Finance Review

If you are smalltime investor and you’d like to get ahead in the world, perhaps you’d like to know some of the secrets behind how the top investors do it. It’s hard to say if there are any real secrets, after all if we listen to the value investor Warren Buffett, nothing he says seems to be too secret at all; all of his strategies make perfect sense, logically and financially. And he is the greatest investor in history.

Still, if this topic intrigues you perhaps I could recommend a pretty decent book for your read. It is a book that is in my personal financial library and one that I have enjoyed over the years. There is a good bit of humor in the book, but there is a lot of straight talk too. The name of the book is;

“Making Money; Winning the Battle for Middle Class Financial Success” 1984

There are some great quotes in this book such as;

• “Murphy Was an Optimist”
• “Ignorance Is a Curable Disease”

And I really like this one as well. Niels Bohr once said “life can only be understood backwards but it must be lived forwards”

Another book I’d recommend along this subject matter would be; “How to Prosper during the Coming Bad Years“ by Howard Ruff and the editors of The Financial Survival Report, 1978.

The authors suggest to; watch for short-term versus long-term interest rates for signs of future moves in the business cycle. He also makes a recommendation to consider the “Malarial Economy” virus vector economics near the top and investment irrational exuberance in the bubble.

When short-term rates fall below long-term economy is good if short terms rise above the long-term you should unload for inflationary hedge and if you are a businessman you need to reduce your inventory and build up cash reserves for the coming business cycle downturn or recession. I hope you will enjoy this book is much as I.

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