Smartest Guys in the Room The Amazing Rise and Scandalous Fall of Enron

books #enron #energy #capitalism

Very long and detailed read about one of the greatest business collapse stories at the end of the 20th century. It shows exactly what can happen when the only thing that matters is stock price and you have incredibly smart people who are willing and capable to do anything to play the market. Sad, but real.

Also interesting contrast with the Rockafeller's biography that I recently read. The incentives were there and they played hard against the competition, but at least they had the decency to be honest and play by the market rules which were transparent.

Key takeaways:

- The ‘Smartest' Guys in the room...So ‘smart' they couldn't stay on top of all of their schemes. I'm often intimidated by really smart people because I wouldn't typically use that word to describe myself. This is a good reminder that someone calling themselves smart doesn't mean anything and that it takes more than raw brain power. Pride comes before the fall.
- Don't ignore your risk management team.