The Greatest Trade Ever by Gregory Zuckerman

 

The Greatest Trade Ever by Gregory Zuckerman : Book Review

Imagine reading through a journey of some men who made big money in the stock market and understanding the key concepts and aspects that these minds used to make that money.  “The Greatest Trade Ever” by Gregory Zuckerman is a book narrating the journey of how one man bet against the markets and made $20 Billion. The book is no short of getting first hand investing wisdom on decades of experience through the mind of one person in particular and three other minds in general.

The book primarily concentrates on John Paulson, a hedge fund manager, whose analysis and bold decisions led to unimaginable gains. They key event narrated in the book concentrates on how John Paulson made $20 Billion by betting against the U.S housing market in the 2000’s on the basis of the sub- prime mortgage crisis. 

The introduction to the book starts with the hint of an upcoming and possible financial crisis in 2007 followed by a prologue where the author introduces the reader to John Paulson. Considering that the author has been a senior writer at the Wall Street Journal, Gregory Zuckerman plots this narrative in absolute detail for the readers to understand the background of each and every event that surrounds this achievement by Paulson.

The book traces the journey of Paulson right from the start of his senses. The journey of the hedge fund manager has been detailed extremely insightfully giving the reader the understanding of the motive of Paulson for each of his actions and trades. The technical jargons and investment terminology has also been explained in detail to enable the reader to be with the narrative. In fact, even a non- finance reader can understand the financial terminologies and events that surround the narrative.

The author also concentrates on the key events that led to the financial crises of 2008. The events and acts have been well explained and gives an understanding to the average reader as to where the problem was with easy money and easy credit available without sufficiently backed assets that could be liquidated in case of default.

The narrative has shades of a financial thriller with emotions dropping out from the key characters. Each and every key decision made by Paulson during those years has been explained in detail with the emotional motive of the person himself. The book makes for an insightful read to understand as to how Paulson, in spite of not being an expert in real estate, identified the overvaluation of sub- prime mortgages and formed a financial plan and strategy to profit from their downfall.

The book also narrates the journey of three other investors in general; Michael Burry who recognized the housing bubble early. Greg Lippman – the trader who played a vital role for Paulson and Jeffrey Greene – an investor who made gains from the sub- prime mortgage fall. What the reader will enjoy is that the author has not only concentrated on the event of these investors making the gain, but also traced the journey of their lives all through until that point. Reading through the journey of these investors from their early life to the point when they made the profits forms a good learning for the average reader.

The book also showcases as to how during the years that led to the 2008 crises, the banks and financial institutions took some very risky decision of granting loan approvals that proved futile once the bubble busted. These sections form a learning class for the current times as to how uncontrolled credit approvals can lead to global financial crises.

The financial terms and the detailed understanding that the book provides to the reader on the entire 2008 crises is an additional value addition through this book. Concepts on Credit Default Swaps (CDS), real estate mortgage, asset back securities, sub- prime mortgages, short selling have been explained in detail by the author through practical examples of the subject investors in this book.

The detailing in the narrative and emotional background of the characters add to the authenticity of the events. There is section at the end of the book where the author describes about the meetings with the key subjects of the book and how he compiled and formed the final product.

The book is highly recommended for financial enthusiast to understand the background of the 2008 financial crises. For early and new investors, this book will serve as an insightful learning.

The language of the book is general and almost has an undercurrent fiction style tone. The reader will get a feel a financial thriller fiction while they get through the prose. The financial terms have been effectively converted into interesting stories narrated through practical events in the lives of the real -life investors.

“The Greatest Trade Ever” by Gregory Zuckerman is gold read not to be missed. An absolute collector’s edition to be preserved for the future generations.