Extreme Money: Masters of the Universe and the Cult of Risk
by Satyajit Das · 14 Oct 2011 · 741pp · 179,454 words
. The unflappable Meriwether advised that: “we’ve had a serious markdown but everything’s fine with us.”27 LTCM discovered what John Maynard Keynes knew: “the market can remain irrational longer than you can remain solvent.”28 On September 2, 1998 John Meriwether advised investors that LTCM had lost 52 percent of its value: As you are all too aware events
Mastering the Market Cycle: Getting the Odds on Your Side
by Howard Marks · 30 Sep 2018 · 302pp · 84,428 words
act in light of what they see in the environment. But they must bear in mind what John Maynard Keynes is reputed to have said: “The market can remain irrational longer than you can remain solvent.” ∾ To close on the subject of dealing with cyclical events, I want to provide one more example, from 1991. Leveraged buyouts had boomed in the
Fortune's Formula: The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street
by William Poundstone · 18 Sep 2006 · 389pp · 109,207 words
money when the “irrational” price of the warrant moves into line with the price of the stock. John Maynard Keynes is famous for remarking that the market can remain irrational longer than you can remain solvent. It does little good to buy something at an irrational price unless you are sure you can sell it for profit at the “reasonable” price
Heads I Win, Tails I Win
by Spencer Jakab · 21 Jun 2016 · 303pp · 84,023 words
eggheads at LTCM failed to appreciate. As they all surely knew, the great economist (and successful investor) John Maynard Keynes famously said decades earlier that “the market can remain irrational longer than you can remain solvent.” Those price moves, magnified by LTCM’s gargantuan leverage, soon created gigantic losses on paper for the fund, worrying the people who had lent it
Hedgehogging
by Barton Biggs · 3 Jan 2005
the Bank of New York. He was sympathetic, but when I complained that the market was irrational, he paraphrased John Maynard Keynes to me. “Unfortunately the markets can remain irrational longer than you can remain solvent. I advise damage control,” he said. We survived, but May 1970 was a lesson I will never forget.When you are managing risk in a
A Man for All Markets
by Edward O. Thorp · 15 Nov 2016 · 505pp · 142,118 words
bet against it too early you can be ruined in the short run even though you are right in the long run. As Keynes said, the market can remain irrational longer than you can remain solvent. What about avoiding losses? Once you spot the bubble, you simply don’t invest in it. However, there is the problem of spillover damage or
Expected Returns: An Investor's Guide to Harvesting Market Rewards
by Antti Ilmanen · 4 Apr 2011 · 1,088pp · 228,743 words
should fall with sudden and catastrophic force.” Keynes is also credited with a quote that foreshadows a central argument in the limits-to-arbitrage literature: “The market can remain irrational longer than you can remain solvent.” • Hyman Minsky for his insight that financial stability can be destabilizing (because prolonged stable periods make investors extrapolate the stability too far and induce them
Traders, Guns & Money: Knowns and Unknowns in the Dazzling World of Derivatives
by Satyajit Das · 15 Nov 2006 · 349pp · 134,041 words
did not discourage others; its models had just been faulty, not advanced enough. They would build better, more sophisticated models. John Maynard Keynes observed that ‘the market can remain irrational longer than you can remain solvent’. DAS_C06.QXP 8/7/06 176 4:43 PM Page 176 Tr a d e r s , G u n s & M o n
Efficiently Inefficient: How Smart Money Invests and Market Prices Are Determined
by Lasse Heje Pedersen · 12 Apr 2015 · 504pp · 139,137 words
to unwind the trade when the price gap widens and the trade loses money. The economist (and trader!) John Maynard Keynes expressed this risk well: The markets can remain irrational longer than you can remain solvent. Typical examples of fixed-income arbitrage trades include on-the-run versus off-the-run Treasury bonds, yield curve trading, betting on swap spreads, mortgage
How to Own the World: A Plain English Guide to Thinking Globally and Investing Wisely
by Andrew Craig · 6 Sep 2015 · 305pp · 98,072 words
up looking foolish as they called the top time and again and then saw the market carry on going up. As John Maynard Keynes said: “The market can remain irrational longer than you can remain solvent.” Put another way, this is a classic example of “greater fool theory”. As long as there was a “greater fool” and an equally foolish bank
Secrets of Sand Hill Road: Venture Capital and How to Get It
by Scott Kupor · 3 Jun 2019 · 340pp · 100,151 words
How Money Became Dangerous
by Christopher Varelas · 15 Oct 2019 · 477pp · 144,329 words