Save it to your desktop, read it on your tablet, or email to your colleagues. I have asked michael mauboussin to ensure that we are focused on excellence in all areas of our investment process. We share some of his foundational work on the topic in the attached report. Michael mauboussin reflects on thirty years of markets. Reflections on the ten attributes of great investors timeless investor. Michael mauboussin explaining the wisdom of crowds and applying the logic of diversity pdf. We are happy to discuss specific examples of where and how we are applying the. Michael mauboussin discussed his book, more than you know. Mauboussin concludes the book by summarizing an effective action plan to put it simply, mauboussin admonishes us to think twice before we make a serious decision to ensure we dont fall victim to any of these pernicious errors. Michael mauboussin research papers from credit suisse.
He offers concrete suggestions for how to put these insights to work to your advantage in business and other dimensions of. Michael mauboussin on his book, more than you know moi. How do we know which of our successes and failures can be attributed to either skill or luck. Michael mauboussin resource page the big picture barry ritholtz. Todays conversation is a mix of several of his research pieces, but focuses on the sources of alpha. Thirty years 3 background my first job was as a member of a training program at drexel burnham lambert. Michael mauboussin s message in more than you know. More than you know finding financial wisdom in unconventional places. Prior to joining lmcm in 2004, michael was a managing director and chief us investment strategist at credit suisse. Mauboussin is chief investment strategist at legg mason capital management.
When you say sports, i dont know if you mean sports team management, like gms or mihaljevic. Expectations investing michael mauboussin and alfred. Michael mauboussin the four sources of alpha invest. Michael mauboussincredit suisse research papers the big. The trouble with earnings and priceearnings multiples fin. Provided the decision rules of investors are diverse even if they. Johnny hopkins september 25, 2016 michael mauboussin.
The base rate book 6 lovallo, clarke, and camerer created a matrix with the columns representing the. Take a look at exhibit 2 below, which considers the factors that. Finding financial wisdom in unconventional places updated and expanded columbia business school publishing. In think twice, michael mauboussin shows you how to recognizeand avoidcommon mental missteps, including. Harnessing the power of counterintuition as want to read. Mauboussin is director of research at bluemountain capital management and an adjunct professor at columbia business school in new york city. We spent the first few months in classroom training and. Prior to joining counterpoint global in january 2020, he was director of research at bluemountain capital management in new york. Individual decisions can be badly thought through, and yet be successful, or exceedingly well thought through, but be unsuccessful, because the recognized possibility of failure in fact occurs. Michael mauboussin research papers from credit suisse full. The book is a quick read, and the core concepts are relatively straightforward to apply, especially for. We wont get far with compelling anecdotes and metaphors.
In this engaging book, mauboussin shows us how to recognize and avoid common mental missteps. Market is still a useful way to think about markets, but his extreme mood swings dont happen at random, theyre caused by a lack of diversity. How i got the job is a funny story, which i recount in the success equation. Measuring the moat assessing the magnitude and sustainability of value creation authors michael j. Michael mauboussin refers to the concept of charlie mungers. Michael joined cs in 1992 as a packaged food industry analyst.
Credit suisses michael mauboussin explains how investors can. Click here to download the interview with michael mauboussin as pdf. In think twice, now in paperback, michael mauboussin argues that we often fall victim to simplified mental routines that prevent us from coping with the complex realities inherent in important judgment calls. Prior to joining lmcm in 2004, michael was a managing director and chief u. Michael mauboussin is currently the director of research at bluemountain capital management.
Im a big fan of michael mauboussin s work and this was generally a pretty good book that was both enjoyable and thought provoking. Competitive advantage period cap is the time during which a company is expected to generate returns on incremental investment that exceed its cost of capital. Finding financial wisdom in unconventional places updated and expanded columbia business school publishing mauboussin, michael on. Luck plays a much greater role in shortterm investment results than many investors may think. Im referring more to top athletes and how they approach their craft. Michael mauboussin on intuition, technology, and making better decisions the knowledge project ep. The quest for the triple crown of horse racing offers three important lessons for an investment organization. Bluemountain investment research what does an evebitda. If there is a major question about markets and investing, michael has usually written one of the best pieces of research on that topic. Top articles and videos about michaelmauboussin on pocket. He mentioned that he played a lot of poker when he was young, became pretty good at it, and made some money.
