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Memos from the Chairman
“Ace Greenberg did almost everything better than I do—bridge, magic tricks, dog training, and arbitrage—all the important things in life.” —WARREN BUFFETT
Alan C. Greenberg, the former chairman of Bear, Stearns, and a celebrated philanthropist, was known throughout the financial world for his biting, quirky but invaluable and wise memos. Read by everyone from Warren Buffett to Jeff Bezos to Tom Peters (“I love this book,” the coauthor of In Search of Excellence said), Greenberg’s MEMOS FROM THE CHAIRMAN comprise a unique—and uniquely simple—management philosophy. Make decisions based on common sense. Avoid the herd mentality. Control expenses with unrelenting vigil. Run your business at the highest level of morality. Free your motivated, intelligent people from the chain of command. Always return phone calls promptly and courteously. Never believe your own body odor is perfume. And stay humble, humble, humble.
Alan C. Greenberg, the former chairman of Bear, Stearns, and a celebrated philanthropist, was known throughout the financial world for his biting, quirky but invaluable and wise memos. Read by everyone from Warren Buffett to Jeff Bezos to Tom Peters (“I love this book,” the coauthor of In Search of Excellence said), Greenberg’s MEMOS FROM THE CHAIRMAN comprise a unique—and uniquely simple—management philosophy. Make decisions based on common sense. Avoid the herd mentality. Control expenses with unrelenting vigil. Run your business at the highest level of morality. Free your motivated, intelligent people from the chain of command. Always return phone calls promptly and courteously. Never believe your own body odor is perfume. And stay humble, humble, humble.
160 pages, Hardcover
First published March 1, 1996
126 people are currently reading
2776 people want to read
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Displaying 1 - 30 of 50 reviews
November 20, 2021
A book of practical truths, and entertaining at the same time. Key insights include:
1. Be prepared during the good times. Times will turn, and it could be very soon.
2. Thou will do well in commerce as long as thou does not believe thine own odour is perfume.
3. Use common sense. Do not force fit frameworks into problems for a solution.
4. Avoid the herd mentality.
5. Customer first.
6. A great poker player leaves nothing on the table. Cap costs at all times, and leave no waste.
7. Start hiring when times turn bad. Focus more than the elites, hire the PSDs.
It is a book about the fundamentals in business. Often times organisations grown too big, and become trapped in their tunnel visions that they become complacent and forget about the fundamentals. They could not cope when times turn bad.
I would add another fundamental to Ace's list: spend no time showing-off (especially when you aren't doing great at all, echoed #2), but all time realising your value proposition to your customers. Results will likely take us further than (self-perceived as great) stories.
1. Be prepared during the good times. Times will turn, and it could be very soon.
2. Thou will do well in commerce as long as thou does not believe thine own odour is perfume.
3. Use common sense. Do not force fit frameworks into problems for a solution.
4. Avoid the herd mentality.
5. Customer first.
6. A great poker player leaves nothing on the table. Cap costs at all times, and leave no waste.
7. Start hiring when times turn bad. Focus more than the elites, hire the PSDs.
It is a book about the fundamentals in business. Often times organisations grown too big, and become trapped in their tunnel visions that they become complacent and forget about the fundamentals. They could not cope when times turn bad.
I would add another fundamental to Ace's list: spend no time showing-off (especially when you aren't doing great at all, echoed #2), but all time realising your value proposition to your customers. Results will likely take us further than (self-perceived as great) stories.
December 25, 2014
I had high hopes for Ace Greenberg’s compendium of memos from his time as chairman of Bear Stearns, which coincided with massive growth and success for the company. While there was some cuteness in here along with a few things to reflect on, I was disappointed in how dull the majority of the book was. Maybe it was awesome in 1996 when it came out, but it felt slow and dated in 2015.
Read
February 28, 2018This guy is hilarious. Bear Stearns is making $110M in a quarter and he's sending out memos reminding people that broken rubber bands can still be used if you tie the ends together. I can see why Buffett liked Ace so much.
