The richest man in babylon summary

Sunstone

Sunstone

Dear guys,

Here is a free summary of the richest man in babylon.

http://www.the-richest-man-in-babylon.com/htaccess/free/trmib_review.pdf

You will need to enter the following details after selecting to download on this page:
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Password: download


This book is still one of the best money books that I have ever read, being published over 70 years BEFORE "Rich Dad Poor Dad". (Hey if you really want you can add the thousands of years before this for the true writing date.)

Myself I consider it essential beginning reading and have bought multiple copies for friends and relatives that I wanted to encourage in the world of investing.

Cheers,

Sunstone.
 
Thanks for that, Sunstone. It is a classic investing book. Not much detail on what Arkand actually invested in, though.

It must have been a rather risky proposition to invest in land and property in those times since that area where Babylon existed was constantly under threat of invasion. Before the Babylonian Empire was the Assyrian Empire. Assyria was based in what is now the northern part of Iraq. The Assyrian empire became an important empire between 1500 and 1100 BC and lasted until conquered by Babylon in about 600 BC.

Babylon was based in what is now the southern part of the country of Iraq. Babylon was first an important power in about 1850 BC and then later in about 650 BC when they overcame the Assyrian empire. The empire of Babylon was at its greatest extent in 546 B.C. when King Cyrus of Persia cunningly took Babylon by surprise. So the new Babylonian empire lasted only a relatively short period of about 100 years.

The Persians then held their empire for about 200 years. In 333 BC, Alexander the great defeated them. Ultimately, the Romans controlled the region.

The irony of all this is that on page 16 of the download ie Chapter 7 "The Walls of Babylon" the lesson is - We cannot afford to be without adequate protection.

So much for adequate protection. We now know that Babylon as a city no longer exists and the whole valley is an arid wasteland in southern Iraq. Speaking of Iraq, Saddam Hussein is probably the richest man there. In July 1999, Forbes Magazine estimated Saddam Hussein's personal wealth at $6 billion, acquired primarily from oil and smuggling.

Now I'd like Saddam to author a book entitled The Richest Man in Iraq and see what comparisons, if any, his pholosophies and methods have with those taught in The Richest Man in Babylon. I think the comparison, if Saddam was truthful, would show that another way to build wealth is through military and political power, corruption (diverting goverment funds) and violence (torture and executions) rather than good old fashioned investment principles.

Regards, Mike
 
Wow

/me dubs Mike "Oracle of the forum"

I loved your post, thanks very much. I studied the politics and history of this (and further east) region at Russian School when I was at school. (For those who have seen My Big Fat Greek Wedding... Russian school is the same. I went to Russian school for about 10 years, and we learned the history of the area (From the Mongol invaders to the present day)).

As you say, the ownership of property was a tenuous prospect at best in this era. Filial title was a great thing (where property passes from father to eldest son, as was the custom) but invaders and taxes were an interesting variable.

I loved your suggestion for Hussein to write a modern version of this, it would be very interesting.

I still agree that this is a VERY powerful book, simple lines like:

If we have not acquired more than a bare existence since we were youths, it is because you have either failed to learn the laws that govern the building of wealth, or you fail to observe them.

There are powerful messages in many books, My favourite (as I have said before) is Shakespeare's Merchant of Venice, but I agree that TRMIB is one of the best.

asy :D
 
Great snippets, Sunstone. I am now hunting around to find someone who sells this book (actually, just purchased hardback version online from Angus & Robertson, $12.95 plus P&H).

Asy: does your love of "The Merchant of Venice" have anything to do with finance/investment messages or for other reasons?

PS: Mike, thought your post was great. I'll be even more impressed if you tell me that was all done from memory (all the more impressed because history doesn't particularly interest me, and I would have no chance of remembering dates like that).
 
Thanks for those kind words, Asy & Kevin. It's amazing what a few minutes of research on the internet using the google search engine can throw up. Alas, I am no oracle, just a half decent researcher.

In the book Arkand also doesn't mention how he protects all that gold he amasses and how he protects himself and his family from kidnapping. Surely, as the Richest Man in Babylon he would have attracted the attention of many determined unscrupulous people who could kidnap his son for ransom or simply burgle his home for gold coins. Unlike the king, Arkand would not have lived in a fortified palace with a personal bodyguard of soldiers to protect him.

