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I consider The Nature of Risk by Justin Mamis to be a classic on the subject. Although Mamis has been ignored by many fundamental leaning investors, The Nature of Risk is less about technical chart reading and more about risk in the abstract. Actually, abstract is not the right word. This is a book about risk in all it's inherently human forms. The original, written in the 1970's was a classic. Now it has been re-written and republished by Fraser. I am just about all the way through the 2nd version, and it is truly worth the purchase price. It is one of those few texts that I hesitate to point out because I find it so useful, but am willing to risk (pun definitely intended) turning others onto it as part of the grand infinite game.

Anyway although Mamis refers to risk primarily in terms of "price", it is a book about the stock market afterall, "price" can mean just about anything to you and this book would still be very useful. Price can be dollars, fame, market position, votes, casualities etc.

I thought I would summarize key points and provide some great quotes chapter by chapter as Mamis weaves through the topic of risk. It is partly self serving discipline on my part as I tend to find that my cranium learns best by repetition & reinforcement.

BTW, I am not saying that I agree with everything he writes and that I will post, but I will say that Mamis, no matter what you think of him, is fresh.

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