July 3, 2021
3.5 / 5
Short and fun memos reflecting snippets of what was going on on Wall Street between 1978-1995. Greenberg has a witty sense of humour and constantly reminds his team of first principles in a common sense based management philosophy -
- Every dollar counts. Save and recycle them paper clips and rubber bands. Control your expenses
- Stay humble
- Be kind
- Contrarian views are underrated. Don’t be a sheep
- Outsized returns can be achieved with honesty and integrity
- Return ALL phone calls
- Hire PSDs (especially when the street is firing)
- Culture comes from top down
It wasn’t particularly educational with new ideas, but did give raw insights to how the Bear Stearns Chairman thought about leadership and management. Entertaining read 👌
Short and fun memos reflecting snippets of what was going on on Wall Street between 1978-1995. Greenberg has a witty sense of humour and constantly reminds his team of first principles in a common sense based management philosophy -
- Every dollar counts. Save and recycle them paper clips and rubber bands. Control your expenses
- Stay humble
- Be kind
- Contrarian views are underrated. Don’t be a sheep
- Outsized returns can be achieved with honesty and integrity
- Return ALL phone calls
- Hire PSDs (especially when the street is firing)
- Culture comes from top down
It wasn’t particularly educational with new ideas, but did give raw insights to how the Bear Stearns Chairman thought about leadership and management. Entertaining read 👌
February 6, 2024
Not sure what inspired me to pick this up, but I enjoyed reading these memos and getting a peek at what one firm's business culture was like.
April 15, 2023
Very funny way to learn about business. I loved the memos. They made me want to work under Greenberg’s leadership
July 26, 2018
Fun collection of Company memos from Bear Sterns CEO, who credits the wisdom shared to funny fictitious executives with strange names (ex: Haimchinkel Malintz Anaynikal).
Excessive and petty expense cutting is the most recurring theme (saving paper clips, rubber bands and envelopes is golden). Other takeaways are 1) investing while other companies are downsizing(hiring instead of firing), 2) client & phone etiquette, 3) management accountability and 4) common sense.
My Notes:
*thou will do well in commerce as long as thou does not believe thine own odor is perfume.
Periodically, we will collect excess paper clips and sell them (since the cost to us is zero, the Arbitrage Department tells me the return on capital will be above average). This action may seem a little petty, but anything we can do to make our people conscious of expenses is worthwhile.
Friedman’s “five forbidden phrases.”
• “I don’t know.” It should be replaced with “Let me check and find out.”
• “We can’t do that.” Instead, tell callers what can be done.
• “You’ll have to . . .” The caller doesn’t have to do much of anything, certainly not sit on hold. Instead, the employee should say, “You’ll need to . . .”
• “Hang on a second, I’ll be right back.” It’s a lie and should be replaced with “I’ll need to put you on hold for a few moments, if you are able to hold.”
•“No.” It should no longer appear at the beginning of a sentence. That makes people think about what they’re saying before they start talking.
the harder you work, the luckier you get.
There is a risk in everything you do and that certainly includes derivatives and personal relationships. I think one should always be careful in whatever the person is involved with. My personal point of view is that people should certainly stay involved in both—derivatives and personal relationships.
New Words:
cognoscenti: expert, connoisseur.
acrimony: bitterness or ill feeling.
Excessive and petty expense cutting is the most recurring theme (saving paper clips, rubber bands and envelopes is golden). Other takeaways are 1) investing while other companies are downsizing(hiring instead of firing), 2) client & phone etiquette, 3) management accountability and 4) common sense.
My Notes:
*thou will do well in commerce as long as thou does not believe thine own odor is perfume.
Periodically, we will collect excess paper clips and sell them (since the cost to us is zero, the Arbitrage Department tells me the return on capital will be above average). This action may seem a little petty, but anything we can do to make our people conscious of expenses is worthwhile.
Friedman’s “five forbidden phrases.”
• “I don’t know.” It should be replaced with “Let me check and find out.”
• “We can’t do that.” Instead, tell callers what can be done.
• “You’ll have to . . .” The caller doesn’t have to do much of anything, certainly not sit on hold. Instead, the employee should say, “You’ll need to . . .”
• “Hang on a second, I’ll be right back.” It’s a lie and should be replaced with “I’ll need to put you on hold for a few moments, if you are able to hold.”
