More Than You Know: Finding Financial Wisdom in Unconventional Places (Updated and Expanded)

Michael J. Mauboussin

eISBN: 9780231513470

2007 (320 pages 20 illus. / 10 tables)

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Download Complete Book Download
(pages 1-352)
Complete Book Download (pages 1-352)

Download Table of Contents
(pages 9-16)
Table of Contents (pages 9-16)

Download Acknowledgments
(pages 17-20)
Acknowledgments (pages 17-20)

Download Introduction
(pages 21-24)
Introduction (pages 21-24)

Download Part 1: Investment Philosophy. Introduction
(pages 25-28)
Part 1: Investment Philosophy. Introduction (pages 25-28)

Download 1. Be the House: Process and Outcome in Investing
(pages 29-34)
1. Be the House: Process and Outcome in Investing (pages 29-34)

Download 2. Investing—Profession or Business? Thoughts on Beating the Market Index
(pages 35-42)
2. Investing—Profession or Business? Thoughts on Beating the Market Index (pages 35-42)

Download 3. The Babe Ruth Effect: Frequency Versus Magnitude in Expected Value
(pages 43-48)
3. The Babe Ruth Effect: Frequency Versus Magnitude in Expected Value (pages 43-48)

Download 4. Sound Theory for the Attribute Weary: The Importance of Circumstance-Based Categorization
(pages 49-54)
4. Sound Theory for the Attribute Weary: The Importance of Circumstance-Based Categorization (pages 49-54)

Download 5. Risky Business: Risk, Uncertainty, and Prediction in Investing
(pages 55-59)
5. Risky Business: Risk, Uncertainty, and Prediction in Investing (pages 55-59)

Download 6. Are You an Expert? Experts and Markets
(pages 60-65)
6. Are You an Expert? Experts and Markets (pages 60-65)

Download 7. The Hot Hand in Investing: What Streaks Tell Us About Perception, Probability, and Skill
(pages 66-71)
7. The Hot Hand in Investing: What Streaks Tell Us About Perception, Probability, and Skill (pages 66-71)

Download 8. Time Is on My Side: Myopic Loss Aversion and Portfolio Turnover
(pages 72-79)
8. Time Is on My Side: Myopic Loss Aversion and Portfolio Turnover (pages 72-79)

Download 9. The Low Down on the Top Brass: Management Evaluation and the Investment Process
(pages 80-86)
9. The Low Down on the Top Brass: Management Evaluation and the Investment Process (pages 80-86)

Download Part 2: Psychology of Investing. Introduction
(pages 87-90)
Part 2: Psychology of Investing. Introduction (pages 87-90)

Download 10. Good Morning, Let the Stress Begin: Linking Stress to Suboptimal Portfolio Management
(pages 91-96)
10. Good Morning, Let the Stress Begin: Linking Stress to Suboptimal Portfolio Management (pages 91-96)

Download 11. All I Really Need to Know I Learned at a Tupperware Party: What Tupperware Parties Teach You About Investing and Life
(pages 97-102)
11. All I Really Need to Know I Learned at a Tupperware Party: What Tupperware Parties Teach You About Investing and Life (pages 97-102)

Download 12. All Systems Go: Emotion and Intuition in Decision Making
(pages 103-108)
12. All Systems Go: Emotion and Intuition in Decision Making (pages 103-108)

Download 13. Guppy Love: The Role of Imitation in Markets
(pages 109-113)
13. Guppy Love: The Role of Imitation in Markets (pages 109-113)

Download 14. Beware of Behavioral Finance: Misuse of Behavioral Finance Can Lead to Bad Thinking
(pages 114-118)
14. Beware of Behavioral Finance: Misuse of Behavioral Finance Can Lead to Bad Thinking (pages 114-118)

Download 15. Raising Keynes: Long-Term Expectations, the El Farol Bar, and Kidding Yourself
(pages 119-123)
15. Raising Keynes: Long-Term Expectations, the El Farol Bar, and Kidding Yourself (pages 119-123)

Download 16. Right from the Gut: Investing with Naturalistic Decision Making
(pages 124-129)
16. Right from the Gut: Investing with Naturalistic Decision Making (pages 124-129)

Download 17. Weighted Watcher: What Did You Learn from the Last Survey?
(pages 130-136)
17. Weighted Watcher: What Did You Learn from the Last Survey? (pages 130-136)

Download Part 3: Innovation and Competitive Strategy. Introduction
(pages 137-140)
Part 3: Innovation and Competitive Strategy. Introduction (pages 137-140)

Download 18. The Wright Stuff: Why Innovation Is Inevitable
(pages 141-149)
18. The Wright Stuff: Why Innovation Is Inevitable (pages 141-149)

Download 19. Pruned for Performance: What Brain Development Teaches Us About Innovation
(pages 150-156)
19. Pruned for Performance: What Brain Development Teaches Us About Innovation (pages 150-156)

Download 20. Staying Ahead of the Curve: Linking Creative Destruction and Expectations
(pages 157-162)
20. Staying Ahead of the Curve: Linking Creative Destruction and Expectations (pages 157-162)

Download 21. Is There a Fly in Your Portfolio? What an Accelerating Rate of Industry Change Means for Investors
(pages 163-167)
21. Is There a Fly in Your Portfolio? What an Accelerating Rate of Industry Change Means for Investors (pages 163-167)

Download 22. All the Right Moves: How to Balance the Long Term with the Short Term
(pages 168-172)
22. All the Right Moves: How to Balance the Long Term with the Short Term (pages 168-172)

