To get the free app, enter your mobile phone number.
When Genius Failed: The Rise and Fall of Long-Term Capital Management
|New from||Used from|
All Books, All the Time
Read author interviews, book reviews, editors picks, and more at the Amazon Book Review. Read it now
Customers who viewed this item also viewed
What other items do customers buy after viewing this item?
Browse award-winning titles. See more
Top customer reviews
The gist of the story is that no amount of financial modelling can overcome a “black swan” event, even though the term “black swan” was not a known term at the time of these events.
Fast forward from 1998 to 2008 and the term “black swan” has become a key piece of “financial lexicon” when considering what unforseen uncertainty might do to the value of financial assets and liabilities.
With the benefit of hindsight, some of the geniuses at Long Term Capital Management might have considered financial modelling for a “black swan” event.
The story is also one for detailing the shortcoming and weakness of human character. For example:
• Hubris v humility;
• Arrogance v meekness
• Over confidence v modesty;
• Pride v humility;
• Condescension v respect;
• Disdain v respect;
• Contempt v admiration
and so it goes on.
A reader is somewhat reminded by the verse “as you shall sow, then so shall you reap”. Such an apt phrase seemingly applies throughout the book, but the one stand out is when management decides to fully redeem the capital of the outside investors, with a view to increasing management’s share of the pie, only to find that the geniuses at Long-Term Capital Management had failed to realise that by shafting these investors, they had (in the end) shafted themselves.
Also he's quite kind for the Nobel laureates and their models and also he doesnt talk extensively about them
Overall though good and interesting book