I’ve had an interesting relationship to money in my life: Growing up, my parents didn’t have a lot of it so I really noticed a divide between the haves and the have-nots, and definitely felt that I was firmly among the have-nots. I developed the idea that I’d never achieve “have” status. When I was a stockbroker, the guy who trained me said: “Money isn’t the most important thing in the world. It’s second to oxygen” — a quote that I have pondered and debated in my mind since hearing it. It reveals a humorous truth and a dark side as well. Today, I work with people who make a ton of money. I make more than I need yet I still have a weird “have-not” relationship with money. It’s weird. Okay, psychologists, you can start analyzing.
Here’s some money-related stuff I’ve been reading this week:
- In spite of some ugly financial indicators (both globally and the US), individual American states and municipalities now have too much money after a few years of austerity and cut backs. In particular, California is surprising everyone and Business Insider wrote a good article about the person who is behind California’s turnaround.
- I enjoy Diary of a Mad Hedge Fund Trader. Check out his blog post on how hedge funds are the new dumb money. Great read! (And even though it’s not finance related, you should definitely read this moving article about the blogger’s uncle, a veteran from the Pacific front in WWII. Very powerful.
- I’ve also been reading this book — Fortune’s Formula: The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street. It covers an interesting betting/investing algorithm that outperforms the markets (in specific situations), as well as the complicated group of people who built up a financial empire around it and then were taken down by Rudy Giuliani way back when he was a District Attorney. I started the book to learn about the algorithm but there is a ton of other fascinating stuff in the book that is totally unrelated to the algorithm.