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Book reviews for "Strumpen-Darrie,_Robert_L." sorted by average review score:

The Evolution of Cooperation
Published in Paperback by Basic Books (1985)
Author: Robert Axelrod
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How cooperation can emerge among self-interested actors
If you read this book as long ago as I did, you probably
first heard about it from Douglas Hofstadter's "Metamagical Themas" column in _Scientific American_, or the book in which his columns were collected. (If you're just now being introduced to this book, check out Hofstadter's too; his discussion of it is very helpful and insightful.)

What Robert Axelrod describes in this book is a novel round-robin tournament (actually two such tournaments) in which various game-theoretic strategies were pitted against one another in the game known as the Iterated Prisoner's Dilemma. Each strategy was scored, not according to how many times it "beat" its "opponent," but according to how many points it accumulated for itself. The surprising result: a strategy dubbed TIT FOR TAT, submitted by Anatol Rapaport, cleaned everybody's clocks in both tournaments.

Why was this surprising? First, because TIT FOR TAT was such a simple strategy. It didn't try to figure out what its "opponent" was going to do, or even keep much track of what its "opponent" had _already_ done. All it did was cooperate on the first move, and thereafter do whatever its "opponent" had done on the previous move. And second, because this strategy can _never_ do better than its "opponent" in any single game; the best result it could achieve, in terms of comparison with the other player, is a tie.

So it was odd that such a simple strategy, one that went up against all sorts of sophisticated strategies that spent a lot of time trying to dope out what their "opponents" were up to, should do so much better than all the "clever" strategies. And it was also odd that a strategy that could never, ever "beat" its "opponent" should nevertheless do so much better _overall_ than any other strategy.

As Axelrod is careful to point out, this isn't always true; how well TIT FOR TAT does depends on the population with which it's surrounded, and in fact it wouldn't have won even _these_ tournaments if certain other strategies had participated. But TIT FOR TAT is surprisingly robust, and its success does offer some tentative political lessons.

Axelrod spells them out, in the form of principles like "Be nice and forgiving" -- which means: never be the first to defect; be quick to forget what your "opponent" has done in the past. And in a follow-up computer simulation, he shows that it's possible -- under some conditions -- for a little cadre of "cooperators" to increase their numbers and "take over" a population that practices other strategies.

Axelrod's research was and is important for several reasons, one of which has to do with evolutionary theory: it shows that, under the right conditions, natural selection can tend to generate cooperation rather than competition, even among actors who act solely out of self-interest. Another has to do with the spontaneous growth of cooperative behavior in predominantly competitive or hostile environments (Axelrod's examples include holiday cease-fires in the trenches during the First World War). Yet another has to do with the need (or otherwise) for external authorities to _enforce_ cooperative behavior -- a point not lost on Axelrod's libertarian and/or Hayekian readers, including myself.

Nevertheless, as groundbreaking as this work is, the results are modest and Axelrod states them very cautiously. TIT FOR TAT doesn't _always_ "win," and in any case not all of our social interactions can be modelled as Iterated Prisoner's Dilemmas. It's a _very_ hopeful book, but readers will want to be careful not to claim more for Axelrod's results than he claims for them himself.

In short, this volume is a solid piece of political-sociological-mathematical research that has stood the test of time and stimulated all sorts of follow-up work. I expect it will be read for a long time to come -- this conclusion being a simple extrapolation from the fact that I've been reading it for almost two decades now myself. It's fascinating.

One of the most amazing books I've ever read.
If you're an intellectual and want to read a book that will change your perception of many facets of the world forever, this is the book for you. It's not a long read, but you will spend a lot of time thinking about all its implications as you read it. I found it applicable to everything from inviting people to parties, to business and personal relationships, to species competition, to wondering whether a theoretical race of super-powerful extraterrestrials would enslave us, to... Well, you just have to check it out!
I'm reading the sequel ("The Complexity of Cooperation") right now, which is also amazing. In it he quotes a letter written to him about EoC by a woman who claims that the principle developed in it helped her with her divorce proceedings! How can you miss a book with such broad applications.

Insights into Open Source Development
Though I've never seen the two linked elsewhere, this book explains how Linux and Open Source developers can succeed in a world populated by back-stabbing defectors. A wonderful book and an easy read. Recomended for anyone who cooperates.

For business readers, consider Co-opetition by Nalebuff etal and the Death of Competition by Moore.


