Fibonacci Financial

Posts Tagged ‘Accounting’

Fibonacci & The Birth of Modern Finance in 1202 A.D.!

The Most Powerful Financial Tools to Hit Europe in Over a Thousand Years

It ALL started when an Italian monk named Leonardo de Fibonacci published “Liber Abaci” in the year 1202 A.D. This book introduced Hindu-Arabic numerals to the Italian businessmen and launched a new era for financial information. Those enterprising Italian merchants then invented Double Entry Accounting! Is it any wonder why modern finance started in Italy? Before the introduction of the Hindu-Arabic Numeral system to Europe, merchants could only add and subtract those unmanageable roman numerals two numbers at a time with an abacus. This was a very awkward and time consuming process. The invention of double entry accounting was formally introduced to the world by another Italian monk by the name of Fra Luca Paccioli in 1494. Goethe,the great German poet described double entry accounting as “one of the finest discoveries of the human intellect.”

And Now the Fibonacci Numbers

In Fibonacci’s book “Liber Abaci” there is a paragraph discussing the logarithmic growth of bunnies. This sequence of numbers 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89…….. became known as the Fibonacci Sequence (you probably remember it from Dan Brown’s bestselling book “The DaVinci Code” ). This sequence of numbers can be found through out the natural world and the universe. Just exploring their almost infinite applicability is an adventure in itself.

There you have it, the name Fibonacci is associated with the birth of modern finance and rapid growth.

This site’s goal is to help you harness the tools of modern finance to grow your networth rapidly (just like those fibonacci bunnies).

Homework Assignment

Go google Fibonacci.

Go to Amazon.com book section and enter Fibonacci.

DaVinci and Fra Pacioli

FYI: Leonardo DaVinci and Fra Luca Pacioli were close friends. DaVinci even illustrated Pacioli’s second most important manuscript De Divina Proportione (”Of Divine Proportions”). Pacioli taught DaVinci about perspective,proportionality and the Golden Ratio. These tools aided DaVinci greatly in painting “The Last Supper” and many of his great works of art.