Given that this problem exists today I think it would be prudent if people did not advertise their wealth with luxury homes and expensive cars. Here in London in the last year some people driving luxury cars were bashed and their cars stolen. They would be followed from their Central London office or shop and followed home where they would be assaulted.

Another interesting issue in the book is Arkand did not approve of giving without evidence of the ability to acquire, protect and multiply wealth. Arkand tested his son to see if he was worthy to inherit the family fortune by giving him some gold and some basic investing principles and sending him out into the world to see if he could multiply the gold into a fortune of his own.

When giving away one's estate is it necessary to take into account whether your heir is likely to fritter away all your hard-earned wealth? Once you're gone, what difference does it make?

Regards, Mike
 
Hi Mike,

From reading only the excerpts in the e-Book (e-Summary?) I got the impression that the son needed to learn financial rules in order to gain access to the family treasures whilst Arkand was in fact still alive.

I guess the issue of "why care" when you're gone anyway probably relates to the fact that our children are usually the beneficiaries and we routinely want the best for them, whether we're alive or dead. And perhaps we know that but them being responsible with money they too shall have a better live, and perhaps their children (ie. our grand-children) etc.

It raises an interesting issue for parents considering writing a will, however. Do you simply give your children your entire estate and hope they will do the right thing with the proceeds, or do you write rules into your will to make them do the right thing, on the basis that they may well possibly hate you for it?
 
Originally posted by Kevmeister
Asy: does your love of "The Merchant of Venice" have anything to do with finance/investment messages or for other reasons?
Click to expand...

Hi Kev,

Yes, it does have to do with the finance messages...

Firstly, don't bet on ALL your ships coming home, and don't say, "well, I have 5 ships, therefore at least 2 MUST come home, and I will make so much $$..." Sometimes they don't.

The other, most important, message is to CHECK CONTRACTS BEFORE SIGNING. And, KNOW WHAT YOU ARE SIGNING. You should always know the implications of what you are signing, otherwise you may end up without your contracted items, oh, and also without your head.

asy :D
 
Dear guys,

Amazing what can spring from an "information resources" post.

Well done guys.

Firstly I agree with not needing to "show off". I believe the more one shows off the less that person really has. Simple case study on the "The Millionaire Next Door" exposes this one. (The excerpt is okay until I get myself a copy.)

http://www.amazon.com/exec/obidos/t...531845?v=glance&s=books&vi=reader#reader-link


It raises an interesting issue for parents considering writing a will, however. Do you simply give your children your entire estate and hope they will do the right thing with the proceeds, or do you write rules into your will to make them do the right thing, on the basis that they may well possibly hate you for it?
Click to expand...

Kev, this and Mike's forerunner is an excellent question. What will your offspring do with the resources that you have built up?

Are they likely to upset you or you don't have any direct offspring and so you do a "Charles Viertel" trick and donate your $82 million to a charity trust? (He has a very interesting history but I'll leave that one for another time.)

Given an option would you:

1) Allow all your property to sold off by your offspring when you pass away?

2) Put a clause in your trust deed preventing the sale of property but instead providing a regular passive income stream?


Personally I believe a regular passive income stream combined with steady education (In the same vein as TRMIB) would be a much better legacy to leave your children rather than have them sell it all at once.

We just have to work on the clauses so that we can buy enough time before our children can dismantle the document through the legal system. Hopefully they will have gained enough wisdom by that time to not pursue that path. When I look at what has happened with the Ainsworths I feel a bit disheartened but then when I last looked, the family of G. H. Mitchell has faired much better.

Am I too idealistic or does someone else feel that we could work on a thread for the clauses to put in our family trust to continue our planned legacy?

Cheers,

Sunstone.
 
Hi,

Originally posted by Sunstone
Personally I believe a regular passive income stream combined with steady education (In the same vein as TRMIB) would be a much better legacy to leave your children rather than have them sell it all at once.
[...]
We just have to work on the clauses so that we can buy enough time before our children can dismantle the document through the legal system. Hopefully they will have gained enough wisdom by that time to not pursue that path.
Click to expand...

I have two boys, aged now 14 and 16. My preference has been to help them with education. Expose them as much as possible to resources that will leave them, as you say Sunstone, with enough "wisdom". It is gratifying when they spend their money on books such as "Retire young retire rich" (my 14 y.o.'s recent acquisition), or when they save money so they can buy Cashflow 101.

