currency risk
description: a financial risk that exists when a financial transaction is denominated in a currency other than the domestic currency
113 results
Our Dollar, Your Problem: An Insider’s View of Seven Turbulent Decades of Global Finance, and the Road Ahead
by Kenneth Rogoff · 27 Feb 2025 · 330pp · 127,791 words
Rogoff, The Curse of Cash (Princeton, N.J.: Princeton University Press, 2016), chap. 2. 9. Andrea Baronchelli, Hanna Halaburda, and Alexander Teytelboym, “Central Bank Digital Currencies Risk Becoming a Digital Leviathan,” Nature of Human Behavior 6, no. 7 (July 2022): 907–909. Chapter 20. Perks of Currency Dominance 1. “World Currency Composition
The Future of Money
by Bernard Lietaer · 28 Apr 2013
derivatives as building a 'particle theory of finance'. For example, a Japanese yen bond can be unbundled in at least three pieces of risk: a currency risk (the risk that the yen drops in value against your own currency), an interest rate risk (the risk that Japanese interest rates go up after
The Scandal of Money
by George Gilder · 23 Feb 2016 · 209pp · 53,236 words
accurate measurements of the relative value of all the world’s hundreds of different moneys, the float makes fungible funds available on the spot without currency risk. In other words, with vastly greater speed and automated efficiency, the system performs the role previously played by the gold standard, while at the same
The City
by Tony Norfield · 352pp · 98,561 words
of view of what happens in individual countries.21 Secondly, by issuing debt denominated in US dollars, the US state can avoid taking on foreign currency risk. In a US-centred crisis, the value of the dollar might fall against other major currencies, but the US state has little debt denominated in
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20 First World War 23–6, 29 fixed assets, and profit 137 floating-rate notes 48 Ford Motor Company 5 Ford Motor Credit 5 foreign currency risk 168 foreign direct investment (FDI) American 3, 42 Chinese 18 outward 107–8 and status 107–8 UK 3, 66, 200, 205 foreign exchange deals
Grave New World: The End of Globalization, the Return of History
by Stephen D. King · 22 May 2017 · 354pp · 92,470 words
world in which exchange rates are completely flexible. That would mean, most obviously, allowing the euro to break up. Currency flexibility would, by definition, introduce currency risk. German savers – to take an obvious example – would then have to think twice about investing their money in Southern Europe because, even in the absence
Manias, Panics and Crashes: A History of Financial Crises, Sixth Edition
by Kindleberger, Charles P. and Robert Z., Aliber · 9 Aug 2011
interest rates in the offshore market were lower than those in their domestic market, although the offshore borrowing meant that the banks were incurring a currency risk, either directly or at one remove if they on-lent to domestic borrowers in the foreign currency. When the bubbles in Thailand and Malaysia popped
The Social Life of Money
by Nigel Dodd · 14 May 2014 · 700pp · 201,953 words
countercyclical deficits on their own. On the other side, bond buyers can switch from one country to another within the Eurozone without exposing themselves to currency risk. This situation renders the balance of power between states and their creditors asymmetrical and points to a fundamental difference between the United States and those
Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World
by Don Tapscott and Alex Tapscott · 9 May 2016 · 515pp · 126,820 words
industry, for investors, economic actors, and entire markets, are huge. Consider the farmer in Nicaragua or Kenya who has no robust tools to hedge against currency risk, political risk, or changes to the weather and climate. Accessing prediction markets would allow that person to mitigate the risk of drought or disaster. For
Beyond the Random Walk: A Guide to Stock Market Anomalies and Low Risk Investing
