Sharp insights into human fallibility as a potential source of moneymaking opportunity.
Hedge fund owner/manager Fearon contrasts the methods of Wall Street experts and gurus, and the self-deception and illusions of many business managers, with his own ability to profit from such vulnerabilities.
The author has ridden the roller coaster of finance and investment since the collapse of the Texas oil patch in the 1980s. Along the way, he became a successful investor by shorting the stock of companies destined to fail, and he founded his own hedge fund in 1991 and continues to run it. Fearon passed through a succession of investing styles as he worked to understand how self-delusions, obsessions and manias obstruct business success. Insights assimilated from his own failures—like the gumbo restaurant he located amid a non-Southern, spicy food–eating demographic, among others—were fuel for his subsequent successes. Number-crunching analysis, writes the author, doesn't function on its own, and he includes stories and incidents derived from thousands of interviews conducted with the leaders of companies to illustrate the methods that have worked for him. The author uses Ron Johnson, who was put in charge of J.C. Penney, as an example. He lost $1 billion eliminating popular coupon programs, replacing discount products with upscale goods and dropping the use of Spanish in states like Texas. Johnson wanted to build a company where he and his friends could shop, but J.C. Penney's customer base refused to go along. During his research, site visits and interviews helped Fearon probe beneath the rationalizations for failure. When managers blame external factors and refuse to consider the possibility of internal problems, it’s another sure sign of trouble. Thus, when earnings are falling or nonexistent and liabilities are increasing, bankruptcy is at hand. The author also discusses successful investments, like International Game Technology which can make more money more quickly than the best shorts.
Sharp insights into human fallibility as a potential source of moneymaking opportunity.Pub Date: Jan. 6, 2015
ISBN: 978-1137279644
Page Count: 256
Publisher: Palgrave Macmillan
Review Posted Online: Oct. 22, 2014
Kirkus Reviews Issue: Nov. 1, 2014
This blue-chip status report makes a substantive contribution to the growing body of literature of the pivotal role played by central banks in in the Global Village's financial affairs (see Marjorie Deane and Robert Pringle's The Central Banks, 1995). Former Forbes reporter Solomon's principal accomplishment is providing accessible briefings on how America's Federal Reserve, the Bank of England, Germany's Bundesbank, and lesser lights have dealt (by default) with a weary world's financial traumas over the past two decades. Cases in point include management of recurrent less-developed-countries (LDC) debt crises; coordinating exchange- rate policy to keep the value of key currencies in line with economic realities; and responding to 1987's cataclysmic stock market crash (which the author employs as a leitmotif throughout his text). While monetary authorities (who attempt to control the stability and supplies of money in their own countries) have proved adept in working together in emergencies, Solomon observes that their success at staving off disaster raises a wealth of vital issues, not the least of which is the accountability of independent technocrats whose preoccupation is containment of inflationary pressures, not job-creating economic growth. Also of concern is dominion over a volatile new order in which stateless pools of capital could at almost any time swamp a global monetary system that has lacked anchors to windward since the 1970s collapse of the Bretton Woods accord. Covered as well are the manifold failures of fiscal policy in a variety of industrial powers (notably the US), the importance of sound money to democracy, the odds on the EU's creating a supranational central bank, and the resourceful (albeit potentially ruinous) means by which political leaders seek to buy time for their reelection campaigns or other purposes. An on-the-money introduction to the financial fraternity's ruling class.
Pub Date: June 1, 1995
ISBN: 0-684-80182-5
Page Count: 624
Publisher: Simon & Schuster
Review Posted Online: May 19, 2010
Kirkus Reviews Issue: April 1, 1995
BOOK REVIEW
Slick, sunny-side-up profiles of 50 flourishing industrial enterprises. Some brief connective commentary apart, Jasinowski (president of the National Association of Manufacturers) and Hamrin (a freelance economic consultant) rely on anecdotal evidence to make their principal point: that American manufacturing has staged a remarkable, competitive comeback from its near-death experience during the 1980s. In addition, the achievements of every organization in their 50-company sample are attributed to one of ten paths to success: employee empowerment; training and retraining of workers; rewarding performance; exceeding customer expectations; envisioning new products and markets; going global; total quality management; achieving environmental excellence; speed and agility; and shaking up the organization. While the authors round up many of the usual world-class suspects as exemplars of latter-day excellence (Chrysler, Emerson Electric, Ford Motor, Intel, Motorola, Searle, and Xerox, to name but a few), they have showcased some less familiar outfits as well. Cases in point range from Great Plains Software through Johnsonville Foods, Kingston Technology, Remmele Engineering, Thermo Electron, and Wadia Digital. On the minus side of the ledger, the relatively rigid format Jasinowski and Hamrin use to present their summary case studies soon grows tiresome. Nor could all selections pass a cognitive-dissonance test. By way of example, the authors include happy-talk rundowns on USX-US Steel as well as three of the nimbler rivals (Chaparral, Nucor, Oregon Steel) that have poached on its traditional preserves in recent years. Although Jasinowski and Hamrin cover a handful of corporations that have made a virtue of environmental necessity, moreover, they stand mute on the score of those that may have overcome less edifying problems with product recalls, racial discrimination, or sexual harassment. The bottom line: These relentlessly upbeat vignettes of US business are to management guides what fast food is to haute cuisine.
Pub Date: March 1, 1995
ISBN: 0-671-50756-7
Page Count: 352
Publisher: Simon & Schuster
Review Posted Online: May 19, 2010
Kirkus Reviews Issue: Jan. 1, 1995
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