Summary of Roger Lowenstein's When Genius Failed , livre ebook

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28 pages

English

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Please note: This is a companion version & not the original book.
Sample Book Insights:
#1 The secret of Eckstein’s business was to ride your losses until they turned into gains. He would buy the futures, sell the bills, and wait for the two prices to converge. But instead of converging, the gap widened even further.
#2 Meriwether’s life’s work was to understand and trade financial futures. He had grown up in a Democratic, Irish Catholic stronghold of Mayor Richard Daley in Chicago. He knew virtually everyone in the area, a self-contained world that revolved around the basketball lot, soda shop, and parish.
#3 Meriwether’s escape from Rosemoor was by means of a singular passion: golf. He was a standout member of the Mendel school team and twice won the Chicago Suburban Catholic League golf tournament. He also caddied at the Flossmoor Country Club, which involved a significant train or bus ride south of the city.
#4 Until the mid-1960s, bond trading had been a dull sport. But in the late 1960s, the epidemic of inflation destroyed the world of fixed relationships. By the end of the 1970s, firms such as Salomon were slicing and dicing bonds in ways that Homer had never dreamed of.

Sujets

Financial Risk Management

Economie gestion

Economics

Business

Finance

Catholicisme

Informations

Publié par	Everest Media LLC
Date de parution	16 mai 2022
Nombre de lectures	0
EAN13	9798822510760
Langue	English
Poids de l'ouvrage	1 Mo

Informations légales : prix de location à la page 0,0000€. Cette information est donnée uniquement à titre indicatif conformément à la législation en vigueur.

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Insights on Roger Lowenstein's When Genius Failed
Contents Insights from Chapter 1 Insights from Chapter 2
Insights from Chapter 1

#1

The secret of Eckstein’s business was to ride your losses until they turned into gains. He would buy the futures, sell the bills, and wait for the two prices to converge. But instead of converging, the gap widened even further.

#2

Meriwether’s life’s work was to understand and trade financial futures. He had grown up in a Democratic, Irish Catholic stronghold of Mayor Richard Daley in Chicago. He knew virtually everyone in the area, a self-contained world that revolved around the basketball lot, soda shop, and parish.

#3

Meriwether’s escape from Rosemoor was by means of a singular passion: golf. He was a standout member of the Mendel school team and twice won the Chicago Suburban Catholic League golf tournament. He also caddied at the Flossmoor Country Club, which involved a significant train or bus ride south of the city.

#4

Until the mid-1960s, bond trading had been a dull sport. But in the late 1960s, the epidemic of inflation destroyed the world of fixed relationships. By the end of the 1970s, firms such as Salomon were slicing and dicing bonds in ways that Homer had never dreamed of.

#5

The bond market was turning topsy-turvy in the 1970s. Two factors dictate a bond’s price: the risk of default, which is not strictly quantifiable, and the interest rate that investors demand for lending money to governments.

#6

By the early 1980s, Meriwether was one of Salomon’s bright young stars. His shyness and implacable poker face played perfectly to his skill as a trader.

#7

Meriwether was a priest of the calculated gamble. He was extremely private, and he wanted to eliminate the element of passion from trading. He wanted to hire traders who were smarter than the Neanderthals who traded from their bellies.

#8

The eggheads, who were hired to help trade the markets, were extremely smart. They downloaded all the past bond prices they could get their hands on, and they began to model how those prices should behave in the future.

#9

The professors were brilliant at reducing a trade to pluses and minuses, but they were socially awkward and unable to carry on a normal conversation. Meriwether created a safe, self-contained place for them to develop their skills.

#10

The Arbitrage Group was extremely close, and they would often gamble on golf weekends. They would bet on horses, and they would take day trips to Atlantic City together.

#11

J. M. Meriwether, the founder of Salomon Brothers, was a misfit among Wall Street’s Waspish bankers. He knew his markets, but his reputation as a trader was overblown. His real skill was in shaping people, which he did in understated style.

#12

The Arbitrage Group, led by Meriwether, made more money than the rest of Salomon. They began to expand their territory, and their loyalty to each other became stronger. They would not share any information with their Salomon colleagues.

#13

In 1987, the raider Ronald Perelman made a hostile bid for Salomon. J. M. fended him off by selling control of the firm to a distinctly friendly investor, the billionaire Warren Buffett.

#14

In 1989, Meriwether and Gutfreund agreed to pay their arbitrageurs a fixed 15 percent share of the group’s profits. The deal was made in secret, after which Hilibrand took home a phenomenal $23 million. Mozer, a trader, had confessed to Meriwether that he had submitted a false bid to the U. S. Treasury.

#15

The scandal was so unexpected that Meriwether felt it was surreal. He was being pushed aside even though he had done nothing wrong. Hilibrand and Rosenfeld, the heads of Arbitrage and the government desk, respectively, wanted J. M. returned as co-CEO.

#16

After the scandal, J. M. was not allowed to take over the top spot at Salomon, but he began planning a new and independent arbitrage fund. He raided the Arbitrage Group that he had so lovingly assembled.

#17

As the 1990s began, the investing world was experiencing a golden age. People were getting extremely rich off of the stock market, and many wanted to invest that money. However, many were also wary of the greed that could come with it.

#18

The term hedge fund is a colloquialism derived from the expression to hedge one’s bets, meaning to limit the possibility of loss on a speculation by betting on the other side. Most modern hedge funds boast of their steadiness rather than their profits.

#19

Hedge funds were a symbol of the richest and the best. They were extremely expensive, and their clients were extremely rich people who wanted a certain type of safe investing.

#20

Long-Term’s strategy was to leverage its capital 20 to 30 times or more. The allure of this strategy is apparent to anyone who has visited a playground: you can raise a weight far greater than you could alone.

#21

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Summary of Roger Lowenstein's When Genius Failed , livre ebook

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