1 comments about Treynor On Institutional Investing (Wiley Finance).

1. Jack L. Treynor's newest text, Treynor on Institutional Investing, is destined to become the New Testament of financial economics. With an informative foreword by the President and CEO of the CFA Institute, Jeff Diermeier, as well as a preface and new section introductions by Mr. Treynor providing useful context, we now have most of Mr. Treynor's life's work assembled in this easily-accessible anthology from Wiley Finance.
   
   Mr. Treynor, the protégé of Franco Modigliani and the mentor of Fischer Black, is uniquely qualified to provide investment wisdom. Although Mr. Treynor is not well-known to the mainstream, fortunately for the investment community, his story has become more popular recently. Trained as a mathematics major at Haverford College, he completed Harvard Business School with distinction in 1955 and stayed on for a year afterwards writing cases for Professor Robert Anthony. In 1956 he coauthored a paper on capital equipment leasing. At Harvard, Treynor had been taught that the way to make long-term plant decisions was to discount the 20, 30 or 40 year stream of future benefits back to the present and compare its present value with the initial investment. Importantly, the discount rate should reflect the riskiness of the benefits. Treynor noticed, however, that when the stream of benefits lasted that long, its present value was extremely sensitive to the choice of discount rate; simply by changing the rate, a desirable project could appear undesirable, and vice-versa. Treynor resolved to try to understand the relation between risk and the discount rate, and this was the impetus for his most famous "idea in the rough", the Capital Asset Pricing Model.
   
   Treynor began working in the Operations Research department at the consulting firm Arthur D. Little in 1956. In 1958 he spent his three weeks of summer vacation in a cottage in Evergreen, Colorado, and generated 44 pages of mathematical notes on the risk problem. From then on he spent his Saturdays and Sundays working on it in his ADL office, an atmosphere conducive to productive cogitation -- quiet and virtually empty. Treynor's solution to the capital budgeting problem was that the proper discount rate is the one that the capital markets themselves utilize to discount future cash flows. This is the kernel of CAPM.
   
   By 1960 Mr. Treynor had a draft, which in its 1961 incarnation was titled "Market Value, Time, and Risk" . He gave a copy to John Lintner at Harvard who was the only economist he knew even slightly, but Lintner failed to give Treynor any encouragement. One of Treynor's Chicago-trained ADL colleagues, Stephen Sobotka, sent the draft to Merton Miller. Miller and Modigliani had co-authored their great 1958 and 1961 papers while Modigliani was teaching at Northwestern. Now Modigliani was moving to MIT, and he called Treynor and invited him to lunch. Modigliani said it was clear from the draft that Treynor needed to come to MIT and study economics, to "learn the lingo". So Mr. Treynor took a one-year sabbatical from ADL to study at MIT. Since the first part of Treynor's draft dealt with the one-period problem, Modigliani suggested breaking the paper into two and naming that part "Toward a Theory of the Market Value of Risky Assets". Treynor did so, and presented the first part to the finance faculty seminar in the fall of 1962 and the second part, titled "Implications for the Theory of Finance", in the spring of 1963. Later, months after Treynor was back working at ADL, Modigliani called to tell him about William Sharpe's CAPM paper, and suggested that Treynor and Sharpe exchange drafts. "Toward a Theory of the Market Value of Risky Assets" was never published until Robert Korajczyk published an anglicized version in 1999. This pioneering paper is presented in the "Risk" section of Treynor on Institutional Investing.
   
   After Treynor's return to ADL his manager, Martin Ernst, asked him if this work had any practical applications; Treynor suggested several applications and Ernst focused on performance measurement. The result was two Harvard Business Review articles, the first, titled "How to Rate Management of Investment Funds", on measuring selection, appeared in 1965; the second (with Kay Mazuy), titled "Can Mutual Funds Outguess the Market?", on measuring timing, followed in 1966. Both of these innovative papers are included as chapters in the "Performance Measurement" section of Treynor on Institutional Investing.
   
   When Fischer Black arrived at ADL in 1965, he took an interest in Treynor's work. After Don Regan hired Treynor in 1966 to work for him at Merrill Lynch, Black inherited Treynor's ADL case work. Treynor and Black coauthored three published papers , but only one, a very clever and utile approach to active management titled "How to use Security Analysis to Improve Portfolio Selection", made its way into Treynor on Institutional Investing, in the "Active Management" section. Black also radically rethought and rewrote Treynor's second MIT presentation, publishing it, titled "Corporate Investment Decisions", as chapter 16 in Myers' 1976 compilation, Modern Developments in Financial Management. Unfortunately neither the 1963 version nor the 1976 version of this paper are included in Treynor on Institutional Investing.
   
