate. Be smart -- take advantage of their invaluable experience to help you reach your financial goals."--Jack Canfield, Co-author, The Power of Focus, Dare to Win, and the Chicken Soup for the Soul(R) series.

A proven formula for making a killing in small real estate investments in all market conditions

Millionaire real estate investor Mike Summey and nationally recognized negotiation expert Roger Dawson team up to offer a complete program for becoming a real estate magnate in your spare time. Unlike all the get-rich-quick real estate investment guides on the shelves, The Weekend Millionaire shows readers how to look beyond price to the fundamentals of what makes a property valuable and to leverage that value in order to build wealth, consistently, over years. It also teaches them an original, win-win negotiating strategy in which the buyer determines the terms of the purchase and lets the seller determine the price.

Readers get clear, step-by-step guidance on how to:

• Find great investment properties
• Approach sellers
• Structure a win-win proposal
• Get a proposal accepted--even with no money down and bad credit
• Negotiate a transaction
• Manage and maintain properties for increasing returns

Reviews (27)

Why did it take so long?
I've read dozens of books on real estate investing and to be honest, I've found most of them either over my head or just plain unbelievable. When I heard Mike Summey talking about the book on the Real Estate and You show on WYCA-FM, I had to check it out. Finally, I've found a book that explains real estate investing in simple language and breaks it down into such doable tasks that I can't wait to get started. I loved the stories that illustrate how to apply the techniques the authors teach. Not only do they tell you what to do and how to do it, but they go the extra mile and use real life stories to show you how to achieve successful win/win negotiations that benefit everyone. If you don't buy another real estate book, buy this one. It's a keeper! You may also want to check out the website listed in the book. It's www.weekendmillionaire.com and it's a great resource for real estate investors.

Fantastic read
As a beginner to real estate investing, I have been trying to absorb as much information as possible. This is the 4th book I have read on investing, and it is by far the best. The book does not promise overnight succes, but it does show you how to slowly build assests, and create a stream of income that you can live off of over a period of time. They give stories that they describe as not being typical, but they do help you stay motivated. They also provide easy to follow examples, and charts. I have noticed alot of people who have rated this book poorly seem to have too large of an ego to admit they learned something from someone else. Dont let the negative reviews sway you. If you only have limited time, and only want to read one book, make it this one. The title couldnt be more accurate.

Simply the Best.
This book truly covers all aspects of real estate in a very useful, educational manner. The concepts are as timeless as they are valuable. I've read it three times, and I'm constantly referencing it fir information... a MUST READ!

Weekend Millionaire's Secrets to Investing in Real Estate
It is the best book on real estate investing that I have read in the nine years I've been in business as a real estate investor. I enjoyed the down to earth format that both Mike and Roger used to get their points across. The five chapters on "negotiations" by Roger is an expert negotiator and Mike has a sense of humor as a southern gentleman and a no nonsense approach to investing in real estate as "buy and hold" strategy. I highly endorsed the book to all of my students whom I am mentoring presently. You can't go wrong by reading the book and asking questions on the chat room at www.weekendmillionaire.com to both Mike and Roger. Looking forward to their new book when it comes out!!!

Very good real estate book-priceless information
I have to laugh at reviews where on reviewer wrote "Mike did this and Mike did that. Wouldn't you want to be like Mike?" Since the title of the book is The Weekend Millionaire's Secret's to Investing in Real Estate co authored by Mike Summey, I would think that anyone who bought the book would indeed like to be just like Mike. After all, he is a millionaire and achieved his success in real estate. Why not be like Mike. Sure beats being like that one star reviewer who even came back and voted 47 times for his own review. Now that is somebody with a head trip! ... Read more

Book Description

Master convertible arbitrage and put profits within reach

"Finally, we have a comprehensive, practical, and lucid book on convertible arbitrage from one of the most seasoned investors in this growing asset class."
–Venu Krishna, CFA
Head of U.S. Convertible Research, Lehman Brothers

"Nick Calamos is one of the most experienced and successful convertible bond managers in the mutual fund industry. Who better to explain convertible arbitrage strategies?"
—William Harding, Analyst, Morningstar Investment Services

"Convertible Arbitrage is an indispensable resource, and is required reading for all fund of funds analysts and portfolio managers that cover this strategy."
–Joseph G. Nicholas, Chairman and CEO
HFR Asset Management, LLC

In good markets and bad, convertible arbitrage can give investors the best of both worlds: the safety of bonds and all the possibilities of stock-like performance.

