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Friday, March 30, 2018

Friday Feature Book Review: "Capital in the 21st Century" by Thomas Piketty トマ・ピケティによる "21世紀の首都"

This book is the new bible for economics globally. This is not one man's opinion, but the thoughts of a large team of 30 economists. They explain results from a huge pool of data that is presented with patterns gathered from over 15 years of research. The data is from more than 20 countries covering over 200 years of income tax. The most attractive point about this effort, is the clear data seen in new ways so clearly in a pattern. To suspect a theory is one thing, but to see it proven, with hard data, is another. This enlightenment is its genius.

There are 4 parts to this very major volume. The first 3 sections explain the historical evidence of wealth distribution. Recently media call them the 1%, but former US president Franklin Delano Roosevelt, called them "economic royalists". Concentrated power at the top of society. There are many names for the same people at the top of any economy. This is not only about the US today, but many rich and successful countries in modern economic history. 

Over 100 years ago, in France, during the "Belle Epoque" the comparison was clear. It was a society that valued equality among its citizens, but in fact, was really run by wealthy families, mostly inherited fortunes. What a society says it values, but then supports differently or economically, is what this great project explains so well. This is not one man's opinion or vision. It is an explanation of large patterns from large amounts of people over recent history. A kind of mirror to society, of what economic trends have taken place, and their impact.


At the core, wealthy families can grow their assets at roughly twice the growth of the local economy. If a country rises by 2-3% in economic growth, then its rich families should be able to expect 4-6% growth in income. Not all multi-generational rich families succeed, but most do, and the data proves this with a lot of clear evidence. The rise of Family Offices globally, is a good reflection of this trend. It is a high growth part of Private Banking, and is interesting food for thought economically from several angles.

The conclusions in part 4 are more difficult to accept for some. However, when it comes to choosing what is best for any society, how do you value the trade off? Ultimately, is it better for a small amount of tax from the top 1% be used to help the bottom 20% of the same society? The impact on this bottom would have a huge impact on the quality of life for all levels of the same society. 

If this more balanced redistribution has benefitted the quality of life in Europe, should other regions follow? The bottom poor segments of any society can benefit greatly from government programs, especially health care. As they are a really "working class", being healthy doing these tough jobs means better economics for all. Can the US and other countries see the full value to follow this path themselves? By having a more comfortable poor strata of society, then the middle class and rich society benefit as well. Could this be the best way to really live in a "win win" world?


The Top 4 Takeaways from this book that impact any reader are:


1) The data seems to show that rich families can benefit from higher income at twice the rate of any economy. 
2) Rich families often create a family office to grow their wealth long term. This trend is a strong one, and can often grow at twice the rate of the local economy. 
3) By having a healthy rich class that is kept strong economically by a family office, more charity support and medical research can be funded to help all levels of the society.
4) The 1% are not just a US concept. All successful societies are dominated by the few at the top. The challenge is redistributing wealth more widely for all.

What I wonder most is has this often been the case over very long periods of time? Is it just modern history, or all human history that this can impact? Is this the real best norm for all human societies over the last 5,000+ years since Mesopotamia? We only have 200 years so far. It is too bad that such data longer sets would be impossible to find, I would now love to read it. At over 700+ pages of text, there is too much to discuss in a short book review. This is a huge intellectual, tasty meal of data, to fully gorge on should you have the time and desire. Highly recommended without hesitation!


Please visit us for our Friday Feature Review where TMJ Partners will review books, movies, services and anything else with a financial theme. Follow us now for our free weekly updates, just click hereThank you for reading and learning more about how money is made in finance!

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あなたアジア日本セールストレーディング,
バンキング、フィンテックの役割に興味がある場合は、こちらをクリックしてくださいティエムジェィパートナーズLinkedinまたはTwitterでフォローしてください 世界中のTwitter第1位リクルーター60,000以上のフォロワー既に持っています!クリックしてください

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      Mark  Pink                               Shinichi Nagasawa
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Friday, March 23, 2018

Friday Feature Book Review: The Richest of the Rich by Philip Beresford (Sunday Times) "英国の裕福な" : フィリップ・ベレスフォード

How many millionaires and billionaires in the UK come from inherited wealth? How many are self made? How many are foreign born? This is a great book by the Sunday Times that gathers the richest 250 wealthy people in the UK since 1066. The author Philip Beresford, is the same editor for "The Rich List" popular within the Sunday Times. Make no mistake, this is a list of very large fortunes, in fact billionaire level. Some are in fact much larger than many living billionaires in the UK today. Oddly many at the top of this list benefited greatly from the 1066 battles and the Norman conquests of those times. In fact, 6 names are directly connected, and therefore highly rewarded, as a result of winning the "Battle of Hastings". To the victors in battle, go the spoils of war, clearly. The rewards are not gold, but mainly real estate as they were often granted large holdings of land.

