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Friday, December 16, 2016

Friday Feature Book Review: The Education of a Speculator by Victor Niederhoffer (ex George Soros Trader) ジョージ・ソロストレーダーの教育: ビクター ニーダホッファ

Any trader who is so good, he worked for George Soros, must have something special. Victor Niederhoffer, was that man, and he was certainly something, and still is. Not only did he go to Harvard and get his PhD at the University of Chicago, he was a 5 time US National squash champion, board game lover, horse racing enthusiast, and music fan. He is pretty complex due to his New York upbringing in Brighton Beach, Brooklyn. 

With a father who was a cop & squash player, and an uncle who liked to buy & sell stocks, a lot of influences came to make up Victor's personality. Why does a trader who takes risk for a living with USD100 million or more, not wear any shoes in his office? Why does he keep pictures of the Titanic in his trading room and reminders of great men having great failures? Why does George Soros nick-name him looser? There is another image of him at the beach with george. Victor is out in the waves and George is closer to shore in a safe zone. A large wave is about to come crashing down onto Victor. It represents 2 different views on when market waves are safe to trade in. You soon have more questions about him than the money he makes by trading for others.

This book was written during a shining highlight peak of his trading career, well before any Titanic sized trading loss that was to come later on. This book is a self written explanation of how could he have got to his trading role and risk taking success. It is not a simple system that he developed, or an edge that he uses against a market. It is an entire process of thought. He is a great speculator because he is great at cross pollination of his many influences.

In many ways, his education comes from observations made in one area, and then applying them into a very new totally different unrelated area. How can you combine championship squash play strategies to price reactions from a US Fed announcement on interest rates? How do you make clear correlations between how bookies size up horses at the race track, and also see stock prices move in a very similar way to a keen trained eye? You do so in a very unique way. The amazing thing you learn in this book is that a speculator can become great by using any combination of disciplines but only if all are well observed.

This is not a light read. In fact, I would call it intense reading, You need a few moments to fully absorb what you take in. It reminds me of sipping fine cognac. This book is not something you go through fast, just like how you do not guzzle down XO cognac. You take is small amounts, and savor them. That is how best to fully appreciate this well written explanation of a great trader's personal roots, trials and tribulations. This 414 page testament to a 360 overview of influence, was a National Best Seller, and deservedly so.

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

1) There is a lot to learn about how to be a long-term successful trader, and no one path will do. The more paths you can take, the better. There is no single way, there are many, so learn them all.

2) The best traders know how to make money and keep doing what they do best by observing trends and possible patterns. Squash or any other sport keeps the mind sharp when in competition.

3) When becoming a successful trader, other similar disciplines may be obvious to learn from. Horse racing tracks that "bet on the ponies" can be a great insight into how horse betting crowds react like investors in the markets.

The most sad reality of this book though, is that it came out in 1997, just before a great fall. Like the Titanic image kept to balance human hubris in his trading room, the fall in his risk taking did come and hit hard within 2 years. Going broke at such an age after such a high, is discouraging for anybody who admires & applauds, such amazing courage to win against the markets. Maybe the house does win in the end? Maybe George Soros was right, Victor was a loser in the end, or at least for a time, before he of course, started trading again. Like any Greek tragedy, the hero must suffer defeat, and hopefully rise again. This book reads like the revealing of a man's soul, the key to a unique and complex personality.
An amazing book, 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!

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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Twitterでフォローしてください 世界中のTwitter第1位の採用企業45,000以上のフォロワーが既に持っています!クリックしてください



For more Buy-Side or Sell-Side roles in Asia-Pacific, contact our TMJ Partners Japan & Asia Finance team in Tokyo.
                  
                              Mark  Pink                                             Shinichi Nagasawa
                      Tel + 81 3 3505 3891                                    Tel  +81 3 3505 3891
          Email pinkmark@tmjpartners.com                 Email nagasawa@tmjpartners.com

Friday, December 9, 2016

Friday Feature Book Review: RICHISTAN by Robert Frank (New Super Rich) グローバルのスーパーリッチ: ロバートフランク

The new global home of Ultra High Net Worth Individuals is now called Richistan, a curious new term. Many have done well in the post Lehman financial crisis. The 1% of wealthy citizens known as Richistanis, are living in Richistan places including Singapore, London or New York, and are all spreading. There were 3.7 million US millionaire households in 1995, 9 million in 2004, and more than 15 million as of 2014. The 1% varies is size depending on the state you reside in within the USA. In Connecticut, you need over US$620K of income, but in New Mexico, it is less than US$300K. This book explains how this new segment of society enjoys their lives. 

Author Robert Frank, takes us on a very vivid journey that paints a very clear picture. He gives a great account of how these new families start out, and upgrade to levels of daily consumption that have never been seen. Lower Richistan have families in the US$1-10M in wealth, with a primary residence of $810K. Middle Richistan has $10-100M in wealth and a primary residence of $3.8M. Upper Richistan is the $100M crowd with a residence of $16.2M. 

It seems there is always another level of wealth to aspire to, and services that the rich want that soon become a need. The great mind candy that I enjoyed most explained how a single mother developed a butler school aimed at these Richistani families, that grew well beyond her early expectations. You learn that beach homes in the Hamptons, or ski chalets in Aspen, need to be better served in Richistan. 