This is partly why convertible arbitrage–following the larger trend of hedge funds–has moved to center stage in the last decade. But profiting from this increasingly popular investment strategy takes much more than knowing a few ground rules. It takes Convertible Arbitrage: Insights and Techniques for Successful Hedging.

Written by leading investment authority Nick P. Calamos, this comprehensive, just-in-time book covers:

• What the convertible arbitrage strategy is and what distinguishes it from other hedging techniques
• How to tap into successful convertible valuation models
• The full range of hedges, from tilted and leveraged hedges to swaps and option hedging
• And more!

Nick P. Calamos is the first recipient of the Excellence in Fund Management Award for Calamos Growth and Income Fund, bestowed by S&P and BusinessWeek. ... Read more

Reviews (6)

Convertible Arbitrage: Insights and Techniques for Successfu
Investment professionals familiar with convertible arbitrage techniques recognize the strategy as a rock-solid tool for generating significant returns regardless of market movements. It's no surprise, then, that amidst the backdrop of market volatility and investor uncertainty, the field of convertible arbitrage keeps growing. Since 1993, the convertible arbitrage market has grown at an astounding 45ompound annual growth rate through the first half of 2002 to $24 billion.* In Convertible Arbitrage: Insights and Techniques for Successful Hedging, renowned investment expert Nick P. Calamos shows you ways to make the most of convertible arbitrage, explaining how to boost returns while decreasing risk-no matter what the market is doing. The practice of convertible arbitrage takes advantage of the unique hybrid nature of convertible securities, which combine both fixed-income and equity characteristics. It typically involves matching a long position in convertible securities-usually convertible bonds-with a short position of corresponding stock. The bond pays interest and guarantees a yield upon maturity-but you also can participate in the movement of the underlying stock because a convertible bond's option component makes it readily convertible into stock. Convertible arbitrage thus allows investors to create positions that achieve either market-neutral returns or that have a bias towards a security's future price, offering tools to both the defensive and aggressive investor. This not-to-be-missed guide gives you: A top-to-bottom overview of convertible arbitrage-its history, how it works, and why it is especially useful in a volatile market In-depth coverage of convertible valuation models and the "greeks," the statistical qualifications of convertible functions Reasons why the credit and business valuation of a convertible can make or break your hedge position A thorough review of convertible arbitrage techniques-from delta hedges and convertible option hedge techniques to swaps and nontraditional hedges An insider's guide to portfolio risk management, including tips on portfolio evaluation, risk analysis, and optimization The array of convertible securities available-and the ever-shifting financial engineering behind them-demands a practical working knowledge of convertible arbitrage hedging techniques. Not only does Convertible Arbitrage put those techniques at your fingertips, it also helps you use those techniques to prepare for-and profit from-new twists in convertible terms, types of securities, or derivative hedge products. *Tremont Advisers, Inc. "The Calamos Convertible Fund offers the Holy Grail in investing-a long-term return superior to the index with less volatility." -William Harding, Analyst Morningstar Investment Services
Minimize risk and maximize profits with convertible arbitrage. Convertible arbitrage involves purchasing a portfolio of convertible securities generally convertible bonds and hedging a portion of the equity risk by selling short the underlying common stock.

This is one of the best on hedge fund strategies.
This is by far one of the best books on hedge fund strategies. It's very practical, but also provides enough technical details. Most other books on hedge funds just state some basic facts that everybody knows. This book, however, provides enough details on one single strategy, convertible arb. I would highly recommend this book to any serious Quant who wants to know more about convertible arb.

