More Than You Know: Finding Financial Wisdom in Unconventional Places
One of the better essays is a discussion on Outcome vs. Process taken from Moneyball that now appears in several other books ...more
His sweeping discussion, from behaviorial finance/economics to biological Darwinism and choice, offers insight to investors that seek to understand the decision trees we subconsciously follow that affect our perception of risk/reward in an uncertain world.
Arguing for a multi-disciplinary app ...more
The author doesn't miss any FUNDAMENTAL point in investing. My personal favorites:
- Process and Outcome in Investing*
- Frequency Versus Magnitude
- Risk and Uncertainty
- Emotion and Decision Making
- The Hot Hand
* the whole chapter is on [...] - I only glanced at the site and new immediately that I had to buy this outstanding book
The book is an opportunity to learn many things, but it could be structured better.
Anyway this book serves a nice guidance for ur future ref/thinking. The author studied/look into many other areas when writing this book. Behavioral econs concepts are constantly applied. If you like the ideas from diverse areas, I think you will enjoy this :)
Below my key extracts:
o Investing based on Expected value, in turn, is the weighted-average value for a distribution of possible outcomes. You calculate it by multiplying the payoff (i.e., stock price) for a given outcome by the probability that the outcome materializes.
o Four attributes generally set this group apart from the majority of equity fund ma ...more
Mauboussin starts the collection with Berlin's metaphor between hedgehogs who know one big thing and foxes who know many little things. Mauboussin is most definitely a fox. The book spans topics from biology (ants and guppies) to psychology (healthy doses of behavioral economics) and finance (the issues with bell curves and the power law). The book is a collection of small essays built around metaphors or unconventional observations. The book reminds me in particu ...more
In this book Michael Mauboussin attempts precisely that - identify useful findings from statistics, biology, physics, network theory and information flows, mathematics, psychology, neuroscience and so on and describe in form of micro-lesson ...more
So, sure, there are interesting things in the book.
A good way to approach this book is in the form of multi-disciplinary learning; the book refreshes one's mind towards the various facets of investing and how it is not so much about the numbers.
Michael J. Mauboussin is Chief Investment Strategist at Legg Mason Capital Management. Prior to joining LMCM in 2004, Michael was a Managing Director and Chief U.S. Investment Strategist at Credit Suisse. Michael joined CS in 1992 as a packaged food industry analyst. He is a former president of the Consumer Analyst Group of New York and was repeatedly named to Institutional Investors All-America R...more