by Vijay Singal · 15 Jun 2004 · 369pp · 128,349 words
easy and inexpensive way to trade where the costs of trading foreign stocks are equivalent to those for trading domestic stocks. CURRENCY RISK Concern Holding foreign securities denominated in foreign currencies entails currency risk, as dollars must first be converted into foreign currencies and the foreign currencies converted back into dollars at the future
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rate. As the future rate is unknown, investing in foreign markets suffers from an additional risk due to currency fluctuations. Rejoinder Yes, there is currency risk due to currency conversions and uncertainty with regard to future exchange rates. However, as all of the returns reported in the earlier tables are in
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dollar terms, those returns already incorporate associated currency risk. Thus currency risk is important in foreign investments but has already been accounted for. Currency risk can also be hedged if desired (see “Currency Hedging”). POLITICAL AND ECONOMIC RISK Concern Investors are also concerned about
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the Random Walk Currency Hedging One issue that has elicited different responses is the role of currency risk in overall risk and return. Currency risk has been accounted for in all of the evidence presented. So the existence of currency risk will not reduce the benefits of investing in foreign markets. Rather, the question is whether
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managing currency risk will improve the gains from international investing. While the reduction of any kind of risk is good, there are two issues
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that must be considered with regard to currency risk. First, the correlation between currency risk and stock market risk is close to zero. That means that currency changes and stock returns are independent of one another. Though both
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currency risk and stock market risk contribute to the total risk of a portfolio of foreign stocks, the contribution of currency risk to the total risk is not very large because of the zero correlation. On average
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, currency risk contributes less than 20 percent of the total risk. The second issue is the cost of hedging currency risk. To completely eliminate currency risk, a dynamic hedging strategy is required, which can be very expensive. Even incomplete hedging can be
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it is not. The case for hedging an investment in emerging markets is even weaker because the correlation between currency risk and stock market risk is very often negative. In such cases, hedging currency risk will increase the total risk instead of reducing total risk. The performance of foreign portfolios including international mutual funds
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can depend a great deal on whether the funds hedge against currency risk or not. A comparison of the MSCI EAFE hedged and unhedged indexes is telling. The hedged MSCI EAFE index lost only 4.4 percent in
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hedging? There isn’t a good answer. But as an investor, you should be aware of whether or not the mutual fund you hold hedges currency risk. International Investing and the Home Bias Qualifications The evidence presented in this chapter is based on past data. Since future market conditions and market patterns
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owning foreign stocks. • Whether or not to hedge foreign portfolios against currency risk is a difficult question. While reducing risk is good, the cost of hedging currency risk may turn out to be too high. Some actively managed mutual funds do hedge currency risk, while others do not. Bottom Line Internationalizing a domestic portfolio is strongly