Wind from the Carolinas
Published in Hardcover by Buccaneer Books (1991)
Author: Robert Wilder
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One of my favorite books
I first read this book years ago and I've revisited it as an old friend many times since. Presented as a generational saga, the book is wrapped around a fascinating and little-known historical event-the settlement of the Bahmas Islands by British plantation owners who found their lives after the War for Independence unendurable.

The story is first-rate with characters you care about. The struggle to recreate southern plantation life on the Outer Islands is brought to life but it's the characters who keep you turning the pages.

My book is falling apart so I need to buy a new one!

This story is to be savored as you would a fine wine.
This is the most beautifully descriptive story ever written about the human spirit. It begins with a loyal British patriot that doesn't believe in the American "upstarts" and their democracy. Therefore, he moves his family to the Bahamas to start anew. From there we will view history through the eyes of his children, grandchildren and future generations. The beauty of this book is that is never gets lost or confused, the family developes and grows but never loses sight of it's history and purpose. This is a novel to be read and read again. With each passing you will find more enjoyment in the characters, world history and the Bahamanan life. So pull up a chair and enjoy this great adventure.

One of the best historical fiction books that I have read
As a Boat delivery Captain, who has traveled thru the Bahamas I had heard of the book from many old salts and finally found a well used 1st edition of the book. It is a page turner and transports us easily back to the times of the early settlers of the Islands. I have heard of a sequel called Blowin in the wind, But I have never seen it. Wind from the Carolinas is one of my treasured positions.


Million Dollar Habits
Published in Hardcover by Wynwood Pr (1990)
Author: Robert J. Ringer
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Solid principles for success.
I've read a lot of books on success, and they all say basically the same thing: Have a goal, keep a good attitude, work hard. But reading it isn't enough. Some fundamentals have to be constantly reinforced. Ringer presents ten basic principles for success and presents them well. He adds a couple of important principles many writers neglect, like how to deal with people who drain you of your enthusiasm.

It is easy reading, and will reinforce your commitment to doing the fundamentals. Sometimes you just have to hear something one more time to make it stick. I'm the author of the book, Self-Help Stuff That Works, and I am an expert on effective self-help material. Million Dollar Habits fits the bill. Definitely worth reading.

"Entertaining and provocative. A keeper!"
This is the first, but not last book I'll read by Robert Ringer. He has an excellent writing style that wouldn't let me put this book down. I do feel that million dollar habits must be cultivated. They don't come natural- unless you have been born into several generation wealth. Even in that case they must be worked on. This book was not merely about becoming financially rich, rather, changing ones lifestyle. I do not know of the writers origin, but he seems to have lived a rags to riches life. Great read.

Ringerful
A lot in this book is very helpful. Ringer says the habits are simple. Well, if they are so simple, how come everbody doesn't follow them? But then I read the founder of Gateway (or was it Dell) Computer's quote when he was listed on the "Forbes 400". He was on that list as a billionaire. He said, "Business is simple. It's not easy, but it's simple." And it made me think of this book. Losing weight is simple. Even Forrest Gump could comprehend that to lose weight, you need to eat less than you burn off. But then 54% of the USA is overweight-to-obese, despite how simple it is to lose weight (it's just not easy). Well, same with this book. The rules related are simple, but not easy. And one thing that makes Ringer's advice something worth listening to is, he has messed up a lot. He made and lost a fortune twice, and was $1/2 a million in debt after the second time. But climbed his way back to wealth a third time. So that suggests his rules work. A lot of people get rich through luck. But if they went broke, they'd stay broke (as some do). But if Ringer can become rich three seperate times, maybe so can the rest of us. He messed up, but learned not to mess up, so maybe we can learn too.(He relates some of this in the "financial hurdle" chapter in his book LOOKING OUT FOR NUMBER 1).


Hour of the Dragon
Published in Hardcover by Donald M. Grant Publisher, Inc. (1990)
Authors: Robert E. Howard and Ezra Tucker
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Try the Original Recipe
I can't add much to the reviews already present on this page; clearly this is a book that has left a strong impression on its readers. Read the book yourself and it will be easy to see why. Howard's mastery of pace and plotting puts him in a league with the greatest "thriller" writers: Haggard, Buchan, or Wilkie Collins. Moreover, Howard's ability to bring the sights, smells, and sounds of his invented Hyborian world to vibrant life is nearly unparalled in Fantastic Fiction. He's in a league with Tolkien (who, perhaps surprisingly, liked the Conan books--score one for Tolkien) when it comes to creating a sense of depth, but Howard's world is far grittier and more sensuous.

