Practical Lessons from Michael Mauboussin | Multiples, Base Rates and Expectations Investing

In this episode of Two Quants and a Financial Planner, we dive deep into the investing wisdom of Michael Mauboussin, one of the most respected thinkers in finance. We revisit our interview with Michael and distill 9 key lessons that are still incredibly relevant for investors today. We explore crucial concepts like: The difference between investing and speculating Understanding expectations investing Why fundamentals still matter, even in today's market The paradox of skill in investing How to properly use multiples in valuation The challenges of active management in an increasingly passive world The usefulness (and limitations) of market forecasts The importance of base rates in decision making 0:00 - Introduction 3:00 - Lesson 1: Investing vs Speculating 8:05 - Lesson 2: Expectations Investing 13:32 - Lesson 3: Do Fundamentals Still Matter? 18:58 - Lesson 4: What Value Investors Missed About Big Tech 30:46 - Lesson 5: Earning the Right to Use Multiples 36:47 - Lesson 6: The Challenge of Active Management 41:53 - Lesson 7: The Paradox of Skill in Investing 47:28 - Lesson 8: The Use and Misuse of Market Forecasts 55:35 - Lesson 9: The Importance of Base Rates SEE LATEST EPISODES ⁠⁠⁠https://excessreturnspod.com FIND OUT MORE ABOUT SUNPOINTE INVESTMENTS ⁠⁠⁠https://sunpointeinvestments.com/⁠⁠⁠ FIND OUT MORE ABOUT VALIDEA CAPITAL ⁠⁠⁠https://www.valideacapital.com⁠⁠⁠ FOLLOW MATT Twitter: ⁠⁠⁠https://twitter.com/cultishcreative⁠⁠⁠ LinkedIn: ⁠⁠⁠https://www.linkedin.com/in/matt-zeigler-a58a0a60/ FOLLOW JACK Twitter: ⁠⁠⁠https://twitter.com/practicalquant⁠⁠⁠ LinkedIn: ⁠⁠⁠https://www.linkedin.com/in/jack-forehand-8015094⁠⁠⁠