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Fraktale und Finanzen

4.02  ·  Rating details ·  2,899 Ratings  ·  131 Reviews
Benoit B. Mandelbrot ist der Erfinder der fraktalen Geometrie; er hat sich ihrer bedient, um damit dem Rätsel der Unberechenbarkeit der Finanzmärkte auf den Grund zu gehen – erfolgreich, wie ihm die Fachwelt bestätigt. Mit dem Wirtschaftsjournalisten Richard L. Hudson hat er aufgeschrieben, warum man Geld in so beängstigendem Tempo gewinnen und ebenso schnell wieder verlie ...more
Paperback, 446 pages
Published 2005 by PIPER (first published September 18th 1997)
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Duffy Pratt
Aug 17, 2010 rated it really liked it  ·  review of another edition
Shelves: science
I first heard about the efficient market theory in Law School. I remember thinking at the time what obvious bullshit it was. But it was academia, and it was pretty harmless bullshit, so let the economists play whatever games they want. What difference did it make?

The theory goes that the markets already consolidate all the information available to them, so that price already incorporates all the information available to the market. From there, we get the random walk theory -- that prices will mo
...more
David
Aug 10, 2011 rated it really liked it  ·  review of another edition
Benoit Mandelbrot is the inventor of the mathematical concept of fractals. His earlier book The Fractal Geometry of Nature was a truly groundbreaking book about fractals and how they are seen in nature. In The Misbehavior of Markets he turns his attention to the application of fractal concepts to markets. Mandelbrot shows that price fluctuations:
1) are not independent from one time period to the next
2) appear to be the same, regardless of the time scale involved (hours/days/months/years)
3) do no
...more
Emily
Jan 09, 2009 rated it it was ok  ·  review of another edition
This book lays lots of groundwork before it finally gets to the point. I would recommend a reader read the first chapter of part III (10 Heresies of Finance) at the start to give yourself a grounding then read the rest of the book. It might help to know where he's going during part I and part II.

All in all, some interesting beginnings of theories and comparisons. There is almost no math involved. But if you're scared of math, this is a great glimpse into fractals and it starts to show glimpses
...more
Ivan Idris
Feb 08, 2012 rated it it was amazing  ·  review of another edition
In these turbulent economy we seem to be victims of the financial markets. Benoit Mandelbrot, famous mathematician and inventor of fractal geometry, joined forces with Richard Hudson, to write a book about financial theory. “The (Mis)behavior of Markets” falls in the popular science genre. It is low on formulas, instead you can find lots of historical anecdotes and opinions.

1. Risk, Ruin and Reward

We start with a brief history of finance. The author asks us to play a game. Out of 4 charts we nee
...more
Valerie
Oct 31, 2012 rated it it was amazing  ·  review of another edition
Shelves: math
I read this several years ago, and I enjoyed it very much. I wish I could find my copy, but I loaned it to a former student, and never saw it again.
John Tye
Aug 16, 2011 rated it really liked it  ·  review of another edition
Like most good books about the markets, Benoît Mandelbrot's The mis Behavior of Markets is not really about trading or making money (although, if it helps you better understand risk, it could save you money--which is essentially the same as making money). In fact, one could almost say the book is about fractal processes, using the markets as a case study. In this way, it is reminiscent of Nassim Nicholas Taleb's Fooled by Randomness, which uses the markets largely as a basis to investigate logic ...more
David
Oct 17, 2010 rated it liked it  ·  review of another edition
The (Mis)Behavior of Markets by Mandelbrot and Hudson is a pretty good book about a fascinating topic. Mandelbrot's thesis is that many common beliefs underpinning market modeling software are fundamentally incorrect, and that in using them we are exposing ourselves to massively more risk than we expect. This book was published in 2004.

To describe Mandelbrot as prescient in characterizing the inadequacy of market modeling is to understate the situation. Using very little serious math and very fe
...more
Jimmy Ele
May 30, 2015 rated it it was amazing  ·  review of another edition
Shelves: favorites
The reason for it garnering a 5 star rating is not due to it's literary merit. This is not a novel, but a scientific book written for the layman. I loved it for the way that (when I had finished reading certain chapters) it helped me to visualize nature as an expression of a fractal/chaos set (known as a Mandelbrot set). Whereas before, whenever I went for a walk and looked up into the sky I would just see chaotic assemblies of clouds and leaf growth, now I am seeing some of the haunting images ...more
Gumble's Yard
Apr 01, 2017 rated it really liked it  ·  review of another edition
Shelves: 2008
Part biographical popular science book consisting of Mandlebrot’s musing on his works and in particular how they relate to market behaviour.

Although he is clearly opinionated and sure of his own correctness and insight and convinced of his contraryness, he is not as hectoring or smug as Taleb and also more prepared to admit that as of now he cannot turn his work to a definitive investment method beyond simple (but profound) insights into market behaviour.

