This book review has been submitted by Ankit Kanodia.
If anyone would ask me to summarize A Short History of Financial Euphoria in quick words, I would borrow the following three quotes to make my point…
All I want to know is where I’m going to die so I’ll never go there. ~ Charlie Munger
History does not repeat itself, it rhymes. ~ Mark Twain
There are two kinds of forecasters: those who don’t know, and those who don’t know they don’t know. ~ John Kenneth Galbraith
For starters, the book does not give you any tip on how to compound wealth or how to invest to earn great returns on capital. On the contrary, it brings to your notice how you can lose it all and thus how difficult but important it is to avoid that danger.
A small, thin book of only 110 pages, it consists of almost everything one needs to know about the speculative bubbles in economic history.