Michaelmauboussin
New blogroll inductee is a value investing “classic” source: CAP@Columbia. Maintained by Michael Mauboussin and Paul Johnson, it’s a link-fest of relevant texts and articles on everything from portfolio/risk management to the psychology of investing. It’s a testimony to the multidisciplinary aspect of value investing, and to the ever-lasting need to improve one’s mental models/toolkits.
A study shows that first-draft picks in the NFL usually underperform and don’t represent value for the money, but still teams fight for that spot thinking they will make the right choice. Overconfidence and inefficient markets happen anywhere – it’s only human.
Reader-suggested video in which James Surowiecki (author of “The Wisdom of Crowds”) interviews Michael Mauboussin from Legg Mason about “Think Twice”, Mauboussin’s book. It’s about mental traps we fall into and how to think better, and the video discusses many of the examples in the book. “Think Twice” has been out for a while and it’s a good “building block” read, a contrast to Malcolm Gladwell’s “Blink”. Read them both and more.