Many of this class have inherited their wealth. In fact 146 of the 250 listed came from family money. At least 76 on the list are from very "old money" that often peaked in the middle ages 500+ years ago. We are talking about billions of pounds, not mere millions. The size and the scope of wealth amassed is enormous. The author works with an academic William Rubenstein who find a great way of comparing the wealth of owners over 1000+ years ago. They develop a conversion of the Net National Income and compare it to today. By dominating a large percentage of the national economy, a figure can be found. 

Some of my favorite profiles include Edward III, known as the "Black Prince". I did not know he was actually real, and assumed he was a myth from the knights of old. He lived around 1330-1376 and had a NNI wealth of 3.14% of the UK economy, some 2.7Million pounds worth or 34 Billion pounds in today's value. He distinguished himself as a warrior at age 16 during the hundred years war. It seems a shame he died an invalid at age 46. Others include Alan Rufus, who took in 7.3% of NNI or 81 Billion pounds in today's value. It helps to back a winner, and he was there on the battlefield in 1066, with William the Conqueror. 


The Top 3 Takeaways from this book that impact any reader are:

1) The UK has a wealth class that certainly began from the year 1066. If you were on the winning side of that battle, your family often became very rich indeed.
2) This largely real estate based system of wealth first generated income from farming and then later on rental income. Income tax became a difficult hurdle for many families to overcome. Many lost their wealth as a result.
3) The inherited wealth from this land owning class still exists today. Various noble families still charge rent within many areas of the UK included top rents within London.

Sir Richard Branson is one of the few more modern self made men in the list. He is worth over 3.1 Billion pounds, and seems to me one of the few bright spots in the 21 century. His transport and media empire and now taking on a more environmentally friendly tone, and new businesses with that theme are expected in the years to come. Foreign born billionaires, in fact 17 of them, make the list in the more modern era. Roman Abramovich, 10 Billion pounds, Simon Halabi, 3 Billion pounds, and Lakshmi Mittal,19 Billion pounds. They all certainly shine brightly on this UK list. There were too many other great characters to mention here, but safe to say, all had great backgrounds to read about. They were all quite interesting and very entertaining reading. Highly Recommended!


Please visit us for our Friday Feature Review where TMJ Partners will review books, movies, services and anything else with a financial theme. Follow us now for our free weekly updates, just click hereThank you for reading and learning more about how money is made in finance!

If you are interested in Sales & Trading, Banking or FinTech focused roles in Asia or Japan then click here. Follow TMJ Partners on Linkedin or on TwitterWe are the world's #1 recruiter on Twitter, with over 60,000+ followers globally! click here! 

あなたアジア日本セールストレーディング,
バンキング、フィンテックの役割に興味がある場合は、こちらをクリックしてくださいティエムジェィパートナーズLinkedinまたはTwitterでフォローしてください 世界中のTwitter第1位リクルーター60,000以上のフォロワー既に持っています!クリックしてください

For more Buy-Side and Sell-Side roles in Asia-Pacific, contact our TMJ Partners Japan & Asia Finance team.

Tokyo                                          Tokyo

      Mark  Pink                               Shinichi Nagasawa
Direct + 81 3 3505 3891              Direct + 81 3 3505 3891

Friday, March 16, 2018

Friday Feature Book Review: Freakonomics by Steven Levitt & Stephen J. Dubner ヤバい経済学 スティーヴン・D・レヴィット/スティーヴン・J・ダブナー


Can you make "economics" a usually dull subject more exciting? Yes, you certainly can! The most constant phrases I kept on hearing in my head, while reading this book was simple wow, cool, how amazing, what a great angle, I had no idea. I was really impressed by a style of writing that I had never read before. I could not put the book down. I realized that I had only viewed economics with a very basic boring dry view. This book opened my eyes to seeing the bigger picture about economics.

The two totally "hands on" authors look at the "real but hidden economy" that real people use money for. They are not afraid of looking at where people really spend their hard earned cash, even in illegal ways. They make very innovative observations on what is really happening in the total economy everyday as a result. This is a view of economics that was never taught in school, and makes you sharp in follow up observations. You see the world differently without assumed barriers or fixed rules. You see economics as they really are, not how governments or academics present them to be.

