Download The Zurich Axioms: The Rules of Risk and Reward Used by and Reward Used by Generations of Swiss Bankers by Max Gunther. Zurich Axioms book. Read 69 reviews from the world's largest community for readers. The 12 major and 16 minor Zurich Axioms contained in this work are a. Editorial Reviews. Review. "If you have got the price of this book, stake it." -- Investors Chronicle The Zurich Axioms: The rules of risk and reward used by generations of Swiss bankers - Kindle edition by Gunther Max. Download it once and.
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Financial literacy. 1. The Zurich Axioms by Max Gunther. Introduction. What the Axioms Are and How They Came to Be. Consider the puzzle of Switzerland. A couple of grand would have made me happy. But this woman isn't even happy couple of hundred untitled The Zurich Axioms by Max Gunther used-by-generations-of-swiss-bankers-by-max-gunther/. Risk Management, Behavior, Bankers. The Zurich Axioms” is a slim book that should be on the library of.
I must admit, I was skeptical of the book at first because it describes a "secret" set of rules devised by Swiss private bankers. Names you would pick if you wanted to come across Swiss. The whole package made me feel this was all made up. I soon learned, however, Gunther has been published in various high-profile American magazines. There are 12 major and 16 minor rules, or axioms, in the book.
Reasons to read You should read this book if you have primarily been exposed to conventional investment advice, according to efficient market theory or modern portfolio theory, or believe in diversified low-cost investing through exchange-traded funds ETFs. In this case, the book will add value to your perspective.
Another reason to read the "Zurich Axioms" is it is filled with anecdotes, which are often entertaining as well as educational. The writing is accessible and easy to understand. You do not need to know a lot about the stock market or investing in order to read and understand the ideas presented. There is quite a bit of good advice. In minor axiom 14 the author advises to never follow speculative fads or buy things when nobody else wants them.
In addition, do not trust anyone who claims to know the future. Unfortunately, few of us ever think to ourselves, "I'm going to bet this fad big. They do not view it as a fad. They impede motion. On Intuition: — A hunch can be trusted if it can be explained.
On the Occult: — If astrology worked, all astrologers would be rich. It can be enjoyed, provided it is kept in its place. Never make a move if you are merely optimistic.
On Consensus: — Disregard the majority opinion. It is probably wrong. Often, the best time to buy something is when nobody else wants it. On Planning: — Long-range plans engender the dangerous belief that the future is under control.
In essence these axioms point to the benefit of having an investment strategy and sticking to it, regardless of what other investors say or do. Here is what I learnt. If you are not worried, you are not risking enough.
Minor Axiom I. Always play for meaningful stakes.
Minor Axiom II. Resist the allure of diversification. Specifically, what does the axiom advise you to do with your money? It says put your money at risk. The degree of risk you will usually be dealing with is not hair-raisingly high.
By being willing to face it, you give yourself the only realistic chance you have of rising above the great unrich. The price you pay for this glorious chance is a state of worry. The topic for discussion was always the currently available investment opportunities — or speculative opportunities, as they would have put it themselves. Thus, the author grew up with a father that socialized with Jesse Livermore, Gerald Loeb etc.
The book came about when Max Gunter one time, when being advised by his father to make an investment, asked him what the basis was for the advice, what Frank Henry and his Swiss acquaintances actually based their decisions on.
The thought process that followed in the Swiss network in trying to formulate their rules for speculation resulted in this book, first published in The axioms advocate taking large stakes in a few meaningful opportunities at the time, to set targets for when to take profit and to immediately get out if a position is turning sour — and never try to average down or get in again on a loosing position.
Overall, the philosophy of Frank Henry and his fellow Swiss bankers is based on trading psychology that much later formed parts of what is today know as behavioral finance. Much, like the advice to disregard the consensus as it probably is wrong or the distrust in forecasts, should resonate well with more long-term fundamental investors. We will post the full list of axioms of the website separately.