Michael Maubossin: Reflections on the Ten Attributes of Great Investors

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First we list the full ten and some books he recommends followed by an excerpt from Michael Mauboussin

1. Be numerate (and understand accounting)

2. Understand value (the present value of free cash flow)

3. Properly assess strategy (or how a business makes money)

4. Compare effectively (expectations versus fundamentals)

5. Think probabilistically (there are few sure things)

6. Update your views effectively (beliefs are hypotheses to be tested, not treasures to be protected)

7. Beware of behavioral biases (minimizing constraints to good thinking)

8. Know the difference between information and influence

9. Position sizing (maximizing the payoff from edge)

10. Read (and keep an open mind).

Some Influential Books along the Journey

1980s

Michael E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors (New York: Free Press, 1980).

Robert Cialdini, Influence: The Psychology of Persuasion (New York: William Morrow, 1984).

Michael E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance (New York: Free Press, 1985).

Alfred Rappaport, Creating Shareholder Value: The New Standard for Business Performance (New York: Free Press, 1986).

Richard Dawkins, The Blind Watchmaker (New York: W.W. Norton & Company, 1986).

Max H. Bazerman, Judgment in Managerial Decision Making (New York: John Wiley & Sons, 1986).

1990s

Michael Rothschild, Bionomics: Economy as Ecosystem (New York: Henry Holt, 1990).

Tom Copeland, Tim Koller, and Jack Murrin, Valuation: Measuring and Managing the Value of Companies (New York: John Wiley & Sons, 1990).

G. Bennett Stewart III, The Quest for Value: A Guide for Senior Managers (New York: Harper Business, 1991).

Peter Bernstein, Capital Ideas: The Improbable Origins of Modern Wall Street (New York: John Wiley & Sons, 1992).

 M. Mitchel Waldrop, Complexity: The Emerging Science at the Edge of Order and Chaos (New York: Simon & Schuster, 1992).

Kevin Kelly, Out of Control: The Rise of Neo-Biological Civilization (New York: Addison Wesley, 1994).

Daniel C. Dennett, Darwin’s Dangerous Idea: Evolution and the Meanings of Life (New York: Simon & Schuster, 1995).

Peter Bernstein, Against the Gods: The Remarkable Story of Risk (New York: John Wiley & Sons, 1996).

Steven Pinker, How the Mind Works (New York: W.W. Norton & Company, 1997).

E.O. Wilson, Consilience: The Unity of Knowledge (New York, Alfred A. Knopf, 1998). Carl Shapiro and Hal R. Varian

Information Rules: A Strategic Guide to the Network Economy (Boston, MA: Harvard Business School Press, 1999).

2000s

Michael Lewis, Moneyball: The Art of Winning an Unfair Game (New York: W.W. Norton, 2003).

James Surowiecki, The Wisdom of Crowds: Why the Many Are Smarter than the Few and How Collective Wisdom Shapes Business, Economies, Societies, and Nations (New York: Random House, 2004).

amazon.com/Origin-Wealth-Remaking-Economics-Business/dp/1422121038/ref=as_li_bk_tl/?tag=valueinves08c-20&linkId=db206d30279c43a2b50ef7c6c5d03c4c&linkCode=ktl" target="_blank" rel="nofollow" data-amzn-ps-bm-keyword="Eric D. Beinhocker, The Origin of Wealth: Evolution, Complexity, and the Radical Remaking

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