Sunday, June 15, 2014

The Secret Club That Runs the World

CNBC reporter Kate Kelly is out with a new book, The Secret Club That Runs the World: Inside the Fraternity of Commodity Traders.

Physical commodity traders are a fascinating bunch. They are true entrepreneurs, who will ignore the dictates of governments including embargoes and other trade restrictions to get product moving---and make a nice profit at the same time

I know personally know a bunch of commodity trader going way back even to the old days when Marc Rich was still operating from New York. The book rings true and provides a great taste as to how they operate and their often outsized personalities. I often get emails from EPJ readers who ask me what books they should read to learn about finance. This is a book they should be added to the list. The book won't make you a trader, but it will provide a great sense about what that world is about.

Best snippet from the book:
If managers decided their hours were too long and began leaving early, their underlings would frequently work that much harder and unseat their bosses...[U]nlike other energy companies or investment banks "there are no politics at [Marc Rich's] Glencore," one employee explains. "It's totally peformanced-based."

Buy the book here.

1 comment:

  1. I always thought Garet Garrett's book, "Satan's Bushel", had some decent insights into the trader mindset: