Synopsis

Testimonials:

“Absolutely savoured The Cat and the Banker. I just sat and read it right through – something I could never do with anything related to investing.”

“It's a really nice, easy read. I like how the characters are cats. It’s very easily digestible and the storyline format is really cute.”

"It’s a really good read! I couldn’t stop. Seriously."

Synopsis:

Why should learning about finance and investing be dull and confusing? 

The Cat and the Banker is a fun and unconventional illustrated book about investing for people who don’t know where to start. Truth be told, this really is most people.

The Cat and the Banker addresses these problems:

- Books about personal finance tend to be dry and boring. This book reads like a fun story.

- Personal finance books often give inadequate recipes. This book provides a framework for how things actually work and empowers readers to make suitable decisions.

- Investing looks confusing. It is hard to know what to decide when allocating your own money. This book takes readers step by step on a journey through how the most common financial products work, what they do, and how they relate to the real world.

- Few people find time to read conventional books about personal finance. The Cat and the Banker reads fast. Chapters are short. The story goes straight to the essentials without getting bogged down in unnecessary intricacies.

The message is unique: 

(1) The form of the book allows the ideas to be distilled through a candid conversation between a cat and his banker. The underlying storyline puts the notions in context and helps readers relate to the concepts. The form is really light, but the ideas are deep.

(2) The book has many fun and clear illustrations to make seemingly complex ideas simple. 

(3) The book offers a framework to understand how things actually work, instead of giving a ready-baked recipe which may or may not fit the circumstances of the reader. 

(4) The purpose of the book is to empower readers and, in time, help them make financial decisions which are suitable for them.

(5) The problem with financial literacy is not that financial knowledge is not available, but that it usually isn’t conveyed in such a way that people would enjoy interacting with it. This well-designed book aims to fix that.

Nadir worked in investment banking in London and Singapore for over 10 years, is a photographer, and does design work. 

Nadir decided to write The Cat and the Banker when he realized the gap of understanding between the industry he comes from - investment banking - and friends who worked in creative industries. 

They did not have a solid financial education, but somehow everyone needs to make investment decisions. Nadir wanted to make the complex and unnecessarily confusing subject of investing simple and accessible. He wanted to empower his friends to make sound financial decisions and prevent them from being fooled by the authority of investment professionals.

This is not a book for traders. This is a book for people who wonder what the options are for them to allocate and invest their savings. The book will connect with people who are curious to find out about how to manage their money and are looking for a simple and playful way to learn.

Outline

The book has 21 short chapters, including an introduction, 4 intermissions, and an epilogue. The intermissions act as transitions and allow readers to take a quick breather between slightly denser chapters.

1. “Houston, We Have a Problem,” (introduction)

The main character, a cat named Socrates, inherits money from his uncle, but he has no idea how to make it grow. He stumbles upon a note from his late uncle, which recommends he make an appointment with a financial adviser.

2. “A Gift to Mice,” about inflation

Socrates meets a banker called Catsby. The banker makes Socrates realise that, if he does nothing with his money, inflation will slowly eat his savings.

3. “The Menu,” about investment portfolios, returns, and asset classes

Catsby tells Socrates about the six types of investments that he could consider: stocks, bonds, properties, currencies, commodities, and alternative stores of value. More importantly, Catsby stresses how these different investments are only tools. They do different things and behave differently in different sets of economic circumstances. The following chapters will clarify why.

4. “OK, Computer,” about personal circumstances, compounding, and magic number 69

Catsby stresses the fact that investors should understand their own situation in order to tailor their investments to their needs. He also introduces the notion that returns snowball over time when they are reinvested.

5. “Dream On,” (intermission)

Socrates, who is a designer, pitches a client for a big project. The client turns him down, telling him that he has to grow his agency before they can consider working with him.

6. “The Right Tool for the Right Job,” about equity and debt

Catsby explains how companies finance themselves in order to grow and how stocks and bonds are related to the financing of real businesses and governments.