Everybody knows about official economic numbers from the news, but this book brings more. This includes an insider view of many "guilty pleasure" numbers from many paid for items often hidden within the US economy. How much does a drug dealer really make a week? Why does he live with his Mom? Is his net income not high enough to move out? Getting the scoop on how much he really makes is really riveting. You just cannot find such info anywhere else. It is unique and very compelling. It takes a certain odd type of author to even want to know those details. However, it takes a seriously odd one, to go out and really find out. This is not library research.


Many topics just jump out at you needing a good read. How can you resist finding out how the Klu Klux Klan is like a group of real estate agents. How can any July 4th weekend be the best sales days for prostitutes in every major US city. How did being a criminal change widely in its income levels over the last few decades. I did not know how badly I wanted to know the answers to these questions. Until I learned the answers, and more importantly, how they were found. I just could not stop reading.


The Top 3 Takeaways from this book that impact any reader are:

1) The US drug gangs are very corporate. They are very well organized criminal groups. They have extremely clear hierarchy and reportings lines at the core.
2) Prostitution in many cities in the US has a real need for citizens needing time away from relatives on family visits. Supply and demand peak during these periods.
3) The real economy gives a real sense of economic activity. Government numbers are just one boring side to the numeric research. It is certainly not complete as a picture.

If you want to know about this "hidden angle" of the economy you already live in, this is for you. The attitudes of these authors is of curious misfit scientists and is well reflected all throughout the book. It is wonderful stuff. Perfect for a plane journey as it comes in great chunky chapters. Highly Recommended!


Please visit us for our Friday Feature Review where TMJ Partners will review books, movies, services and anything else with a financial theme. Follow us now for our free weekly updates, just click hereThank you for reading and learning more about how money is made in finance!

If you are interested in Sales & Trading, Banking or FinTech focused roles in Asia or Japan then click here. Follow TMJ Partners on Linkedin or on TwitterWe are the world's #1 recruiter on Twitter, with over 60,000+ followers globally! click here! 

あなたアジア日本セールストレーディング,
バンキング、フィンテックの役割に興味がある場合は、こちらをクリックしてくださいティエムジェィパートナーズLinkedinまたはTwitterでフォローしてください 世界中のTwitter第1位リクルーター60,000以上のフォロワー既に持っています!クリックしてください

For more Buy-Side and Sell-Side roles in Asia-Pacific, contact our TMJ Partners Japan & Asia Finance team.

Tokyo                                          Tokyo



      Mark  Pink                               Shinichi Nagasawa
Direct + 81 3 3505 3891              Direct + 81 3 3505 3891

Thursday, March 15, 2018

MUFG Morgan Stanley Fires Manager Who Sued Firm for Harassment 三菱モルガン、ハラスメントを訴えていた幹部に解雇予告通知

MUFG Morgan Stanley Fires Manager Who Sued Firm for Harassment  2018-03-14 03:29:40.229 GMT (Bloomberg)
日本語記事:三菱モルガン、ハラスメントを訴えていた幹部に解雇予告通知
By Takahiko Hyuga
(Bloomberg) -- Mitsubishi UFJ Morgan Stanley Securities Co. is firing an equity sales manager who sued his employer for harassment, according to a letter of dismissal obtained by Bloomberg. 


The brokerage notified Glen Wood that it will terminate his employment on April 8, according to the letter sent last week. His comments made to the press were false and damaged the firm’s reputation, the Tokyo-based venture between Mitsubishi UFJ Financial Group Inc. and Morgan Stanley said in the document. Wood, 48, filed a claim in October arguing that the brokerage treated him unfairly after he became a father. The Canadian national initially sought a Tokyo court injunction to withdraw unpaid leave, and in December filed a lawsuit seeking compensation.


“This is also harassment,” Wood said by phone, when asked to comment on the notification of his dismissal. The single parent, whose son was born in October 2015, has claimed that his requests to take paternity leave were rejected until December of that year after he took a DNA test to prove he was the father. When he returned to work in March 2016, Wood argued that he was excluded from important meetings, conference calls and overseas trips.

Mitsubishi UFJ Morgan Stanley spokesman Koji Ichihashi declined to comment on the letter, but said the firm has been “responding sincerely” to Wood. “Our understanding is that his arguments that the company obstructed his paternity leave and conducted harassment are groundless.”


