10/27/2009

Review of Personal Financial Planning (Hardcover)

there are a few positives and a few negatives, as im sure you are purchasing this for coursework, you already know that it is over prices as all textbooks and poorly formatted for reference. pay attention to the appendices, they will be important the whole way.



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Review of Principles of Econometrics (Hardcover)

This book is a shortened version of "Learning and Practising Econometrics (1993)", which itself is a shortened version of "The Theory and Practice of Econometrics (1982)".

Hill's "Undergraduate Econometrics" instills understanding by slowly going through derivations and principles, while at the same time motivating econometric analysis by referring to economic situations where it can be used. Much better than Gujarati (which tends to be a "cookery book" rather than giving an integrated treatment).

The book both motivates the student and takes them through the steps and methods they will need to adopt in further econometric studies, and always provides a good reference (often to one of the parent books mentioned above) when it omits proofs and other details.

The only weakness of the book reveals what is (to my mind) an unhealthy preoccupation with estimation issues, as opposed to those of data quality. As people like Granger have consistently pointed out, the real issues in 21st century econometrics have to do with what sort of data we have, and what methods are most appropriate in different situations. Despite this, Hill et al almost exclusively dwell on the identically and independently distributed (iid) specification. However, I should point out in the book's defence that this preoccupation is shared by most other introductory (and graduate) textbooks on econometrics.

The book's good points far outweigh these weaknesses. Finally, the second edition has some updates, and discusses such developments as time series econometrics."Undergraduate Econometrics" should definitely be purchased by anyone wishing to learn about modern empirical methods.



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10/26/2009

Review of The Ten Roads to Riches: The Ways the Wealthy Got There (And How You Can Too!) (Fisher Investments Press) (Hardcover)

This is a fun, breezy read, as investment advisor and long-time Forbes columnist Ken Fisher has written a serious, but humorous book about how to build wealth.And at 216 pages a quick read.

Fisher's last book, "The Only Three Questions that Count", was superb. This latest book is very different from "The Only Three Questions...", which is all about personal investing but which also has application to other areas of a person's life.

"The Ten Roads to Riches" is about the varied ways a person can build personal wealth. Fisher draws from his own experience of meeting many successful people, as he charts the paths. The chapters are insightful and written in a tongue-in-cheek style with ideas that can be easily visualized.

Some examples: The first chapter "The Richest Road", which is founding your own business and building it into the next Microsoft, Nike, or Charles Schwab. The third chapter, about the "Ride-alongs", people who hitch theirselves to the Bill Gates's or Warren Buffett's of the world and rise as they and their firm rise. If you are Warren Buffett's longtime sidekick, there's got to be wealth in that, right? (Yup. Charlie Munger is his name and his net worth is $2 billion.)

Chapter four is "Rich ... and Famous". Some tips: compose songs, don't sing them, and star high school baseball players have slightly better odds of making the big leagues then star football players.

Chapter five is "Marry Well, Really Well", which is very amusing, but also serious. Hey, if you want to get married, hang around with rich people and fall in love with one of them! Plenty of examples including John Kerry (twice) and John McCain.

Chapter six is "Steal It - Like a Pirate, But Legally", making a career as a plaintiff's lawyer and suing companies. Enough said.... And chapter nine is "Trumping the Land Barons" - all about real estate.

The last chapter is "The Road Most Travelled", about doing it the old-fashioned way - get a good job, work hard, save and invest wisely.

Each chapter is a survey, giving multiple examples of people who took the particular road, and offering ideas, but no detailed plan. At the end of each are brief reviews of suggested additional readings for anyone who might be inclined to follow that particular path. I was surprised that there are actually serious books about how to "Marry Well", but maybe I shouldn't have been?

An enjoyable, quick read about one aspect of the business of life.




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Review of Security Analysis: Sixth Edition, Foreword by Warren Buffett (Security Analysis Prior Editions) (Hardcover)

To anyone who is reading this, Security Analysis is one of the greatest works ever written.In my opinion, you don't have time NOT to read it.