There are many other entrepreneurs featured like Tim Blixseth who started Yellowstone Club, a gated private community resort in the rocky mountains of Montana. Ed Bazinet made more than $250 million from the sale of his ceramic mini-village items, and now tries to focus on how to spend his cash on a new Gulfstream jet and modern art collection. Small hobby experiments can grow into very big businesses when the market timing is perfect. Any person can make money from any idea when the timing presents itself. Who these entrepreneurs are, and how much money they make is a guilty addiction and deep fascination for myself. 

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

1) There is a lot to learn about how to be rich and successful in any society. You have to learn about the key market factors, and adapt to them constantly. Small ideas can grow into big businesses fast.

2) The best entrepreneurs know how to make money and keep doing what they do best. It is in their DNA and never turns off. You need to maximize the power of your ideas or inspirations with all business opportunities.

3) Becoming a successful entrepreneur, follows no pattern. It is the personal drive that is the common pattern, but the business itself. The determination needs to be at the core. 

The most encouraging pattern though is that there often is none. Money can be made from almost any business by a very driven entrepreneur. Once there, the goal is to find the right residence in Richistan, and try and settle down. It does not come naturally for them, and they often find themselves starting a new business opportunity. Settling down is not in their DNA. That may be the most common thing among these Richistanis. This is a great luxury read that is inspirational, and well worth a weekend!  


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 Twitter, the world's #1 recruiter on Twitter, over 45,000+ followers already have! 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Twitterでフォローしてください 世界中のTwitter第1位の採用企業45,000以上のフォロワーが既に持っています!クリックしてください



For more Buy-Side or Sell-Side roles in Asia-Pacific, contact our TMJ Partners Japan & Asia Finance team in Tokyo.
                  
                              Mark  Pink                                             Shinichi Nagasawa
                      Tel + 81 3 3505 3891                                    Tel  +81 3 3505 3891
          Email pinkmark@tmjpartners.com                 Email nagasawa@tmjpartners.com

Friday, December 2, 2016

Friday Feature Book Review: Guns, Germs, and Steel : Author Jared Diamond 文庫 銃・病原菌・鉄: ジャレド・ダイアモンド

Humans are not all equal across globe, so why is that? Why is there a segment of 1% across many populations around the globe? Is there a reason why the first world economies dominate third world economies? Is race, culture, technology, geography or any reason the key to the reason why? It is not easy to figure out, but can be done. The author succeeds. 

Why do people in the first world have more wealth than the rest of the world? Many races and societies have created great wealth over time, but then failed, is there any common pattern of success? This question was first asked by the author's helpers in New Guinea more than 30 years ago. It is very interesting to understand. He takes you on a historical journey. He explains a number of natural advantages that come down to geographic luck. 

The author's basic idea is that in Europe & Asia, especially near Mesopotamia, the fertile crescent, the best animals get domesticated. They no longer need to be hunted. Milk from these animals brings regular protein in rich diets. The people who live with animals get stronger in health and resist disease. Goats, sheep, pigs and cattle all help economic power. Animal power drives machines for improved production of food. Extra food can then be traded for storing extra wealth. Soon human health rises against disease and germs, it is the first economic advantage gained.

By spreading East and West along the same latitude in Europe and Asia, the extra food turned into wealth, could then be invested for artists, specialist and soldiers. The military benefit from germs as an extra weapon. This is best explained by smallpox when the Spanish first landed in North or South America. Over 95% of the native indians died of small pox, those who survived then faced follow up diseases. Without this ability to work crops, the extra wealth created could not be stored. Once in place, then fire first used for clay pots would lead to bronze and later steel weapons. 

Many have been critical of the theory as too simple, and does not value enough cultural influences. Many cannot accept that the land itself, the geography, determine local culture at its base. Farming stores surplus wealth. Extra income from this surplus is then invested in technology, leading to better guns or steel, making wealth easier to protect & transport via rail, and increase more wealth. 


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

1) There is a lot to learn about how to be economically successful in any society. You have to learn about the key market factors, and adapt to them constantly. Germs attack the weak more than the strong.

2) The best economies know how to make money and keep doing what they do best where they have an edge, usually technology. You need to maximize the power of military guns or similar technology over all enemies.

3) Becoming a successful economy, for a true long-term length of success is never fast or easy. Short cuts catch up with you, and can lead to losses. The more you invest in higher levels of technology or other benefits to your society, the better you will triumphs over competitors. The steel industry is a good example, as few can enter it due to high capital entry costs.

The book is full of many details that cannot be covered in this review, but the theory itself is really eye opening in many ways. As a Pulitzer prize winning project of 30 years, it has certainly made one man's career shine. I highly recommend this book to any who like to seek out answers in history that explain why economic wealth & power spread on a global scale.


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 Twitter, the world's #1 recruiter on Twitter, over 45,000+ followers already have! 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Twitterでフォローしてください 世界中のTwitter第1位の採用企業45,000以上のフォロワーが既に持っています!クリックしてください



For more Buy-Side or Sell-Side roles in Asia-Pacific, contact our TMJ Partners Japan & Asia Finance team in Tokyo.
                  
                              Mark  Pink                                             Shinichi Nagasawa
                      Tel + 81 3 3505 3891                                    Tel  +81 3 3505 3891
          Email pinkmark@tmjpartners.com                 Email nagasawa@tmjpartners.com