1. Applying Game Theory to Finance “ I can calculate the motions of heavenly bodies, but not the madness of people” - Isaac Newton, upon losing £20,000 in the South Sea Bubble in 1720
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3. Hostile Takeovers “ Robert Campeau is considered by many as the best example of a fool.” - Dale Oesterle, Cato Review of Business & Government, 1996 “ The biggest, looniest deal ever." - Fortune Magazine, July 1988, on Campeau’s acquisition of Federated Stores.
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20. Commitment “ The Power to Constrain an Adversary Depends Upon the Power to Bind Oneself.” - Thomas Schelling
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27. Bubbles “ We thought it was the 8 th inning, and it was the 9 th ” - Stanley Druckenmiller, former manager of Soros’ Quantum Fund, April 2000. “ Julian said, ‘This is irrational and I won’t play”, and they carried him out feet first. Druckenmiller said, ‘This is irrational and I’ll play’, and they carried him out feet first.” - NYTimes April 29, 2000: “Another Technology Victim; Soros Fund Manager Says He ‘Overplayed’ Hand”. (Julian Roberts managed Tiger Hedge Fund, dissolved in 1999.)
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31. Spotting Trends Mark Twain, in Pudd’nhead Wilson: “ October. This is one of the peculiarly dangerous months to speculate in stocks in… “ The others are July, January, September, April, November, May, March, June, December, August, and February.”