However, while this is a great book, I'm going to be the only one to give it less than five stars. Not because Howard lacked the talent to write a five star book--he had talent to spare--but because he simply didn't have the time to make "Hour of the Dragon" as good as it should have been. There are passages that clearly could do with editing or rewriting; occasional infelicities of style; and minor inconsistencies in the plot. In spite of this, "Hour of the Dragon" will keep you up reading all night. If you've never read Howard before, you'll wonder why it's so difficult to find his books. So, pass up the pastiches and cinematic stereotypes. Give Bob Howard, of Peaster, TX a read and you won't be disappointed.

This book changed the direction of my life
I read this book as a teenager in the late 1950s under the title Conan the Conqueror. This is the same book. Certainly, if one thing set my life on the course it did, it was this book and the man who wrote it - Robert E. Howard. For me to recommend this book is both a pleasure and an honor. Howard's writing and this book fired my imagination and my life. I went on to get a BA in English (concentration in professional writing) and had a 15+ year career as a journalist and editor. Over the years, my copy of Conan the Conqueror has gone the way of all things. I'm ordering a copy of Hour of the Dragon today and will cherish it forever. Hopefully, I can pass on this book and my love for it to my grandchildren and keep the cycle going.

Also contains other stories
In addition to "The Hour of the Dragon", this edition also contains "Red Nails","Jewels of Gwahlur","Beyond the Black River","The Black Stranger","Wolves Beyond the Border(draft),"The Phoenix on the Sword",and "The Scarlet Citadel".This is the second volume of a 2 part set reprinting all of Howard's Conan stories in chronological order (volume 1 is People of the Black Circle). It's unfortunate that the publisher did not simply title them the Conan Chronicles Volume 1 and 2, instead of creating confusion by calling them People of the Black Circle and Hour of the Dragon. It's obvious that most of the people reviewing the book haven't read this edition but are just writing to say that they enjoyed reading Conan the Conqueror as a kid. Well that's fine and dandy, but you are not helping the people who already own the series published by DeCamp and Carter and want to know if it's worthwhile to buy this too. Well let me reassure everyone that indeed this is worth buying because it is THE ONLY place that collects ALL of the Howard Conan stories EXACTLY AS HE WROTE THEM,arranged in CHRONOLIGICAL ORDER of Conan's career, WITHOUT those awful pastiches by DeCamp and Carter mixed in.


Red Square (Price-Less Audio)
Published in Audio Cassette by Random House (Audio) (1993)
Authors: Martin Cruz Smith and Robert O'Keefe
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Martin Cruz Smith Did It Again!
All I have to say is if you are thinking of buying this book, do it. If you have not read Gorky Park or Polar Star first, then I strongly suggest you do so. The excellent aspect, I believe, of this book is its connection with the past two. While I enjoyed Gorky Park, Polar Star is where I fell in love with reading about Renko. By the time I read through Red Square, I came immediately online to see if there is another Renko novel to read. There is, Havana Bay, thank goodness, I don't know what I would have done if there wasn't. This is the perfect series of books to read, for anyone who does not mind a little challenge. Enjoy!

a gripping portrait of the new Russia
If you're reading this review it's probably because you haven't read Martin Cruz Smith's Red Square yet. And that's too bad, because you're missing a vivid glimpse into both the mafia-riddled new Russia and the loyalties of the human heart. Arkady Renko, the homicide detective hero of Smith's earlier books Gorky Park and Polar Star, returns to Moscow and finds himself battling an international crime ring in a story that crosses the German border and brings him face-to-face with his longed-for lost love. The gripping plot and Smith's masterful ability to capture the nuances of these complex geographical and psychological landscapes make this a book you will remember every time you pick up a copy of your favorite news magazine.

The best of the first three Arkady Renko novels.
I can't speak for the latest Arkady Renko novel, "Havana Bay," having not read it yet, but for me, the finest of the first three is the magnificent "Red Square," one of the most gripping and memorable thrillers I've read in a long time.

For those that have never read any of Martin Cruz Smith's novels featuring modern fiction most's unique detective (the others being "Gorky Park" and "Polar Star"), you might be surprised by what you find. Smith is no Mickey Spillane--he is a literate, cerebral writer and a first-rate novelist with an unusual gift for both probing, insightful characterizations and heart- pounding, edge-of-your-seat storytelling. His Renko novels can best be described as Saul Bellow meets Robert Ludlum, and Smith's voice is distinctive and unmistakable.

