General

Re: Austrian Wealth Building Books?

Caley McKibbin — Fri, 26 Feb 2010 06:35:26 GMT

in Mises Media there are some conference speakers who talk about their businesses. Don't remember which ones, though. I've listened to nearly everything in Media.

Re: Austrian Wealth Building Books?

Chris — Fri, 26 Feb 2010 06:17:06 GMT

Regarding some of the posts above - I don't think anybody is claiming that understanding Austrian economics is going to provide one with a crystal ball of what's going to happen in the market. However, understanding economics certainly helps a person grasp what is happening, what the consequences will be, etc. and can assist them in decision making.

For example, somebody educated in Austrian economics sees ridiculous credit expansion going on in one country. They see the savings rates are low, but interest rates are being suppressed by the central bank. They're witnessing the boom, they know it's artificial, they understand that fundamentals are not driving the delusional prosperity of the said country. They also understand there will be a recession. This is what economic theory teaches.

Economic theory explains what will happen if credit expansion continues (crack up boom) or stops and proper steps are taken. Economic theory, however, cannot tell us exactly when these events will occur nor what the central bankers are planning to do at their next policy meeting. It also cannot say how people will react to the changes that are occurring. It cannot necessarily tell us what industries will get crushed and which ones may weather the downturn as if nothing happened.

If you want to be successful at investing you need to understand the market. You can read any number of economics books which are fantastic and will help you become a more knowledgeable person than 98% of people in the world. However, you will need to really get your hands dirty and start investing and following markets constantly to get a good grasp on wealth building. Understanding the different economic and political situations going on around the world, trying to find out what affect a contaminated soybean crop in Brazil means for wheat farmers in Kansas and gauging what the response of the markets will be to such situations. Reading earnings reports, looking at commodities, bonds, stocks, and seeing how the data change with different events. You try to understand it so well that you can piece all of it together and be ahead of the curve. Watching the European markets open at 3AM and see what's happening and try to understand how this will translate in the US in the morning; where's the momentum heading? It truly is fascinating and becomes a passion.

Learn Austrian economics and let it inform you and guide you, but if you want to become a good investor or entrepreneur look beyond it as well.

Re: Austrian Wealth Building Books?

abskebabs — Thu, 25 Feb 2010 15:05:10 GMT

I'm very surprised nobody has mentioned the following so far. If not "Austrian", I think the author has definitely been influenced by the school, and the book's been advertised in several mises' dailys:

http://books.google.ca/books?id=VruBPQAACAAJ&dq=%22applied+value+investing%22+calandro&cd=1

Re: Austrian Wealth Building Books?

onebornfree — Wed, 24 Feb 2010 21:01:51 GMT

G-Money:

Jonathan -

This is exactly what I've been trying to find for a few months now. For various (and some obvious) reasons it is elusive. I've read Schiff, Skousen, as well as the various gold bugs. But I still have not quite found what I am looking for.

For all the predictive ability (long run, not market fluctuations) of the Austrian school it seems there would be somebody able to provide some practical wealth protection advice other than "get out of debt & buy gold". I'm not looking for a get rich quick scheme. Just a place to park my assets to minimize risk of devaluation (I would seriously be happy to just beat inflation - actual inflation - not the BS in the CPI).

The current system has strayed VERY far from an actual free market, and the rules of the game can be (and are being) manipulated by the powers that be at any given moment. Thus, it seems that any attempt to predict future conditions is not just difficult, but futile. Completely understandable, but immensely frustrating.

G

I might be able to help. Private message me if interested.

In the meantime , regarding a simple plan for beating [real] inflation, perhaps check out the results given in the graph shown in very last link in my second post to this thread [i.e "Financial Safety Rule#1 link].

regards ,Onebornfree.

Re: Austrian Wealth Building Books?

G-Money — Wed, 24 Feb 2010 18:32:00 GMT

Jonathan -

This is exactly what I've been trying to find for a few months now. For various (and some obvious) reasons it is elusive. I've read Schiff, Skousen, as well as the various gold bugs. But I still have not quite found what I am looking for.

For all the predictive ability (long run, not market fluctuations) of the Austrian school it seems there would be somebody able to provide some practical wealth protection advice other than "get out of debt & buy gold". I'm not looking for a get rich quick scheme. Just a place to park my assets to minimize risk of devaluation (I would seriously be happy to just beat inflation - actual inflation - not the BS in the CPI).

The current system has strayed VERY far from an actual free market, and the rules of the game can be (and are being) manipulated by the powers that be at any given moment. Thus, it seems that any attempt to predict future conditions is not just difficult, but futile. Completely understandable, but immensely frustrating.

Re: Austrian Wealth Building Books?

onebornfree — Tue, 23 Feb 2010 00:09:28 GMT

ClaytonB:

You seriously abuse this quote. "There would be [no] entrepreneurial ... profit" if the future were not uncertain... the very fact of uncertainty is why entrepreneurs like North, Schiff, Skousen, Rogers, Faber and others can make a profit.

Clayton -

"There would be [no] entrepreneurial ... profit"

What gives? Surely there is some misunderstanding?

I don't know where or who you are quoting from- please reference.

If it is not a Mises quote, then you might be [unintentionally, I assume] "abusing" [to borrow your own terminology] the Mises quote I used, part of which states:

"There would be neither entrepreneurial loss nor profit." [emphasis added].

