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Lessons From A Road Warrior: How I Fell Off A Horse, Earned 15 Million Air Miles, Got Sand In My Shoes And Learned How To Invest

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Wondering what's happening out there in the capital markets? Trying to decide what you should do? Hey, are you just trying to understand what is going on and how you can keep your head down? Then I recommend that you read this new book by Dr. John Rutledge. Dr. Rutledge one of the architects of the greatest expansion in the history of the planet and if you read this you will understand more about economics than just about anyone else. You might even be tempted to get back in touch with your Econ professors.

First of all, the book is really fun to read. Let me restate that - it's fun to read. John Rutledge has a certain way about his writing that draws you in and you are sure to enjoy it. Your last Econ book is probably sitting on your floor being used as a door stop. This one will be by your nightstand. The reason you'll enjoy it is because Dr. Rutledge writes this book like, well, a writer, not an economist. For example, the chapter on budget deficits uses easy examples (Aunt Tilly) and simple pie charts to explain what they are all about. Another chapter is called Thermo-Economics and is based on some of Dr. Rutledge's theories on thermodynamics. Interesting, and you know, you'll "get it" after reading it.

One final reason to read this book is that I believe that it will make you money. You will finish the book with a much better understanding of capital, investments, and how to face these uncertain times. I found his first book Rust to Riches, published in the mid 80's, a few years ago, and it was really interesting to read with the hindsight of what has transpired since then. Guess what? Just about everything that Dr. Rutledge predicted happened did. I'm excited about being able to read this book now - and using it to make money - rather than waiting and reading it five years from now telling myself, "Jeez I should have read this a few years ago..."

This is the finest book on macro economics in a generation. Save the latte for a few weeks and Invest in it for you and your family's future.

LESSONS FROM A ROAD WARRIOR is more than an insightful, profitable read: it is an important, timely book for our day.

Dr. John Rutledge is a really smart guy. He has advised Presidents (including the economic architects of the Reagan Revolution), consulted with governments and led businesses across the world. He sits at the tables of foreign leaders and industry captains who eagerly seek his counsel. He is one of the thoughtful, practical, insightful economists and business leaders of our generation.

I also love his heart for kids and the needy. Something special has touched Dr. Rutledge and he has a desire to give and make a difference in people's lives; especially desperate people in remote areas of the world.

Storm systems
Dr. Rutledge believes that capital markets can be understood using the laws and principles of physics; esp. thermodynamics. Volatility and market disruptions are akin to storms, changes in high and low pressure, and other powerful weather patterns. When certain markets are being adversely affected (oil, commodities, financials), it creates changes in capital flows, arbitrage opportunities and investor behavior which are understandable and predictable.

Investing
Like many other successful investors, Rutledge traces his investing disposition to Graham, the grandfather of value investors. This school of thought says, in short, investors want to own assets which create cash. Value investors want to own companies who produce cash (dividends) now. Growth investors are willing to wait. Value investors are from Missouri. John Rutledge is a value investor with a global perspective.

He recommends large, U.S. companies which are profitable. He also mentions small sector allocations; particularly in China. Stock investments should be made for the long term. He should know, he has managed hundreds of millions in funds.

Competing for Capital
Competition today in the global marketplace has been mischaracterized and misunderstood in the media. Protectionism and tariffs are the stuff of political demagoguery, not sound economics. "Countries are not competing for jobs today; they are competing for capital." For several years, capital has been flowing out of the United States and into places like India and China. This trend is a direct result of taxation policies which penalize risk and investment of capital. The U.S. is in need of reversal of these policies which punish job creators and innovators. Time is not our friend.

Fear
The current financial crisis is not a consumer spending problem - it is an informational short-circuit - investors are not able to properly value the securities in the current market (mortgage bonds, for example). The government is treating the wrong ailment (spending) instead of providing clarity and visibility and assurances of the value and pricing of these asset-backed securities.

There is danger, however, in the power of self-fulfilling prophecies (See Daniel Boorstin, The Image) which can lead to very, very disruptive market conditions.

The Future
An excerpt for the chapter of the same name: "The 20th century was the century of dinosaur energy; the 21st century will be dominated by human capital." The consequences of this are enormous; especially in the distribution and demands on natural resources, including oil.

Advice to live by
"If you want to be successful, do something you love, learn something new every day, find the smartest, mot decent people you can and stay as close to them as possible so you can learn how they think."

Dr Rutledge is a combination of "Renaisance Man" and Will Rogers. By use of personal experiences he skillfully, and often times humorously, provides a useful explanation of past economic and financial market events. More importantly, his sensible and well reasoned hypothesis surrounding the connection between the principles of thermodynamics and financial market behavior provides a rational approach as to how investors can navigate current and prospective finacial tidal waves. A must read.

I work with John each weekend on Fox Business and often throughout the week on other television hits on various networks and have seen him bring this material into real life work affecting others. I read the book long before we worked together - it created a contagious enthusiasm for understanding the unique role that science can play in economics.

Having taught econ for years at the bachelors, masters and doctoral level, I use some of the analogies in this book in my courses and have made it recommended and required reading at various institutions.

Lessons brings a unique marketplace perspective that will help you, the reader, understand how the markets work not from a textbook perspective (aka boring), but from one you will get -- and dare I say -- actually enjoy reading.

You will learn more than econ.. you will learn lessons about life from someone who knows how to live it. I have seen how this work impacts others on our weekend show where we help entrepreneurs understand what is happening in their own business, the markets and the economy. John always brings the well traveled, thought-out unique, direct perspective onto the show and he does it not to a greater degree in this book, but in a different way. A wonderfully complementary way -- if you have seen our show or his other hits on Fox, CNBC etc, you NEED THIS BOOK.

Even if you aren't into Econ, you are missing out by not reading this. John is the real deal - a nice change in today's environment.

Enjoyed the book... good information and humerous. The last chapter should be required reading for all high school seniors.

Eminently readable, this is one of the best books on economics I have ever read. With complete clarity, John Rutledge pulls together everything you always knew about economics and successful investing but didn't know why. The light really went on for me with his explanation of the 2nd law of thermodynamics and its relationship to economics. Without being overly political, the author's explanation provides the key to why President Obama's stimulus plan has never had any chance of working and will ultimately hinder the economic health of the United States. Truly a great book.

This is a terrific book providing quality advice to investors, businessmen, students, and politicians. People would be especially wise to study Dr. Rutledge's views on the thermodynamics and how it relates to economics, particularly in the realm of the aggregate US balance sheet.

It is rare to find something that provides an "ah-ha" experience. These ideas are that for me. Drawing on years of work, John's book chronicles his intellectual journey to his current understanding of capital markets using a thermodynamics framework rather than with complicated and confusing macroeconomics theories. In spite of the depth of his thinking, the explanations are clear, understandable and framed by his own experiences. I love the stories about growing corn as a boy and the lessons he learned. This is a book about humanity and life as much as it is about capital flows and investing. It changed not only how I think about investing and the economy but also about how people process and react to social change.