He stresses simplicity of models and id
...more
Timothy Warnock
Aug 18, 2012 rated it it was amazing  ·  review of another edition
When I first encountered this book I did a slight doubletake, "wait, THE Benoit Mandelbrot?"

"Why is he writing about financial markets?" I wondered.

I knew of Mandelbrot in mathematics, computer science, and natural sciences -- I had no idea how deep his obsession with economics was till I read this book.

In a way, it's almost depressing, his biggest contributions were to fields he didn't seem to care about as much as economics (a field that in turn didn't seem to care about his work).

Mandelbrot's
...more
Bumberings
Dec 18, 2010 rated it really liked it  ·  review of another edition
Shelves: finance
Mandelbrot's novel "The Misbehavior of Markets" is truly a hidden gem. The deeper into the book I went, the more it spoke directly to my darkest intuitions. I actually started to get the feeling that no one else has actually bothered to read the book cover to cover.. all of his wealth of knowledge felt as if it was almost becoming my little secret. Indeed even the jacket reviews are not very convincing. Paraphrasing the Financial Times "[a famous math guy wrote a book.. Math!!]" and the Sunday T ...more
Harsh Gupta
This book tells us that standard financial theory is wrong, price changes are not independent of each other, changes are wilder than the theory assumes and changes are not continuous.

The book is very interesting in parts, some of the explanations are very lucid, but in parts it is repetitive and some the layman explanations of don't make much sense. Overall I enjoyed the book and learned what's wrong with present theories of finance, but to go beyond that I need to learn the actual math used by
...more
Bob Perry
Feb 13, 2013 rated it it was amazing  ·  review of another edition
This is probably the most important and insightful book on the stock market that I've ever read. I had no idea the economists base their whole dogma on mathematics that hsa been proven to be wrong.

Benoit, as always, looks at the world differently. Thats how he developed fractal geometry and how chaos theory evolved from that. When he took a look at cotton prices over 100 years he immediately realized that the data doesn't fit the current then nor now rules of evaluating risk.

He has been writin
...more
J Scott Shipman
Nov 14, 2011 rated it really liked it  ·  review of another edition
Benoit Mandelbrot's The (Mis) Behavior of Markets is a splendid read and very informative. As many reviewers have noted, Mandelbrot invented fractal geometry. He has also been on the cutting edge (some would say fringe, but he's thinking and questioning) in multiple disciplines, as his curiosity seem to know no bounds. Mandelbrot does a good job of describing the inadequacies of the efficient market hypothesis and CAPM and other sacrosanct theories in finance, and he offers for our consideration ...more
Terry
Jul 25, 2009 rated it really liked it  ·  review of another edition
This book has three characters in it:
-Benoit Mandelbrot, author
-The Market, the protagonist/antagonist/chorus as per Greek drama
-Benoit Mandelbrot's ego

Maybe it's a side effect of some incident as a child but the author has no reservations about promoting himself. Whole paragraphs are devoted to his "enlightened breakthroughs" and profound understanding of market mechanics. An understanding so deep he proposes no significant market model and merely a direction.

He stands as the most cited author
...more
Kate
Sep 19, 2011 rated it liked it  ·  review of another edition
I wish I could give this book four stars. But Mandelbrot's slightly tiring writing style prevents me from doing so. The main author obviously thinks remarkably highly of his own work (which is not a bad thing in itself--he is, after all, a revolutionary mathematician--but does he have to express it ad infinitum?), and deems himself an excellent judge of character of historical figures who he has never met. (Disclaimer: It's probably worth noting I have a very low tolerance for self-congratulatio ...more
Justin Tapp

Mandelbrot is the "father of fractal geometry." He's a mathematician who has spent much of his career looking at prices and markets. He argues pretty forcefully that any of the risk management techniques used by Wall Street are based on false assumptions and have been proven to fail time and again.

Mandelbrot is Nassim Taleb's mentor. I've gotten to the point where I wonder if, as a Christian, I can still teach economic orthodoxy (much less finance classes like risk management) with a clear consc
...more
Philippe Malzieu
Mandelbrot is one of the fathers of the theory of chaos. It is attractive intellectually but also by its possible applications. In medicine the lung for example is a fractal object. After the crisis of 2008, I wondered why one could not envisage occurred to them.
I discovered that the last book of Mandelbrot was precisely devoted to this problem. Mandelbrot proposes to modify the econometric algorythmes used by the banks. Those would be responsible amplify the disorders.
It is a difficult work. I
...more
Ecoute Sauvage
Benoît Mandelbrot is a legend but saying that his theories have been ignored by the finance theorists and modelers just ain't so. A good introduction for those who don't know much about the subject.
Vincent Li
A bit disappointing, but probably one of those books that is a victim of its own success. Perhaps when it was originally written, the views were considered more heretical than they are now. I would recommend that a close reader of taleb's anti-fragile and/or the black swan skip this book since taleb's works rehash the main thesis of Misbehavior (down to the self-aggrandizement, almost every time Fama is mentioned, Mandelbrot claims him as his doctoral student, and Mandelbrot spends a fair amount ...more
Robert Martin
Mandelbrot is fairly widely known for his eponymous fractal, but as it happens he is also a talented physicist and economist. I wasn’t expecting too much from this book, perhaps the stereotypical arrogant physicist trying to apply some theorem to make money on the markets. But it doesn’t seem that Mandelbrot went out of his way to apply fractals to finance, it’s just that he saw that fractals could explain the largest body of facts with the fewest number of assumptions, which is the general idea ...more
Ville
Jul 31, 2017 rated it liked it  ·  review of another edition
Shelves: best-of-to-read
In sciences, the modelling of some new phenomenon usually starts from empirical data. First come the observations on how a phenomenon of the nature behaves and then begins the theorizing and fitting to the data.