"Red Square" finds Arkady in post-Cold War Russia, investigating murder and intrigue in a society rife with corruption and desperation. He also reunites with his great love from "Gorky Park," and Smith's description of the reunion is among his very best writing. "Red Square" also features Smith's characteristically convoluted plotting, which can at times get confusing, but eventually resolves itself with the most satisfying ending he has yet written for a Renko novel.

All in all, "Red Square," despite a rather slow first 40 pages or so, was one of the most fascinating and unforgettable thrillers of the decade. Outstanding.


Wall Street Dictionary
Published in Paperback by Career Press (1999)
Author: Robert J. Shook
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This is a terrific resource
This book is very comprehensive and current, covering all aspects of the finance/investing world. As a CFO of a fortune 500 company, I refer to this book frequently; I highly recommend this glossary.

The most current and up to date financial dictionary
This investment dictionary lists over 5000 terms, with clear and easy to understand definitions. This book is current with the latest industry buzz words, and is a terrific resource for anyone interested in investing or finance.

Novice to Expert
An excellent guide to all of those buzz words you hear on CNBC.My broker uses this book and recomended it to me. It is very easy to read and understand.


The Fifth Discipline Fieldbook: Strategies and Tools for Building a Learning Organization
Published in Audio CD by Bantam Books-Audio (05 January, 1999)
Authors: Peter M. Senge, Art Kleiner, Charlotte Roberts, Richard Ross, and Bryan Smith
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The Fifth Discipline
This book is a collection of theoretical summaries, reports, analyses, and strategies all quite useful to anyone interested in generating some thinking and action around change. The team of five writers (Peter Senge, Richard Ross, Bryan Smith, Charlotte Roberts, and Art Kleiner) provide some original work, but also serve as editors to a vast quantity of material drawn from practitioners, theorists, and writers in the field of organizational improvement. According to Senge, "great teams are learning organizations - groups of people who, over time, enhance their capacity to create what they truly desire to create." (p.18) This book is really about creating and building great teams. The learning organization develops its ability to reflect on, discuss, question, and change its current and past practices. To do this, people and groups in the organization need to meaningfully pursue the study and practice of the five disciplines - personal mastery, mental models, shared vision, team learning, and systems thinking.

The learning organization - Senge's vision for the productive, competitive, and efficient institutions of the future - is in a continuous state of change. Four fundamental questions continuously serve to check and guide a group's learning and improvement (see page 49): (1) Do you continuously test your experiences? ("Are you willing to examine and challenge your sacred cows - not just during crises, but in good times?") (2) Are you producing knowledge? ("Knowledge, in this case, means the capacity for effective action.") (3) Is knowledge shared? ("Is it accessible to all of the organization's members?") (4) Is the learning relevant? ("Is this learning aimed at the organization's core purpose?") If these questions represent the organization's compass, the five disciplines are its map.

Each of the five disciplines is explained, and elaborated in its own lengthy section of the book. In the section on "Systems Thinking" (a set of practices and perspectives, which views all aspects of life as inter-related and playing a role in some larger system), the authors build on the idea of feedback loops (reinforcing and balancing) and introduce five systems archetypes. They are: "fixes that backfire", "limits to growth", "shifting the burden", "tragedy of the commons", and "accidental adversaries". In the section on "Personal Mastery", the authors argue that learning starts with each person. For organizations to learn and improve, people within the organization (perhaps starting with its core leadership) must learn to reflect on and become aware of their own core beliefs and visions. In "Mental Models", the authors argue that learning organizations need to explore the assumptions and attitudes, which guide their institutional directions, practices, and strategies. Articles on scenario planning, the ladder of inference, the left-hand column, and balancing inquiry and advocacy offer practical strategies to investigate our personal mental models as well as those of others in the organization. In "Shared Vision", the authors make the case for the stakeholders of an organization to continually adapt their vision ("an image of a desired future"), values ("how we get to travel to where we want to go"), purpose ("what the organization is here to do"), and goals ("milestones we expect to reach before too long"). The section offers many strategies and perspectives on how to move an organization toward continuous reflection. In "Team Learning", the authors rely mostly on the work of William Isaacs and others, and make a case for educating organization members in the processes and skills of dialogue and skillful discussion.

This book is enlightening and informative. It has already found a place on my shelf for essential reference books.

A second dose of Inspiration...
Senge's second serving of the Learning Organization is filled with practical tips and real-life examples from companies and organizations that have embraced the teachings of the Learning Organization successfully.

