Founder connections
- Charlie MungerRecommendationIn Poor Charlie’s Almanack, Munger recommends Partnoy’s insider account while discussing the risks and incentives in derivatives trading.Source
Summary
Frank Partnoy recounts his experience as a derivatives salesman at Morgan Stanley. He describes the complex securities his colleagues bought and sold, the competitive culture of the trading floor and the risks faced by customers. The book also follows the annual skeet-shooting event called FIASCO, using it to show the aggressive attitudes encouraged within the firm.
Why read it Our view
Useful for examining what a business rewards and what its customers can understand. Partnoy’s account gives founders questions about the pressure to sell, how complexity can hide risk and whether a team’s culture protects the customer’s interests.