Future Wealth

I am not a financial wizard by far, however I did learn alot from listening to these two CD's. I feel anytime you can learn anything to help you in this life - it's worth while. These were definitely worth my time.

As communications improve, everyone wants to be entertained or helped by the best in the world. This means an incredible shortage of top talent and a glut of all other talent. In such a world, how will the market allocate resources? This book uses existing trends to extrapolate into a free market economy for talent that will be patterned along the lines of stocks and time share units. It all makes sense, once you get past the initial shock of thinking about yourself potentially as being a public version as YOU, Inc.Future Wealth is the second book in a trilogy that began with Blur, by Stan Davis and Chris Meyer. The book builds a full argument on the most intriguing, but small, theme in Blur concerning the issue of Bowie Bonds by the rock composer and performer David Bowie. Seldom will you find a book with such a valuable insight into the likely future of capitalism.Unlike most business books which just describe something that has been going on for some time, Future Wealth clearly goes beyond today into tomorrow. For those who are unfamiliar with scenario-based thinking, this book will seem strange. Experience shows that such thinking is extremely valuable for helping each of us prepare for things that may well happen when the exact shape of the future is unknowable.Although some will see nothing new in this book beyond Blur, that is clearly not the case. Blur ends with the Bowie Bonds example and Future Wealth begins there, but that is not the end of the thinking. The biggest idea in Future Wealth is that individuals need not have the exposure to volatility risk that makes each of us take a conservative financial course. The solution to volatility for each person is to pool risk with a statistically significant number of others. This is the solution that makes insurance and mutual funds work better. Davis and Meyer have the insight to see that combining all aspects of our future, including our net worth, into such pools can allow us to take greater risk that will permit the potential for achieving much greater rewards. As a result, risk is our friend when we handle it properly. This is a powerful insight that will change the way almost all human beings conduct their lives. They also see the systems potential of getting the present value of our economic potential available to us when we most need it. Then, we can use the funds to both expand our future income and net worth, while diversifying our risk. That is a fundamental insight that we should each pay attention to. Instead of being limited to the resources at hand, we can have virtually unlimited potential by investing in our futures using all of the potential resources that might be available to us. A public company is like a government, in that it can issue more stock to create more resources. Now, Davis and Meyer point out the important benefits of extending that perspective to the individual.Turning around the current company-centered economic culture, they argue that companies sh

This book was required reading for one of my doctoral classes, it raises some interesting thoughts and opinions. It is worth the time to read it regardless of whether you agree with the authors' conclusions. It brings to light many of the changes that should (or have) come along with our new connected world and economy. Their ideas on the individual were especially thought provoking - their section on society was interesting despite the fact that I frequently disagreed with their conclusions.Again - definitely worth the time to read.

In their "Invitation to the Reader", the authors explain that they "strive to connect -- ourselves with you, you with each other, and all of us with the economic issues that define our times and our futures. Connect with us, and lob a grenade or two. Our conversation with each other is always respectful but not always polite." As they then explain, their book has five parts. "In the first, we outline our three themes [ie the growing efficiency of financial and real markets, the primacy of human capital, and the obsolescence of social capital] and the economic forces that are driving them. Then, in Parts II through IV, we look at how the themes play out for individuals, businesses, and society. We close with twenty "Perfect Futures" on the horizon (Part V)." As the authors already understand, the speed of change resembles a Blur but the same word can be used to describe the confusion which often results from high-speed change.The authors seem to have several separate but related objectives, most of which are indicated in the brief excerpt just quoted. First, to explain certain themes as well as the economic forces which drive them. These themes are subject to change or at least to revision; also, the forces which now drive them may be replaced by others. Some of the authors' best thinking is found in Parts II through IV. Once again, in a Blur, the specifics in their analyses of individuals, businesses, and society may change but, in my opinion, the rationale for analysis which they follow will remain sound. With regard to Part V, Horizons", it is likely (if not certain) that several of the "Twenty Perfect Futures" will never materialize. But, again my opinion, that is not the salient point. Rather, the authors correctly insist that we must constantly formulate "perfect futures" in whatever number we prefer. Peter Schwartz and others have stressed the importance of mastering what Schwartz calls "the art of the long view." Presumably Davis and Meyer agree.If after reading this book you think other themes driven by other forces are more important, fine. Presumably you will be as well-prepared to support your selections as Davis and Meyer are to support theirs. Also, if after reading this book, you have entirely different opinions about the nature and extent of interrelationships between and among individuals, businesses, and society, fine. (My personal preference is to focus on "organizations" which include but are not limited to companies. Also, I have some different perspectives on "society", believing that much closer attention should be given to elements such as symbol and ritual.) As for "perfect futures", Davis and Meyer select 20. Given your own circumstances, it may make much more sense to formulate and then extrapolate (with "the art of the long view") more or fewer. I rate this book so highly because it poses so many important questions, and, because the answers provided are both thoughtful and thought-provoking. Do I totally agree with Dav

Future Wealth is the second book in a trilogy that began with Blur, by Stan Davis and Chris Meyer. The book builds a full argument on a small theme in Blur concerning the issue of Bowie Bonds by the rock composer and performer David Bowie. Seldom will you find a book with such a valuable insight into the likely future of capitalism.Unlike most business books which just describe something that has been going on for some time, Future Wealth clearly goes beyond today into tomorrow. For those who are unfamiliar with scenario-based thinking, this book will seem strange. Experience shows that such thinking is extremely valuable for helping each of us prepare for things that may well happen.Although some see nothing new in this book beyond Blur, that is clearly not the case. Blur ends with the Bowie Bonds example and Future Wealth begins there, but that is not the end. The biggest idea in Future Wealth is that individuals need not have the volatility exposure to risk that makes each of us take a conservative financial course. The solution to volatility is to pool risk with a statistically significant number of others. This is the solution that makes insurance and mutual funds work better. David and Meyer have the insight to see that combining all aspects of our future, including our net worth, into such pools can allow us to take greater risk that will permit the potential for much greater reward. As a result, risk is our friend if we handle it properly. They also see the systems potential of getting the present value of our economic potential available to us. We can use the funds to both expand our future income and net worth, while diversifying our risk. That is a fundamental insight that we should each pay attention to. Instead of being limited to the resources at hand, we can have virtually unlimited potential by investing in our futures using all of the potential resources that might be available to us. A public company is like a government, in that it can issue more stock to create more resources. Now, Davis and Meyer extend that perspective to the individual.Turning around the current company-centered economic culture, they argue that companies should invest in their employees by helping them go public and taking a position alongside of them.One of the great strengths of this book is that it suggests a fundamental new paradigm for growth and wealth. There is a set of public policy suggestions that emphasize greater social safety nets that permit each person to take on more risk that can expand wealth for the individual, the company and the society. They point out that the connected economy favors the potential for each of us to so much more. In the future, thoughtful readers will remember this book as The Wealth of Nations for individuals. Good luck with developing your Future Wealth!