Columbia University Press, May 2013
Michael J. Mauboussin is known throughout the financial world for his innovative approach to succeeding on Wall Street. His unconventional methods have earned him a place on Smart Money's list of the "Most Influential People on Wall Street" and in the Wall Street Journal's All-Star survey. In More Than You Know, Mauboussin shares his secret to becoming an insightful investor and provides invaluable tools to better understand the concepts of choice and risk.
Mauboussin develops sound investment strategies by drawing on diverse sources and disciplines. He builds on the ideas of sage yet diverse visionaries, including Warren Buffett and E.O. Wilson, but he also finds wisdom in a range of activities and fields that is both broad and deep, including 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. Ant colonies, Tupperware parties, "hot hands" in basketball, slime mold, and Tiger Woods's swing all have something to 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 breaks the book into four sections: Investment Philosophy, Psychology of Investing, Innovation and Competitive Strategy, and Science and Complexity Theory. And he includes useful references for further reading on the topics he discusses. 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.
hardcover | ISBN: 9780231143738 | Publication Date: May 2013
"Only a few investment books provide enduring value and even fewer provide fresh insights upon rereading. Reminiscences of a Stock Operator, The Intelligent Investor, and The Money Game are in that select company. You can now add More Than You Know to the list. Michael Mauboussin has written the best book ever on how to think about investing. This fascinating compendium of the most important insights from the academic world and from the investment profession is like a Ph.D. in investment wisdom. If you want to understand how the world's best investors think, you must read this book."
--Bill Miller, CEO, Legg Mason Capital Management
"More Than You Know is a lucid explanation of the exciting new developments in behavioral economics and cognitive science on the rationality and irrationality of people's economic choices. Mauboussin has an excellent understanding of the science of what it does and does not imply for investing, purchasing, and other real-life decisions. This book is essential reading for anyone interested in the science of human nature and its relevance to the world of finance."
--Steven Pinker, Johnstone Professor of Psychology, Harvard University, and author of How the Mind Works and The Blank Slate
"This is a conceptually brilliant, highly practical book that every investor and analyst needs to read -- several times. Michael Mauboussin has no peers -- he understands how value is created better than anyone, anywhere."
--Clayton Christensen, Cizik Professor of Business Adminstration at the Harvard Business School, and author of The Innovator's Dilemma
"Mauboussin's insights and examples speak volumes to the value of an interdisciplinary approach to understanding how choices are made, be they in finance or in science. He has brilliantly bridged the gap between the rigors of science and the challenge of the marketplace."
--Geoffrey West, President and Distinguished Professor, Santa Fe Institute
"Mauboussin has found great insights about the science of human behavior in unconventional places and has written superbly about it. As a biologist, I haven't a clue whether
More Than You Know will make you rich -- although it sounds like Mauboussin is the most likely investment poobah to pull that
off -- but it will surely make you interested in and educated about the behavior of our species."
--Robert Sapolsky, professor of neurobiology, Stanford University, and author of Why Zebras Don't Get Ulcers