Here is a list of just a few of my favorite books:
Valuation: Measuring and Managing the Value of Companies Koller, Goedhart, and Wessels
Security Analysis Graham & Dodd
Margin of Safety Klarman. (Out of print. I found a copy in the Boston Public Library financial branch – you aren’t allowed to take it out and you have to leave your driver’s license at the front desk to read it!)
Investment Valuation Damodaran
Hedge Hunters Burton
Fooled by Randomness Taleb
The Black Swan Taleb
In part 1, I made my case that the price of a stock related to value should be heavily factored into any discussion of risk in holding stocks. In this part, I am going to present a simple model for thinking about risk which expands on a more traditional view to include price.
**Disclaimer – this is meant to be an article about a conceptual treatment of risk. Don’t be fooled by the graphs, there is nothing precise in my discussion.