Now of all the stuff written about Enron - and that's a few forests' worth - not a single book has come from a true Enron insider. The omerta has been 100%. (And before anyone cites Sherron Watkins against me, she wasn't very deep inside at all - double meaning intended.)
So I was quickly into Kindle for Lucky and Good: Risk, Decisions & Bets for Investors, Traders & Entrepreneurs, by John Sherriff. (At mates' rates it was free, but it'll only be pence anyhow.) Sherriff was a true Enron insider, as well as being the most creative, energetic deal-maker I have ever met, with the best intuitive feel for risk / reward trade-offs - and that's from a cast of very many fine dealmakers at the Crooked E. He's a damn' good poker player, as well ...
Sad to relate, though he peppers the book with Enron stories to illustrate his many excellent points he tells nothing about the scandalous stuff: so the true insiders' book is still to be written. But that's the only disappointment in an otherwise truly first-class read. I can't recommend it highly enough for the typical C@W reader (and not just for the traders and investors), who won't just enjoy it tremendously but will probably do better business having done so. There are so many powerful - and practical - points made, all of which are IMHO entirely correct, on critical issues such as market pricing, liquidity, how to think of sunk costs, macro-trends, marginal advantage, fast feedback, long-term vs short-term, finding free options, understanding what your long and short positions are: and he goes as far as it's probably possible to go in helping people learn to be commercially creative.
In summary, the whole Enron arsenal.
Even better, it's written with a very light touch - for an American (if I dare say this) Sherriff has a very Anglo-oriented sense of humour. (He's complimentary about several aspects of our regulatory and legal systems as well.)
And he's brutal on the subject of the legal profession ...
Whenever I find myself teaching on business-related topics, students always ask what they should read before attending the course. I've never before had a single book to recommend, but now I do.
ND
4 comments:
"And he's brutal on the subject of the legal profession"
And auditors?
well certainly the rating agencies!
of course Enron brought down Andersons, and quite right too, they were 100% complicit
(I remember walking past a conference room full of AA people of ashen and sickly palour, and remarked to an accountant-colleague: they all look very queasy ... he replied, that's because they've just been told what they have to sign-off on)
the question is: how come one or two choice law firms I could mention didn't go down too ..?
50% in
I love his use of diagrams.
He has some good insights on the creative process.
Dont like his baseball/us rugby stories - but I am not from the right continent.
andrew - glad you like it
it's always difficult to 'explain' how to be creative - rather like being artistic - but in my experience even those who don't feel themselves to be naturally so can be taught a few tricks, at least
BTW, how much did it cost you ?
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