   Mr. Treynor went on to apply his theories for practical purposes in the investment industry. He shared his wealth of knowledge with a younger generation by teaching at several universities. He served a dozen years as the editor of the Financial Analysts Journal, helping authors to present their ideas coherently and with clarity. Many of his papers over the years were published in the FAJ, some as articles and some as editorial commentary. Of the nearly 100 chapters in Treynor on Institutional Investing, two thirds of them are from the FAJ; some were originally published under his own name and others under his nom de plume, "Walter Bagehot". A substantial number of these papers won awards, including the FAJ's Graham and Dodd awards (multiple times) and the Roger F. Murray Prize. In addition, nearly one fifth of the material is from Treynor's publications in the Journal of Investment Management, where he is a Senior Editor and Advisory Board member.
   
   The book is organized in ten main sections corresponding to the areas of financial economics Mr. Treynor has studied over the years. His ruminations cover a broad swath of the investment universe, including risk, performance measurement, micro- and macroeconomics, trading, accounting, investment value, active management, pensions, and other miscellaneous papers. The book is not compiled along a "timeline", but rather along "thought lines".
   
   Although Treynor on Institutional Investing includes most of Mr. Treynor's work, it is not a perfectly comprehensive anthology. Several of the earliest known works, including Treynor and Vancil (1956), Treynor (1961), and Treynor (1963), are not included, and this is disappointing primarily from a historical perspective. Treynor and Black (1972), Treynor and Black (1976), and Treynor and Wagner (1983) are also missing from this new tome, which is also too bad although they can be obtained with reasonable ease elsewhere. Even Teldec's "Bach 2000: The Complete Bach Edition" is not comprehensive, missing a substantial number of cantatas and lost concertos; however it is as comprehensive a compilation as one can find. Likewise, aside from several omitted gems, Treynor on Institutional Investing is a complete representation of Mr. Treynor's work on investment analysis. For financial economists and market participants, it is music for the mind; Treynor is the Bach of Finance.
   
   References
   
   Bernstein, Peter L. (1992). Capital Ideas: The Improbable Origins of Modern Wall Street. New York: The Free Press.
   
   French, Craig W. (2003). "The Treynor Capital Asset Pricing Model". Journal of Investment Management, Vol.2, No. 1, second quarter, pp. 60-72.
   
   Korajczyk, Robert A. (1999). Asset Pricing and Portfolio Performance Models, Strategy and Performance Metrics. London: Risk Books.
   
   Mehrling, Perry (2005). Fischer Black and the Revolutionary Idea of Finance. Hoboken: Wiley Finance.
   
   Mehta, Nina (2006). "FEN One on One Interview: Jack Treynor". Financial Engineering News Issue No. 49, May/June, pp. 5-12.
   
   Myers, Stuart C., editor. (1976). Modern Developments in Financial Management. Hinsdale: The Dryden Press.
   
   Treynor, Jack L. (1961). "Market Value, Time, and Risk". Unpublished manuscript dated 8/8/61, No. 95-209.
   
   Treynor, Jack L. (1962). "Toward a Theory of Market Value of Risky Assets". Unpublished manuscript. Subsequently published as Chapter 2 of Korajczyk (1999).
   
   Treynor, Jack L. (1963). "Implications for the Theory of Finance". Unpublished manuscript.
   
   Treynor, Jack L. (1965). "How to Rate Management of Investment Funds". Harvard Business Review 43, pp. 63-75.
   
   Treynor, Jack L. (2007). Treynor on Institutional Investing. Hoboken: Wiley Finance.
   
   Treynor, Jack L. and Fischer Black (1972). "Portfolio Selection Using Special Information, under the assumptions of the Diagonal Model, with Mean-Variance Portfolio Objectives, and without Constraints", pp. 367-84 in Mathematical Methods in Investment and Finance 4, edited by George P. Szego and Karl Shell. Amsterdam: North-Holland.
   
   Treynor, Jack L. and Fischer Black (1973). "How to use Security Analysis to Improve Portfolio Selection". Journal of Business 46, No.1, pp. 66-86.
   
   Treynor, Jack L. and Fischer Black (1976). "Corporate Investment Decisions", pp. 310-27 in Modern Developments in Financial Management, edited by Stewart C. Myers. New York: Praeger.
   
   Treynor, Jack L. and Kay Mazuy (1966). "Can Mutual Funds Outguess the Market?" Harvard Business Review 44, pp. 131-136.
   
   Treynor, Jack L., William L. Priest Jr., Lawrence Fisher and Catherine A. Higgins (1968). "Using Portfolio Composition to Estimate Risk". Financial Analysts Journal 24 (No. 5, Sep/Oct), pp. 93-100.
   
   Treynor, Jack L. and Richard F. Vancil (1956). "Machine Tool Leasing". Boston: Management Analysis Center.
   
