Risk and the Smart Investor

Hardcover | September 9, 2010

byDavid Martin

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Master the most important investing skill of all—DECISION MAKING

“De-risking your investmentsrequires knowing that there ismuch you don’t know.”
–David X Martin

Risk exists because of one simple fact:Decisions are always based on incompleteinformation. Therefore, to meet your investmentgoals over the long term, you mustlearn to manage the risks associated with adecision-making process that is by natureflawed. Risk and the Smart Investor provides aframework for making such decisions.

Avoiding unrealistic promises of completelyrisk-free investing, world-renownedrisk management expert David X Martinfamiliarizes you with the principles of riskmanagement. Based on Martin’s experiencein managing risk at several of the world’slargest financial institutions, this principlebasedapproach presents a unique perspectivethat helps you manage the risk in everyinvestment you make.

Risk and the Smart Investor provides notonly a framework for managing risk in today’smarkets, it also prepares you to handlethe next financial crisis—which is coming,sooner or later—by separating risk managementinto four separate processes:

  • Assessment—know where you are,but accept the fact that you cannotknow everything
  • The Rules of the Game—determineyour appetite for risk, diversifyaccordingly, demand transparency,and institute checks and balances
  • Decision Making—consider allalternatives, fit your plans into specifictime frames, and always have anexit strategy
  • Reevaluation—continually monitor theoutcomes of your decisions and learnfrom your mistakes

    Praise for Risk and the Smart Investor

    “Interesting and instructive. A good book for those who want to learn about risk and build this knowledge into their financial decisions.”
    —John Reed, former CEO, Citigroup

    “David Martin has produced a popular yet serious post-financial crisisreflection on the fundamentals of risk management as a living process. Rich inexperience and wisdom, Risk and the Smart Investor is both a useful handbookbrimming with insights, and a moral tale for our times. Simply a must-read forevery serious investor, risk manager, and just about everyone else.”
    —Michael Power, professor,London School of Economics and Political Science

    “David Martin knows risk and the active investor and his book proves it.”
    —Jerry Lieberman

    “This book is like having your own mentor to guide you throughrisk management decisions.”
    —William Rhodes, Chairman, Citigroup and Citibank

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From the Publisher

Master the most important investing skill of all—DECISION MAKING“De-risking your investmentsrequires knowing that there ismuch you don’t know.”–David X MartinRisk exists because of one simple fact:Decisions are always based on incompleteinformation. Therefore, to meet your investmentgoals over the long term, you mustlearn to manage the...

David X Martin is senior vice president for AllianceBernstein, which has more than $450 billion in assets under management. Formerly chief risk officer at AllianceBernstein, he also has held senior risk management positions at Citibank. Martin was founding chairman of the Investment Company Institute's (ICI) Risk Committee and ha...

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Format:HardcoverDimensions:288 pages, 9.3 × 6.4 × 1.04 inPublished:September 9, 2010Publisher:McGraw-Hill EducationLanguage:English

The following ISBNs are associated with this title:

ISBN - 10:0071743499

ISBN - 13:9780071743495

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