This week on Masters in Business I sit with Michael Mauboussin, head of Global Financial Strategies at Credit Suisse. He began his career at Drexel Burnham Lambert in the 1980s – we discuss the “random stroke of good luck” that led to that job offer. Previously, he worked closely with Bill Miller, former chairman of Legg Mason Capital Management. Since 1993, he has been an adjunct at Columbia University’s School of Business.
Mauboussin was our fourth guest about 100 episodes ago; we cover new ground in this interview (which is hopefully an improvement on my first attempt).
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 on investing, most recently “The Success Equation: Untangling Skill and Luck in Business, Sports, and Investing.”
You can hear the full interview, including the podcast extras, below, or by downloading the podcast at iTunes, Soundcloud or Bloomberg. All of our earlier podcasts can be found at iTunes, Soundcloud and Bloomberg. (The show broadcasts all weekend on Bloomberg radio and SiriuxXM, at Friday at 9pm, Saturdays at 10am, 6pm, and 11pm, and Sundays at 3am).
Next week I’ll speak with Jeff Gramm, son of Senator Phil Gramm, and author of Dear Chairman: Boardroom Battles and the Rise of Shareholder Activism.