Well-Written Summary of the State of the Art in Convert Arb
Addressing arbitrage opportunities of both convertible bonds and convertible preferred issues, this text also describes the spectrum use of other derivative instruments for both arbitrage and hedging purposes. Of note, capital structure arbitrage --a hot topic, currently-- is also briefly discussed.

The book serves as a worthwhile summary of all that is currently feasible in this arena. Additionally, many techniques are sufficiently described so as to be made immediatly applicable. As expected from a book of relatively short length, some of the techniques are not drawn out in sufficient detail. The capital structure section, for example, is addressed in only a few pages.

Given the considerable number of tips and insights offered by the author, this book is worth reading despite the lack of detail in some sections.

A must for portfolio managers - invaluable information
Convertible arbitrage is an alternative investment form that is ever-increasing in popularity. This book teaches both portfolio managers and fund of funds analysts everything they need to know about convertible bonds and includes a thorough background, a description of the various techniques, and valuation models. Illustrates points with informative graphs, tables, and appendices. An excellent resource tool.

Derivatives are taking center stage!
The strategies that hedge funds are using now will be in the hands of ordinary investors within the next three weeks. One such strategy is the convertible bond. This is a derivative instrument that cannot be ignored. Fixed income until YOU the investor decide to switch.

How important is this. Mr.Calamos not only shows how relevant it is for today's investor he makes sure that you know the necessary tips and tricks to outwit Wall Street at their own game. As investors wisen up to the need to retain their short term gains instruments such as convertible bonds, warrants, options, futures and many other derivative style investments will dominate the average investors portfolio.

Another two great books along this vein are "Futures For Small Speculators" and "Single Stock Futures For Small Speculators". As the author of both books and a praticing financial planner I field calls constantly from everyday investors that are simply tired of the same old "buy and hold" strategies that don't work or give up to much value in the short run.

Buy convertible arbitrage you won't be disappointed. ... Read more

Book Description

Don't let the conservative nature of many fixed income intruments mislead you! These are complex, potentially risky investments, and Fixed Income Mathematics is required reading if you are to maximize both income and capital growth from fixed income investing. An expert, thorough analysis of this volatile market's latest developments is presented in the straight-forward, comprehensive style that has become a Fabozzi trademark. It will leave you with a greater ability to utilize and take advantage of basic strategies as well as the newest advances in fixed income analysis and research. ... Read more

Reviews (10)

Classic, but dated.
This book covers the territory of fixed income as it existed 4 to 5 years ago. Now credit derivatives trade relative to the bond markets, and have a pricing structure all their own. First-to-default baskets and credit derivatives are important fixed income products. There has been a paradigm shift in the market in the past 4 years. Credit default swaps came out of nowhere and are now $2 trillion in size and continue explosive growth, and that's just one product in credit derivatives land.

I highly recommend Tavakoli's book: "Credit Derivatives and Synthetic Structures" (2nd Edition).

Good reference
Ok, so Fabozzi is the ultimate in reference material and general fixed income awareness. The book is good, it provides most of what you need to understand fixed income valuations, particularly essential bond pricing. However, the book really serves well mostly as a reference. There are few true explanations of formulas. With a little effort you can figure out the derivations yourself, but still, is not the point of buying a book with "mathematics" in the title to have something to guide you through that step? Again, worth having, but not the ultimate to explain the nitty gritty, though not sure that that text exists.

A good bridge between math and fixed income products
Even though this is not really a advanced book on fixed income products analysis/modeling. It is, for technical background, a good induction book for basic fixed income products with basic analysis tools.

This is a real beginner's guide
The book was a great disappointment to me. The title and subtitle (Analytical and statistical techniques) led me to think that the book covered fixed income securities at a sophisticated and advanced level. Not so. If you need to learn how to calculate a PV, FV or IRR, this is the book for you...otherwise probably not!

