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?
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
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
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
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 Expert Squeeze And Man Versus Machine
Here’s a great excerpt from Michael Mauboussin’s book – Think Twice: Harnessing the Power of Counterintuition, in which Mauboussin is discussing what he calls the expert squeeze, and when is the best time to utilize man versus machine, saying: As networks harness the wisdom of crowds and computing power grows, … Read More
Michael Mauboussin: The Five Principles of Good Capital Allocation
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: 12 Books That Every Investor Should Read
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 … Read More
Michael Mauboussin: Five Common Mistakes That Investors Make
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 … Read More
Michael Mauboussin: ‘Procyclicality’- How It Drives Market Cycles To Extremes
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
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
Michael Mauboussin: What Separates Great Investors From Average Investors
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 … Read More
Michael Mauboussin: What Is Most Misunderstood About Value Investing Today
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 … Read More
Michael Mauboussin – Here Is The Best Way To Compare Investment Opportunities
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 … Read More
Michael Mauboussin – Share Buybacks Are A Better Alternative For Shareholders Than Dividends
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 … Read More
The Definitive Guide On Identifying Companies With An Economic Moat – Warren Buffett
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 … Read More
Successful Investing Means Living With Discomfort – Montier, Mauboussin
There is no question that the life of a successful investor can be an uncomfortable and solitary one. Hence the reason why so many investors underperform by picking the ‘good news’ stocks and following the crowd. For some reason we find it easier to accept a mistake if we invest … Read More
Michael Mauboussin: The Incredible Shrinking Universe of Stocks – The Causes and Consequences of Fewer U.S. Equities
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 … Read More
Michael Mauboussin – Common Mistakes Even Smart Investors Make
(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 … Read More
Michael Mauboussin – What Did Abe Lincoln & Baboons Teach Us About Investing?
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 … Read More