It seems that in the field of quantitative finance the usual logic of science has been reversed. According to Mandelbrot, the mathematical models that had been used for decades to model the markets do not correspond to the reality at all. Instead of small, almost smooth, and uncorrelated
...more
Michael
Oct 22, 2017 rated it really liked it  ·  review of another edition
This would have earned a 5-stars if Mandelbrot was not so wordy with his stories and parables. While it is fine to have a few tales to help guide the readers metaphorically into more abstract concepts, most of the time it felt like a waste of space and brain-power as it divulges quite a bit from the original idea (which ironically, was supposed to reinforce the original idea).

In short, this is a light introduction to the concept of fractal geometry in the financial markets. Mandelbrot is a forw
...more
Pelle
Oct 08, 2017 rated it it was amazing  ·  review of another edition
A very interesting book which content is much in line with the books of Nicholas Taleb ("Black Swan", etc.), that financial models are seriously biased by false assumptions and that we are actually very bad at predicting in finance/economy. Unlike Taleb, Mandelbrot describes the problems in a more scientific and calmer way which makes him much more likeable than the aggressive style of Taleb. I highly recommend this book!
Matt
Sep 27, 2017 rated it really liked it  ·  review of another edition
Excellent book -- candid review of "modern finance" -- sans the equations which can sometimes get in the way of coherent analysis and clear communication.
Frank Ashe
A very disappointing book.
Perhaps for someone coming new to the field it would be exciting, but so much has been covered better elsewhere.
Notwithstanding this, Mandelbrot has done fantastic work.
Teri L.
Aug 20, 2017 rated it really liked it  ·  review of another edition
Finally a choherent explanation of why the traditional financial models don't really work.
Yates Buckley
Mar 19, 2017 rated it it was amazing  ·  review of another edition
Shelves: essential
Everyone should carefully read this text, the significance of Mandelbrot's points remains unfortunately as important as ever and still largely ignored by the average person.
Many aspects which we believe to be true measures or robust facts are actually, under the surface, ruled by distributions that can fluctuate wildly. What does an average price index of a stock mean, if the underlying distribution doesn't really have a mean?
Susana Ordaz
Este libro usa un lenguaje sencillo, fácil de leer y entender. En el mismo, estructura el comportamiento de mercados bursátiles y la manera de cómo se aplican los fractales. Toca temas históricos, económicos, series de precios, paridades monetarias, cotizaciones de bolsa en largo plazo.
Explica y cuestiona las teorías desarrolladas desde Bachellier hasta Basilea II, pasando por Markovitz, Fama y muchos otros.
Chanania
Aug 20, 2014 rated it really liked it  ·  review of another edition
In a line: Very informative but unnecessarily repetitive.

The following quote by Laurence J. Peter (slightly modified to better reflect reality) is one of my favourites:
An economist is an expert who can tell you tomorrow why the things he predicted yesterday didn't happen today.

There are many people who will dismiss such an observation out of hand. "Economists are experts", they say. "Look at the successes of the banks, brokerage firms, investment management companies, etc." When you ask them to
...more
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“For a complex natural shape, dimension is relative. It varies with the observer. The same object can have more than one dimension, depending on how you measure it and what you want to do with it. And dimension need not be a whole number; it can be fractional. Now an ancient concept, dimension, becomes thoroughly modern.” 1 likes
“In the 1960's, some old-timers on Wall Street-the men who remembered the trauma of the 1929 Crash and the Great Depression-gave me a warning: "When we fade from this business, something will be lost. That is the memory of 1929." Because of that personal recollection, they said, they acted with more caution, than they otherwise might. Collectively, their generation provided an in-built brake on the wildest form of speculation, an insurance policy against financial excess and consequent catastrophe. Their memories provided a practical form of long-term dependence in the financial markets. Is it any wonder that in 1987 when most of those men were gone and their wisdom forgotten, the market encountered its first crash in nearly sixty years? Or that, two decades later, we would see the biggest bull market, and the worst bear market, in generations? Yet standard financial theory holds that, in modeling markets, all that matters is today's news and the expectations of tomorrow's news.” 0 likes
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