|
|
|
 |
|
|
|
More Than You Know: Finding Financial Wisdom in Unconventional Places
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales rank 118,226
Customers rating (based on 52 reviews)
|
|
|
|
|
One of Wall Street's most creative and influential minds offers provocative new ways of thinking about the stock market, investing, and how we make decisions.
|
|
|
| Publisher | Columbia University Press | | Release date | 04/2006 | | Availability | | | Edition | Hardcover |
| |
|
|
|
|
|
|
Looking beyond the fundamentals: Legg Mason's ace strategist Michael J. Mauboussin believes you can make money by spotting situations where investors' expectations don't reflect the underlying value. (@ BusinessWeek)
Swimming With Guppies
: Draws investing wisdom from many disciplines, from cognitive science to fractal math (@ BusinessWeek)
|
|
|
|
 More Than You Know
This is an excellent read for the investment professional or individual that loves studying the markets and the behavior of investors. Mr. Mauboussin is able to take some very complex ideas and distills them down into easy to understand tables and graphs. The book is organized in such a way that you can read just the parts you are interested in or the entire body of work. Either way you can get something out of it.
 Original, Readable, Thought-Provoking, Excellent
When I started this book, I was a little nervous about a couple of things. First the format of short unrelated articles seemed like it would not be able to cohesively form the premise necessary for a full sized book. That actually may have been true. It's no ordinary book. Eventually I came to appreciate that the author was actually imparting quite a bit of diverse information in convenient sized chunks. This is in contrast to many popular books which seem to struggle to fill pages. The material was sometimes not exceptionally interesting, but usually it was. As I read the book my appreciation of it continued to grow. Many times I had to stop and go research fascinating topics the author brought to light. For example, I had to stop and write my own computer program to check out the fascinating St. Petersburg Paradox, something I'd never heard of until discovering it in this book. The theme of the book is that cross discipline miscellanea can be very educational to the investor and I appreciated this perspective as a generalist with broad interests. One disappointing thing about this book is that he never tells one how to invest; he tells one how *not* to invest. That, however, is a mark of integrity and quality in my opinion. He is confronting the truth that the real world is more full of unicorns than reliable get-rich-quick schemes. I learned from this book several pitfalls that I had never considered before. I knew investing was hard to do right. He really drives the point home.
belongs to the top 10 investment books
After reading this book, it went immediately into my personal list of the top 10 of investment books.
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.
Process and psychology play a big part in long-term investment success
This book is definitely an eye-opener. The author describes to readers how the process and psychology play an effect on our long-term results in investing. He says:
"Investment philosophy is important because it dictates how you should make decisions. A sloppy philosophy inevitably leads to poor long-term results. But even a good investment philosophy will not help you unless you combine it with discipline and patience. A quality investment philosophy is like a good diet: it only works if it is sensible over the long haul and you stick with it."
"But investors often make the critical mistake of assuming that good outcomes are the result of a good process that bad outcomes imply a bad process. Over the long haul, however, process dominates outcome. That's why a casino - "the house" - makes money over time."
I enjoyed reading Chapter 2, Investing - Profession or Business. The author evaluated why some money managers are able to beat the S&P 500. Academia concludes that those who beat the market are simply lucky. The author finds four attributes that set superior managers apart from the average:
* Turnover - their turnover is low
* Portfolio concentration - they hold small number of positions
* Investment style - they are value investors
* Geographic location - they are not from New York or Boston but from cities such as Chicago, Memphis, Omaha, and Baltimore
This is a good book that makes investors look in the mirror really carefully.
- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market
Growth and Distribution is unpredictable
1. What is crucial for investors is that distribution is robust in the face of significant economic change.
2. The population of vary large companies to small companies is unlike to vary much in the future.
3. Large companies represent a substantial percentage of GDP.
4. Median growth rates are stable across a large sample of public companies.
5. The fortune 50 companies represent 25 percent of GDP. They realized strong past growth and setup a potential investor-expectations mismatch.
6. Gibrats laws states that a firm's growth rate is independent of its size.
7. The growth for large companies often stalls. High growth rate in the first years suggest that acquisitions catapult many companies into the fortune 50.
8. Most companies follow and identifiable life cycle: substantial growth, high returns, growth deceleration, maturity, competitive equilibrium. Large companies tend to be mature companies in caught in competitive equilibrium.
9. Market valuation have little ability to sort out high future growth firms from low ones.
|
|
| | |
|
