More than you know finding financial wisdom in unconventional places. Ryan brown, davis selected advisers michael mauboussin, credit suisse ellen carr, weaver c. It includes new charts and examples and reflects the latest academic research. Untangling skill and luck in business, sports, and. Financial thought leader michael mauboussin, chief investment strategist of legg mason capital management, explains why its getting harder. Also included in the interview are his thoughts on what separates great investors from average investors and how much of being a successful value investor is built into ones natural personality. This document was produced by and the opinions expressed are those of. The incredible shrinking universe of stocks cmg capital. Previously, he was director of research at bluemountain capital, head of global financial strategies at credit suisse, and chief investment strategist at legg mason capital management. Now updated to reflect current research and expanded to include new chapters on investment philosophy, psychology, and strategy and science as they pertain to money.
This section documents how much money companies have allocated. This document is distributed in switzerland by credit suisse ag, a swiss. Linkedin is the worlds largest business network, helping professionals like michael mauboussin discover inside connections to. Mauboussin is chief investment strategist at legg mason capital management.
Passively managed looking for easy games credit suisse. Before rejoining credit suisse, he was chief investment strategist at legg mason capital management from 20042012. Prior to joining lmcm in 2004, michael was a managing director and chief u. Mauboussin builds on the ideas of visionaries, including warren buffett and e.
Michael mauboussin, 51, is head of global financial strategies at credit suisse, as well as an author and newspaper columnist, an adjunct professor at columbia business school and chairman of the board of trustees of the santa fe institute, a private, nonprofit research and education center for interdisciplinary research. How passive investing shapes active management 052017 the incredible shrinking universe of stocks credit suisse 11152016 michael mauboussin. Previously, he was director of research at bluemountain capital, head of global financial strategies at credit suisse, and chief investment strategist at. Executives and investors commonly rely on their own experience and information in making forecasts. Wall street journal blackrocks rick rieder calls todays buyback boom an economic distortion created. Prior to rejoining cs in 20, he was chief investment strategist at legg mason capital management. After a few months, one of our technology analysts, charlie wolf, knocked on my door. Mauboussin is head of global financial strategies at credit suisse and an adjunct professor at columbia business school. Calculating return on invested capital shareholder forum. Is spending on buybacks coming at the expense of innovation. Michael mauboussin research papers from credit suisse full.
He is also an adjunct professor of finance at the columbia business school and chairman of the board of trustees at santa fe. The ten attributes of great fundamental investors michael j. He was previously the chief investment strategist at legg mason capital management. Mauboussin is head of consilient research at counterpoint global.
Columbia business school security analysis student lecture notes michael j. A paper by michael mauboussin and dave callahan of credit suisse iq versus rq link to paper provided at end of post explores the role of rationality in investment decisionmaking and its impact on success or failure. Measuring the moat updated version hurricane capital. Nov 02, 2016 credit suisses global financial strategies team has published an updated version of the report, measuring the moat. Michael mauboussin is currently the head of global financial strategies at credit suisse. Competitive advantage period cap is the time during which a company is expected to generate returns on incremental investment that exceed its cost of capital. Mauboussin, credit suisse first boston t is time to shift the emphasis of the debate about market efficiency. Our study provides theoretical and empirical evidence for a total payout dividends plus buybacks model of stock returns. Garry kasparov1 in the late 1990s, machine beat man in the game of chess. Mauboussin discusses the psychological and behavioral elements of investing, and why cognitive diversity is essential for your teams success. Untangling skill and luck in business, sports, and investing and think twice. Keith stanovich, a professor of applied psychology at the university of. Credit suisses global financial strategies team has published an updated version of the report, measuring the moat.
We are happy to discuss specific examples of where and how we are applying the. As you point out, 9% is what the market does over the long term. Financial thought leader michael mauboussin explains the important roles luck and skill play in investment success and how to harness both to your advantage. Michael mauboussin bio, books, papers, quotes, research.