Download 23. Survival of the Fittest: Fitness Landscapes and Competitive Advantage
(pages 173-178)
23. Survival of the Fittest: Fitness Landscapes and Competitive Advantage (pages 173-178)

Download 24. You’ll Meet a Bad Fate If You Extrapolate: The Folly of Using Average P/Es
(pages 179-184)
24. You’ll Meet a Bad Fate If You Extrapolate: The Folly of Using Average P/Es (pages 179-184)

Download 25. I’ve Fallen and I Can’t Get Up: Mean Reversion and Turnarounds
(pages 185-190)
25. I’ve Fallen and I Can’t Get Up: Mean Reversion and Turnarounds (pages 185-190)

Download 26. Trench Cooperation: Considering Cooperation and Competition Through Game Theory
(pages 191-195)
26. Trench Cooperation: Considering Cooperation and Competition Through Game Theory (pages 191-195)

Download 27. Great (Growth) Expectations: On the Limits of Corporate Growth
(pages 196-204)
27. Great (Growth) Expectations: On the Limits of Corporate Growth (pages 196-204)

Download Part 4: Science and Complexity Theory. Introduction
(pages 205-206)
Part 4: Science and Complexity Theory. Introduction (pages 205-206)

Download 28. Diversify Your Mind: Thoughts on Organizing for Investing Success
(pages 207-212)
28. Diversify Your Mind: Thoughts on Organizing for Investing Success (pages 207-212)

Download 29. From Honey to Money: The Wisdom and Whims of the Collective
(pages 213-217)
29. From Honey to Money: The Wisdom and Whims of the Collective (pages 213-217)

Download 30. Vox Populi: Using the Collective to Find, Solve, and Predict
(pages 218-222)
30. Vox Populi: Using the Collective to Find, Solve, and Predict (pages 218-222)

Download 31. A Tail of Two Worlds: Fat Tails and Investing
(pages 223-228)
31. A Tail of Two Worlds: Fat Tails and Investing (pages 223-228)

Download 32. Integrating the Outliers: Two Lessons from the St. Petersburg Paradox
(pages 229-235)
32. Integrating the Outliers: Two Lessons from the St. Petersburg Paradox (pages 229-235)

Download 33. The Janitor’s Dream: Why Listening to Individuals Can Be Hazardous to Your Wealth
(pages 236-240)
33. The Janitor’s Dream: Why Listening to Individuals Can Be Hazardous to Your Wealth (pages 236-240)

Download 34. Chasing Laplace’s Demon: The Role of Cause and Effect in Markets
(pages 241-248)
34. Chasing Laplace’s Demon: The Role of Cause and Effect in Markets (pages 241-248)

Download 35. More Power to You: Power Laws and What They Mean for Investors
(pages 249-254)
35. More Power to You: Power Laws and What They Mean for Investors (pages 249-254)

Download 36. The Pyramid of Numbers: Firm Size, Growth Rates, and Valuation
(pages 255-262)
36. The Pyramid of Numbers: Firm Size, Growth Rates, and Valuation (pages 255-262)

Download 37. Turn Tale: Exploring the Market’s Mood Swings
(pages 263-268)
37. Turn Tale: Exploring the Market’s Mood Swings (pages 263-268)

Download 38. Stairway to Shareholder Heaven: Exploring Self-Affinity in Return on Investment
(pages 269-274)
38. Stairway to Shareholder Heaven: Exploring Self-Affinity in Return on Investment (pages 269-274)

Download Conclusion: The Future of Consilience in Investing
(pages 275-278)
Conclusion: The Future of Consilience in Investing (pages 275-278)

Download Notes
(pages 279-310)
Notes (pages 279-310)

Download References and Further Reading
(pages 311-334)
References and Further Reading (pages 311-334)

Download Index
(pages 335-352)
Index (pages 335-352)

More Than You Know: Finding Financial Wisdom in Unconventional Places (Updated and Expanded)

Since its first publication, Michael J. Mauboussin's popular guide to wise investing has been translated into eight languages and has been named best business book by BusinessWeek and best economics book by Strategy+Business. Now updated to reflect current research and expanded to include new chapters on investment philosophy, psychology, and strategy and science as they pertain to money management, this volume is more than ever the best chance to know more than the average investor.

Offering invaluable tools to better understand the concepts of choice and risk, More Than You Know is a unique blend of practical advice and sound theory, sampling from a wide variety of sources and disciplines. Mauboussin builds on the ideas of visionaries, including Warren Buffett and E. O. Wilson, but also finds wisdom in a broad and deep range of fields, such as casino gambling, horse racing, psychology, and evolutionary biology. He analyzes the strategies of poker experts David Sklansky and Puggy Pearson and pinpoints parallels between mate selection in guppies and stock market booms. For this edition, Mauboussin includes fresh thoughts on human cognition, management assessment, game theory, the role of intuition, and the mechanisms driving the market's mood swings, and explains what these topics tell us about smart investing.

More Than You Know is written with the professional investor in mind but extends far beyond the world of economics and finance. Mauboussin groups his essays into four parts-Investment Philosophy, Psychology of Investing, Innovation and Competitive Strategy, and Science and Complexity Theory-and he includes substantial references for further reading. A true eye-opener, More Than You Know shows how a multidisciplinary approach that pays close attention to process and the psychology of decision making offers the best chance for long-term financial results.

See below for our purchase options for this e-book. Individual chapters with a BUY button can be purchased for only $5, and any chapter with a FREE button can be downloaded or viewed online at any time.

Table of Contents

More Than You Know: Finding Financial Wisdom in Unconventional Places (Updated and Expanded)