When Genius Failed

one more for collection

Powerful people with lots of money should take note that it is always smart to use a bit of common sense and conservatism along the way

Alex666

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Interesting info

Always had an interest in books like these. This was the first finance piece I've read since college and it was a blast. This book really helped me understand what's really going on beyond the academia that is shoved down our throats. Wonderful read.

Novamn

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fantastic read

Loved this book. Really simple, really straight forward understanding of risk.

Edgarj2

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Excellent book about risk

This book should be a must read in all business schools and it should come with the welcome package when you are hired as a financial professional.

Reading this book, you realise that arrogance can kill anyone in the financial markets even the most brilliant minds, even Nobel prize professors! Also, common sense is not so common.

It's an easy read, really entertaining book.

Candide

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always been a fan

Haven't been dissapointed by this at all. Plenty of great examples of how it's all done. bravo

Justinche

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Genius Book

Wow what can I say? The author really does a spectacular job telling the story of the ironically named Long Term Capital Management. LTCM was the all-star hedge fund that boasted heavyweights from the street and even Nobel Prize winners doomed to bust more than $2 billion. The journalistic style of the book is perfect at conveying the hubris and brash personalities of the group. It seems the fund started off on the right track but begins feeling the pressure to perform and maintain stellar returns for their clients, which leads them into increasingly dodgy territory and riskier trades. A revelation to me was the fund's major advantage was not so much their technology, skill, or brainpower, it was their prestige. By amassing such a wealth of talent they were able to charge more in fees and demand larger investments. At times it seems they almost "strong-armed" their clients into getting their way. All in all a fascinating book well worth the read.

Mikeyb420

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Just a great book.

If your in the finance or trading industry, this book is almost a must-read. A story of the demise of Long Term Capital Management, a fund so large many thought it was impossible for the fund to fail. That it did! Good story.

MrLewwy

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They can't teach you this in a classroom

When Genius Failed is a perfect story and one of the more exciting pieces of financial literature available today. If you're not familiar with John Meriwether then you should learn about him and his journey quickly. The book takes you on a roller coaster ride about a fund he put together called Long Term Capital Management.

Overall the book will leave you wondering how the hell something like this could happen, but it teaches you something more about the financial world in general - you don't need a PHD to make money or lose money.

Powerful people with lots of money should take note that it is always smart to use a bit of common sense and conservatism along the way. I'd recommend this book to just about anyone whether you love or hate finance and the way it's portrayed.

Sonid

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Proves trading isn't just about brains

If you have read Liar's Poker then you will have come across John Meriwether (principle of LTCM, the hedge fund covered in this book) before as a bond trader at Saloman Brothers. This book provides more background on John and charts the rise and fall of one of the greatest hedge funds of all time. It seemed as though he and the PhD's he employed couldn't make a wrong more, sure-fire arbitrage plays with super high leverage made them millions and millions in a seemingly risk free way.

The good times ended pretty spectacularly and the fund ultimately had to close. Goes to show that even with some of the brightest people money could buy at the wheel, it takes more than raw brains alone to make it.

Very interesting read and a great addition to your trading library.

Bradlishman

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All-Around Great Book/Must Read

I's always amazing to read what smart and aggressive people will do when it comes to money--these guys are no different than other Wall Street firm, they just were unlucky and their demise is a great lesson to all to be a little more conservative and realize no matter how smart you are, no matter your wealth, quality or duration of research or access to specialized information, you can ALWAYS be wrong so don't use ridiculous leverage and risk failing like these dudes.

That's one lesson...the other one is: finance is so misunderstood, if you see a way to make some massive profits and take on risk with OPM, screw it, you only live once right? All the major players are at other hedge funds now and still making tens, if not hundreds of millions per year...enjoy the widespread ignorance and live the good life no matter if the press or authors make you out to be the bandit that you really are.

I prefer the 1st lesson but its up to the reader to decide :)

Tim

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