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: Dispersion Creates the Opportunity to Express Skill
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
Michael Mauboussin: Stress Shortens Investors Time Horizons
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
Michael Mauboussin: Many Investors Are Not Congruent With What They’re Ultimately Trying To Do
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: 10 Rediscovered Lectures From Benjamin Graham
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
Michael Mauboussin: Ben Graham’s Overarching Investing Lesson
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
Michael Mauboussin: 3 Lessons Investors Can Learn From The Quest To Win The Triple Crown
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
Reframe Value Versus Growth – It’s Value Creation: Buying Things For Less Than They’re Worth
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