•“No.” It should no longer appear at the beginning of a sentence. That makes people think about what they’re saying before they start talking.
the harder you work, the luckier you get.
There is a risk in everything you do and that certainly includes derivatives and personal relationships. I think one should always be careful in whatever the person is involved with. My personal point of view is that people should certainly stay involved in both—derivatives and personal relationships.
New Words:
cognoscenti: expert, connoisseur.
acrimony: bitterness or ill feeling.
July 13, 2019
I certainly missed the wisdom among these memos from a self-important person trying hard to look smart. Is there any financial advice? Maybe it was in the few memos at the end when I said "No more!".
These are really only the memos. Which were probably hand picked for their brilliance. And probably carefully whitewashed to avoid anything that today might be considered offensive and tarnish the memory of an older, unpleasant man.
These are really only the memos. Which were probably hand picked for their brilliance. And probably carefully whitewashed to avoid anything that today might be considered offensive and tarnish the memory of an older, unpleasant man.
December 26, 2017
This book is a collection of memos sent from Alan C. Greenberg while he was chairman of Bear Stearns. Communicating memos is a common practice throughout the business world but Greenberg set himself apart in the way he did it.
The following quote from a memo by Greenberg is one of the best examples of this.
“I was just shown the results for our first quarter. They were excellent. When mortals go through a prosperous period, it seems to be human nature for expenses to balloon. We are going to be the exception. I have just informed the purchasing department that they should no longer purchases paper clips. All of us receive documents every day with paper clips on them. If we save these paper clips, not only will we have enough for our own use, but we will also, in a short time, be awash in the little critters. Periodically, we will collect excess paper clips and sell them (since the cost to us is zero, the arbitrage Department tells me the return on capital will be above average). This action may seem a little petty, but anything we can do to make our people conscious of expenses is worthwhile.”
It is worthwhile noting that the values expressed in the book are far from generic among businesses. The memos are between 30-40 years old and many cannot be applied to the world we live in today. The key takeaways from this book are not the values expressed but rather how they are expressed by Greenberg.
The book is rather short and a fun read. It could be improved if more reflections of the memos were added.
The following quote from a memo by Greenberg is one of the best examples of this.
“I was just shown the results for our first quarter. They were excellent. When mortals go through a prosperous period, it seems to be human nature for expenses to balloon. We are going to be the exception. I have just informed the purchasing department that they should no longer purchases paper clips. All of us receive documents every day with paper clips on them. If we save these paper clips, not only will we have enough for our own use, but we will also, in a short time, be awash in the little critters. Periodically, we will collect excess paper clips and sell them (since the cost to us is zero, the arbitrage Department tells me the return on capital will be above average). This action may seem a little petty, but anything we can do to make our people conscious of expenses is worthwhile.”
It is worthwhile noting that the values expressed in the book are far from generic among businesses. The memos are between 30-40 years old and many cannot be applied to the world we live in today. The key takeaways from this book are not the values expressed but rather how they are expressed by Greenberg.
The book is rather short and a fun read. It could be improved if more reflections of the memos were added.
July 20, 2011
Saved memos from the former Chairman and CEO of Bear Stearns to his employees...great ideas for workplace. Read as intern for Bear and was priviledged to get to know Mr. Greenberg as i worked on same floor as him :) (have my autographed copy)
September 30, 2025
I was in a little rut and this got me out of it. This is exactly my type of humor and wit. I’m inspired
December 30, 2019
Ace Greenberg who was the chairman of Bear Stearns and his mentor, Haimchinkel Malintz Anaynikal, who is a philosopher. Wisdom gathered from the memos written by Greenberg. At time, it read like a joke and fiction especially when it came about paper clips and rubber band savings…. Almost ridiculous saving, emphasis and repetition, but in the end those who counts the pennies are the millionaires so not too surprised.
~ Thou will do well in commerce as long as though does not believe thine own odor is perfume! (Do not get cocky or over confident!!!)
