Michael Mauboussin: The Math of Value and Growth

Johnny HopkinsMichael Mauboussin1 Comment

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

Michael Mauboussin: Many Investors Are Not Congruent With What They’re Ultimately Trying To Do

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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

Reframe Value Versus Growth – It’s Value Creation: Buying Things For Less Than They’re Worth

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During his recent interview with Tobias, Michael Mauboussin, the Director of Research at Blue Mountain Capital Management, discusses why the debate over value versus growth should be reframed to value creation – buying things for less than they’re worth. Here’s an excerpt from that interview: Tobias Carlisle: When we discussed … Read More

How Should We Calculate The Cost Of Capital?

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During his recent interview with Tobias, Michael Mauboussin, the Director of Research at Blue Mountain Capital Management, discusses how we should consider calculating the cost of capital. Here’s an excerpt from that interview: Tobias Carlisle: There’s a few questions that fall out of that for me. When you’re thinking about … Read More

The 3 Most Powerful Ideas From Expectations Investing

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During his recent interview with Tobias, Michael Mauboussin, the Director of Research at Blue Mountain Capital Management, discusses the three most powerful ideas from Expectations Investing. Here’s an excerpt from the interview: Tobias Carlisle: So much the better for chatting with you right now. I can’t tell you how much … Read More

(Ep.32) The Acquirers Podcast: Michael Mauboussin – Big Decisions, Luck, Skill, Complexity And Success In Investing

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Summary In this episode of The Acquirer’s Podcast Tobias chats with Michael Mauboussin. He’s the Director of Research at Blue Mountain Capital Management. He’s been an adjunct professor at Columbia for more than 25 years, earning multiple awards for doing so. He’s the Chair of the board of trustees of the Santa Fe … Read More

Michael Mauboussin: 5 Ways That Investors Can Effectively Take Advantage Of Behavioral Inefficiencies

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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

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. … 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 … 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 … Read More