Frenzy : Bubbles, Busts, and How to Come Out Ahead

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Summary: A NOTE FROM THE AUTHOR:
Review: For those who are interested, there will be supplementary data and graphs available at skylightconsulting.com

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Summary: Timely and destined to be a classic !
Review: This book will be a classic and read for generations ! It is groundbreaking, compelling and couldn't be more timely given that we are swiming in bubbles in real estate, China, hedge funds, nanotechnology. I'm sure there are others. I can't tell you how many times I've heard someone say or read in an article, "this feels like Dot.com 1990s." Frenzy shows in a fascinating study of human nature that it feels the same because it is the same.

Frenzy is the best account of the inner working of bubbles I've ever read. Recent books by journalists such Maggie Maher and Roger Lowenstein are great stories, but lack the theory to pull them together and provide deeper insight. Frenzy both tells some great stories but more importantly helps the reader see how they fit into a groundbreaking framework for how bubbles work.

This is the first book that analyzes the real behavior and decision making of investors and managers to explain how bubbles work and Haacke is able to move comfortably and clearly between hard analysis to softer human issues. For example, his section on the role of trust and risk are extremely interesting and applicable to many situations. On the practical side, Frenzy also maps out the most common mistakes made, provides warning signs of what to look out for in the future, and guides for what to do.

Haacke has done some incredible interviews with top VCs, business managers and stock analysts and creates and an elegant and simple map of 1) How information and analysis becomes undermined during bubbles, 2) how the competitive marketplace gets distorted, 3) and how the flow of money fuels the system. Sprinkled throughout are historical examples to show parallels between bubbles at various times and places. There is also a specific chapter that gives more in depth case studies of the Railway mania and PC bubbles. The last chapter addresses the future, which for Haacke will mean an increasing number of bubbles.

Frenzy is like a mix of Malcolm Gladwell's Tipping Point, Roger Lowenstein's When Genius Failed, and Kindleberger's History of Mania's, Panics and Crashes.

I only wish it was longer. Like a good mystery writer, Haacke keeps you yearning more to be uncovered.






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Summary: The Experts are Right -- this is a MUST Read
Review: When the guys who practically invented venture capital, private equity and technology investing recommend a book I listen. Tom Perkins said Frenzy was "brilliant" and a "must read." Alan Patricof and AT&T CEO Dave Dorman both said incredible things about it and they are right! Frenzy is a great mix of engaging, easy to read, providing some easy frameworks for understanding bubbles but also uncovering some really interesting nuances.

You don't hear those adjective much about business books or investing books. But Carl Haacke breaks the mold and creates a terrific book!

Haacke makes a compelling case that bubbles are not rare events that we can ignore once they pass but in fact are everywhere. With really great interviews and solid analysis he gives the reader a fascinating inside look at what drives with some really unexpected insights.