Michael Mauboussin: The Five Principles of Good Capital Allocation

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We’ve just been re-reading Michael Mauboussin’s great paper on capital allocation titled – Capital Allocation Evidence, Analytical Methods, and Assessment Guidance. At the end of the document Mauboussin provides his five principles of good capital allocation and his conclusions. Here’s an excerpt from the paper: Five Principles of Capital Allocation. In their book, The Value Imperative, James McTaggart, Peter Kontes, … Read More

Michael Mauboussin: 12 Books That Every Investor Should Read

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We recently started a series called – Superinvestors: Books That Every Investor Should Read. So far we’ve provided the book recommendations from: Charles Munger: 32 Books That Every Investor Should Read Seth Klarman: 32 Books That Every Investor Should Read Warren Buffett: 35 Books That Every Investor Should Read Bill Ackman: 11 Books That Every Investor Should Read Joel Greenblatt: … Read More

Michael Mauboussin: Five Common Mistakes That Investors Make

Johnny HopkinsInvesting Strategy, Michael MauboussinLeave a Comment

Here’s a great video by Michael Mauboussin in which he highlights five common mistakes that investors make. These are: 1. “First is it is really important to try to minimize your own mistakes.” 2. “The second big mistake is the failure to understand regression toward the mean.” 3. “The third big problem is overconfidence.” 4. “The fourth big problem is … Read More

Michael Mauboussin: ‘Procyclicality’- How It Drives Market Cycles To Extremes

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Michael Mauboussin recently released a great paper called – Procyclicality And Its Extremes in which he discusses ‘Procyclicality’ and how it drives market cycles to extremes. He also provides indicators of procyclicality and methods for coping with, and profiting from it. Here is an excerpt from that paper: In economics, procyclical variables move in the same direction as the overall economy: … Read More

Michael Mauboussin: The Babe Ruth Effect Generates More Successful Returns

Johnny HopkinsInvesting Strategy, Michael Mauboussin1 Comment

Here’s a great lesson from Michael Mauboussin’s book – More Than You Know. Mauboussin highlights the point that when it comes to successful investing it’s not about the frequency of correctness that matters in stock picking, it’s the magnitude of correctness that matters. This is called the Babe Ruth Effect. Here’s an excerpt from the book: Batting with the Babe Hang around a brokerage … Read More

Michael Mauboussin: What Separates Great Investors From Average Investors

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Here’s a great interview with Michael Mauboussin in the latest Graham & Doddsville newsletter in which he discusses his insights on his value investing strategy and process. Also included in the interview are his thoughts on what separates great investors from average investors and how much of being a successful value investor is built into ones natural personality. Here is an … Read More

Michael Mauboussin: What Is Most Misunderstood About Value Investing Today

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Here’s 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. Part of the interview includes Mauboussin’s thoughts on what is most misunderstood about the discipline of value investing today? Here’s an excerpt from that interview: Michael Mauboussin is currently the Director of Research … Read More

Michael Mauboussin – Here Is The Best Way To Compare Investment Opportunities

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One of the problems that we face as investors is making comparisons between investment opportunities. Similarly, company management has to make comparisons between strategic merger and acquisition opportunities. So the question is, what is the best way to do this? One answer can be found in Michael Mauboussin’s recent paper titled – How Well Do You Compare. The paper highlights how … Read More

Michael Mauboussin – Share Buybacks Are A Better Alternative For Shareholders Than Dividends

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There is much debate about whether companies should increase shareholder value by repurchasing their shares or returning excess cash to shareholders by way of dividends. One of the best papers written on the subject is Share Repurchase From All Angles, by Michael Mauboussin where he makes the case for share buy-backs over dividends as the best method of adding value for … Read More

The Definitive Guide On Identifying Companies With An Economic Moat – Warren Buffett

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With so much talk about a company’s economic moat it’s important to recognize how to clearly identify a moat, understand how wide it is, and figure out how long it will remain in place. One of the best papers ever written on the subject is Michael Mauboussin’s – Measuring the Moat, Assessing the Magnitude and Sustainability of Value Creation. The paper … Read More

Michael Mauboussin: The Incredible Shrinking Universe of Stocks – The Causes and Consequences of Fewer U.S. Equities

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Michael Mauboussin and the team at Credit Suisse Global Financial Strategies recently published a report on The Incredible Shrinking Universe of Stocks – The Causes and Consequences of Fewer U.S. Equities. It’s a fascinating read. The report states: There has been a sharp fall in the number of listed stocks in the U.S. since 1996. While listings fell by roughly 50 percent … Read More

Michael Mauboussin – Common Mistakes Even Smart Investors Make

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(Image Source, YouTube.com, [Accessed 5 Mar, 2017]) One of our favorite investors here at The Acquirer’s Multiple – Stock Screener is Michael Mauboussin. Mauboussin is the Managing Director and Head of Global Financial Strategies at Credit Suisse. He’s also written three books, he’s been an adjunct professor of finance at Columbia Business School since 1993, and received the Dean’s Award for Teaching Excellence in … Read More

Michael Mauboussin – What Did Abe Lincoln & Baboons Teach Us About Investing?

Johnny HopkinsMichael MauboussinLeave a Comment

One of our favorite investors here at The Acquirer’s Multiple is Michael Mauboussin. Mauboussin is the Managing Director and Head of Global Financial Strategies at Credit Suisse. He’s also written three books, he’s been an adjunct professor of finance at Columbia Business School since 1993, and received the Dean’s Award for Teaching Excellence in 2009. One of my favorite Mauboussin talks was one titled, … Read More