The Book is a collaboration of several writers who do a superb job of unraveling the web that is the learning organization. At times, it may seem to the reader that the book is a labyrinth of disjointed concepts and ideas. However, if you have read 'The Fifth Discipline' you will find no problems following the concepts introduced. In fact, you will even understand why the writers have chosen to introduce them in that fashion. If you have not read "The Fifth Discipline', do not despair, it will take a little longer to get 'the whole picture'.
The Book is divided into 8 main sections:

1) Getting Started addresses the basic concepts and ideas of the Learning Organization.
2) Systems Thinking (the fifth discipline) - Many people have argued that Senge should have delegated the fifth discipline until the end, however, without Systems Thinking, your vision is disjointed and incomplete.
3) Personal Mastery covers the area of individual development and learning. The chapters here are among the most valuable in the area of self-growth and self-improvement.
4) Mental Models - These are the pictures that you have in your head which represent reality.
5) Shared Vision - You've seen the whole picture, you've developed and you understand how you see the world. Now you need to find a common cause with the rest of the people in your organization, something that you all work for.
6) Team Learning - As you work with other people in teams or groups, you need to pass the stuff that you have learnt and the wisdom you've acquired to others. At this stage, the learning is no longer that of the individual, but the group.
7) Arenas of Practice - (Self explanatory)
8) Frontiers - Where do we go from here.

If you are interested in development, learning, growth, leadership, gaining a competitive edge whether at an organizational or personal level, then this book is for you. In fact, I'd venture to say that this is book is for everyone.

ADVANCED ADVICE FOR BUILDING A LEARNING ORGANIZATION
Everyone who reads THE FIFTH DISCIPLINE comes away excited about the benefits of having a learning organization. Yet many get stuck in a rut as they try to implement what they learned in that superb book. THE FIFTH DISCIPLINE FIELD BOOK helps fill in that lack of understanding with dozens of questions, examples and exercises. You'll have a ball with this, even if you only use a little part to focus on where you need help. A great related book for building a learning organization is THE 2,000 PERCENT SOLUTION, which teaches a new thinking process that simplifies and speeds up learning for an organization. It also shows you where you need to get rid of old thinking that is holding you back. You should read and use both.


Early Autumn
Published in Library Binding by Bt Bound (1999)
Author: Robert B. Parker
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Surrogate Father Spenser for Hire
This is the seventh novel in Robert B. Parker's Spenser series and by now it is quite clear that whenever you start one of these stories the question is what is the new twist this time around. You can never call one of these novels an unconventional Spenser novel because they all tend to be unique in some key way. in "Early Autumn" our hero is hired by Patti Giacomin to find her son Paul, kidnapped by his father. Spenser finds Paul almost immediately and it quickly becomes clear that neither parent really cares about the boy, who is just a pawn in the wake of an ugly divorce. Paul needs someone to teach him, well, just about everything (except how to shrug; the kid does that really well in response to every question asked by Spenser). "Early Autumn," a metaphor for a 15-year old kid who has to grow up really fast, finds Spenser talking more than any of the previous books, although at the end his detective skills will again come into play. A large chunk of the book is Spenser and Paul talking about a whole bunch of different topics. In doing so, Spenser explains his view of the world, a task usually left to Susan Silverman. There is also an unforgettable twist as Hawk lends a hand at a key moment. As always, Parker's novels are quick reads, perfect for commuting or nice hot baths.

Parker at his best
This is one of my two favorite Spenser books (The other is A Savage Place.) Early Autumn was the first Parker book I ever read and also the first suspense/mystery. My parents and brothers all read Spenser but I shunned them, preferring scifi. I was desparate for a read one summer night and my mother pressed this on me, saying "You'll like this if you just give it a chance" I was 15 and I read it that night, reporting back to her bedroom and saying, "Next Book! More! More!"

This book is about Spenser's surrogate fathering of a lost 15 year old boy named Paul who is a pawn in his own life. It is sort of a coming of age novel, but really not because it is told from Spenser's perspective like all the Spenser books.

This is one of my favorite books of all time. I highly recommend it to any Spenser fan or to any one who remembers 15 and that lost in your own life feeling.

A great book and I'm not even finished reading it yet!
This is my first Spenser novel and my first Robert B. Parker novel. Parker's writing style is sparse, quick and fun. It's an easy read and so far, thoroughly enjoyable. Last night A&E aired Thin Air, a made for TV Spencer movie. I was going from watching spencer to reading spencer. Robert B. Parker now ranks up there with my other favorite authors, Trevanian, Conor Creggan and Donald E. Westlake. I'm glad that I discovered Parker so late as there is so many old books I can back and read!