Client Impact

The firm put him on unpaid leave in October. Last year,
Wood held press conferences at the labor ministry and the
Foreign Correspondents’ Club of Japan to explain his case.
Wood’s actions led Mitsubishi UFJ Morgan Stanley’s clients
to doubt its compliance with industry standards and consider revising their business relationship, the firm said in the
letter. Managers and colleagues lost confidence in Wood, and the firm judged that it had reasonable grounds to terminate his employment contract, according to the document. Wood joined the firm in September 2012 as a manager of a team selling Japan stocks to local and overseas investors. His lawsuit is ongoing.


To contact the reporter on this story:
Takahiko Hyuga in Tokyo at thyuga@bloomberg.net
To contact the editors responsible for this story:
Marcus Wright at mwright115@bloomberg.net
Russell Ward


Please visit us for our Friday Feature Review where TMJ Partners will review books, movies, services and anything else with a financial theme. Follow us now for our free weekly updates, just click hereThank you for reading and learning more about how money is made in finance!

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あなたアジア日本セールストレーディング,
バンキング、フィンテックの役割に興味がある場合は、こちらをクリックしてくださいティエムジェィパートナーズLinkedinまたはTwitterでフォローしてください 世界中のTwitter第1位リクルーター60,000以上のフォロワー既に持っています!クリックしてください

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Friday, March 9, 2018

Friday Feature Book Review: Civilisation by Niall Ferguson 文明: 西洋が覇権をとれた6つの真因のナイルのファーガソン

This book is a great application of history to global economics. The author Niall Ferguson, tries to figure out how China lost the plot of world economic domination, back in the 1400s. At that time, China dominated world trade, had sailing ships trading with Asia, Australia, Africa and beyond. It had cities of more than 1 million people like Nanjing, the capital at the time. This was where public health and sewage were already being organised by well trained bureaucrats. If so, then how did things change so much and why? How did Western Europe and the USA later come to dominate the world with Western ways? The clear change to come was not obvious, yet it did take place in the years that followed.

To compare back then, London had only 40,000 people, as the black plague killed much of the population. It had poor general services and very limited government bureaucracy then. So how exactly did Western civilisation come to dominate the world economy for 500+ years afterwards? This becomes an economic mystery to find out how the West could come to overtake the East. The follow up question though, is will the West hold on to this advantage? or will the East now retake the world again in the future? 

To explain how this all took place, the author has come up with 6 "killer apps" or economic principles. They seem to be core reasons why Western Society has developed, and have helped drive them ahead of other previous societies and economic models to date.

The Top 6 Takeaways from this book that impact any reader are these killer apps:

1) Competition, as in the huge amount of decentralized city states and small countries. They all fought for economic advantage and trade across Europe and beyond. This forced intense innovation and progress much faster than the centralized Chinese empire at the time.
2) Science, the amount of scientific technology of clocks, weapons, industrial factories and energy inventions like the steam engine, helped spread this economic expansion far and wide.
3) Property, unlike in South America where the plundering of gold & silver left all land remaining in the hands of the king of Spain, lead to elites. North America was settled by immigrants who got to own land and vote as part of the new world bargain.
4) Medicine, disease has stopped many parts of the world from growing but Western medicine, especially the French. This brought new ways to fight disease in Africa, that allowed many to survive well past their first 30 years and really prosper longer term.
5) Consumerism, the clothes of the West via pop music and movies have spread so far around the globe. It is safe to say today, that the T-shirt and jeans is now a global uniform. This is a never before seen trend globally, and has united tastes in retail fashion.
6) Work Ethic, the protestant work ethic seems to have been another key driver, but why does Europe differ now in lower Church habits compared to the US where worship remains high? Again competition of separate churches competing attracts followers versus centralized European churches with shrinking appeal. 

It is all amazing food for thought, but in the conclusion, it is also clear that China, Korea & Japan have all learned the very same lessons and have made them part of their own economic miracle. If these lessons, these 6 killer apps, can be learned, will the East regain its place again in the world economy? Due to the savings rates needed, that may be a key reason for longer term success and another major change in how the world works economically. Really fascinating reading for anyone into global macro view points. Highly Recommended!

Please visit us for our Friday Feature Review where TMJ Partners will review books, movies, services and anything else with a financial theme. Follow us now for our free weekly updates, just click hereThank you for reading and learning more about how money is made in finance!

If you are interested in Sales & Trading, Banking or FinTech focused roles in Asia or Japan then click here. Follow TMJ Partners on Linkedin or on TwitterWe are the world's #1 recruiter on Twitter, with over 60,000+ followers globally! click here! 

