Money Game

Author: Adam Smith
List Price: $10.00
Our Price: Click to see the latest and low price
ISBN: 0394721039
Publisher: Vintage (12 August, 1976)
Sales Rank: 33,726
Average Customer Rating: 4.7 out of 5

Customer Reviews

Rating: 5 out of 5
Absolute Classic!
I studied finance in college and I think I could have just read this book instead of most of the finance classes I took.

First of all, "The Money Game" starts out with the thesis that the stock market and all other equity markets are just a game. It is not long-term investing that wins in this game for most. This would be heresy for most finance professors and financial planners out there. One example from the book involves a family that passed IBM stock down from generation to generation, it was only sold to cover estate taxes. Many members in the family became very wealthy. However, they worked just hard as their cohorts with no money, and the buy and hold stretagy profited them almost nothing despite the fact that they were "wealthy." Another example is a man who died in the late 1800s with a portfolio worth over $1,000,000. By the time the inheretence was passed down, the portfolio was worth 0, as the companies had gone out of business.

"The Money Game" gives a great explanation of crital issues such as technical analysis, fundamental analysis, mass psychology, mutual funds and their managers, "performance" vs. more conservative funds, accounting practices, random walk theory, "valuation" of equities, and most importantly the money game itself.

Ever wonder how a company like Priceline.com could be worth more than the market capitalization of all the airline stocks put together? This book explains how something so out of whack can happen and gives many examples.

In this game, money is how you keep score. When someone is making lots of money, they are winning the game. When they are loosing money, they are loosing the game. But the game is there to be played, win, lose, or draw. For the players, it's just too tempting to stay in, it is vital, it is life for many.


Rating: 5 out of 5
A Classic
I've read hundreds of investing books; skimmed hundreds more; even written one myself. But dare it be said: This beautifully written work may well be the best book on the subject ever written. Not because it covers everything, or promises to make you rich. But because it offers timeless insights into how players, amateur and professional, really do play the game, and thereby gives you rich food for thought on how, or whether, you should play. Sure, you won't find anything on program trading, IRAs, 401k's, the great fund boom, or dot com stocks. However, that just goes to show that you needn't read today's papers to truly learn today's market. A bestseller in its day, there is still something for everyone here. Simply put, The Money Game is a classic, the first book on investing you should read.


Rating: 2 out of 5
Useless book
Despite glamorous reviews from nobel prize winner Paul Samuelson and a NY Times reviewer on the covers, do not read this book if you are hoping to learn how to make money in the stock market. The book doesn't offer a hint. The author tells about what technical analysts do, what fundamental analysts do, and how the random walk behavior of stocks thwarts both types of analysts. After reading this book, one would think the succesful investors just have a feel for "the game," but the author does not do a good job telling the reader how the succesful investors apply technical and fundamental analysis. To be fair, he does mention some anecdotal reports of some investors, but he does not publish the record of these investors in a way that would make me respect their philosophies.

If you want to learn how to apply analysis for making money in the stock market read Peter Lynch's books Beating the Street and One Up on Wall Street, read Malkiel's book A Random Walk Down Wall Street, read Jack Bogle's new book on mutual funds, read all of Warren Buffett's Berkshire Hathaway reports, and subscribe to Outstanding Investor's Digest.

The one interesting point in The Money Game worth learning is that corruption has ALWAYS been a part of Wall Street. All earnings reports should be taken with a grain of salt unless you're an expert in analysing them! Companies have been managing their earnings for decades! Wall Street is like any other market: Caveat Emptor

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