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. All of our prior podcasts are available on iTunes.
Next week I’ll speak with Jack Brennan, former Vanguard chief executive officer and current chairman emeritus.
• 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
Michael Mauboussin at Credit Suisse