Michael Mauboussin debunks four myths or popular delusions in the investment industry. He critically examines some issues that are often understood superficially, by going back to first principles.
- Short-termism: individual managers and investors feel pressure to deliver short-term results. However, the market is not just one investor, but a product of all investors
- Dividends do not actually play a large role in equity returns, rather accumulated capital is the key source of investment return.
- Investing in money losing companies is not always a bad idea, depending on the pattern of investing capital in the business.
- The rise of indexing has not made it easier to be an active manager, as remaining active managers are extremely competitive.
This online video can be accessed at any time, up to the calendar year end if purchased in the first half of the year; or up the subsequent calendar year end if purchased in the second half of the year.
In order to purchase this course CFA Society Switzerland members and guests must set up and login with a CFA Institute Id#.
CHF 100 for non-members.
CHF 60 for members of CFA Society Switzerland.
Michael J. Mauboussin is Head of Consilient Research at Counterpoint Global in New York. Previously, he was Director of Research at BlueMountain Capital, Head of Global Financial Strategies at Credit Suisse, and Chief Investment Strategist at Legg Mason Capital Management. Mr. Mauboussin joined Credit Suisse in 1992 as a packaged food industry analyst and was named Chief U.S. Investment Strategist in 1999. Mr. Mauboussin is the author of three books, including The Success Equation: Untangling Skill and Luck in Business, Sports, and Investing and is co-author, with Alfred Rappaport, of Expectations Investing: Reading Stock Prices for Better Returns. Mr. Mauboussin has been an adjunct professor of finance at Columbia Business School since 1993 and is on the faculty of the Heilbrunn Center for Graham and Dodd Investing. He is also the chairman of the board of trustees at the Santa Fe Institute, a research center devoted to the study of complex systems. He earned an A.B. from Georgetown University.