Michael Mauboussin began his career at Drexel Burnham Lambert in the 1980s through what he describes as a random stroke of good luck. He worked closely with Bill Miller, former chairman of Legg Mason Capital Management, and is now head of global financial strategies at Credit Suisse. He is also an adjunct at Columbia University School of Business.

The role of luck and randomness in the investing process has fascinated Mauboussin for years. Some of his earlier work looked at problems of cognitive bias and why investors find it so difficult to change their minds, even when presented with overwhelming evidence of error and failure. He is the author of numerous books, most recently “The Success Equation: Untangling Skill and Luck in Business, Sports, and Investing.”  You can listen to the full interview with Mauboussin here or below; You can download an MP3 of the podcast here.

This is the fourth episode in our new series “Masters in Business” that I’ve created with Bloomberg Radio and Bloomberg View. You can listen to the show on Bloomberg AM on weekends and nationally on Sirius XM channel 119. Our previous interviews are here.

Next week I’ll speak with Jack Brennan, former Vanguard chief executive officer and current chairman emeritus.

 

 

Books:

The Success Equation: Untangling Skill and Luck in Business, Sports, and Investing
More Than You Know: Finding Financial Wisdom in Unconventional Places
Think Twice: Harnessing the Power of Counterintuition
Expectations Investing: Reading Stock Prices for Better Returns

See also:
Michael Mauboussin at Credit Suisse

Category: Cognitive Foibles, Media

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One Response to “Masters in Business: Michael Mauboussin”

  1. praxeologue says:

    I enjoyed the interview but disappointing for such a data focussed guy to give Bill Miller such an easy pass. He was heavy in financials and related without appreciating the risk and unwound all and more of all his outperformance before the world authorities manned the pumps. Would you give a guy who happened to be, say, heavily overweight gold the last decade such an easy ride when trying to explain his prior outperformance as skill?

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