Working titles for an investing book?

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:

Risk

Charting the volatile seas of bounty and bust.

—or—

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!

3 thoughts on “Working titles for an investing book?

  1. I think “The Balhiser Priciple” is catchier and won’t get lost among all the other investing books with “Risk” as the title, or part of the title (nearly 15,000 on Amazon.com alone).

  2. I agree that “The Balhiser Principle” is a great title. Mark me down for a copy!
    I recently came across an article focusing upon risk in a mailing that I get from Thrivent Financial. It had one of the better quizes I’ve seen to determine/”quantify” one’s tolerance and exposure to investment risk. Are these quizes ever worthwhile or is there no substitute for experience when it comes to risk judgment?

  3. There is a general rule I’ve read about and have confirmed (to a degree):

    A person’s assessment of risk is artificially high when markets have been up for long periods, particularly if the person has made money in that up market. The same person answering the same questionnaire will show a very much lower risk tolerance after experiencing a 20% market drop.

    In other words, risk tolerance is often more of a variable than a constant. I think it is worthwhile to take and score the quiz. It will give you a ballpark idea of your personal risk tolerance today. Better yet retake it occasionally and see if and how your risk tolerance ebbs and flows based on market and other conditions. I even recall hearing that people are slightly more risk tolerant on sunny days than on cloudy ones 🙂

Leave a Reply

Your email address will not be published. Required fields are marked *