Michael serves as director of research of bluemountain capital management. Longterm investing in a shortterm world aberdeen investment. Michael mauboussin on inefficiencies in equity markets. Michael jacques mauboussin is the chief investment strategist at leggmason. You have often explained the benefits of input diversity can you tell us about your own sources of information. Mauboussin s own colleague bill miller faced this same perception cycle, and emerged with a halo in 2009. Michael mauboussin bio, books, papers, quotes, research. Finding financial wisdom in unconventional places is that we need an interdisciplinary toolkit to give us the diversity to make good decisions. They cannot be named, but without their input this book would not exist. Finding financial wisdom in unconventional places, at moi globals meettheauthor summer forum 2019. How to compare effectively is one of michael s current areas of emphasis.
Get the entire 10part series on walter schloss in pdf. The incredible shrinking universe of stocks 3 in the past, economists considered frequent initial public offerings ipos to be a strength of the u. Michael mauboussin on his book, more than you know confidential 4 mauboussin. The ten attributes of great fundamental investors michael j. Greene, market diversity and the performance of actively managed. Before rejoining credit suisse, he was chief investment. Diversity breakdowns, which can happen for sociological as well as technical reasons, lead to extremes. My guest this week for the third time is michael mauboussin. That is the question that investment strategist michael j.
Mauboussin is head of consilient research at counterpoint global. This is not diversity in groups, but diversity in thinking. Heres a great interview at forbes in which kevin harris from sumzero chats with michael mauboussin about value investing, active management, and the state of the market. It was easy to read and didnt overly belabor the point. Counterpoint global insights bin there, done that how to reduce the sources of forecasting erroro consilient observer march 19, 2020 introduction. In his provocative new book, michael mauboussin untangles the intricate strands of skill and luck, defines them, and provides useful frameworks for analyzing their relative contributions. Untangling skill and luck in business, sports, and. In the past 30 years, we have learned a substantial amount about how our minds work, the value of diversity, and the role of training. Pay attention to the results of the past, recognize the value of diversity, and value probability x price. Get the entire 10part series on timeless reading in pdf. S and the strong listings around the world have created what is now a large gap. Alpha and the paradox of skill 2 introduction jim rutt, formerly both the chief executive officer of network solutions and chairman of the board at the santa fe institute, recently gave a talk about his experience in business. Mauboussin the trouble with earnings and priceearnings multiples wall street is a world filled with rules of thumb.
Michael mauboussin explaining the wisdom of crowds and applying the logic of diversity. Michael mauboussin on the success equation knowledge. Part of the interview includes mauboussin s thoughts on what is most misunderstood about the discipline of value investing today. Before joining bluemountain, he was a managing director and head of global financial strategies at credit suisse. Reflections on the ten attributes of great investors. It is a widely used and misused approach to valuation. Check out the various simulations, game and other content below.
Bluemountain investment research december 20, 2017 how well do you compare. Michael mauboussin columbia business school directory. Among the suggestions is a small team with diverse members with a steadfast focus on their investment process. Forty years ago all my finance professors at the wharton school taught me that the market was efficient and fully rational. Michael mauboussin of legg mason capital management here is the link to the full essay. Economic theory suggests that competitive forces will drive returns down to the cost of capital over time and perhaps below it. Michael mauboussin, one of wall streets most creative and influ. Evidence, analytical methods, and assessment guidance. In his latest white paper michael mauboussin, managing director and head of global financial strategies at credit suisse, finds that mr. Michael mauboussin, head of global financial strategies at credit suisse, joins us again to discuss his recent paper, thirty years. I recently enjoyed a oneonone interview with michael mauboussin, head of global financial strategies at credit suisse, in his new york city office. Thank you all for not only your time, but also for your courage to share, at times very painful, experiences, with me.
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