The ¿Perfect¿ Book For Me
Many of us will be retiring in the next few years, or may already be retired. Fixed income from our financial investments will be an important part of our lives. How many of us really know what Yield To Maturity (YTM) means? Or, for that matter, the myriad of other measurements associated with fixed-income instruments? As a retired engineer with a propensity for computational mathematics, it is my natural desire to optimize my fixed-income portfolio. This "Perfect" book gives me a good head start in my endeavors. The text is logical and easy to understand. The mathematics is "cookbook" simple. As a minimum, I will better equipped to determine the correct price for most fixed-income investments. With enough effort, I should be able to manage my own near "Perfect" portfolio. Fabozzi picks up where most writers stop, namely, the quantitative analysis.
Thank you Frank. ... Read more

Book Description

A revolutionary system for fearless trading without excessive risk

"Trading Risk provides a useful and intuitive roadmap of the risk management process, as written by an individual with unique experience and insight into this topic.It is an engaging read and covers complex subject matter in a straightforward and often-entertaining manner."
– Stanley Shopkorn, Shopkorn Associates

"Ken Grant's eminently readable new book on risk management is a rare blend of theory and practical applications. It is a great starting point for the novice and deep enough for the experienced practitioner."
– Mark R. Graham, Managing Partner, Blue Elite Fund, Ltd.

"This book describes a very practical approach to risk management in a lucid and entertaining manner.Anyone concerned with the topic of risk management ought to find it of interest."
– Susan Estes, Managing Director, Countrywide Securities

"Thoughtful, unique, detailed, actually enjoyable, and comprehensible reading for what is normally a boring and confusing topic."
– Dwight Anderson, President, Osprei Management, LP

"A must-read for risk managers of companies of all sizes who want to preserve capital and take practical advantage of trends in the marketplace.This is a clearly written, funny, and entertaining guide to a very serious topic that affects all corporations.This very complex topic was simplified and made easy to understand by a true expert in the art of risk management."
– Phupinder Gill, Managing Director & President
Chicago Mercantile Exchange ... Read more

Book Description

Reviews (13)

Does a bubble really exist?
The main problem with this book is that the author believes the housing market will crash and so therefore it is not an objective look at the residential real estate market. As a result, I did not find it helpful. I live in Southern California. The housing market crashed in the early 1990s not because of interest rates or overbuilding but because of a severe recession. The California economy was still in recession while the rest of the country improved. This drove many people out of the state, which of course led to more supply of housing than demand. Housing dropped approximately 40%. However, anyone who held onto their home made that 40% and more back in less than a decade. A previous reviewer claimed that San Diego's population and housing have increased at the same rate, yet there has been a 110% increase in prices. This simply is not possible. Housing is based on supply and demand. Housing simply won't go up in value if there is little or no demand.

It is estimated that only 80% of the necessary housing is being built to accommodate the large numbers of people moving into Southern California. For every 3 jobs created in Orange County, California only one housing unit is built. This has driven many OC workers into homes in surrounding areas like Long Beach and Riverside, which has driven prices up in these areas. Many building companies are wary of overbuilding so they are constraining supply. Local governments make more money from commercial real estate, so they have had strong incentives to provide more permits for commercial rather than residential real estate, which has contributed to current housing shortages. An increase in interest rates may temporarily dampen the housing market but as more people enter the rental markets already sky-high rents will go higher driving even more people back into the housing market. I don't see any decline in Southern California housing for a long time. As a result, I don't believe that there will be a housing bust anytime soon to benefit from.

Real estate is local, so you can't judge what may happen in Illinois based on what is happening in Arkansas, which is why I am only discussing my local market. The rule of thumb is that housing increases an average of 6% a year. Some housing markets can go into decline and remain in decline for years. However, these are generally areas that are/were dependent on one industry or one company as an employer. This book is interesting in many respects but I don't feel that his premise applies where I live.

