A thoughtful investment process contemplates both probability and payoffs and carefully considers where the consensus - as revealed by a price -… — Michael Mauboussin Copy Share Image
Edge also implies what Ben Graham....called a margin of safety. You have a margin of safety when you buy an asset at a price… — Michael Mauboussin Copy Share Image
Humans have a strong desire to be part of a group. That desire makes us susceptible to fads, fashions, and idea contagions. — Michael Mauboussin Copy Share Image
A thoughtful investment process contemplates both probability and payoffs and carefully considers where the consensus - as revealed by a price - may be… — Michael Mauboussin Copy Share Image
Onlookers frequently confuse edge with style...Edge means generating excess returns because of mispricing. Style suggests being in the right place at the right time.… — Michael Mauboussin Copy Share Image
We have no control over outcomes, but we can control the process. Of course, outcomes matter, but by focusing our attention on process, we… — Michael Mauboussin Copy Share Image
Emphasising what's in your control allows you to adopt an attitude of equanimity toward luck. You've done what you can, and from there you… — Michael Mauboussin Copy Share Image
People are, by and large, quite poor at judging correct absolute values but are astute about determining relative values. Psychologists call this coherent arbitrariness,… — Michael Mauboussin Copy Share Image
At the core of an analytical edge is an ability to systematically distinguish between fundamentals and expectations. Fundamentals are a well thought out distribution… — Michael Mauboussin Copy Share Image
