“A modern-day interpretation of a finance classic”
That was a long title for a short book. It’s not the actual Charles Mackay work, it’s a modernised version written by journalist Tim Phillips that basically summarises the important details and lessons that apply today, as much as (if not more than) they did back then.
“Here’s the catch: we rarely spot bubbles as they occur. We can identify them with hindsight, but that’s not a lot of use if you’re investing. It takes a strong stomach, when a price keeps rising, to hold fast to your belief that it was fairly priced at half its current price.” Ch. 22 p. 45
Each chapter is broken down in to two concise pages and covers everything from the crusades to witchcraft and the dutch tulipomania to the recent economic meltdown. It makes for an extremely easy read, allowing anyone with even a basic education and knowledge to access the wisdom contained within.
The lessons are clear and sober, there is a soundbite for every topic – a quote called a “defining idea” and a footnote with ideas about how to apply the lesson to your business.
This is a must-read book for pretty much anyone who either invests money, uses money, is interested in the economy or finds their lives affected by it – which pretty much covers everyone. In fact I’d go as far as saying it should be made into a school textbook. This is required reading for life.