The World's Best Book Summaries
Are you interested in buying and selling stocks? What are essential must-have books on stock trading? Stock trading involves buying and selling shares in various companies. To avoid potential risks, stock traders need to have a certain level of understanding of the financial market so they don’t end up losing money. We’ve compiled a list of the best books on stock trading to help you get started.
Have you found a property that’ll make you money? How do you buy an investment property? Once you’ve found the property you want to buy and have a plan for financing it, you have to buy it. In The Book on Rental Property Investing, Brandon Turner explores the process of making an initial offer and the negotiating skills required during the purchasing process. Here’s how to buy an investment property as a first-time investor.
Why does poverty exist? What geological and political factors increase people’s chances of living in poverty? For many people, once they live in poverty, it’s hard to escape it. While others might blame them for their position in society, there are external factors that prevent people from becoming financially stable. Let’s look at the five reasons why poverty exists, and why it’s not easy to solve.
What was the 1980s savings and loan crisis? How did Salomon Brothers and Lewis Ranieri navigate this crisis? Right on the cusp of the 1980s, the savings and loan industry suffered a shock that threatened to stop the housing market in its tracks. In Liar’s Poker, Michael Lewis says that instead of backing out of the mortgage bond business, Salomon Brothers dove head-first into the market, turning the US government’s plan to bail out local banks into a way to funnel money to itself. Continue reading to learn more about how the investment bank took advantage of the savings and
What are Collateralized Mortgage Obligations (CMOs)? How did CMOs defuse the mortgage bond market? During the height of the mortgage bond market, Lewis Ranieri started convincing banks to trade their bonds more frequently, allowing himself and Salomon Brothers to skim profits off every transaction. That was until CMOs came along. Discover more about the fall of the mortgage bond market.
What are junk-rated bonds? How did junk bonds become popular on Wall Street? After mortgage bonds began to decline on Wall Street, junk-rated bonds were next on the market. But unlike how Salomon Brothers took advantage of mortgage bonds to make a penny, junk bonds would be used against the investment bank. Find out how junk-rated bonds ended up hurting Salomon Brothers.
What is an LBO? Are LBOs considered hostile in the business industry? A leveraged buyout (LBO) is when a group of executives makes a company private by buying all of the company’s stock. There’s still much debate on whether a leveraged buy-out is considered a hostile takeover of a company. Read more about LBOs, according to Barbarians at the Gate by Bryan Burrough and John Helyar.
Where did Jim Simons’s love for mathematics come from? How did he turn his childhood passion into a groundbreaking career? For Jim Simons, mathematics is everything. According to The Man Who Solved the Market by Gregory Zuckerman, Simons thought equations and theorems would be the answer to the universe’s biggest mysteries. Keep reading to learn more about Simons’s passion for mathematics.
How did Warren Buffett help Salomon Brothers out of a hostile takeover? Why was the investment bank in danger to begin with? In 1987, Ron Perelman and Michael Milken conspired together to take over Salomon Brothers at its most vulnerable time. But with a large loan provided by Warren Buffett, Salomon Brothers managed to avoid the nasty bid. Keep reading to learn more about the heroic rescue by Warren Buffett and Salomon Brothers’ swift recovery.
Why was Ross Johnson resistant to a leveraged buyout of RJR Nabisco? Why did he eventually cave in? In the 1980s, many LBO consultants were pursuing the idea of buying out RJR Nabisco, but CEO Ross Johnson was hesitant. Eventually, he agreed to try an LBO, which would later become the biggest in history. Learn more about RJR Nabisco’s LBO below.