The Sages: Warren Buffett, George Soros, Paul Volcker, and the Maelstrom of Markets [Hardcover]

Charles R. Morris (Author)

Book Description

Release date: June 8, 2009 | ISBN-10: 1586487523 | ISBN-13: 978-1586487522

Throughout the violent financial disruptions of the past several years, three men have stood out as beacons of judgment and wisdom: Warren Buffett, George Soros, and Paul Volcker. Though their experiences and styles vary—Buffett is the canny stock market investor; Soros is the reader of shifting global tides in trade and currencies; and Volcker is the regulator and governor, sheriff and clean-up crew—they have very much in common.

All three men have more than fifty years of deep involvement in markets. All are skeptical of Wall Street frenzies. They believe that markets tend to be right, but usually only over the medium term. They have seen too many cycles of herd-driven, emotion-riding booms and busts to make their views hostage to the sweeping and simplistic assumptions of “efficient-markets” models.

With the benefit of his own deep understanding of markets and finance, Morris brilliantly analyzes the records of these men, distilling their wisdom and experience—and argues for the importance of consistent values in navigating the treacherous terrain of today’s globalized world.

Editorial Reviews

Review

Library Journal
“Morris’s succinct but insightful biographies and his provocative criticisms make this an informative and recommended choice for most general readers.”

BookPage
“A short, insightful biography of each of these eminently successful men.…. A very timely book with a compelling message for us all.”

Paul Krugman, New York Times Book Review
"The Sages comes to life with its personal profiles, especially the surprisingly endearing portrait of Warren Buffett as a young man.”

Risk Professional
“Morris looks at…three of the biggest names in finance and the qualities that enabled them to maintain a clear-eyed perspective even as markets hurtled out of control.”

About the Author

In addition to the recent New York Times bestseller The Trillion Dollar Meltdown, Charles R. Morris has written eleven books, including The Tycoons, a Barrons’ Best Book of 2005. A lawyer and former banker, Mr. Morris’s articles and reviews have appeared in many publications including The Atlantic Monthly, the New York Times, and the Wall Street Journal.

See all Editorial Reviews

Product Details

• Hardcover: 224 pages
• Publisher: PublicAffairs (June 8, 2009)
• Language: English
• ISBN-10: 1586487523
• ISBN-13: 978-1586487522
• Product Dimensions: 5.5 x 0.8 x 8.3 inches
• Shipping Weight: 10.4 ounces
• Average Customer Review: 3.5 out of 5 stars  See all reviews (10 customer reviews)
• Amazon Best Sellers Rank: #493,799 in Books (See Top 100 in Books)

More About the Author

Charles R. Morris is a lawyer and former banker. He has written fourteen books, and is a regular contributor to Politico, Newsweek, Reuters, and many other publications.

Most Helpful Customer Reviews

13 of 13 people found the following review helpful

4.0 out of 5 stars The three sages dance to their own music September 27, 2009

By Houman Tamaddon

Format:Hardcover

Morris does a nice job summarizing some of their key accomplishments. While doing that, the reader will learn about some important events in the past forty years or so. The book is divided into four chapters. One chapter is dedicated to each sage and the final chapter is some of the author's thoughts and insights on capitalism and the markets. He interviewed Soros and Volcker but did not have direct access to Buffett.

This is not a light read. Like his previous book, "Trillion Dollar Meltdown", background knowledge of finance and economics makes the reader appreciate the book more. The casual reader who wants to learn about these three important figures may get confused at some of the more intricate financial parts of the book. I greatly respect the three sages but I disagree with the author that the three saw the 2008 crisis coming. While they might have known that we were on a path of destruction, even they did not know how and when it would manifest itself in the real world. If they did, you can be sure that Soros and Buffett would have made billions more than they did at that time.

Soros has written many books. Morris summarizes Soros' philosophies on philanthropy and investing. Large section is dedicated to recounting Soros' one year diary in the 1980's. Unlike, Buffett, Soros' investing strategies are mysterious. Aside from very general theories and thoughts, Soros has not described how he goes about making investing decisions. Soros' son even acknowledges that his father's back pain may influence his investing decisions more than anything else. I am skeptical of his son's anecdote (which Soros, himself, does not deny) given Soros' amazing success.

I have read extensively on Buffett so I got very little out of that chapter, but if you know little about Buffett, then you may find it worthwhile. This chapter is based on what has already been written about Buffett and his own letters to Berkshire Hathaway shareholders. If you have read Schroeder's "Snowball", then perhaps you, too will find little new in this section.

I got the most out of the Volcker section mostly because I knew least about him. Morris' account of how Volcker managed to break inflation was interesting. He takes you behind the scenes of the Fed at the time.

7 of 8 people found the following review helpful

5.0 out of 5 stars wisdom of the sages September 19, 2009

By V.H. Amavilah

Format:Hardcover

This book on the "longest recession in postwar history," is made up of three biographical essays about three men who have lived this and previous economic disasters of recent times: Buffet, Soros, and Volcker. Warren Buffet and George Soros are consummate investors; Economist Paul Volcker is a crisis-solver - an inflation slayer, more graphically.

The author wants to understand from these VIPs how and why most experts failed, and only a few succeeded, to see the coming of this near-depression recession. Other experts like Paul Krugman have offered their explanations. What is new in this book is that Soros has warned of the gathering "'superbubble' in the 1990s (p. viii)." Buffet worried about financial excesses even earlier than Soros. Apparently close friendly and colleagues have known for a long time of Volcker's concerns about the states of the US and global economies, but the ex-Fed Chairman kept quiet because he did not want his worries to undermine the authority of his successor.

Why did these men see what many didn't see? - because they are not dogmatists; they are commonsense pragmatists. Instead of allowing blind fixation with quantitative idiocy of late, the three VIPs avoided dogma with high integrity and preparedness to accept mistakes and to move on with enthusiasm. History is part teacher and part cheerleader here. Volcker saw the strengths and weaknesses of Keynesian policy in dealing with the inflation of the 1965-1980. Soros and Buffet made billions of dollars in good and bad economic times. All three sages respect free markets, but they also understand that freedom has its limits. Ideal efficient markets assume a statistical person pursuing her/his self-interests (maximum satisfaction = utility). Unfortunately application of that model to real life is a folly, because financial markets play dice with other people's money.

If you like historical biographies, you will love this book. And there are new facts to learn. Did you know, for example, that Soros' Open Society organization is named after Karl Popper's book Open Society and Its Enemies (1945)"? Interesting stuff.

Amavilah, Author
Modeling Determinants of Income in Embedded Economies
ISBN: 1600210465

ISBN: 1600210465
Quotable Arthur Schopenhauer
ISBN: 9781430324959

15 of 20 people found the following review helpful

3.0 out of 5 stars Not Very Actionable - July 18, 2009

By Loyd E. Eskildson HALL OF FAME

Format:Hardcover

Morris tells us that true believers of free-market fundamentalism oversaw the great asset bubble of 1995-2005, three men stood out as beacons of sound judgment and wisdom - Buffett, Soros, and Volcker. He tells us that he book largely comprises their extended biographical essays, plus a concluding essay drawing together their insights. Except it doesn't - yes, we get biographies of the three as promised, but the concluding essay lacks the promised value. Thus, readers are simply left with short biographies of three 20th century financial giants.