Supermoney Quotes

“A mass-circulation magazine asked me to explain to its readers what was going on. I had this Fellini scene: We are all at a wonderful ball where the champagne sparkles in every glass and soft laughter falls upon the summer air. We know, by the rules, that at some moment the Black Horsemen will come shattering through the great terrace doors, wreaking vengeance and scattering the survivors. Those who leave early are saved, but the ball is so splendid no one wants to leave while there is still time, so that everyone keeps asking “What time is it? What time is it?” but none of the clocks have any hands. The Black Horsemen did come, of course, and”
― Adam Smith, Supermoney

“History may not repeat itself,” in Mark Twain’s wise formulation, “but it rhymes.”
― Adam Smith, Supermoney

“It is all there, measured, in what Yankelovich called the McNamara fallacy: The first step is to measure whatever can be easily measured. This is okay as far as it goes. The second step is to disregard that which can’t be measured or give it an arbitrary quantitative value. This is artificial and misleading. The third step is to presume that what can’t be measured easily really isn’t very important. This is blindness. The fourth step is to say that what can’t be easily measured really doesn’t exist. This is suicide.”
― George Goodman, Supermoney

“For many, the traditional motivations of job security, money rewards, and opportunity for personal advancement are proving insufficient. Large numbers of those we hire find factory life so distasteful they quit after only brief exposure to it. The general increase in real wage levels in our economy has afforded more alternatives for satisfying economic needs. Because they are unfamiliar with the harsh economic facts of earlier years, [new workers] have little regard for the consequences if they take a day or two off . . . the traditional work ethic—the concept that hard work is a virtue and a duty—will undergo additional erosion.”
― George Goodman, Supermoney

“They say, for example, that the good old Protestant Ethic has died away. Whatever happened to work? Doesn’t anybody want to? And growth: the whole system is geared to growth, that is its justification, it works better. What is all this about no-growth, zero population growth, zero economic growth? There is only so much stuff in and on the planet, and at the rate we are using it up in x years there will be no planet. Apocalyptic literature arrives not only on the ecological side but on the cultural side.”
― George Goodman, Supermoney

“Our man at the desk considering how goes the world, had he been in the City of London in 1913, would have been one of the merchant princes of the world: to him for capital came the Moscow Power and Light Company, the breweries of Bohemia, the trolley lines of Shanghai, the apples of Tasmania, the oil of Mexico, the ranches of Texas and Arizona, the tin mines of Malaya, the hemp of Tanganyika, and the railroads of absolutely everywhere. Half a century later our man was still at his desk and still at work, a bit shabbier,”
― Adam Smith, Supermoney

“1. The conglomerate movement, “with all its fancy rhetoric about synergism and leverage.” 2. Accountants who played footsie with stock-promoting managements by certifying earnings that weren’t earnings at all. 3. “Modern” corporate treasurers who looked upon their company pension funds as new-found profit centers and pressured their investment advisers into speculating with them. 4. Investment advisers who massacred clients’ portfolios because they were trying to make good on the over-promises that they had made to attract the business. 5. The new breed of investment managers who bought and churned the worst collection of new issues and other junk in history, and the underwriters who made fortunes bringing them out. 6. Elements of the financial press which promoted into new investment geniuses a group of neophytes who didn’t even have the first requisite for managing other people’s money—namely, a sense of responsibility. 7. The securities salesmen who peddle the items with the best stories—or the biggest markups—even though such issues were totally unsuited to the customers’ needs. 8. The sanctimonious partners of major investment houses who wrung their hands over all these shameless happenings while they deployed an army of untrained salesmen to forage among even less trained investors. 9. Mutual fund managers who tried to become millionaires overnight by using every gimmick imaginable to manufacture their own paper performance. 10. Portfolio managers who collected bonanza incentives of the “heads I win, tails you lose” kind, which made them fortunes in the bull market but turned the portfolios they managed into disasters in the bear market. 11. Security analysts who forgot about their professional ethics to become storytellers and let their institutions be taken in by a whole parade of confidence men. This was the “list of horrors that people in our field did to set the stage for the greatest blood bath in forty years,”
― Adam Smith, Supermoney

“Babson looked over his glasses at the audience. “Some of you should leave this business,” he said.”
― Adam Smith, Supermoney

“Some of you should leave this business.”
― Adam Smith, Supermoney