   Treynor, Jack L. and Wayne Wagner (1983). "Implementation of Portfolio Building: Execution", chapter 12 in Managing Investment Portfolios, A Dynamic Process, Second edition (student edition), edited by John L. Maginn and Donald L. Tuttle. Boston: Warren, Gorham & Lamont.

No comments about Project Management for the Clueless (CD, Audio & PDF) (The Famous Clueless Double-Duty CD-ROM Series).

5 comments about The Investing Bible.

1. Sure glad that I stumbled across this book. After overinvesting in tech stocks during the bull market, I decided to invest a bit more conservatively. However, I knew little about bonds, which I always found boring and intimidating. The Investing Bible was great at providing the basics of bond investing. I especially liked the section on the fairly new inflation-fighting (TIPS) and I Saving Bonds. I also appreciated the author's excellent bond fund suggestions in one of her mutual fund chapters. It made my job easier.



2. Lynn O'Shaughnessy has written two books, 'The Investing Bible' and 'The Retirement Bible,' that complement each other and provide the reader with all of the vital information necessary for making sound financial decisions. The books are written with such clarity and consistency that I have discarded five others on similar subjects because they could not compare with these. I've given copies of both books to my daughter who has joined a surgery practice and needs to become more financially astute. I hope the author will update these two superb texts periodically.



3. Easily the best and most practical investment book I have ever read, the "The Investing Bible" focuses on the juncture of personal finance and corporate finance. Ms. O'Shaughnessy has an easy-to-follow writing style and includes a plethora of other references, from websites to phone numbers to competing investment books. This book is good for a straight-through read as well as a reference.



4. This book covers EVERYTHING. In DETAIL. The hardest part about investing is that if you have little to no experience, you have no idea what questions to ask or what to legitimately expect. And when it's YOUR MONEY on the line it's best to know what to expect and to be prepared. This book is what every investor needs. It provides authoritative, comprehensive, and detailed information on how to invest successfully. It has no radical or wreckless financial strategies. This book covers everything. It covers; how to evaluate the professionals and their advice, to investing effeciently with regards to taxes, to family financial planning, to evaluating a stock, bond, annuity, or mutual fund on your own. The only gap in this book is that it does not cover nor touch on real estate investing. But, I am sure the author refrained from that topic as it is not where her expertise and experience lays. But EVERYTHING ELSE was covered thoroughly to the level every investor should demand.



5. You can get information like this for free online. Author has no degree or credentials in this field other than she likes to profit from writing about it. There are better books priced more reasonably you can buy.

No comments about Beyond Training Aint Performance Fieldbook.

5 comments about Nuts, Bolts, and Jolts: Fundamental and Life Lessons You Must Know.

1. Rich Moran's book is a "bible" for business professionals. He provides tips and advice based on true-to-life business world experience. I have worked for a large corporation for the past 25 years and I have recently purchased a number of copies of this book to give to the newly hired college graduates who have recently joined our company.



2. I found this book to be very entertaining, as well as a good resource for business life. Anyone who has worked in an office environment for any length of time will relate to many of his analogies. Plus, it just plain made me laugh! Those of us who live in cubicles 90% of our day can use a good laugh now and then, don't you agree? I would definitely recommend this book to anyone who works in an office or knows someone who does! It's much more than a good laugh, however. Rich hits the nail on the head with his many great ideas illustrating how to be successful in the professional world.



3. Those who inhabit corner offices would do well to read it and gain insights into the "unwritten rules" that may be getting in the way of their company's progress. We need rules to avoid chaos but occasionally we need to purge the dumb ones. Management and staff could use this book to help open the kind of dialogue that would help everyone realize they are all in the same boat. Once that happens the boat could be streamlined for success by dumping excess rules. Highly recommended by this CEO.



4. This easy-flowing, light read is just about the most insightful business book I've read in a while (and I've pretty much read them all!). In the same way that product design people say "products don't get created, they get discovered", Moran's book leaves one fulfilled -- with the sense that one has put words and structure to half-formed insights that were rattling around in one's brain the whole time. What started off as a reading exercise turned into some pretty deep introspection. Best business book I've read since "The Goal" a couple of decades ago!



5. 
   
   
   
   
   
   
   
   
   
   
   
   
   This book is an interesting study of human nature. Showing the best and worst things about our selfs and others we work with.
   
   
   

5 comments about Benjamin Graham on Value Investing: Lessons from the Dean of Wall Street.

1. This is basically Graham's life story, with a curious emphasis on his alleged "womanizing" and macho attitude -- that were quite typical of the era yet seem to fascinate and repel the author no end (whereas I, for one, am totally disinterested).

   Still, the book would be OK if it was entitled something like "The Life and Times of Benjamin Graham".

   But calling it "Benjamin Graham on Value Investing" is in my opinion a misrepresentation.

   I would say there are less than 10 pages' worth of "lessons from the dean of Wall Street", barely skimmed, and scattered all over the book.

