reviews of the book- the bible of compounding money with world class money managers

7/29/2019 Reviews of the Book- The Bible of Compounding Money with World Class Money Managers

1/5


2/5

Reviews

I have read many, many books about economics and investments. What most investment advisors

overlook is that, One of the most important issues when investing is that it fits your personality and riskprofile. Andrew Abrahams book contains many other great investment insights, which will help you

improve your investment returns.

MF

Marc Faber

Marc Faber Limited

"Andrew explains you very clearly what the compounding is all about and why it is the 8th wonder of the

world did it Einstein. In order to fully enjoy it, you have to understand the inherent risk management

that goes along. The CTA business is one of the best ways to compound money with a strict set of

management rules. After reading this book, you have no excuses... You can build your own portfolio of

CTA managers and ride the "bronco". This goes hand by hand with what Jesse Livermore used to say "It

never was my thinking that made the big money for me. It always was my sitting, my sitting tight".

Jonathan Guillou

Paris France

Fund Manage Amilton Am

Andrew does it again. In this book he outlines time tested principles to be considered when investing in

money managers, focusing on the importance of compounding the key to true wealth generation in


3/5

any investment business. Numerous examples are presented, adding a real-life perspective which is

often lacking on this topic. An insightful, timely and fun read overall

All the best

Erico Matias Tavares

Sinclair limited

I just finished reading (some sections twice) your book. I loved the Dentist story - it made the book and

you real. I have found that most successful people have a story like that, but don't let it out. I really

liked the inclusion of yours. It made you real. Work + Passion = World Class Results, since reading thisI've used it on my daughter. She is 11 and wants to play on the tennis team at her school. The story of

your neighbor's son and soccer resonated big time. Be a patient investor with managed futures. I really

enjoy this chapter. I've seen many investors chase program highs and sell drawdown lows. They are

always losing money. Doing it in reverse would turn the tables for them. Warren Buffett - so many

people forget his 50% drawdowns and multi-year recovery times. I remember articles saying his

strategy was all but dead. Of course those same articles are published about trend followers too. He is

now at a career high point, reminding your readers of what he went through is a great tool. I liked the

introduction to each manager you selected and appreciate the attention given to me. The story behind

the name sometimes gets lost and the advisor tends to turn into their track record. Providing the story

keeps them human and real. I enjoyed the attention to risk. Return is great, but risk is where the gameis made or lost. Great book, I thoroughly enjoyed reading it. I really needed to read it now too. It was

great timing.

Justin Vandergrift

Principle Chadwick Investment Group

Commodity Trading Advisor

The book is not an academic tone; it is a light read and largely revolves around investing in managed

futures and the CTA arena. It sets out a number of investing guidelines in a readable fashion: not putting


4/5

more than 1% to 5% of investible capital with any one manager, the maths of compounding and the

dangers of inflation to name a few. The book contains write ups for a number of well-known trend

following money managers and tables of results taken from IASG.com. There are sensible suggestions on

how to conduct due diligence and to collate further information on CTAs from regulators and other

sources. Andrew stresses the dangers and lack of certainty in the investing world and is right to do so.

Nonetheless, he conveys quite a big feel good factor he suggests that if you can get it right and can

pick tomorrows winners amongst todays CTAs, the rewards could be substantial. He looks for a 10 year

track record and a 15% CAGR net of fees in his own investments and gives a number of examples of

CTAs who have achieved such performance.

Easier said than done but no denying the reality of the historic performance figures provided

Anthony FJ Garner

Tradersplace.net

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The various chapters are just great, when you start to go over the details, there's a lot of wisdom there

not only for end investors but for any of us that are in the trading business. I love the parts when you

use concrete examples what to look for in managers, what might go wrong, counterparty risk, Madoff,

inflation (I'm from brazil and live hyperinflation so I know what that means) etc.

Andre Veloso- Brazil Trader

Abu Dhabi 21/2/2013

I had a pleasant time reading your book, looking at those managers whom some I know very well as

investor and others that dominate the industry for long time. Even as a coincidence yesterday we

received a letter from Zweig Dimenna about Marty s demise , the one who says dont fight the Fed,

although I argued with him that year Greenspan lowered the discount rates 13 times and the stock

market didnt registered new high!

This Time is different, dont doubt it

Last June 2012 we said the coming months will be either make or break for managed futures when

trends were down across all sectors and the rest of the risk- on crowd and we saw the asst classes with

Trend Followers at risk-off losses should there be a risk on reversal.? Our friend Draghi announced

by word of mouth that ECB would use every tools to defend the Euro and we saw that reversal was just

what happened with 10% rally in S&P500 and across other indices. However the summer was over and


5/5

managed futures were down the following fall to finished the year in another draw down for almost 23

months for Newedge CTAs index -2.13%, STTI -3.83% and BTOP50 index -1.90% for 2012. Everyone was

saying Is trend following dead?

Probably the space is getting too crowded, or the market was dominant by the biggest players or others

said the government intervention and the Fed money printing machine are causes for that statement.

Many investors, may be unconvinced by managed futures because of the reliance on technical

analysis, and the belief that trading constitutes a zero-sum game. This is true only when the benchmark

used to define profit and loss is the same for buyers and sellers. Trend following strategies can be

viewed as taking on risk that hedgers wish to avoid. Imbalances in demand between long short hedgers

can create opportunity for speculative traders to earn a positive return by filling gaps in supply and

demand from hedgers. Trends develop because information relevant to prices often evolves over time

as market participants are not homogenously informed and the supply/demand from adverse hedgers

does not necessarily balance. However when Short, medium and long term systems are synchronized

the greatest returns and reversal related losses occurred. This is exactly what is happening in the trend

following space .Markets are no longer are free to float up or down , it is the policy makers central

banks, and governments that decide when to stop a trend or creates one . Trend followers are changing

their strategies, Campbell , Cantab , Blue Trend,are moving to many short term and mean reversion

strategies . In my opinion one should avoid a pure momentum only models, they are not working

anymore.

Your book is a good educational way to look at your past experience in investing with managed futures

managers, however the past cannot repeat itself, or can repeat it , but with the difference , and this

time is different .

I am an opportunistic in my investment today, and I believe what you said in your book: Compounding isthe only way to make you live comfortably in the future. I dont know who says: Imagination is a poor

substitute for experience.

Andrew I am sorry for taking a long time to send you my comments and hope you like them, and I wish

you all the success in your life.

My best regards,

Raad Z.

Head, CTAs Mandate

reviews of the book- the bible of compounding money with world class money managers

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