7. “Locked, Stocks, & a Blown Barrel,” about stocks

The chapter takes a deeper look at what a stock is, how it works, why stock prices move, and why you’d invest in them.

8. “A Bottle of Milk,” about liquidity

Catsby introduces the important notion of “liquidity,” that is, how easy it is to get in and out of an investment.

9. “A Wet Cat,” (intermission)

Catsby and Socrates talk about how to manage risk through diversification and getting into investments little by little.
They go sailing. A boat capsizing nearby will help introduce the concept of “duration,” or bond sensitivity, in a later chapter.

10. “Strong Bonds,” about bonds

The following meeting between Socrates and Catsby focuses on what bonds are, how they work, why you would invest in them, and why they can be safer investments than stocks, but not always.

11. “Volatile Bonds,” about bond prices and yields

The conversation carries on about how bonds can be volatile like stocks and only offer capital protection if they are held to maturity.

12. “Sensitive Bonds," about bond duration

Catsby stresses why “duration” is an important measure that investors need to pay attention to.

13. “Cat Me If You Can,” about credit risk

This chapter looks into why buying a bond is not just about how much it promises to pay, but is also about who you lend money to.

14. “The Butcher Sheep,” (intermission)

Socrates meets his neighbour, a sheep. The neighbour is about to fall for the advice of a streetwise but shady cat. The neighbour explains the seemingly attractive property deal he is about to get into. The following chapter will deconstruct why the deal is not only a bad idea, but is actually dangerous.

15. “Margin Call,” about property, leverage, and financial buffer

This chapter looks into the reasons that could lead an investor to buy real estate, the mixed effect of using debt on financial returns, and rental income as a measure of protection against a depreciation in the value of a property.

16. “Diamonds Are Forever,” about foreign exchange, commodities, and alternative stores of value

This chapter goes through the last three asset classes introduced earlier in chapter 3. It examines why currencies fluctuate and what those fluctuations mean. It also looks into why an investor would consider investing in commodities and introduces alternative stores of value as a form of wealth insurance.

17. “Dog Day Afternoon,” (intermission)

Catsby unexpectedly gets fired after another bank acquires the bank he works for. The new financial adviser is a thief and tries to flog complex structured products to Socrates. Socrates manages to escape and reaches out to Catsby to ask him if he could carry on teaching him informally.

18. “Pool the Wool,” about funds

Catsby introduces funds as a way to diversify investments and manage money with the help of a professional. He takes Socrates through what active and passive funds are and explains how to select a fund that is suitable for you.

19. “Any Way the Wind Blows,” about economic seasons and central banks

This chapter brings all previous chapters together. It explains how the economy follows seasons, and how different seasons impact different types of investments in different ways. Catsby draws a quadrant to explain to Socrates in which circumstances different asset classes perform best. He also explains what central banks do, which is important because what central banks do influences the economy and impacts the value of investments. 

20. "Kill Bills," about fees & deflation

Investing is not only about what one may gain, but also about minimizing the fees one pays. The chapter also introduces the idea of deflation and how to invest in a deflationary environment. Catsby wraps up by explaining why an investor would opt for different portfolio allocations.

21. "You Gotta Do What You Gotta Do," (epilogue)

The cat and the banker part and leave each other on a warm note.

Audience

The original intended audience for The Cat and the Banker was the creative class. The core target readership being a casual, informed audience of 20 to 40-year-old professionals, both male and female, with an interest in money and creativity; people who have savings, but do not know where to start when it comes to investing.

However, the book has a much wider commercial reach. There is a large market for books about personal finance. But to my knowledge, few address the topic in a format that is fun, inviting, and engaging. There are 3 things people never tire of learning more about: health, relationships, and money. 

The broader audience includes:

- Non-finance professionals who know that they would benefit from a crash course in investing.

- Finance professionals, many of whom do not know what to do with their savings. They are specialists but do not necessarily have a broader view of how things work and/or knowledge of what their options are. A lot of finance professionals also struggle to explain to their family and friends what they do. Gifting this book would make their life easier.