あなたアジア日本セールストレーディング,
バンキング、フィンテックの役割に興味がある場合は、こちらをクリックしてくださいティエムジェィパートナーズLinkedinまたはTwitterでフォローしてください 世界中のTwitter第1位リクルーター60,000以上のフォロワー既に持っています!クリックしてください

For more Buy-Side and Sell-Side roles in Asia-Pacific, contact our TMJ Partners Japan & Asia Finance team.

Tokyo                                          Tokyo


      Mark  Pink                               Shinichi Nagasawa
Direct + 81 3 3505 3891              Direct + 81 3 3505 3891

Friday, March 2, 2018

Friday Feature Book Review: Hedge Fund Market Wizards: Jack D. Schwager 続マーケットの魔術師 (ウィザードブックシリーズ) ジャック・D・シュワッガー

This is the author's 4th "Market Wizards Series" book, and the best by far. Luckily, it is a series of 15 direct and revealing interviews, so every compelling chapter ends while another begins every 30+ pages. Each hedge fund legend, known or unknown to the financial public, brings much to learn. 


I could not put this book down most days once started. The interview with Michael Platt, the founder of BlueCrest, a US$35BN+ AUM debt focused hedge fund firm, was the most enlightening. He fleshes out a crystal clear style of risk control and trading understanding, that many other hedge funds or internal prop teams, will try to follow more often over time. BlueCrest did 50% returns in 2016, and 54% returns in 2017. It is a trading culture of very high performance.

To my surprise, Michael explained that he started out trading his grandmother's account in equities around age 17. He did well until the 1987 crash. He then was mentally scarred for life, and never forgot. He then decided that risk control and downside drawdowns were at the core of overall trading success, not the upside of potential winning trades. It is not how much you can win, it is more about how much more you may lose. This early teen trading experience has prepared him well for markets later on.

Other big hedge fund superstars include Ray Dalio, founder of BridgeWater, a US$120BN in AUM with 1400 staff in the firm. The honesty of Ray with his staff within a culture of open criticism on mistakes, is still difficult for me to access and understand. The method and the secret internal written rules that have been assembled would be a goldmine to read. Ray's market "Principles" are now public, and widely read by many in books today. They are hard won lessons that he now shares openly, and does not keep tightly controlled as an internal form of IP.

Another great profile is Joel Greenblatt, founder of Gotham Capital, author of a well-known market bible, "You Can Be A Stock Market Genius". He has continued to share his market insight with "The Little Book That Beats The Market", followed by "The Big Secret for the Small Investor". All of them like this great book, are filled with great views with amazing insights that keep you reading. Highly Recommended!

The Top 3 Takeaways from this book that impact any reader are:

1) All big winners lose first during their career. They learn to accept the reality of losses, and then grow to learn to be better risk takers.
2) Rules can change, but principles always stay the same. Great traders can adapt their trading principles to various new markets.
3) Every great trader has an edge. They figure out what they are good at and stick with that market beating edge over time. They do not try and trade outside of their best core competence.

At the end, the author Jack Schwager, gathers a great set of patterns and conclusions that can even help the simple small scale investor. The style of reading in this book is of gathering common patterns of intelligence. There are many different kinds of traders and many different markets. The biggest challenge is finding the right market where you can trade profitably over long periods of time. No single trader can be a winner forever, but they can certainly win a lot more than they lose. That is a balance that the best traders seem to be at peace with. All readers can therefore learn from the interviews with high level hedge fund managers active in the market. All of the Jack Schwager books in this series compliment each other perfectly. You only get better by reading them all and gaining a wider more robust view of market opportunities. Highly Recommended!

Please visit us for our Friday Feature Review where TMJ Partners will review books, movies, services and anything else with a financial theme. Follow us now for our free weekly updates, just click hereThank you for reading and learning more about how money is made in finance!

If you are interested in Sales & Trading, Banking or FinTech focused roles in Asia or Japan then click here. Follow TMJ Partners on Linkedin or on TwitterWe are the world's #1 recruiter on Twitter, with over 60,000+ followers globally! click here! 

あなたアジア日本セールストレーディング,
バンキング、フィンテックの役割に興味がある場合は、こちらをクリックしてくださいティエムジェィパートナーズLinkedinまたはTwitterでフォローしてください 世界中のTwitter第1位リクルーター60,000以上のフォロワー既に持っています!クリックしてください

For more Buy-Side and Sell-Side roles in Asia-Pacific, contact our TMJ Partners Japan & Asia Finance team.

Tokyo                                          Tokyo

      Mark  Pink                               Shinichi Nagasawa
Direct + 81 3 3505 3891              Direct + 81 3 3505 3891