More Than You Know: Finding Financial Wisdom in Unconventional Places (Updated and Expanded)
The author is under the delusion that volatility,
is RISK. p 53
the author frequently talks about how stock turnover has increased greatly from the early 1970's to the present.
He doesn't seem to know that until 1975,
stock commissions were fixed at a very high price.
In 1975 deregulation occurred with commissions plunging,
also the bid/ask spread went from 12.5 cents on NY stocks
and 50 cents on NASDAQ stocks to 1-2 cents a share.
When I started ou ...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.
1 Process and Outcome in Investing
2 Investing - Profession or Business?
3 Frequency Versus Magnitude in Expected Value
5 Risk, Uncertainty and Prediction in Investing
9 Management Evaluation and the Investment Process
12 Emotion and Int ...more
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 ...more
The book is an opportunity to learn many things, but it could be structured better. ...more
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 :)
The main insight of Mauboussin’s work is that you will become a better investor with a deep ...more
Like all of the author’s writing, this book is filled with thought provoking views of the market. Drawing from a diverse cross section of fields, the author makes compelling cases for when markets are, and are not efficient, and the limits of classical finance views of markets. Some ideas I hope to remember:
1. While random chance should produce streaks, streaks are much more likely to occur when luck is layered on a degree of skill. Said another way, streaks are likely a good indica ...more
Investing is more about temperament than intelligence. Once you’ve established a foundation, learning, hard work, focus, patience and experience get you over the line.
You’ll be a better investor if you approach pro ...more
The book covers essential topics such as:
- Fundamental concepts in investing: Process vs. Outcome
- Frequency of correctness vs Magnitude of correctness
- A shift from Attribute- to Circumstance-based thinking
- The distinctions between Risk and Uncertainty
- Valuation depends on your time horizon
- 3 areas for careful consideration: Management's Leadership, Incentives, and Capital Allocation skills ...more
The author incorporate insight from Benoit Mandelbrot and Fractals, which are a natural phenomenon seen in the stock market and other aspects of life.
If you like investing or valuing companies, the book gives you a fresh perspective.
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