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The Wisdom Of Finance Quotes By Mihir Desai


Just to get it out of the way, the reason I picked up this book was to not learn the technical details of finance. This book delivers on what it sets out to do i.e. explain financial concepts that seem out of this world to an untrained person. It does the opposite as well, if you’re familiar with financial concepts already, prof Desai will open your eyes to the real life implications. My favourite chapter was on the principal-agent problem narrowly followed by how principles of mergers and acquisitions forex indices and romantic relationships are basically same. Through this novel, creative approach, Desai shows that outsiders can access the underlying ideas easily and insiders can reacquaint themselves with the core humanity of their profession. For him, issues in finance derive from some much larger aspect of human existence, like risk, which is also treated by great literature. Finance can attune us to these issues, but when we apply its concepts elsewhere they sometimes show their limitations.

I think this is something everyone who wants to know about the field should read. If it doesn’t give you a desire to do a PhD in the subject, the book will at least equip you The Wisdom of Finance: Discovering Humanity in the World of Risk and Return to understand the seemingly complicated real world scenarios. The fields of finance and insurance are often filled with books that rely heavy on jargon, thus distancing many.

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Arts, history, films, literature, etc. makes part of the stories of this book. I got a way deeper understanding of the insurance business and his importance in the economy. If you want to understand more about economics, finance and this chaotic world in which we live, this book will help you a lot. This is once again one of those books that I wished I had access to when I was younger. It is genuinely a must read if we find ourselves at the crossroads of risk and rewards, as we all do on a daily basis. The book is peppered with some great stories and case studies which humanises the financial concepts to a great degree. The fact that you can find reference to Jane Austen and Leo Tolstoy in one page and a few pages later you’re reading about Greek tragedy and Kanye West, shows how great the range of the author is capable of.

The Wisdom of Finance is a settlement of ideas, insights, and teachings that encompass finance. The subject matter was approached through unique lens of humanity. More than a guide, this is a novel infused with creativity as the author intends to bring life lessons and finances together in a comprehensive manner while giving insiders a chance to attach themselves fully to core values of finance. Principles of Sustainable Finance explains how the financial sector can be mobilized to counter this. Using finance as a means to achieve social goals we can divert the planet and its economy from its current path to a world that is sustainable for all. Written for undergraduate, graduate, and executive students of finance, economics, business, and sustainability, this textbook combines theory, empirical data, and policy to explain the sustainability challenges for corporate investment. It shows how finance can steer funding to certain companies and projects without sacrificing return and thus speed up the transition to a sustainable economy.

A tree and a table are both made of wood, but the table has a higher value. The tree must be felled, milled, and the lumber turned into a table. At each stage (not to mention transportation between!) value is added by labor. Desai’s meditation on mergers includes assertions that proper valuations have to be always based on projections of an asset’s value will be in the future–mist enveloped—indeed necessarily so. As a noobie to finance, I wanted an accessible finance text to introduce me to what the heck is finance.

The understanding of financial concepts and its correlation/analogy with daily life scenarios will definitely enrich our understanding and decision making. Moreover, the book’s humanity approach to finance helps to give many personable reasons to why strategies such as “Leverage” is useful or painful. I’m not sure this amazing author knew how profound his message might be. Most of the concepts or advices were quite obvious and didn’t really need all the explaining and analogies the author draws from other spheres of life. Nonetheless, some good things, some non-trivial messages, put interestingly. It’s an unusual book that connect finance with real life stories, full of wisdom and real stories of past man and woman, not always connected to finance.

The analogy between painting and finance as imagination ordering chaos was useful. Mihir A. Desai is an award-winning professor of finance at Harvard Business School and a professor of law at Harvard Law School. His areas of expertise include international finance, corporate finance, and tax policy, and his academic publications have appeared in leading journals.

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Tailored for students, Principles of Sustainable Finance starts each chapter with an overview and learning objectives to support study. It includes suggestions for further reading, lists and definitions of key concepts, and extensive uses of figures, boxes, and tables to enhance educational goals and clarify concepts. Principles of Sustainable Finance is also supported by an online resource that includes teaching materials and cases. Mihir Desai perfectly correlates basic financial concepts with literature, history and most importantly, humanity. If finance was purely based on mathematics and statistics alone, it would be much simpler.

Enter your mobile number or email address below and we’ll send you a link to download the free Kindle App. Then you can start reading Kindle books on your smartphone, tablet, or computer – no Kindle device required. ”The Wisdom of Finance is required reading for anyone interested in finance or in pursuing a career in the industry. Mihir eloquently traces the products, practices, and services of our modern financial system to their roots while providing literary context and illustration. Desai acts as a sincere and welcoming bridge using popular movies, stories, and uncommon subjects to make parallels between things like leverage, options, risk, and a whole variety of other concepts. And their omnipresence could be found not only in business, but in literature, movies and even art. The understanding of financial concepts and its correlation/analogy with daily life scenarios will definitely enrich our understanding and decision making to live a meaningful life creating tons of value in the society.

Harvard Business School professor Mihir Desai, in his “last lecture” to the graduating Harvard MBA class of 2015, took up the cause of restoring humanity to finance. With incisive wit and irony, his lecture drew upon a rich knowledge of literature, film, history, and philosophy to explain the inner workings of finance in a manner that has never been seen before. This book provides, for the first time, a broad analysis of the whole range of potential conflicts in finance, based on both academic research and the views of professionals on how these issues are faced in practice. It will be essential reading for students of finance and banking, as well as for finance professionals. You can read books purchased on Google Play using your computer’s web browser.

