Enterprising Investor Forum

Barbarians at the Gate, B. Burrough & J. Helyar Thursday, June 28, 2007

This book is the story of the largest corporate take-over in America history at that time; the battle for the control of RJR Nabisco.  If you interested, intrigued and fascinated by Wall Street, Corporate American and LBOs, then this is a book you must read.

Not only is this one of the best business books you will ever read but you could easily mistake it for John Grisham’s best novel. As the book states: “The rules were simple: never pay in cash – never tell the truth – never play by the rules.”

Just to give you an idea of “The Players” involved:

• Henry Kravis & George Roberts, KKR
• Bruce Wasserstein, Wasserstein Parella & Co.
• Theodore J. Frostmann, Frostmann Little & Co.
• John Gutfreund, Salomon Brothers
• James D. Robinson III, American Express
• And last but not least, F. Ross Johnson, RJR Nabisco

Basically, the story portrays the “greed is good” era and shows how money and power shaped the business arena and general corporate environment. Whereas the founder of Nabisco felt that he was responsible not only for increasing shareholder value but also for contributing to the general prosperity of the United States, Ross Johnson simply noted that “Some genius invented the Oreo. We’re just living off the inheritance.”

Enjoy!