Business Adventures is well written, as John Brooks is able to tell these stories entertainingly by emphasising funny dialogues, and his generally great way with words. Brooks takes a human interest angle and describes the character of key people not just the facts, and thus adds a richness to each ‘adventure’. Essentially this similar to long form journalism today. However, the book requires the reader to read between the lines and draw its own conclusions, as Brooks does not deliver read-made solutions or answers but merely describes the stories and challenges.Some of the stories are more useful than others - my view on all 12:1. Story of the mini stock market crash on 28 May 1962, shows how it is all about mood and trend in short run, rather than underlying economics of the market / firms.2. The story of the Ford Edsel failure cannot easily be allocated to a single reason, but while I still think the bad name (not taking into account research) is an issue, it ultimately boils down tone thing: Product focus matters: The Edsel just wast a good car to drive, especially the initial batches that were reviewed by consumer magazines.3. History of the US Income Tax. Interesting to learn its history (e.g. initially only raised in war times, and required 16th amendment as not apportioned to states). However, less insightful than other stories. It does however have some good evidence of progressiveness of the tax apart from richest as they can afford better lawyers and mainly earn money in stock (especially options) and can utilise charity deductions.4. Insider trading case of Texas Gulf discovering a rich ore mine at Kidd 55 in Canada makes for interesting story. The company understated reports even though officers were buying shares internally, posing the crucial question: When exactly does something become official?In this case, there was also an interesting angle whether the press conference or the information appearing on Dow Jones broad tape would make it publicly known. While the nature elf this has changed due to the advances in telecommunication, this remains an important issue.Of course, the U.S. court of appeals for second circuit reversed judgment clarifying most stock buying in the case was illegal since knowledges existed since first drill hole.5. Story of how Xerox invented photocopying as we know it today is mainly one of believing in the product. Xerox spent twice their revenue ($75m) on it until it worked, executives took payment in stock and put mortgages into it (and even got support from university of Rochester).But it also offers insight into other areas:Describes the impact of copying onto copyright and how some thought books may disappear; apparently some things never change…Furthermore, there are lessons to be learned about the executives attitude to not taking stock movements too seriously, and the challenge of keeping company culture during rapid growth (e.g. becoming more impersonal when lot of new employees join.Overall, one of the best ones in the book.6. Brooks outlines how Ira Haupt & Co are likely going to go bankrupt because of forged collateral by one of its clients, and the stock exchange works with banks to bail them out. Not hugely insightful, but has interesting parallels to the situation of Long Term Capital Management roughly 40 years later, down to the bank negotiations and people taking hold of floors in exchange buildings (even though the reasons each firm finds itself in precarious situation are very different indeed).7. Highly interesting insight into the challenges of corporate communication, told through the case of price fixing in electrical equipment, with a focus on GE. Shows that stating price fixing isn't allowed in company handbook isn't enough if there is culture of it (such as executives using winks to show they’re not serious about it), and consistency of message is also key: Even if staff is admonished by senior person (here the CEO Paxton) not to do price fix, others may communicate something different, and ultimately a senior person may simply not be told (like Paxton wasn’t - apparently).Additionally, if you don't believe message you’re communicating, that will come across.8. Clarence Saunders, founder of Piggly Wiggly stores, tried to corner short sellers but failed since exchange halted trading and extended call for stock by five days. Not particularly insightful, though it brings home the point to 'Don't try to beat Wall Street at their own game’.The story does however contain a few interesting nuggets, such as Saunders founding the first supermarkets with Piggly Wiggly, as they were self service; and his attempts to further streamline the service when founding chains Keedoozle and Foodelectric. In the latter, customers used a key to tabulate what they wanted from showroom, and then collect it - which shows that Saunders was years ahead, as this is similar to companies such as Argos today.9. A very narrow story about an individual, and thus rather limited: Lilienthal, previously a high ranking government employee (in charge of Tennessee Valley Authority and then chairman of Atomic Energy Commission - AEC), talking about how fulfilling running a Company is, but also the risks to getting lost in it; as well as the balance between being involved in detail but keeping far enough away to think strategically also.10. Brooks describes visiting various stockholder meetings - entertaining but limited learning: Maybe that professional stockholders like to profile themselves, and CEOs can sue that in annual meetings, as smaller stockholders tend to be more likely to support management.11. Brooks illustrates the issue of trade secrets using the case of Wohlgemut - an engineer working sued upon switching jobs from Goodrich to Latex Corporation, as both were making space suits and Goodrich thought they would lose trade secrets. Court ultimately decided he can switch jobs, but injunction against revealing trade secrets.12. Great story of Black Friday, but a poor economic take on fixed currency, especially the Pound Sterling. The pound was fixed to dollar as a result of Bretton Woods agreement of 1944, while the dollar was fixed to gold. Pressure from speculation and companies hedging against devaluation finally results in Black Friday (17th Nov 1967) and devaluation of Pound from 2.80 to 2.40 on sat.Unfortunately, since a lot of factors, such as fixed currency and a Bank of England not independent, are a factor of their times, it has limited insight for current policies apart form the power of free market. I read this recently as I'm sure many did because of the positive review from Gates/Buffett.I think it has some good lessons, but I think my expectations may have been too high.The story follows the details of a handful of different major events by telling the personal stories of those involved. The topics seem to revolve around a handful of topics that are relatively timeless:* Regulatory exploitation* Non-competes* Dangers of the Market/short selling/cornering* Centralized bankingHowever, it felt largely to be in tuned with larger-than-life business. Symbols of huge corporations, banks and governmental organizations. It's hard to relate to.
What do You think about Business Adventures (2000)?
This was a weirdly good book. Every story is highly engaging.
—whitc1
More entertaining than the title would have you believe.
—pittoo