   For readers who are not yet too serious about their investments, this may be a brief and painless introduction to the concept of value investing; but for my money, what little appears here of Graham's thinking was better explained and better organized in every other book by or about Graham that I've read, as well as most general textbooks on personal investment.




2. This is a good book of essays by Graham. If you just want some enjoyable reading, then the book is OK. On the other hand if you really want to find out about Graham's Value Investing tatics the I would suggest his Intellegent Investor. That should give you enough to make a dent.



3. This book is near useless! Don't let the title fool you this book has near nothing to do with Graham's views on value investing. It is an extremly boring book on Ben's life, one which makes me have little or no respect for Ben as a person. I made the mistake of choosing this book hoping to pick up some tips and save a few bucks on the cover price, instead of buying the sure things (Intelligent Investor or Security Anaylsis). Those looking to be a value investor, this is one where there is little "value" in my opinion, and money would better be served somewhere else.



4. Value investing is back in vogue. And so is Benjamin Graham. His books - Security Analysis and the Intelligent Investor - are the seminal texts on the subject of investing. Numerous investors (including Warren Buffett) owe their success to Graham's writings. Janet C. Lowe's book adds to the Graham myth. It weaves the story of Graham as a husband, father and loyal friend into his public life as a fund manager, writer and teacher. Lowe breathes life into an otherwise sterile topic, but her emphasis is on Graham's personal history more than on his investment advice. She does make it clear that Graham's fiscal belief system emphasizes intelligent investing by both the professional and individual investor. We recommend this book to people who follow - and hope to profit from - the vicissitudes of the stock market and of its indelible characters.



5. For me, billionaires are intriguing. For reasons I can't explain, I always seem to identify with their perspective on life and sifting through the Forbes list of the world's wealthiest people always provides me with an interesting investigation into the minds of the compulsively successful. Warren Buffet certainly falls into that category. While reading about Warren Buffet I came across the name Benjamin Graham. Low and behold discovering Graham, further uncovered Buffet. While the famous students of Graham have displayed their own unique brands of brilliance, there is no denying Graham's obvious influence on their methods. Graham seemed to be more of a numbers artist, than a mathematical genius. His love of fair play and honesty created a group of level headed investment strategist that have set the tone for decency for decades. While this is not Pulitzer Prize winning stuff, it is an intriguing retrospective about an artist disguised as a genius and who he inspired.

4 comments about Financial Management 101: Get a Grip on Your Business Numbers (Numbers 101 for Small Business) (Numbers 101 for Small Business).

1. An excellent book from the new Numbers 101 series (see Bookkeepers' Boot Camp). The author shows you how to get the most profit from a small business as you possibly can by using simple financial management techniques -- something like what a person who has a degree in finance or business would know and use. But it's all spelled out in easy steps. It's sort of like hiring an MBA consultant for your small business, but for a lot less money!



2. Financial Management 101: Get A Grip On Your Business Numbers by business columnist Angie Mohr (who is also a Chartered Accountant and a Certified Management Accountant) is an thoroughly "reader friendly" guidebook designed specifically for small business owners and managers, and which methodically teaches the reader all of the basics about balance sheets, income statements, monthly budget reports, ratio analysis, dealing with inventory problems, dealing with debt, and more. Financial Management 101 is an absolute "must-read" for any business owner new to the complexities of finance and needing to competently analyze financial data, measure business success, and have an accurate and on-going comprehension of their fiscal bottom line.



3. This is a fantastic book - so much cheaper than spending the money for an accountant to explain all to you. The book is easy to read and understand even for a dummy like me just setting up a business. Just like her other book ("Bookkeeper's Boot Camp"), the case studies keep the information from being too dry and helps explain in layman's terms what each chapter is teaching. More books in this series please !!!



4. The Financial Management 101 book has been a good book of reference. When I need to be sure of what should be debited or credited, I used this book for reference. It also helps me to keep good business sense in perspective and in its rightful place. I also have the bookkeeping resource book as well.

3 comments about How to Make Money Trading Stocks and Commodities: Finally...A Sensible Approach for the Intelligent Investor.

1. George Sranko's approach to trading is one of the best & easiest to comprehend that this reviewer has ever had the pleasure to study. Well written, direct & to the point, the author has a knack of making the most complex situations readily absorbable & uncomplicated.



2. I've read over 100 books on trading, and have to say, this is the best intro to technical analysis I've seen. You can start without any knowledge of technical analysis, and be competent to plan your own trades by the end of this easy-read.
   
   Let me put it this way, when my mother expressed an interest in learning more about investing, I bought this book for her.



3. Nothing to say but the best book on technical analysis I've read , thank you the author .

No comments about Managing Change (Lessons Learned) (Lessons Learned) (Lessons Learned).

No comments about The Art of Selling Intangibles, New Edition.