AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Investing Insights: Skills vs. Luck
This chapter explores the philosophies of successful investors, drawing parallels to the hot hand phenomenon in sports to emphasize the role of skill in long-term market success. It also discusses psychological stressors that can impact investor decision-making, particularly highlighting commitment bias and its effects on strategy adaptability.
In today’s episode, Shawn O’Malley (@Shawn_OMalley_) shares his favorite insights from Michael Mauboussin’s excellent book, More Than You Know.
You’ll learn how the stock market is like a complex adaptive system, the importance of having a clear investment philosophy, the psychology of investing, how innovation and competition affect stock returns, how Mauboussin uses complexity theory as an investor, plus so much more!
IN THIS EPISODE, YOU’LL LEARN
00:00 - Intro
02:00 - Why multi-disciplinary thinking matters so much to investors
03:55 - What a good investment process looks like and how to build one
05:39 - Why results can be so blinding to investors
08:39 - Why the magnitude of returns can matter more than frequency
10:13 - What are the commonalities between top investors
19:04 - How stress and other biases distort our thinking
25:57 - What the original Dow Jones index looked like
29:07 - How the boom and bust cycle for new industries unfolds
30:57 - Why companies’ assets don’t last as long as they used to
36:29 - Why using historic P/E ratios can be fraught
44:28 - How the wisdom of the crowds works
45:04 - How extreme events shape markets and the St. Petersburg paradox
And much, much more!
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
BOOKS AND RESOURCES
NEW TO THE SHOW?
SPONSORS
Support our free podcast by supporting our sponsors:
Connect with Shawn: Twitter | LinkedIn | Email
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Learn more about your ad choices. Visit megaphone.fm/adchoices
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Listen to all your favourite podcasts with AI-powered features
Listen to the best highlights from the podcasts you love and dive into the full episode
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
Listen to all your favourite podcasts with AI-powered features
Listen to the best highlights from the podcasts you love and dive into the full episode