~ Instead of hiring MBC, hire PST (Poor, smart and a deep desire to become rich)
~ Company principles:
1) Stick to thine own business
2) Watch thy shop
3) Limit thy losses
4) Watch thy expenses like a hawk: (Ex1: Do not purchase paper clips: Periodically, collect paper clips then sell them. Since the cost is zero, the return on capital Ace Greenberg who was the chairman of Bear Stearns and his mentor, Haimchinkel Malintz Anaynikal, who is a philosopher. Wisdom gathered from the memos written by Greenberg. At time, it read like a joke and fiction especially when it came about paper clips and rubber band savings…. Almost ridiculous saving, emphasis and repetition, but in the end those who counts the pennies are the millionaires so not too surprised.
~ Thou will do well in commerce as long as though does not believe thine own odor is perfume! (Do not get cocky or over confident!!!)
~ Instead of hiring MBC, hire PST (Poor, smart and a deep desire to become rich)
~ Company principles:
1) Stick to thine own business
2) Watch thy shop
3) Limit thy losses
4) Watch thy expenses like a hawk: (Ex1: Do not purchase paper clips: Periodically, collect paper clips then sell them. Since the cost is zero, the return on capital of paper clip is always above average. Designated paper-clipper-picker-upper – person!) (Ex2: Reusing blue envelop over again and again!)
5) Stay humble, humble, humble
6) Customer focus: Calls MUST be returned!!!
7) No more layers of management
8) Well-being of every person
of paper clip is always above average. Designated paper-clipper-picker-upper – person!) (Ex2: Reusing blue envelop over again and again!)
5) Stay humble, humble, humble
6) Customer focus: Calls MUST be returned!!!
7) No more layers of management
8) Well-being of every person
~ Thou will do well in commerce as long as though does not believe thine own odor is perfume! (Do not get cocky or over confident!!!)
~ Instead of hiring MBC, hire PST (Poor, smart and a deep desire to become rich)
~ Company principles:
1) Stick to thine own business
2) Watch thy shop
3) Limit thy losses
4) Watch thy expenses like a hawk: (Ex1: Do not purchase paper clips: Periodically, collect paper clips then sell them. Since the cost is zero, the return on capital Ace Greenberg who was the chairman of Bear Stearns and his mentor, Haimchinkel Malintz Anaynikal, who is a philosopher. Wisdom gathered from the memos written by Greenberg. At time, it read like a joke and fiction especially when it came about paper clips and rubber band savings…. Almost ridiculous saving, emphasis and repetition, but in the end those who counts the pennies are the millionaires so not too surprised.
~ Thou will do well in commerce as long as though does not believe thine own odor is perfume! (Do not get cocky or over confident!!!)
~ Instead of hiring MBC, hire PST (Poor, smart and a deep desire to become rich)
~ Company principles:
1) Stick to thine own business
2) Watch thy shop
3) Limit thy losses
4) Watch thy expenses like a hawk: (Ex1: Do not purchase paper clips: Periodically, collect paper clips then sell them. Since the cost is zero, the return on capital of paper clip is always above average. Designated paper-clipper-picker-upper – person!) (Ex2: Reusing blue envelop over again and again!)
5) Stay humble, humble, humble
6) Customer focus: Calls MUST be returned!!!
7) No more layers of management
8) Well-being of every person
of paper clip is always above average. Designated paper-clipper-picker-upper – person!) (Ex2: Reusing blue envelop over again and again!)
5) Stay humble, humble, humble
6) Customer focus: Calls MUST be returned!!!
7) No more layers of management
8) Well-being of every person
July 21, 2019
I ascribe to the philosophy of reading widely and this book didn't really fit into most of what I usually read but I was surprised how much I enjoyed it. Having the experience of having parents that went through losing their home and two bankruptcies, have proactively sought knowledge in basic finance and accounting. What impacted the most was the importance of controlling or reducing expenses especially when times are financially good. This is the main theme I extracted from this book because the author wrote memos that the majority of time had a central them of controlling or reducing expenses.
I found it interesting and entertaining on how the author of the memos created these fictional wise characters that he would always refer to when trying to make a point. This was an interesting way to deliver a message that is entertaining but at the same time delivering an important message to the health of the company. Alan would even use ways that seem ridicules to deliver a message but were important the function of reducing and eliminating expenses. For example, the whole reusing envelopes and paper clips to the point that it would be impossible to reuse them is genius. It delivers the message that if you care dearly about the minuscule expenses then you would definitely care about the critical ones as well, it all starts from the bottom, which leads to the top.
