The Alchemy of Finance

About the book

This is one of another Wiley Investment Classics books on Investments. This 392 page work is written entirely by George Soros. For those who do not know him, he is one of the top investors in the world and also a billionaire. He is also proclaimed as 'The Man Who Moves Markets' because at one time, he made a billion dollars in gains by betting that the British pound would be devalued (and it did).

Contents

This book is separated into five parts. Part one discusses Soros' view on several theories, most notably on the Theory of Reflexivity, in the stock markets and in the currency markets. Part two focuses on Soros' views on several historical events, which include the international debt problem of America, and Reagan's 'Imperial Circle' among other things. Part three discusses Soros' personal experience and reflections regarding his Quantum Hedge Fund's performance starting from August 1985 and ending at November 1986. Part four meanwhile, is his evaluation of his performance. Finally, part five discusses Soros' own prescriptions between: free markets vs. regulation, an international central bank, systemic reform, and the market crash of 1987. 

Review

 

Soros is a brilliant thinker aside from being a successful investor and philantropist. His insights are profound and can be difficult to understand, due to the language he uses. It is much like reading a philosophy book, which it seems to be. It is an intense reflection on certain realities and experiences.

Difficulty Level = 5/5

This is a challenging book to understand. It will probably take more than one reading to understand his point of view.

Personal Rating = 3/5

 

Although a good book, investors who are at beginner's level should not read this book just yet. There are other works available that can offer more practical advice and tips.


Personal finance tip for today (new feature) 





Upon the suggestion of some readers, I will be inserting very simple and practical personal finance tips every time i make a book review, so as to spice up the blog. Here goes:


In order to save money faster, stop borrowing money with interest rates. Unlike a corporation, your interest expenses are not tax-deductible.



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