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he has to pay more dollars for the same yen, or should he wait for a year and assume currency risk but with the expectation of paying fewer dollars for the yen? Obviously the currency risk has to be matched with the expected return. Though the risk may justify the return based on past
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rate bias tend to be quite profitable. The forward rate bias can also help select foreign investments that should be hedged or not hedged against currency risk. Internet References Interest Rate Data http://www.ny.frb.org/rmaghome/dirchrts/global.html: The New York Federal Reserve site has short-term and long
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, 198–99, 201, 216. See also mergers and acquisitions Cordis, 217 corporate releases. See news and announcements correlation coefficients, 234, 243–45 correlations between markets currency risks, 254 in “funds of funds,” 133n7 globalization, 243–45 international investing, 238– 39, 255 mutual fund mispricings, 108–12, 116 by region, 238 risk, 234
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, 251, 252 crash of 1929, 46 crash of 1987, 243 currencies currency conversion, 249–50 currency futures, 272 currency markets, 2, 19–20, 270–72 currency risk, 247, 254, 256 devaluation, 268 East Asian currency crisis, 113, 243, 247 exchange rates, 282 forward rate bias, 259–81, 264 hedging
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currency risk, 254, 259, 329 custodian banks, 250 data mining, 10–11, 14 December effect, 23–38 bottom line, 38 capital gains and losses, 14, 19, 23,
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bottom line, 256 closed-end funds, 252 constructing an optimal portfolio, 239 correlations, 234, 238–39, 243–45, 255 costs, 245–47 currency hedging, 254 currency risk, 247 described, 232 diversification, 233–35, 242– 43, 253 estimating home bias, 239– 41, 241 evidence supporting, 235–41 exchange-traded funds, 252– 53 extensions
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-ask spread components of, 15, 66, 318– 20 excessive trading and, 293 exchange-traded funds, 34, 322 foreign stocks, 246 forward rate bias, 269 hedging currency risks, 254 index changes and, 184 index futures, 320 industry momentum strategies, 80, 93–95 insider trades and, 145 international investing, 253, 255 market efficiency and
Currency Wars: The Making of the Next Gobal Crisis
by James Rickards · 10 Nov 2011 · 381pp · 101,559 words
2007 recessions, U.S. 1970s to 1980s of 2001 of 2007 See also Panic of 2008 regional currency blocs Reichsbank reichsmark rent seeking rentenmark reserve currencies risk, in complex systems risk aversion Road, The (McCarthy) Rockefeller, John D., Jr. Romer, Christina D. Roosevelt, Franklin D. Rothkopf, David Rousseff, Dilma Rubin, Robert Russia
Crashed: How a Decade of Financial Crises Changed the World
by Adam Tooze · 31 Jul 2018 · 1,066pp · 273,703 words
Birth of the Euro
by Otmar Issing · 20 Oct 2008 · 276pp · 82,603 words
EuroTragedy: A Drama in Nine Acts
by Ashoka Mody · 7 May 2018
Big Debt Crises
by Ray Dalio · 9 Sep 2018 · 782pp · 187,875 words
The Shifts and the Shocks: What We've Learned--And Have Still to Learn--From the Financial Crisis
by Martin Wolf · 24 Nov 2015 · 524pp · 143,993 words
The Price of Time: The Real Story of Interest
by Edward Chancellor · 15 Aug 2022 · 829pp · 187,394 words
Extreme Money: Masters of the Universe and the Cult of Risk
by Satyajit Das · 14 Oct 2011 · 741pp · 179,454 words
The Rise of Carry: The Dangerous Consequences of Volatility Suppression and the New Financial Order of Decaying Growth and Recurring Crisis
by Tim Lee, Jamie Lee and Kevin Coldiron · 13 Dec 2019 · 241pp · 81,805 words
The Permanent Portfolio
by Craig Rowland and J. M. Lawson · 27 Aug 2012
