Buy this book at Amazon.com or try Amazon.co.uk in England, Amazon.ca in Canada, Amazon.de in Germany, Amazon.fr in France, Amazon.it in Italy, Amazon.es in Spain. ASIN=0394721039, Category: Investment, Language: E, cover: PB, pages: 272, year: 1976.
Book review © (2005) by IBS
Adam Smith, which is the author's penname, calls Wall Street what it is: a game. Seemlingly it is easier to write the truth if using a pseudonym. This book has lost no value since it came out, proof being that there are still technical analysts out there. When 'Adam Smith' wrote this book, computers were the lastest craze, both the stocks of the computer manufacturers and the use of computers for chart analysis and mechanical investing in general. 'Adam Smith' questions the usefulness of computers in selecting investments - not only because the input data (e.g.: the earnings) is neither reliable nor comparable from company to company, due to different accounting practices (GAAP existed already). He explains what goes on behind the scene, who "They" are and how "They" move stocks up and down and how "They" profit in both directions. "They" are on the other side - for every buyer there is a seller. The first step in becoming a successful investor is to know yourself. In the last chapter, 'Smith' points out what Heilbronner in his popular book "Worldly Philosophers" left out to tell about Lord Keynes, for example: "The only thing I regret in my life is, that I didn't drink more champaign." Keynes was a highly successful speculator; due to his pyschological analysis of the crowd he profited from the predictability of human behaviour. This book is both, fun to read and highly educative. There are many interesting stories about brokers, fund managers, speculators, and innocent, individual investors. The latter are called odd-lotters. By reading this book, you don't need to look in the mirror in order to identify with yourself.