I’ve stopped writing book reviews. Not because I’ve stopped reading books – I have read plenty
since my last book review. No, the
reason why I’ve stopped writing book reviews is because I’m lazy and I don't find it particularly fun.
But I’ll make an exception for this one - Dear Mr. Buffett;
What an Investor Learns 1,269 Miles from Wall Street. I finished it on the weekend.
I am not writing this book review because I suddenly had the
urge to put pen to paper – or keystrokes to cyberspace. Rather, I am writing this because I am
putting Dear Mr. Buffett on my recommended book log and I wanted to alert
potential readers what this book is all about.
Upon reading the title, it may appear that Dear Mr. Buffett
is a book which might reveal deep insights regarding Buffett’s investment
acumen. It is not. In fact, if you want to learn about
Warren Buffett, do not buy this book.
There are a gazillion other books on Warren Buffett you should buy
instead. (Roger Lowenstein’s Buffett: The Making of an American Capitalist is the
best, in my opinion.) This book is
about something totally different.
Dear Mr. Buffett is written by derivatives expert Janet
Tavakoli (who is also my New Favourite Blogger, and whose site I have included
on my Blog Roll to the right).
Tavakoli takes the reader through the arcane and mind-numbingly complex world
of structured finance and how it contributed to the financial crisis in a
fairly readable manner. According
to Tavakoli, Wall Street is the primary culprit for the financial crisis as the
Street created the transmission mechanisms via the derivatives markets through
which liquidity flowed into residential real estate, creating the Housing
Bubble.
So why the reference to Warren Buffett? The book encapsulates Tavakoli's initial meeting with Buffett and the ensuing correspondence
thereafter. Tavakoli weaves her
narrative around her communication with Buffett, his investment philosophy and
Berkshire Hathaway.
Tavakoli’s interaction with Buffett ranges from interesting to
kind of annoying and perhaps trite.
It feels forced at times, almost as if passages were included at the
insistence of an editor who thought that plastering Buffett’s name on the front
cover would sell more copies.
None the matter.
This is a good book. Tavakoli has something to say and she should be heard. Dear Mr. Buffett goes to the heart of
one of the primary causes of the financial crisis, written by one of the
relatively few people who understands structured finance.
Out of five, I rate Dear Mr. Buffett
1/2
Toro, have you looked at this one as a candidate for shorting Canada Real Estate?
http://finance.yahoo.com/q?s=MIC.TO
Posted by: Kevin Flick | April 27, 2010 at 10:28 PM