Since I love to read investing books, I somehow got the idea in my head to write one. So far I wrote an outline and a couple working titles and even a promo for the book jacket. Now just to fill in the contents — piece of cake 🙂 I figure that with a hour here and hour there on nights and weekends I might just be able to have a rough draft in a year or two. I thought I’d share some of my working titles for comment and criticism:
Charting the volatile seas of bounty and bust.
The Balhiser Principle
Integrating the financial alchemy of gurus and scholars into your personal risk profile.
Obvious, risk is a key theme. I believe risk is one of the most challenging concepts to intuitively grasp. Benjamin Graham tackled risk with a “margin of safety” approach. Warren Buffet modified Graham’s value approach to achieve phenomenal results. Scholars developed the capital asset pricing model (CAPM) for stocks. Scholes, Black, and Merton took CAPM further applying extending it to stock option pricing and winning Nobel prizes. Thinking they had tamed the financial oceans they made big gains until a financial maelstrom sunk their financial Titanic called Long Term Capital Management. Finally, Nicholas Nassim Taleb rewrote the rules of finance in ways that are just bringing to change the modern financial landscape.
I would like to explain these concepts such that the busy Joe or Jane investor can easily understand and use them. After all what is the point of financial ideas to the personal investor if they are not readily usable by the personal investor?
Well there it is — My intention to write an investing book over the next couple years. Announced on Super Bowl Sunday, 2009. Go Steelers!