I found it interesting and entertaining on how the author of the memos created these fictional wise characters that he would always refer to when trying to make a point. This was an interesting way to deliver a message that is entertaining but at the same time delivering an important message to the health of the company. Alan would even use ways that seem ridicules to deliver a message but were important the function of reducing and eliminating expenses. For example, the whole reusing envelopes and paper clips to the point that it would be impossible to reuse them is genius. It delivers the message that if you care dearly about the minuscule expenses then you would definitely care about the critical ones as well, it all starts from the bottom, which leads to the top.
November 18, 2024
I was a senior managing director at Bear in its heyday before 2000. These are real memos (I have many of the originals). Ace was an excellent trader and a great and approachable CEO with no ego. You can make fun of the rubber band and paper clip requisition bans, but he was making a point on how every dollar you save is a dollar in your pocket. Somewhat repetitious but certainly practical.
The firm quickly went downhill after his departure and lost its careful risk management and entrepreneurial spirit.
The firm quickly went downhill after his departure and lost its careful risk management and entrepreneurial spirit.
September 12, 2020
This is an excellent book for anyone running and small or a large company. Two main takeaways: one is about controlling expenditure and reducing waste to increase profit; how you respond to clients and your mannerism in telephonic communication affects the reputation of your company; and finally, ‘common sense’ is more important than random jargons. The book also demonstrates clarity in communicating simple facts and decisions to leaders.
February 13, 2018
Control expenses. Use common sense. Return calls.
Interesting memos, filled with irony and sarcasm, from a time when there was no internet, no mobile phones, no e-mails, but leading successful businesses was tough nonetheless.
Really cherished the PSB definition.
Interesting memos, filled with irony and sarcasm, from a time when there was no internet, no mobile phones, no e-mails, but leading successful businesses was tough nonetheless.
Really cherished the PSB definition.
July 30, 2018
Poor
I can’t believe the leader of a multi billion dollar investment bank wanted to save expenses by cutting on rubber bands or asking his team to stay in public parks while on business travel. This is the dark side of capitalism at the expense of human empowerment and freedom.
I can’t believe the leader of a multi billion dollar investment bank wanted to save expenses by cutting on rubber bands or asking his team to stay in public parks while on business travel. This is the dark side of capitalism at the expense of human empowerment and freedom.
May 14, 2023
A short read with some common sense for business. Always focus on your cost especially in good times because the times are always changing. When times are bad double down on hiring focus on PSD (poor, smart and desire to get rich) candidates. The times are always changing.
October 16, 2023
The memos are repetitive but are fun and interesting at the same time
There are a few useful ideas to get from this book, from some of the principles used on Bear Stearns' best years to how to communicate them
There are a few useful ideas to get from this book, from some of the principles used on Bear Stearns' best years to how to communicate them
February 1, 2025
I read this book a couple years ago but thought I would read it again after my 2 year IB stint. Read physical book instead of listening to audiobook. Found it interesting for business and understood the reasoning more. Glad I re-read
July 28, 2017
Funny view on a chairman's perspective on cutting costs improve market share. Thought it was a good read
January 15, 2019
"Thou will do well in commerce as long as thou does not believe thine own odor is perfume."
September 2, 2019
Fun, fast and witty
October 26, 2019
3.5 stars. Good insights, highly repetitive.
January 27, 2020
Read the reviews; they give a good summary.
April 9, 2020
Business common sense explained in a entertaining way.
September 20, 2020
There are a few important lessons that keep coming up. Repeatedly. Somewhat funny. Interesting to know a little bit of the culture at Bear Stearns. On the whole a little disappointing really.
December 9, 2020
bunch of memos
February 10, 2021
Nice one
April 18, 2021
Repetitive. Anecdotal. Not insightful. And from a Wall Street executive who, along with this acolytes, drove his bank into the ditch. Not worth it.
Displaying 1 - 30 of 50 reviews