Then I know that I do not have to worry about clauses and legal protection. The legacy is not so much the passive income that I will leave them, but the education they will have acquired. A good book to read on this topic is "The Ultimate Gift" by Jim Stovall. Excellent reading.

Cheers
Apprentice Millionaire
 
G'day

Some time ago I bought a copy of Richest Man and found in it truths which are as old as humankind.

eg

If everyone had the same income, some would be rich and some would be poor

No matter your level of income, you might still live beyond your means

It's not how your earn it, or even how much you earn, its what you do with your money once you've got it which determines the final result.

We have told our children, that if they think they can coast along until we die, they will all be 50 - 60 years old by then, and will have children and possibly grandchildren of their own.

If they haven't made a financial success of their lives by then, then we will leave it all to the Cat Protection Society or the Society for Left Handed Tea Cups, or the Heart Foundation or whatever.

As a result of these dire threats, the eldest child bought his first property at the age of 16 & half, the daughter (now 18) has lagged, but put in her first offer last week, and the youngest (now 15 & half) has suffered chronic ill health but hopes to start part time work soon.

Our children can discuss the pros and cons of interest only, principal sums, tax benefits etc with some knowledge. These are part of the dinner table discussions even when visitors are with us. They still buy CD's, clothes and go out, but they all have progress saver accounts which 'pay themselves first'.

Henry Ford purportedly said "If you think you can, if you think you can't, you're right".

We have firmly held that it is our responsibility to raise adults, not children, and that includes financial literacy.

"Richest Man" should be on every bedside table.

Cheers

Kristine

PS

In the event that they have proved themselves and deserve to inherit our hard earned assets, we would (remember, they will be in late middle age) determine the most appropriate form of inheritance in keeping with the circumstances (and assets) at the time. As part of my long term plan is to own a 'village' ie entire development, there will be plenty to share around.

Oh, oh, oh! Ain't investing fun!!!??? Yoh! Enjoy!


PPS

Thanks for the link to the book - the eldest has my paperback copy 'somewhere around', so the youngest now has an electronic copy which he will no doubt find easier to read as he is genetically glued to his computer chair!
 
Last edited:
Hi Kristine,

Good to hear your thoughts on this subject. You've given your children some guidance in this matter which we never received from our parents who never invested in anything except an insurance policy. As a result, I had to discover everything about investing myself by reading books like TRMIB. This book is always one of the first books I recommend newbies to read because it contains most of the basic principles of wealth creation.

Regards, Mike
 
Dear guys,

I spent some more time reading this summary to a friend of mine word by word. Again TRMIB is a fantastic book however I feel that this "summary" has chopped out a fair bit of the beneficial nitty gritty.

Therefore just wanted to say that certainly go and read this summary, but I would recommend that afterwards you make sure you go and get a copy of this book to ensure you get all the benefits that this little gem offers.

Cheers,

Sunstone.
 
I read the summary as a taste of what the book might be like. I liked the taste, so I bought the whole book. Interestingly/stupidly, the hard-cover was $10 and the soft-cover about $18 at my local bookstore.

Quite simply a fantastic book for putting your finances in perspective.
 
Mike said:
Speaking of Iraq, Saddam Hussein is probably the richest man there. In July 1999, Forbes Magazine estimated Saddam Hussein's personal wealth at $6 billion, acquired primarily from oil and smuggling.

Now I'd like Saddam to author a book entitled The Richest Man in Iraq and see what comparisons, if any, his pholosophies and methods have with those taught in The Richest Man in Babylon.
Regards, Mike
Click to expand...
I think he won't be writing anything soon Mike:

"Saddam was hanged on the first day of Eid ul-Adha, December 30, 2006, despite his wish to be shot (which he felt would be more dignified).[42] The execution was carried out at "Camp Justice," an Iraqi army base in Kadhimiya, a neighborhood of northeast Baghdad. The execution was videotaped on a mobile phone, showing Saddam being taunted before his hanging. The video was leaked to electronic media, becoming the subject of global controversy.[43]"
Ref: http://en.wikipedia.org/wiki/Saddam_Hussein#Execution
 
I think the the key point from this book is that the richest man is now dead and has as many assets as anybody else that lived in babylon at the time... zilch.
 
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