Perfect Timing
The whole "How to Profit" thing is a little overdone
these days, but this book's timing is good enough to
make up for the unoriginal title. Here in California,
real estate is clearly a bubble, and Rubino does a
good job of laying out the causes and consequences.
Then he fits the housing bubble into the big picture
which, if he's right, is absolutely terrifying. In a
nutshell, we've been borrowing like crazy for the past
twenty years, and now we're eating our home equity.
Pretty soon we'll run out of wiggle room and the whole
system will crumble. People who borrowed to the max on
overvalued houses will go bankrupt and the companies
that are inflating the housing bubble will crash. And
the east and west coasts, where home prices are
highest, will have the hardest time. All things
considered, it's a tightly-reasoned, well-written,
very scary argument.

One tip for readers: You can skip the "Housing
history" section (it's interesting but not necessary
to understanding today's housing bubble) and go
straight to the second section, where Rubino explains
how the housing bubble happened and why it's going to
pop.

Not a great treatment, but there isn't much alternative
SUMMARY:

If you are just looking at this thread for the first time, and are the general "layperson" most of us are, I suggest you might want to read the first half (125 pages) to get a relatively complete and coherent high level discussion of the possibility a bubble exists. After you do that there are lots of web resources that have more detailed & up to date facts & arguements. It's a pretty easy read -- too easy, if anything, it does not go nearly far enough in depth for my tastes (but then again I am a systems analyst by profession). I personally think this book is mostly worthless, indeed possibly even dangerous in its advice, for the purposes the title claims (how to make money on the bubble popping), but the description of the arguments to for trying to do so are a bit better.

DETAILS:

The first half of the book (which another reviewer suggests you could skip -- !!!) is actually the most useful IMO. It gives a general summary of the reasons that sugggest current housing prices are unsustainable. The arguments are not very complexly constructed, but I don't fault the book for it, I think it has a target audience, and that is the general public, not the subset who have a firm grasp of macroeconomics & math. My biggest gripe with this part of the book is that he expresses some facts in a misleading way, to my mathematically semi-sophisticated eye. For example, on p. 62 he has a graph of total US debt and GDP vs. a 45 year time axis. To the "untrained eye" (and he supports this impression in his text), it looks like debt is growing much faster than gdp. This impression is created by the fact that both are under $5trillion in 1957, and by 2002 gdp is $10t and debt around $34t. However, I suspect if you graphed the RATIO of debt to GDP (which is really the issue, what multiple of gdp is debt, i.e. very roughly, how many years of earnings collectively would it take to pay off collctive debt), you will see the ratio MUCH higher at the start of the period than now, you'd probably see a decline in the graph slope for many years, then maybe an increase starting around 1985, based upon an eyeball evaluation of the two curves. That would have been a MUCH more meaningful graph, a more useful historical perspective. Maybe he thought that too abstract for his intended audience, being a derivative of the data (change over time in the rate of change of the ratio), but in this particular case I believe he has made more out of those historical numbers than is really warranted. The problem for me is, when you see that once, you start to trust less all the rest of the arguments he makes, you instead find yourself wondering "what did he leave out or misrepresent this time?" But with that caveat, I repeat that this is still the best overall attemtpt to make a case for a housing bubble, with the possible exception of a "Special Survey" done by the magazine Economist on 5/29/2003, which looks at the issue from an international perspective.

The last 1/2 of the book (the ostensible purpose, "how to make (or save) your money when the bubble bursts") seems even less well thought out. I'm not a professional investor, but I have been doing it a couple decades now & I came out of reading this book with very few viable (IMO) ideas on how to achieve what the title promises. For example, buying cash rich companies -- he lists msft, csco, intl, dell, nok. This advice is totally bereft of the context of stock price or p/e, and I'm sorry, a dollar is worth a dollar, and you can't say a company with cash is a good buy without even referencing how much cash you will pay for that cash!!! the suggestion of convertible bonds is also curious, I admit I have not looked at them much in my years, but my intuitive reaction is, won't these only do better than normal bonds as the stock price INCREASES (i.e. as it approaches the conversion price?) these bonds pay a lower rate & make up for that with the option to convert to shares at a fixed stock price. The value of that conversion option drops with the stock price (indeed for convertibles close to strike price, stock price changes are MAGNIFIED in the convertible pricing). And regarding gold pricing -- I actually have one raw gold producer that he mentions on my watch list right now, they are a major player in many other metals markets as well (copper, silver, etc). Having that POV, I can tell you that he has totally ignored the whole question of decreased industrial demand that would come with the kind of financial catastrophe he envisions, very relevant given the exposure this particular stock has to these other metal productions. Heck that is the reason that I am still on the sidelines, reduction of demand in china (which is creeping up in the news more in recent weeks as they attempt to engineer a "soft landing" to a badly overheated economy) could totally take the floor out from underneath a lot of these companies.