Credit suisse first boston corporation equity researchamericas industry. Michael mauboussin is director of research at bluemountain capital management. Previously, he was chief investment strategist at legg mason capital management and worked as a packaged food industry analyst at credit suisse during 1992. Economic theory suggests that competitive forces will drive returns down to the cost of capital over time and perhaps below it. People who have information about an individual case rarely feel the need to know the statistics of the class to which the case belongs. Michael joined cs in 1992 as a packaged food industry analyst. Jul 01, 2016 view michael mauboussins professional profile on linkedin. Economic theory suggests that competitive forces will drive returns down to the cost of capital over time and perhaps below it for a period. Reflections on the ten attributes of great investors. Integrating the past to better anticipate the future, credit suisse global financial strategies, september 26, 2016. Michael mauboussin, head of global financial strategies at credit suisse and author of four books on investing, joined cnbcs mike santoli for. Michael mauboussin is a managing director and the head of global financial strategies at credit suisse.
Offering invaluable tools to better understand the concepts of choice and risk, more than you know is a unique blend of practical advice and sound theory, sampling from a wide variety of sources and disciplines. Michael mauboussin on differentiating smarts from decisionmaking skills. Michael mauboussin posted on august 5, 2016 august 5, 2016 by david shahrestani, cfa michael j. Mauboussin is the head of global financial strategies at credit suisse. Mauboussin is director of research at bluemountain capital management in new york. As they say in poker, if youve been in the game 30 minutes and you dont know who the patsy is, youre the patsy. We share some of his foundational work on the topic in the attached report. Macro perspective on the capital markets, economy, geopolitics, technology, and digital media. Michael mauboussincredit suisse research papers the big picture. Assessing the magnitude and sustainability of value creation sustainable value creation is of prime interest to investors who seek to anticipate expectations revisions. There has been a sharp fall in the number of listed stocks in the u. Prior to joining lmcm, he served as managing director and chief u. Mauboussin harvard business school press, 2003 examines one rather comprehensive way to formalize dcf. Integrating the past to better anticipate the future credit suisses global financial strategies team has published a new report, the base rate book.
We spent the first few months in classroom training and then rotated through more than a dozen departments, including various trading desks, equity research, investment banking, and operations. Charlie quinn 06, gardner, russo, and gardner rishi renjen, maverick capital jon salinas 08, plymouth lane capital. He is a former president of the consumer analyst group of new york and was repeatedly named to institutional investors allamerica research. Most academics and practitioners agree that markets are efficient by a reasonable take, for example, the earnings expectations game. I have asked michael mauboussin to ensure that we are focused on excellence in all areas of our investment process. View michael mauboussins professional profile on linkedin. Columbia business school security analysis student lecture.
Prior to joining bluemountain in july of 2017, he was a managing director and head of global financial strategies at credit suisse. Boosting the momentum of sustainability reporting 52 andrew park and curtis ravenel, bloomberg lp. Mauboussin, dan callahan, and darius majd, the base rate book. Prior to joining bluemountain, he was head of global financial strategies at credit suisse and chief investment strategist at legg mason capital management. Wall street investment strategist, author, professor. Expectations investing, by alfred rappaport and michael j. Prior to joining managing director and head of global financial strategies at credit suisse. Wall street journal blackrocks rick rieder calls todays buyback boom an economic distortion created by the fed. One of my favorite resources for sage advise on investing strategy is michael j. This is precisely what credit suisse holt does through cash flow return on. Jun 24, 2011 financial thought leader michael mauboussin, chief investment strategist of legg mason capital management, explains why its getting harder to beat the market and why doing less can actually make. Michael mauboussin cfa institute enterprising investor.
Mauboussin born february 1964 is head of consilient research at counterpoint global. Individual decisions can be badly thought through, and yet be successful, or exceedingly well thought through, but be unsuccessful, because the recognized possibility of failure in fact occurs. How to compare effectively is one of michael s current areas of emphasis. A website for the success equation, a book by michael j. Previously, he was director of research at bluemountain capital and head of global financial strategies at credit suisse, where he advised clients on valuation and portfolio positioning, capital markets theory, competitive strategy analysis, and decision making. Check out the various simulations, game and other content below.
Value investing program student information session. If you didnt know who you were professionally, the exposure to each of. Mauboussin is managing director and head of global financial strategies at credit suisse, where he advises clients on valuation and portfolio positioning, capital markets theory, competitive strategy analysis, and decisionmaking. Jan 07, 2015 michael mauboussin is director of research at bluemountain capital management. Credit suisses michael mauboussin on spotting market. Successful active investing requires a forecast that is different than what the market is discounting. Michael mauboussin research papers from credit suisse. Jan 19, 2017 michael mauboussin, head of global financial strategies at credit suisse and author of four books on investing, joined cnbcs mike santoli for an exclusive strategy session on how investors can.
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