Nomad Capitalist: How to Reclaim Your Freedom With Offshore Bank Accounts, Dual Citizenship, Foreign Companies, and Overseas Investments
by Andrew Henderson · 8 Apr 2018 · 403pp · 110,492 words
Triumph of the Optimists: 101 Years of Global Investment Returns
by Elroy Dimson, Paul Marsh and Mike Staunton · 3 Feb 2002 · 353pp · 148,895 words
Paper Promises
by Philip Coggan · 1 Dec 2011 · 376pp · 109,092 words
Capitalism 4.0: The Birth of a New Economy in the Aftermath of Crisis
by Anatole Kaletsky · 22 Jun 2010 · 484pp · 136,735 words
The Euro and the Battle of Ideas
by Markus K. Brunnermeier, Harold James and Jean-Pierre Landau · 3 Aug 2016 · 586pp · 160,321 words
What's Next?: Unconventional Wisdom on the Future of the World Economy
by David Hale and Lyric Hughes Hale · 23 May 2011 · 397pp · 112,034 words
Buying Time: The Delayed Crisis of Democratic Capitalism
by Wolfgang Streeck · 1 Jan 2013 · 353pp · 81,436 words
The Investopedia Guide to Wall Speak: The Terms You Need to Know to Talk Like Cramer, Think Like Soros, and Buy Like Buffett
by Jack (edited By) Guinan · 27 Jul 2009 · 353pp · 88,376 words
Expected Returns: An Investor's Guide to Harvesting Market Rewards
by Antti Ilmanen · 4 Apr 2011 · 1,088pp · 228,743 words
Stocks for the Long Run 5/E: the Definitive Guide to Financial Market Returns & Long-Term Investment Strategies
by Jeremy Siegel · 7 Jan 2014 · 517pp · 139,477 words
When the Money Runs Out: The End of Western Affluence
by Stephen D. King · 17 Jun 2013 · 324pp · 90,253 words
Valuation: Measuring and Managing the Value of Companies
by Tim Koller, McKinsey, Company Inc., Marc Goedhart, David Wessels, Barbara Schwimmer and Franziska Manoury · 16 Aug 2015 · 892pp · 91,000 words
Corporate Finance: Theory and Practice
by Pierre Vernimmen, Pascal Quiry, Maurizio Dallocchio, Yann le Fur and Antonio Salvi · 16 Oct 2017 · 1,544pp · 391,691 words
Where Does Money Come From?: A Guide to the UK Monetary & Banking System
by Josh Ryan-Collins, Tony Greenham, Richard Werner and Andrew Jackson · 14 Apr 2012
Crisis Economics: A Crash Course in the Future of Finance
by Nouriel Roubini and Stephen Mihm · 10 May 2010 · 491pp · 131,769 words
Traders, Guns & Money: Knowns and Unknowns in the Dazzling World of Derivatives
by Satyajit Das · 15 Nov 2006 · 349pp · 134,041 words
How I Became a Quant: Insights From 25 of Wall Street's Elite
by Richard R. Lindsey and Barry Schachter · 30 Jun 2007
Why Aren't They Shouting?: A Banker’s Tale of Change, Computers and Perpetual Crisis
by Kevin Rodgers · 13 Jul 2016 · 318pp · 99,524 words
Wall Street: How It Works And for Whom
by Doug Henwood · 30 Aug 1998 · 586pp · 159,901 words
The New Science of Asset Allocation: Risk Management in a Multi-Asset World
by Thomas Schneeweis, Garry B. Crowder and Hossein Kazemi · 8 Mar 2010 · 317pp · 106,130 words
Stigum's Money Market, 4E
by Marcia Stigum and Anthony Crescenzi · 9 Feb 2007 · 1,202pp · 424,886 words
Naked Economics: Undressing the Dismal Science (Fully Revised and Updated)
by Charles Wheelan · 18 Apr 2010 · 386pp · 122,595 words
Inside the House of Money: Top Hedge Fund Traders on Profiting in a Global Market
by Steven Drobny · 31 Mar 2006 · 385pp · 128,358 words
The Default Line: The Inside Story of People, Banks and Entire Nations on the Edge
by Faisal Islam · 28 Aug 2013 · 475pp · 155,554 words
The Crisis of Crowding: Quant Copycats, Ugly Models, and the New Crash Normal
by Ludwig B. Chincarini · 29 Jul 2012 · 701pp · 199,010 words
Portfolio Design: A Modern Approach to Asset Allocation
by R. Marston · 29 Mar 2011 · 363pp · 28,546 words
Investing Demystified: How to Invest Without Speculation and Sleepless Nights
by Lars Kroijer · 5 Sep 2013 · 300pp · 77,787 words
Mathematics of the Financial Markets: Financial Instruments and Derivatives Modelling, Valuation and Risk Issues
by Alain Ruttiens · 24 Apr 2013 · 447pp · 104,258 words
The Wealth of Humans: Work, Power, and Status in the Twenty-First Century
by Ryan Avent · 20 Sep 2016 · 323pp · 90,868 words