- Business school and MBA students. Finance courses for undergrad and MBA students in business schools generally focus on narrow and specific areas of finance: stock valuation, accounting, corporate finance, derivatives valuation and the like.

The Cat and the Banker gives a rare broad and comprehensive overview of the world of investing, from how different types of investments work and what they do, to how they fit with the way economies work; all in a fun way. The user-friendly and succinct format makes The Cat and the Banker an ideal read for students who want to understand how the different pieces of the puzzle fit together and give them an edge when later approaching specific subjects with greater perspective.

Promotion

The crowdfunding campaign on Publishizer is the first step in the promotion of the book, to demonstrate that a keen audience exists for the topic and the book.

Next steps will rely on the strength of early-reader reviews, blogs of influencers, press coverage, and word-of-mouth.

Nadir also has close to 1,000 contacts on LinkedIn and has access to the HEC Business School alumni network, which counts over 50,000 people worldwide.

Competition

To pigeonhole a little, there are several types of books about finance:

1. “How I made it" and "Why I’m so smart and you should do like me” books. The main problem with these books is they have a historical bias. They assume that the macroeconomic conditions that presided over the strategy implemented will repeat themselves. In other words, in these books it is hard to differentiate skill from luck.

2. The “get rich quick” books. Everybody dreams of hacking the system, but it generally helps to learn how to walk before one can run.

3. “How to juice out this particular asset class,” written by people who are passionate about a single type of investment. These books lack breadth. A novice would benefit from having an overview of what tools are available, before learning more deeply about the intricacies of each asset class.

4. The technical books, which are meant for professionals and are narrow in scope.

This being said, there are a number of exciting titles out there, but they mainly cover economics rather than personal finance. Some examples of these books are listed below in alphabetical order:

- Blue Chip Kids, What Every Child (and Parent) Should Know about Money, Investing, and the Stock Market, by David W. Bianchi (Wiley, 2015). The format of this book feels too large. My illustrations have a more casual feel and make my book more appealing for such an intended audience.

- Economix, by Dan Burr and Michael Goodwin (Harry N. Abrams, 2012). A sweeping look at economic history through comic-book storytelling. Great work, but focused on economics.

- Investing for Dummies, by Tony Levene (Wiley, 2004). Too long and textbook-like.

- Man vs. Money, Understanding the Curious Economics that Power Our World, by Stewart Cowley (Aurum Press, 2016), has a similar starting point to my book: simple text with simple illustrations. But Man vs. Money openly uses maths, which may put off some readers, and is about economics.

- Money: Master the Game, by Toni Robbins (Simon & Schuster, 2014). It feels too long and dense for the casual reader. It leaves readers with various views and recipes from investment legends as opposed to a framework that they can navigate.

- Rich Dad Poor Dad, by Robert Kiyosaki (Warner Books, 2000). It urges readers to become investors, but it doesn't tell them how.

- The Behaviour Gap (Portfolio, 2012) and The One-Page Financial Plan (Portfolio, 2015), by Carl Richards, have fresh, clear, witty, and engaging illustrations with a distinct style. But these books are about behaviours rather than a technical framework.

Some great, comparable titles outside of the finance section:

- Steal Like an Artist: 10 Things Nobody Told You About Being Creative, by Austin Kleon (Workman Publishing, 2012), for the great format, the lightness, and the casual feel of it. This book is about creativity, not about managing money. Why can’t finance also be fun?

-The Adventures of Johnny Bunko, by Daniel Pink (Riverhead Books, 2008). This book offers advice about careers, not personal finance. But somehow, it uses a a similar trick: using story-telling to deliver a message.

The Cat and the Banker sits somewhere between Economix by Dan Burr and Michael Goodwin, Investing for Dummies by Tony Levene, The Behaviour Gap by Carl Richards, Steal Like an Artist by Austin Kleon, and The Adventures of Johnny Bunko by Daniel Pink.