Category Archive

Several years ago, Michael Mauboussin and his colleagues wrote a great paper titled – Corporate Longevity – Index Turnover and Corporate Performance, which provides some great insights on why some companies manage to successfully survive over time while others capitulate. Here’s an excerpt from the paper: Why Companies Die Imagine … Read More

In Michael Mauboussin’s book – More Than You Know – he shares a great story about Paul DePodesta and Michael Lewis at a Vegas casino and the lessons investors can learn about getting positive expected value on your side. Here’s an excerpt from the book: Hit Me Paul DePodesta, a … Read More

Michael Mauboussin recently wrote an article in The Financial Times titled – Why value investing still works in markets, in which he discusses why value investing i.e., finding large gaps between price and value, still works today as well as it ever has. The problem as he sees it is … Read More

Michael Mauboussin recently released a paper titled – One Job: Expectations and the Role of Intangible Investments in which he discusses the impact of intangibles in company valuation. The paper focuses on three aspects of intangibles – measurement, characteristics, and the implications for investors. Here’s an excerpt from the paper: … Read More

During his recent interview on the Invest Like The Best Podcast, Michael Mauboussin was asked his advice for young investors who want to get started in the market. Here’s his response: Mauboussin: I think one of the answers to that is, if you’re serious about making a long-term career, is … Read More

Michael Mauboussin recently released his latest report on – “Public to Private Equity in the United States: A Long-Term Look.” A multi-decade look at public equities, buyouts, and venture capital in the U.S. Over the past quarter century there has been a marked shift in U.S. equities from public markets … Read More

In his recent interview with Sean Delaney on the What Got You There podcast, Michael Mauboussin discusses behavioral economics and makes the point that human nature, as it relates to investing, is unlikely to change anytime soon. Here’s an excerpt from the interview: If you go back and circle around … Read More

In Michael Mauboussin’s book, Think Twice: Harnessing the Power of Counterintuition, there’s a great passage on how investors can make better investment decisions using what he terms a ‘premortem’. Here’s an excerpt from the book: Many people are familiar with a postmortem, an analysis of a decision after the outcome is … Read More

Michael Mauboussin recently wrote a paper titled – The Math of Value and Growth in which he discusses how valuations change as assumptions about growth, return on incremental invested capital, and the discount rate vary. These changes are discussed in terms of P/E multiples and discounted cash flow models which … Read More

Yesterday we provided an excerpt from a Stanley Drukenmiller interview in which he discussed the importance of sizing your position in an investment, when you think you’re right. Following on that theme, back in 2006 Michael Mauboussin wrote a great paper titled – Size Matters, in which he also discussed … Read More

Michael Mauboussin recently wrote a great paper titled – Dispersion and Alpha Conversion, How Dispersion Creates the Opportunity to Express Skill, in which he discusses the role that dispersion plays in creating the opportunity for investors to express skill. Here’s an excerpt from the paper: Napoleon Bonaparte purportedly said, “Ability … Read More

Here’s a great interview with Michael Mauboussin on the Value Investing with Legends podcast. During the interview Michael provides some great insights on how stress affects investment decisions and how some people get addicted to drugs, to get over stress and join inpatient drug rehab centers. Here’s an excerpt from … Read More

Here’s a great interview with Patrick O’Shaughnessy and Michael Mauboussin on ways to improve processes at Capital Camp 2019. During the interview Mauboussin discusses one reason why many investors underperform saying: “Many people sort of think that they’re doing one thing but if you watch… you kind of roll back … Read More

Michael Mauboussin recently tweeted an awesome collection of Ben Graham’s rediscovered lecture series – Current Problems in Security Analysis (September 1946-February 1947). It’s a must read for all investors. Here’s a link to the tweet below, or you can find them at The Heilbrunn Centre for Graham and Dodd investing … Read More

We’ve just been listening to Michael Mauboussin’s interview on the Jim Rutt Podcast. During the interview he spoke about the fact that while a number of Ben Graham’s methods have become dated, there is one overarching investing lesson. Here’s an excerpt from the interview: Michael: So I just tried to … Read More

In 2015, Michael Mauboussin wrote a great paper titled – Triple Crown Teachings, Three Takeaways from the Quest for the Elusive Feat. In the paper he discusses how the quest to win the prestigious Triple Crown provides three great lessons for investors. Here are some excerpts from the paper: “When … Read More

In Michael Mauboussin’s great research paper titled – Who Is On The Other Side, he provides five key insights into how investors can effectively take advantage of behavioral inefficiencies, which he listed as: Be Mindful Of Sentiment And Overextrapolation Rely On Valuation Lean On Facts Timing Or, Listen To Benjamin … Read More