Shepherd Looks at Psalm 23, A
Published in Paperback by Zondervan (19 May, 1974)
Authors: Weldon Phillip Keller and Robert G. Doares
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Uniquely insightful
Keller's classic book on Psalms 23 provides unique insights into the conduct & character of mankind.
If the reader can not gag on the continual self-promotion of Keller, smeared throughout the booklet, it remains a very good choice for devotional reading.
A better title may have been "Shepherd exalts himself while commenting on Psalm 23".
Spend the [money], it's still worth it.

This one is always in my truck
My brother bought this book for me and started my addiction to Mr. Keller's writings. I read the book through and only put it down with great reluctance. Mr. Keller took one of the most beloved of Psalms and made it so that I was not only able to understand it better, but I could see the "subtle colors" in it. I not only love this Psalm for why I first read it, I can see more of the background to the picture that God was painting for us through David's hand. I would not only recommend this book for ANYONE, I have bought copies of it to use for presents. If you read it, you will be happy to pass it out to someone that you love. Mr. Keller has written in such a style that you will enjoy reading his book and then go back into your Bible and read what the Lord has written for us with a lot more joy in your heart for His provision.

Very informative and inspirational
Mr. Keller is very good at bringing to life the shepherd's view as expressed in the 23rd Psalm. He is personally aquainted with the Eastern way of sheep ranching, which of couse is the method employed and understood by David, the psalm's writer. More than just being insightful into the shepherd's mind-set and references, he takes us beyond the physical realm to the spiritual applications that were intended by the the Lord, who inspired David to write it. Herein lies the real worth of this book, because we are brought to see the Great Shepherd, Jesus Christ, and how He is caring for the sheep of His pasture. It brings great comfort to know the love and care that My Shepherd exhibits for me. I recommend it to read by all those who have called upon the Lord and have let Him be their Shepherd. As they read this book they'll understand in a far deeper way the psalms' opening line, "The Lord is my shepherd, I shall not want." I also recommend it to those who ! ! are seeking such an encounter with the Lord God. He is patiently waiting your surrender. God bless you and brother Keller.


The New Financial Capitalists : Kohlberg Kravis Roberts and the Creation of Corporate Value
Published in Hardcover by Cambridge University Press (1998)
Authors: George P. Baker and George David Smith
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A history of a major Wall Street bank and more.
When in 1976 Jerome Kohlberg, Henry Kravis, and George Roberts left Bear Stears to form KKR, Wall Street realized these three dealermakers might become a major force in the restructuring of American big business then beginning. What could not be predicted was the heights KKR would achieve. It has risen from the ranks of upstarts to become a major player in "The New Establishment." While KKR has been the subject of other books and articles, none could be considered "definitive," as is "The New Financial Capitalists." It is more than a history of a bank, however. Baker and Smith have addressed the problem posed by the separation of ownership and management delineated in 1934 by Adolph Berle and Gardner Means in "The Modern Corporation and Private Property," indicating how the leveraged buyout programs of the 1980s helped resolve it.

More than simply a story about KKR...
Baker and Smith have accomplished two objectives in their short book. On the surface, they have expertly captured the key elements in the development of KKR as the frontrunner of the LBO firm. However, on a deeper level, they have also captured many of the elements that managers and entrepreneurs should consider when running or starting a firm. In this regard, the Preface and Chapter Five are worth the price of admission. For anyone interested in the evolution and history of modern American finance, read this book.

The New Financial Capitalists
Baker (Harvard Business School) and Smith (New York Univ.) provide a well-documented history of Kohlberg Kravis Roberts (KKR) and its development of the leveraged buyout (LBO). During the period 1976-93, KKR acquired more than 50 firms with an equity investment of only $10.9 billion. As of 1998, these equity investments were worth $40 billion (an annual return exceeding 28 percent). The authors examine KKR's strategy of identifying undervalued, poorly managed firms with potential to increase cash flow. Each LBO was financed with 80 to 90 percent debt, and equity was provided by a partnership organized by KKR. The LBO managers were required to have a large proportion of their net worth in the equity. After the acquisition, KKR's strategy was to cut costs and increase productivity, quickly pay down the debt, and sell the firm to unlock the equity investment. The large debt service inflicted discipline while management's investment created incentives. By linking managerial and ownership interests, Baker and Smith argue that KKR improved corporate governance and contributed to increases in corporate profits and productivity. This volume is an excellent addition to the literature on mergers, business history, and corporate strategy. Upper-division undergraduate through professional collections as well as large public libraries.


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