Fault Lines: How Hidden Fractures Still Threaten the World Economy
by Raghuram Rajan · 24 May 2010 · 358pp · 106,729 words
The Road to Ruin: The Global Elites' Secret Plan for the Next Financial Crisis
by James Rickards · 15 Nov 2016 · 354pp · 105,322 words
The Asian Financial Crisis 1995–98: Birth of the Age of Debt
by Russell Napier · 19 Jul 2021 · 511pp · 151,359 words
More: The 10,000-Year Rise of the World Economy
by Philip Coggan · 6 Feb 2020 · 524pp · 155,947 words
The Money Machine: How the City Works
by Philip Coggan · 1 Jul 2009 · 253pp · 79,214 words
The Global Money Markets
by Frank J. Fabozzi, Steven V. Mann and Moorad Choudhry · 14 Jul 2002
Vultures' Picnic: In Pursuit of Petroleum Pigs, Power Pirates, and High-Finance Carnivores
by Greg Palast · 14 Nov 2011 · 493pp · 132,290 words
Shutdown: How COVID Shook the World's Economy
by Adam Tooze · 15 Nov 2021 · 561pp · 138,158 words
Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present
by Jeff Madrick · 11 Jun 2012 · 840pp · 202,245 words
The Devil's Derivatives: The Untold Story of the Slick Traders and Hapless Regulators Who Almost Blew Up Wall Street . . . And Are Ready to Do It Again
by Nicholas Dunbar · 11 Jul 2011 · 350pp · 103,270 words
Broken Markets: A User's Guide to the Post-Finance Economy
by Kevin Mellyn · 18 Jun 2012 · 183pp · 17,571 words
Mastering Private Equity
by Zeisberger, Claudia,Prahl, Michael,White, Bowen, Michael Prahl and Bowen White · 15 Jun 2017
How the City Really Works: The Definitive Guide to Money and Investing in London's Square Mile
by Alexander Davidson · 1 Apr 2008 · 368pp · 32,950 words
New Market Wizards: Conversations With America's Top Traders
by Jack D. Schwager · 28 Jan 1994 · 512pp · 162,977 words
Commodity Trading Advisors: Risk, Performance Analysis, and Selection
by Greg N. Gregoriou, Vassilios Karavas, François-Serge Lhabitant and Fabrice Douglas Rouah · 23 Sep 2004
Boomerang: Travels in the New Third World
by Michael Lewis · 2 Oct 2011 · 180pp · 61,340 words
The Age of Turbulence: Adventures in a New World (Hardback) - Common
by Alan Greenspan · 14 Jun 2007
Security Analysis
by Benjamin Graham and David Dodd · 1 Jan 1962 · 1,042pp · 266,547 words
Efficiently Inefficient: How Smart Money Invests and Market Prices Are Determined
by Lasse Heje Pedersen · 12 Apr 2015 · 504pp · 139,137 words
All About Asset Allocation, Second Edition
by Richard Ferri · 11 Jul 2010
Alpha Trader
by Brent Donnelly · 11 May 2021
Principles of Corporate Finance
by Richard A. Brealey, Stewart C. Myers and Franklin Allen · 15 Feb 2014
Principles: Life and Work
by Ray Dalio · 18 Sep 2017 · 516pp · 157,437 words
Beyond Diversification: What Every Investor Needs to Know About Asset Allocation
by Sebastien Page · 4 Nov 2020 · 367pp · 97,136 words
Smarter Investing
by Tim Hale · 2 Sep 2014 · 332pp · 81,289 words
13 Bankers: The Wall Street Takeover and the Next Financial Meltdown
by Simon Johnson and James Kwak · 29 Mar 2010 · 430pp · 109,064 words
The Concepts and Practice of Mathematical Finance
by Mark S. Joshi · 24 Dec 2003
Stocks for the Long Run, 4th Edition: The Definitive Guide to Financial Market Returns & Long Term Investment Strategies
by Jeremy J. Siegel · 18 Dec 2007
All the Devils Are Here
by Bethany McLean · 19 Oct 2010 · 543pp · 157,991 words
Digital Accounting: The Effects of the Internet and Erp on Accounting
by Ashutosh Deshmukh · 13 Dec 2005
Red-Blooded Risk: The Secret History of Wall Street
by Aaron Brown and Eric Kim · 10 Oct 2011 · 483pp · 141,836 words
The Intelligent Asset Allocator: How to Build Your Portfolio to Maximize Returns and Minimize Risk
by William J. Bernstein · 12 Oct 2000
The Physics of Wall Street: A Brief History of Predicting the Unpredictable
by James Owen Weatherall · 2 Jan 2013 · 338pp · 106,936 words
Blindside: How to Anticipate Forcing Events and Wild Cards in Global Politics
by Francis Fukuyama · 27 Aug 2007
Other People's Money: Masters of the Universe or Servants of the People?
