1986
Alfred Rappaport's book Creating Shareholder Value was published in 1986, and Michael Mauboussin read it soon afterward.
“That book came out in 1986. So I read it shortly after it came out.”
Topic
Michael Mauboussin
13 facts from 1 episode, in date order. These are what speakers said on the shows, each linked to the moment it was said. They aren't independently verified.
1990s
Mauboussin says he took the paradox of skill from Stephen Jay Gould's mid-1990s book Full House.
“I got this idea from Stephen Jay Gould in his book called Full House from the mid-1990s.”
1993
Michael Mauboussin began teaching security analysis at Columbia Business School in the summer of 1993.
“So I started doing that in the summer of 1993. So this year, 2022 will be my 30th year of doing this in a row”
2001
Expectations Investing was first published on September 10, 2001, during a bear market after the dot-com boom.
“The book came out September 10th, 2001. Oh. So you can imagine a worse time preceding, obviously, a national tragedy”
2001-2021
Mauboussin says that excluding Microsoft, the other nine of the top ten companies by market value in 2001 had collectively lost $460 billion in market capitalization by 2021.
“Turns out their market capitalizations are down $460 billion in the 20-year period.”
2002
The first version of Michael Mauboussin's paper Measuring the Moat was published in 2002.
“the very first version of measuring the mode came out in 2002.”
2009
Michael Mauboussin wrote the book Think Twice, about decision-making, in 2009, and its chapter on luck and skill led to a later book on untangling the two.
“And then I wrote a book called Think Twice in 2009. And Think Twice is about decision-making.”
2021
Mauboussin says that for Russell 3000 companies, intangible investment was projected at about $2 trillion in 2021 versus about $1 trillion of capital expenditure, after both were roughly $630-640 billion in 2001.
“if the projections sort of hold out, it'll be the case that intangible investments now are $2 trillion and CapEx is $1 trillion.”
Undated
Mauboussin defines competitive advantage by two tests: returns above the cost of capital (absolute) and returns better than competitors (relative).
“The absolute one is you should have returns today or returns that are promised to be above your cost of capital, right?”
Undated
Mauboussin says low-cost producers tend to have low margins and high capital velocity, while differentiated companies have high margins and low capital velocity.
“the simple model is low cost producers tend to have low margins and high capital velocity.”
Undated
Mauboussin says that in an academic study of about 30,000 venture deals, the median deal earned nothing while the tails of the distribution were extreme.
“Which is the median venture deal earns nothing, right? And many venture deals lose money, but the tails are super extreme.”
Undated
Mauboussin says about 25% of buyout deals in the study lost money, and buyout returns were more skewed than public-market returns.
“And then buyouts were a little bit, like 25% lost money, but most of them kind of did okay, but a little bit more right, more skewed than the public markets.”
Undated
Mauboussin says venture capital shows persistence of performance, while public equity markets show very limited persistence.
“And so it turns out if you look at venture capital in particular, by the way, in public equity markets, very limited persistence.”
Episodes