Of course, you shouldn't take every single idea written in any book, even the best, as the absolute truth.You should read Philip Fisher, William Nickerson, Adam Smith, John Burr Williams, John Bogle, Douglas Andrew, and so on, and take all the gems from each book, no matter how small (or how many), and piece together your own method of creating wealth.Don't be a sheep, be a sheperd, and put together your own flock.

That being said, read Security Analysis, and read it well.Highlight important points, draw arrows, create charts and diagrams representing key points.

Master this material.

You owe it to yourself.If you want to be an expert investor, you will put in this amount of effort in every book you read, especially the greatest works, like Security Analysis.You won't get rich by half-assing.This book is a priceless gem, and, although it may take several months of reading and research to understand its concepts, it will be well worth your while.



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Review of Catching the Wolf of Wall Street: More Incredible True Stories of Fortunes, Schemes, Parties, and Prison (Hardcover)

Who would write a book boasting about snitching on all their friends? And it's unclear to me why he needs to describe every detail of his sex life with his wife. Classy. What he needs to do islearn to write a sentence that doesn't have a cliche in it; and if I ever see the word "alas" again I'm going to shoot myself in the head. His first book was amusing, due to the drug and spending sprees, unfortunately this book takes place after those ended.



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Review of You Can't Predict a Hero: From War to Wall Street, Leading in Times of Crisis (Hardcover)

I have a large palette when it comes to what I read, and on first look, the story of a Wall Street broker is not something I would usually place high on my list as a "must read". At the urging of a family member whose advice when it comes to good books is top rate, I picked up this one.I absolutely loved it.It is one of the most compelling true stories I've read quite some time and it is wonderfully written. Getting to know Mr. Grano and his accomplishments in the face of diverse and sometimes harrowing challenges is one of the most compelling human stories I've read in some time.The book is both inspirational and educational, one I will keep in my library and refer to when needed. Thank you Mr. Grano.



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Review of The Difference: How Anyone Can Prosper in Even The Toughest Times (Hardcover)

I found this author from Oprah's web site and read this book.What I love about Jean Chatzky's book The Difference is that she gets to the point in a very calming way.

Money is often times linked to survival and fear in the modern society.I know many of us are raised to have this love-hate relationship with money.For instance, we love to have more money (e.g. one way to get there is to save and invest) but then we spend them instead of keeping them.In Jean's book, she started off describing the research she has done on the individuals who are classified in the following categories:
1.Wealthy
2.Financially Comfortable
3.Paycheck to Paycheck
4.Further In Debtors
Instead of being judgmental to any group of individuals, she simply pointed out "The Difference" wealthy people & financially comfortable people have (traits, the things they do, their beliefs, etc) versus individuals who are in the paycheck to paycheck & further in-debtors categories.Jean never for once went down the path to portray the "wealthy greedy" nor did she judge the "further-in-debtors" as financially irresponsible in her book.Instead, she mentioned many things wealthy and financially comfortable do are things paycheck to paycheck & further in debtors can learn to do to improve financially and our overall happiness (you can find her detailed suggestions in this book).She inspired all of us that to become financially comfortable and/or wealthy is not unrealistic goal in this life time through the research, her findings in the research and her interviews

I love these interviews.I used to have a gut feeling the not all wealthy and/or financially comfortable people are evil/greedy but I had no solid proof of such.Furthermore, if one has watched the news lately, it really does shaken some of my faith about this gut feeling I had all along (especially those news I hear about Wall Street big wigs cashing bonuses, etc).However, Jean's interviews in each chapter helps re-assuring us that pursuing financial goals does not automatically turn us into wealthy greedy categories.In fact, if we read through these interviews, one might realize the inner strengths many of the wealthy & financially comfortable individuals have and is something to admire and follow some of their paths.

Excellent book to get inspired to get our finances together.I highly recommend it!






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