by John Kay · 2 Sep 2015 · 478pp · 126,416 words
After the Music Stopped: The Financial Crisis, the Response, and the Work Ahead
by Alan S. Blinder · 24 Jan 2013 · 566pp · 155,428 words
Sabotage: The Financial System's Nasty Business
by Anastasia Nesvetailova and Ronen Palan · 28 Jan 2020 · 218pp · 62,889 words
Finding Alphas: A Quantitative Approach to Building Trading Strategies
by Igor Tulchinsky · 30 Sep 2019 · 321pp
Capital Ideas Evolving
by Peter L. Bernstein · 3 May 2007
Money and Power: How Goldman Sachs Came to Rule the World
by William D. Cohan · 11 Apr 2011 · 1,073pp · 302,361 words
The Oil Factor: Protect Yourself-and Profit-from the Coming Energy Crisis
by Stephen Leeb and Donna Leeb · 12 Feb 2004 · 222pp · 70,559 words
Stress Test: Reflections on Financial Crises
by Timothy F. Geithner · 11 May 2014 · 593pp · 189,857 words
The Investment Checklist: The Art of In-Depth Research
by Michael Shearn · 8 Nov 2011 · 400pp · 124,678 words
In Pursuit of the Perfect Portfolio: The Stories, Voices, and Key Insights of the Pioneers Who Shaped the Way We Invest
by Andrew W. Lo and Stephen R. Foerster · 16 Aug 2021 · 542pp · 145,022 words
MONEY Master the Game: 7 Simple Steps to Financial Freedom
by Tony Robbins · 18 Nov 2014 · 825pp · 228,141 words
The Handbook of Personal Wealth Management
by Reuvid, Jonathan. · 30 Oct 2011
The Finance Book: Understand the Numbers Even if You're Not a Finance Professional
by Stuart Warner and Si Hussain · 20 Apr 2017 · 439pp · 79,447 words
I.O.U.: Why Everyone Owes Everyone and No One Can Pay
by John Lanchester · 14 Dec 2009 · 322pp · 77,341 words
Models. Behaving. Badly.: Why Confusing Illusion With Reality Can Lead to Disaster, on Wall Street and in Life
by Emanuel Derman · 13 Oct 2011 · 240pp · 60,660 words
Vulture Capitalism: Corporate Crimes, Backdoor Bailouts, and the Death of Freedom
by Grace Blakeley · 11 Mar 2024 · 371pp · 137,268 words
Conspiracy of Fools: A True Story
by Kurt Eichenwald · 14 Mar 2005 · 992pp · 292,389 words
The Simple Path to Wealth (Revised & Expanded 2025 Edition): Your Road Map to Financial Independence and a Rich, Free Life
by JL Collins · 191pp · 66,998 words
DIY Investor: How to Take Control of Your Investments & Plan for a Financially Secure Future
by Andy Bell · 12 Sep 2013 · 348pp · 82,499 words
Frequently Asked Questions in Quantitative Finance
by Paul Wilmott · 3 Jan 2007 · 345pp · 86,394 words
Personal Investing: The Missing Manual
by Bonnie Biafore, Amy E. Buttell and Carol Fabbri · 24 May 2010 · 250pp · 77,544 words
The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life
by J L Collins · 17 Jun 2016 · 194pp · 59,336 words
Madoff Talks: Uncovering the Untold Story Behind the Most Notorious Ponzi Scheme in History
by Jim Campbell · 26 Apr 2021 · 369pp · 107,073 words
Nudge: Improving Decisions About Health, Wealth, and Happiness
by Richard H. Thaler and Cass R. Sunstein · 7 Apr 2008 · 304pp · 22,886 words
The Power of Passive Investing: More Wealth With Less Work
by Richard A. Ferri · 4 Nov 2010 · 345pp · 87,745 words
Taming the Sun: Innovations to Harness Solar Energy and Power the Planet
by Varun Sivaram · 2 Mar 2018 · 469pp · 132,438 words
Work Less, Live More: The Way to Semi-Retirement
by Robert Clyatt · 28 Sep 2007
Reset: How to Restart Your Life and Get F.U. Money: The Unconventional Early Retirement Plan for Midlife Careerists Who Want to Be Happy
by David Sawyer · 17 Aug 2018 · 572pp · 94,002 words
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The Smartest Guys in the Room
by Bethany McLean · 25 Nov 2013 · 778pp · 233,096 words
The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns
by John C. Bogle · 1 Jan 2007 · 356pp · 51,419 words