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[SMALL CAPS] Capital in the 21st Century

By Stephen Wood

The small cap team at UBS probably have to admit that we are mostly nerds. We talk about investing in stocks all day, we read the AFR and the FT and on top of that we read books on investing, financial markets, Warren Buffett and corporate fraud. We have a small but ever growing collection of books that include a few financial classics like The Smartest guys in the Room (Enron), The Making of an American Capitalist (Buffett) and Barbarians at the Gate (RJR Nabisco – back in the days when Private Equity was called Leveraged Buyout).

We are not however nerdy enough to read too many economics books. But it is not often that a book written in French becomes a best seller in the English world and the author finds himself as the advisor to the new Labour party leader in the UK. Thomas Piketty wrote Capital in the 21st Century in 2013 and it was translated into english in 2014. The book is a mix of classic modern economic analysis (although thankfully not too much) mixed with a large dose of historical analysis on the interaction between wealth, incomes and population growth from 1700 onward. The book is lightened up with anecdotes from Jane Austin, Thomas Jefferson and Les Misérables.

Stephen Wood is a Portfolio Manager for UBS.

DISCLAIMER: Whilst the information and statistics contained in this article are believed to be correct at the time of publishing, they are indicative only and do not constitute legal or financial advice. Investors should seek independent financial and legal advice before deciding whether any investment is right for them.

Published on: Thursday, October 08, 2015

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