Ugly Americans
by Ben Mezrich
September 12, 2007
3 out 5
I would have given this book a higher rating if I haven’t read similar books with more technical narrative point of views, like Liar’s poker. Other than the entertainment values, I aim for books that yield some useful information. If you are looking for a good inspiring book that take you through the live of a Wall Street fund manager or trader, then this book gives you the roller coasting experience you looking for, maybe with the “wow” after effect. If you read Ben Mezrich’s earlier book, Bring Down the House, which was very entertaining, you can expect the same easy to read, suspense, and the excitement that will inevitably compel you to finish this book in one session.
This book is about the live of John Malcolm, who started off as a football star from Harvard, with little purpose after graduation, landed a job with a hedge fund superstar manager, Dean Carney, in Japan. With Carney as a mentor, guiding him through this foreign financial world along with all the caveats that a newly graduate could ever wish for, money, sex, exotic cars, lavish living styles, John Malcolm became the cream of the crop, made his guardian millions upon millions of profits, and with a final deal that made Carney Billions of Dollar, he retired, somehow wins over the hottest girl from Tokyo, and now living together lavishly at the beach of Bermuda. This book is a recount of John Malcom’s story.
The eight rules of Carney that was taught to John Malcom are (quoted, most of which apply to day traders)
1. Never get into something you can’t get out of by the closing bell. Every trade you make, you’re looking for a the exit point. Always keep your eye on the exit point. (vs what Buffett says, ideal holding time is infinite.)
2. Don’t ever take anything at face value. Because face value is the biggest lie of any market. Nothing is ever priced at its true worth. The key is to figure out the real, intrinsic value – and get it for much, much less. (Margin of safety)
3. One minute, you have your feet on the ground and you’re moving forward. The next minute, the ground is gone and you’re falling. The key is to never land. Keep it in the air as long as you fucking can.
4. You walk into a room with grenade, and your best-case scenario is that the grenade explodes, blowing you into little bloody pieces. The moral of the story: don’t makes bets with no upsides.
5. Don’t overthink. If it looks like a duck and quacks like a duck – it’s a duck.
6. Fear is the greatest motivator. Motivation is what it takes to find profit. (So True, fear is what keep average people average. From “Who Moved my Cheese” and “Secrets of Millionaire Mind”)
7. The first place to look for a solution is within the problem itself.
8. The ends justify the means, but there’s only one end that really matters. Ending up on a beach with a bottle of champagne (and a desirable chic).