In the past, borrowers who could not service their debts were treated as moral failures and harsh penalties were associated with it. The lack of bankruptcy structure i.e. appropriately dealing with business failure curtailed the risk appetitive of the society.

Although I earned my degree in a social science, I find myself working in a finance-related field. I feel pretty ambivalent about my current career, and I hoped that this book might open my eyes to a perspective I hadn’t considered. And it did provide me with some new concepts and perspectives, but ultimately, I feel as ambivalent about this book as I do my job. It just didn’t convince me the way I had hoped to be convinced. The author does a tremendous job of connecting the myriad concepts of finance, it’s origins with our lives through very relatable experiences and stories of people in the preceding millennia and right upto today. To give one example that illustrates the astonishing range of Desai’s understanding, consider his illustration of leverage by comparing George Orwell (who went into semi-seclusion for years to write 1984) to Jeff Koons .

It is here you begin to get the sense that the practical and philosophical, that literature and science, are being intricately intertwined. Mihir Desai puts values back at the center of value creation by bringing the humanities to bear on finance, and finance to our understanding of our humanity. Moral Markets is a portal to quality articles, blogs, books, videos and online resources that help you to critically reflect on free markets, capitalism, business and economics; When and how do these contribute to human flourishing? For students, policy makers, business professionals and researchers.

  • Mihir Desai, Professor of Finance at HBS, decided to come up with this book to ‘demystify’ all the hot air that surrounds finance.
  • Nonetheless, I’d recommend the book, specifically the audiobook, to anyone who wishes to learn something about finance without involving math.
  • Very little time is devoted to this bit and an examination of where the accumulated wisdom of finance was when the world was burning down around our ears.
  • There may be a lot of wisdom in finance, but if a lot of people seem to be ignoring it, something fishy abounds.
  • And he decided to demystify it with flare, using plot lines of books and movies and picking up historical anecdotes to help us understand the financial vernacular.
  • I deduct a point from the book, making it a four out of five because while the book deals very well with the wisdom of finance, it prefers to skip over the lack of it among financiers.

And one reason for it is the dearth of stories on finance that highlights its brighter side. In a chapter on bankruptcy, Desai talks about how failure is inevitable in a risk-prone world of finance. And people or organisations that goes bankrupt should be given another chance.

The Wisdom Of Finance Quotes

This book captures Desai’s lucid exploration of the ideas of finance as seen through the unusual prism of the humanities. Through this novel, creative approach, Desai shows that outsiders can access the underlying ideas easily and that insiders can reacquaint themselves with the core humanity of their profession.

Overall, I felt the book was easy reading but the author could have included more non European examples too. In the last chapter it shows that finance is often pilloried in popular media as a profession built on greed.

Risk, for example, is about the bad stuff that can happen to you in life. I teach contracts and The Wisdom of Finance: Discovering Humanity in the World of Risk and Return I’m always trying to convince my students that contracts are about trust and relationships.

The author analyzes CP Snows Two Cultures essay and how to explore the common territory between finance and liberal arts. That is why I have multiple bikes, multiple bank accounts , multiple forms of identity and multiple forms of investment. Further getting addicted to creating options rather than pursuing what is in front of us serves as a cautionary tale.The author grounds the idea of diversification in stories of sports career. I tend to agree here as many footballers have become cricketers and vice versa even today.I loved the fact that hanging around in LinkedIn is less diversified then forming new relationships in real life or facebook. Lays the foundation of finance in risk management and insurance with analogy to wheel of fortune and pinball machines. We get introduced to work of many mathematicians and philosophers who developed the tools of finance by analyzing gambling games.

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Given the human condition, issues are much more complex than first appears, and great literature can show us precisely how. And so literature can actually teach economists something, not just provide pretty illustrations of what they already know. Harvard Business School Professor Mihir De Sai, author of The Wisdom of Finance, delivered a talk back in 2015 in which the said lecture reignited the dwindling relation of humanity to finance. His lecture was infused with enough mix of intelligence and entertainment The Wisdom of Finance: Discovering Humanity in the World of Risk and Return about literature, film, history, and philosophy, to enforce financing theories that many have failed to discuss in the past. The Wisdom of Finance takes well-known financial concepts and applies them to our most pressing life issues. The book is philosophical in its approach, but Desai’s thesis is peppered with real-life examples of how financial types can and should see the world around them. Harvard Business School professor Mihir Desai takes up the cause of restoring humanity to finance.

As a professor and award-winning teacher at Harvard Business School and Harvard Law School, Desai teaches finance, tax law, entrepreneurship and has recently developed an online finance course for the HBX platform. His scholarship on corporate finance, international The Wisdom of Finance: Discovering Humanity in the World of Risk and Return finance and tax policy has prompted several invitations to testify before the U.S. Congress and serves as the basis of his advisory role to leading global companies and organizations. The Wisdom of Finance turns the often dry and dusty world of finance upside down.

Expanding on a ”last lecture” given in 2015 to graduating MBA students, Mihir Desai illustrates the core principles of finance via a variety of literary, cinematic, and historical references. Desai’s unexpected insight, humor, and irony offer a new perspective for insiders and outsiders alike.

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If I were forced to put wisdom on a numerical scale with finance as 1, then humanity might be a 100, and the ignorance of humanity might be 10,000. My favourite chapters are ‘On Value’+ ‘Becoming a producer’ + ‘No Romance Without Finance’. I think what sets the book apart is the intersection of economics, politics and history to explain the evolution of finance and it’s main concepts.

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