This quote is taken from Human Action, chapter 38 "THE PLACE OF ECONOMICS IN LEARNING" - part 3. "Forecasting as a Profession", paragraph 3.

Regards, onebornfree.

Re: Austrian Wealth Building Books?

Clayton — Mon, 22 Feb 2010 19:35:37 GMT

onebornfreedotblogspotdotcom:

Von Mises himself said :

" If it were possible to calculate the future state of the market, the future would not be uncertain. There would be neither entrepreneurial loss nor profit. What people expect from the economists is beyond the power of any mortal man........" . [See "Human Action" ]

That being said, there are some somewhat famous "Austrian" investment advisors, such as Gary North, and Peter Schiff who apparently do not believe this simple truth and who therefor regularly make predictions about the economic future and give "investment advice" based on those predictions.

You seriously abuse this quote. "There would be [no] entrepreneurial ... profit" if the future were not uncertain... the very fact of uncertainty is why entrepreneurs like North, Schiff, Skousen, Rogers, Faber and others can make a profit.

Clayton -

Re: Austrian Wealth Building Books?

onebornfree — Mon, 22 Feb 2010 17:53:07 GMT

Jonathan:

As in handling personal finances. How to invest in different vehicle to reach profit or return, using Austrian economics. (Stocks, bonds, real estate, ...etc)

I see, although still a bit vague

Von Mises himself said :

" If it were possible to calculate the future state of the market, the future would not be uncertain. There would be neither entrepreneurial loss nor profit. What people expect from the economists is beyond the power of any mortal man........" . [See "Human Action" ]

That being said, there are some somewhat famous "Austrian" investment advisors, such as Gary North, and Peter Schiff who apparently do not believe this simple truth and who therefor regularly make predictions about the economic future and give "investment advice" based on those predictions.

As far as I am aware, making predictions about the future state of financial markets is decidedly "un-Austrian", but I seem to be in a very small minority on this matter. Oh well, c'est la vie.

In any case, it would appear that they [North, Schiff etc.] have not read, or at least have not taken to heart , LVM's words.

Before you go trusting any of your hard earned money [assuming you have some] to "Austrians" [or any one else], as well as reading/considering the LVM chapter linked to above, you might want to take a look at 2007 New York times bestseller "The Black Swan", a study of randomness in the universe- including [but not limited to] the randomness in markets and market phenomena.

At least then you'd be "one up" on Mr North and Mr Schiff , it would seem.

P.S. See: Financial Safety Rule #1 . - the economic future is unknowable.

Regards, onebornfree.

Re: Austrian Wealth Building Books?

Giant_Joe — Mon, 22 Feb 2010 17:25:55 GMT

Peter Schiff is pretty good as is his book "Crash Proof"

I usually check out some of the articles that get published here from authors who tend to be "mostly" Austrian:

http://www.safehaven.com/

Re: Austrian Wealth Building Books?

Jonathan — Mon, 22 Feb 2010 15:57:01 GMT

As in handling personal finances. How to invest in different vehicle to reach profit or return, using Austrian economics. (Stocks, bonds, real estate, ...etc)

Re: Austrian Wealth Building Books?

onebornfree — Mon, 22 Feb 2010 01:17:15 GMT

Jonathan:

Are there wealth building books from the Austrian perspective? ...How to build wealth, run business, ...etc

What do you mean by the term "wealth building"? What do you mean by "the Austrian perspective"?

Regards, onebornfree.

Re: Austrian Wealth Building Books?

von Vodka — Sun, 21 Feb 2010 03:29:19 GMT

Mark Skousen

http://en.wikipedia.org/wiki/Mark_Skousen

I've never read his stuff, but he's an Austrian and a friend of Peter Schiff.

Re: Austrian Wealth Building Books?

DanielMuff — Sun, 21 Feb 2010 03:22:20 GMT

Jonathan:

Are there wealth building books from the Austrian perspective? ...How to build wealth, run business, ...etc

See Peter Klein.

Re: Austrian Wealth Building Books?

DanielMuff — Sun, 21 Feb 2010 03:13:25 GMT

MarketFundamentalist:

I seriously doubt if any real life businessmen consult Austrian or any other school's economic theories before conducting their business. If they did we wouldn't have this messy scenario we have today.

Consult the post previous to yours.

Re: Austrian Wealth Building Books?

Chris — Sun, 21 Feb 2010 03:05:59 GMT

MarketFundamentalist:

I seriously doubt if any real life businessmen consult Austrian or any other school's economic theories before conducting their business. If they did we wouldn't have this messy scenario we have today.

I disagree with this. While I don't think people like Jim Rogers are sitting there with Human Action open trying to come up with an investment strategy, I think that understanding real economics (Austrian economics) provides investors with insight they would otherwise not have. An example of this may be watching the insane credit expansion and understanding that there will be a boom, and knowing to invest in asset classes that typically perform the best relatively during this period. Next Austrians will understand that a bust has to occur and will tend to get out earlier and possibly begin to short the sectors that expanded solely due to the credit expansion. We know after artificially suppressed interest rates there will be huge interest rate increases down the road and we can short fixed income. We also understand that the government cannot make the economy better, and should invest accordingly. Also, just because we are in a mess doesn't mean anything about certain investors/businessmen; the majority may not understand real economics, but that doesn't mean they all don't.