An alternative approach to investment management, explained in detail.
A finance professional refines and promotes his strategy for maximizing investment gains by understanding stock market trends through a long-term view.
In this new edition of his book originally published in 2003, portfolio manager Tuttle presents the latest version of his stock-picking strategy. The strategy demands an understanding of the business cycle over years and decades, rather than the shorter horizons most analysts rely on, and sees smaller cyclical ups and downs as components of larger, secular trends. The theory accounts for nine secular phases from 1906 to the present, with detailed looks at the ups and downs of each trend. Tuttle challenges the accepted theories of asset allocation, including the efficient markets theory and the capital asset pricing model. Fusion analysis, including a ratio called Tobin Q, drives Tuttle’s theory, which argues that both risk and return are cyclical instead of linear and returns can be maximized by understanding the progression of the cycle. Tuttle acknowledges that his theory is outside mainstream investment thought, but he notes that it has gained adherents: It is now “considered thought-leading radical work in the financial arena [and] is used by countless management firms as their basis behind risk correlation in relation to market cycle comprehension.” Dozens of color charts throughout the book help illustrate aspects of the theory and of the long-term trends Tuttle describes. Elsewhere, the book is hampered by occasional awkward sentences: “It seems as if the definition placates the defining of a person’s or firm’s time objective”; “Considering in the year 2000 the U.S. poverty population accounted for 15% and children under seventeen accounted for more than 20%, this equates to only 15% of the working class not invested in the stock market.” In the end, though, the theory isn’t an approach to choosing individual stocks to buy or sell but rather a new way of looking at the market and the economy as a whole.
An alternative approach to investment management, explained in detail.Pub Date: Jan. 8, 2014
ISBN: 978-1492821960
Page Count: 196
Publisher: CreateSpace
Review Posted Online: Feb. 18, 2014
Review Program: Kirkus Indie
A readable, persuasive argument that our ways of doing business will have to change if we are to prosper—or even survive.
A well-constructed critique of an economic system that, by the author’s account, is a driver of the world’s destruction.
Harvard Business School professor Henderson vigorously questions the bromide that “management’s only duty is to maximize shareholder value,” a notion advanced by Milton Friedman and accepted uncritically in business schools ever since. By that logic, writes the author, there is no reason why corporations should not fish out the oceans, raise drug prices, militate against public education (since it costs tax money), and otherwise behave ruinously and anti-socially. Many do, even though an alternative theory of business organization argues that corporations and society should enjoy a symbiotic relationship of mutual benefit, which includes corporate investment in what economists call public goods. Given that the history of humankind is “the story of our increasing ability to cooperate at larger and larger scales,” one would hope that in the face of environmental degradation and other threats, we might adopt the symbiotic model rather than the winner-take-all one. Problems abound, of course, including that of the “free rider,” the corporation that takes the benefits from collaborative agreements but does none of the work. Henderson examines case studies such as a large food company that emphasized environmentally responsible production and in turn built “purpose-led, sustainable living brands” and otherwise led the way in increasing shareholder value by reducing risk while building demand. The author argues that the “short-termism” that dominates corporate thinking needs to be adjusted to a longer view even though the larger problem might be better characterized as “failure of information.” Henderson closes with a set of prescriptions for bringing a more equitable economics to the personal level, one that, among other things, asks us to step outside routine—eat less meat, drive less—and become active in forcing corporations (and politicians) to be better citizens.
A readable, persuasive argument that our ways of doing business will have to change if we are to prosper—or even survive.Pub Date: May 1, 2020
ISBN: 978-1-5417-3015-1
Page Count: 336
Publisher: PublicAffairs
Review Posted Online: Feb. 16, 2020
Kirkus Reviews Issue: March 15, 2020
A welcome contribution from a newcomer who provides both a different view and balance in addressing one of the country's...
A fresh, provocative analysis of the debate on education and employment.
Up-and-coming economist Moretti (Economics/Univ. of California, Berkeley) takes issue with the “[w]idespread misconception…that the problem of inequality in the United States is all about the gap between the top one percent and the remaining 99 percent.” The most important aspect of inequality today, he writes, is the widening gap between the 45 million workers with college degrees and the 80 million without—a difference he claims affects every area of peoples' lives. The college-educated part of the population underpins the growth of America's economy of innovation in life sciences, information technology, media and other areas of globally leading research work. Moretti studies the relationship among geographic concentration, innovation and workplace education levels to identify the direct and indirect benefits. He shows that this clustering favors the promotion of self-feeding processes of growth, directly affecting wage levels, both in the innovative industries as well as the sectors that service them. Indirect benefits also accrue from knowledge and other spillovers, which accompany clustering in innovation hubs. Moretti presents research-based evidence supporting his view that the public and private economic benefits of education and research are such that increased federal subsidies would more than pay for themselves. The author fears the development of geographic segregation and Balkanization along education lines if these issues of long-term economic benefits are left inadequately addressed.
A welcome contribution from a newcomer who provides both a different view and balance in addressing one of the country's more profound problems.Pub Date: May 5, 2012
ISBN: 978-0-547-75011-8
Page Count: 304
Publisher: Houghton Mifflin Harcourt
Review Posted Online: April 3, 2012
Kirkus Reviews Issue: April 15, 2012
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