Finally, while by no means suggesting this is a fair way to evaluate his advice in this second half of the book -- since the whole argument is predicated on the collapse of the housing market, which has not (yet) happened -- it should be noted that a quick review of many of his suggested strategies shows that anyone following his advice in the one year approx since he finished writing it (he mentions this being the beginning of June 2003) would have vastly underperformed the market, or even lost money, in the interim.

So, in short, I find the first half the book (is there a bubble, why) a pretty good introduction to the argument for it, not perfect, but perhaps the best one out there. I find the other half (what will happen to the economy when it bursts, how to profit/protect yourself from it) very much unsatisfying, and I am stuck where I started, thinking "I think there is a serious risk here" but still unable to figur out how to translate this concern into concrete action for my own personal finances.

Worth a read
If the names Stephen Roach, Marc Faber, Bill Bonner, Bob Prechter, or Jim Puplava are familiar to the reader, then John Rubino's well written, easily digestible, and quite convincing summary of the bear case (not just in real estate, but also in the US equity market) should be old news. However, if these names are unfamiliar, the reader would do well to plunk down the money to buy this book, consider his argument, and give some thought to preparing for possible bad times should they occur.

Rubino spends the first part of the book laying out a case for why a bubble exists in the real estate markets, and then uses the second part of the book to explain possible strategies to protect assets and even profit. The hedging strategies are well organized, but I doubt most people would consider shorting housing/fannie/freddie stock or buying gold/silver bullion. It would also be unrealistic to expect people to abruptly move from their overpriced houses in California/Boston, leaving friends, families and schools behind. The asset protection strategies could have been more detailed (in the same vein as the books by Martin Weiss). Rubino could have made his real estate bubble case stronger by using more local market information, statistics, and graphs (a la John Talbott in his highly recommended book The Coming Crash in the Housing Market).

Overall, this book would prove valuable for people unfamiliar with the risks in the economy and the possible outcomes if this risk ever manifests itself in the economy and the markets.

This reviewer cannot help but add as an aside that given the current conditions (early 2004) in the United States of unhealthy financial asset and real estate valuations, burgeoning debt and its financing by foreign nations with their own unpredictable agendas, high budget and trade deficits, and wage pressure brought on by globalization, it might not be a bad idea for the reader to recognize that the potential downside risk may be much greater than any potential upside, and act accordingly when planning for their financial future.

Outstanding!
I never thought I'd say this about a finance book, but I couldn't put this one down. It is fascinating, logical, concise, well-written, and occasionally quite funny. Despite the catchy title, it is about more than just the regional housing bubbles we are experiencing right now: it is a primer on the entire lending industry and how badly it's gotten out of hand.

Just to be clear about it, this is not a "doom and gloom" or "the sky is falling"-type book. There are no histrionics to be found here, only well-researched facts and common sense presented in a very reasoned manner. Whether you own real estate or are thinking of eventually buying, and whether or not you are convinced that some housing markets are overpriced, this book will give you the background and advice you need to protect your assets and possibly even to profit enormously.

I have to comment on one of the other reviews here, by "A reader from San Diego, Ca," which implies that Rubino ignores the laws of supply and demand. This is an unfair accusation because it cites bad data: as a matter of fact, San Diego's home supply has increased at exactly the same rate as its population growth. They have both increased by 7% in the past 5 years. In the same time period, San Diego home prices have increased by 110%. The person who posted that review is clearly more interested in rhetoric than in facts but I wanted to set the record straight. ... Read more