Michael Mauboussin on Valuation, Base Rates and Expectations Investing
Excess Returns
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Are There Any Aspects of Machine Learning That Might Be More Quantitative?
When we think about longer term investing, things that are more like three, five, seven, 10 years out, this is where really factors or machine learning or AI, they're not gonna help you. So the question is, can we operate, is there some point of intersection between the two areas? The two things I would point to, which I think are useful, one would be position sizing. And then the second thing is using historical performance and understanding how to adjust historical performance to anticipate what's gonna happen in the future. It definitely seems like it totally depends on what the investor is. AQR struggled the most with Lynch, because Lynch is probably one of the most difficult investors in
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