Michael Mauboussin talks with Consuelo Mack about the difference between skill and luck in investing. Mauboussin is CIO at Legg Mason and a Professor at Columbia Business School. Michael Mauboussin is considered an expert in the field of behavioral finance and has some famous books on the topic including, Think Twice: Harnessing the Power of Counterintuition and More More Than You Know: Finding Financial Wisdom in Unconventional Places.
In this interview talks about his latest book, The Success Equation: Untangling Skill and Luck in Business, Sports, and Investing. Mauboussin starts out the interview talking about the famous Baseball player, Ted Williams, and how it applies outside of sports. Mauboussin asks why no one was able to replicate the success of Ted Williams. He believes that it is because everyone has gotten a bit better, which he calls 'the paradox of skill.'
The video is embedded below: