Finished an awesome book yesterday - Red Alert by Bill Browder
Red Alert by Bill Browder is the real life narration of how a Stanford MBA and naive American wannabe businessman gets stuck in some pretty hairy situations in Russia in the late 90s during the privatizations and what was known as Wild Wild East.
Basically it's about how he tries to parlay a McKinsey job into knowledge and know-how to acquire entire companies and tries to build a fortune but is shot-down in the process by ruthless and corrupt Russkies. Death threats, arrest warrants, spies, KGB, back-tax allegations to extort him for money, the list could keep going on and on.
An awesome book that tells you about the true danger of doing business in scary places where you have 0 muscle.
You realize how awesome Western countries are once you read it because if you're a good boy in the USA - nobody can F with you. In Russia, an entire get rich scheme by someone in their version of the IRS could mean slapping a $10 million tax bill on you and throwing you in jail to extort a bribe even if you paid your taxes right.
You realize just how sordid Russia is when he tells you the tale of how his lawyer was killed in jail because he wanted to support Browder.
An incredible book overall that touches on the dangerous of trying to get rich in questionable places. Shows you just how important the rule of law is for someone trying to get rich.
What amuses me is how big companies still go gung-ho around the world akin to Browder in his early days. Every other month we can hear mining companies investing in third world hellholes to find out a contract was rescinded or the government panel/ministry that handed it seeks a bribe or a share. Yet, execs put up with it an go on.
It's incredible Peter Thiel never mentioned in Zero To One that you want a business to scale with the rule of law on your side in all markets. Building a website for the world and building a transnational physical operations empire is quite a different undertaking. Some places are just impossible to work in unless you have what they call in Russia as "krysha" (Roof or cover or insurance from gangsters).
Sounds interesting. I'll check it out. Thanks for the recommendation.
Very entertaining/interesting read. Been a while since I read it, but I seem to remember the first 50% was about investing in Russia in time after fall of soviet union. Really incredible to read about opportunities that existed during privatization of government owned businesses. Second half was about how he got on wrong side of Russian legal system. Would recommend.
yeah no kidding. You could buy an Exxon Mobil for about $10 and make yourself the Chairman of the Board if you knew the right people. Russia is another planet.
I am going to have to check this out, thanks!
I think you're on to something here, sounds good
Loved it - any other recommendations?
Marc Rich - King of Oil
Fav businessman of all time.
https://www.amazon.com/Once-Upon-Time-Russia-Oligarchs_A/dp/1476771901/…</a">Once Upon a Time in Russia was another interesting/entertaining book about Russia and fortunes made during privatization.
If Browder had taken a more diplomatic approach to Putin, the Marc Rich route of preventing your State's enemies from interfering with your personal/business friendships, I think Browder would be in a much better place, financially and politically. He's a staunch anti-Putin: dude (selling Magnistky act to western governments) and taking shit about him in every panel he goes.
It's a very good read. Sometimes the truth can be stranger than fiction. He even mentions in the book (epilogue) that if he shows up dead somewhere it's because Putin had him murdered.
I think he's been dramatic; maybe to increase his relevance in the geopolitical jousting with Vlad? But would not be surprised if he was responsible.
Absolutely a great book. I've always been really interested in post-USSR Russia and Putin in general. After Browder's lawyer was killed in prison he essentially kicked off all of the corruption probes the US gov has carried out on Russia since.
Another good read on Russia in general, not so much financially related, is "Nothing is True and Everything is Possible." It is an inside look at the lives of the oligarchs and their underlings that we all could probably imagine but never see proof of.
I worked in restructuring while in banking, and was super lucky to have my first deal involve a Russian mini-garch (worth ~$2bl). The guy was absolutely fascinating and had an entourage of 3-4 guys whose job it was to essentially make whatever the guy wanted happen. They were all really bright and well-educated, and frankly if I was in Russia I'd be looking to have a job like theirs. I am sure they were absolutely taken care of.
yeah, most of the garchs went to top engineering school in USSR as Chrystia Freeland verified in "Plutocrats". Another good book is "Mr. Putin" from Brookings Press. On the corruption probes, they've always been low key but Browder publicized/personalized them. Honestly, surprised Browder is alive.
That was a great book. Very interesting story. If you haven't already, you should check out what his son was/is developing as well. It's some sort of software that fights minor traffic tickets automatically.
The poor Browder is upset because he didn't get to keep participations in companies worth billions that he had acquired for a handful of millions in rigged liberalizations so he decided to wage a personal war against Russia hoping it devolves into a real one.
A complete psychopath.
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