#7 – Michael Mauboussin: The Fascinating World of Increasing Returns

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Jul 15, 2024

Michael Mauboussin, finance expert, talks about increasing returns, market dynamics, Charles Darwin, AI, and the Santa Fe Institute. They discuss leveraging increasing returns in business, impact of intangible assets, navigating complex technologies, and embracing complexity in everyday life.

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Intro

00:00 • 3min

Exploring Increasing Returns in Business and Investment

03:28 • 8min

Intangible Assets and Business Scale

11:40 • 7min

Navigating Complex Technologies and Policymaking

18:48 • 22min

Memorable Trips and Unexpected Snow in Santa Fe

40:51 • 2min

Embracing Complexity in Everyday Life

42:46 • 4min

My guest today is Michael Mauboussin (@mjmauboussin), one of the world’s leading experts in finance. Michael serves as Head of Consilient Research at Counterpoint Global, Morgan Stanley. He has authored three books and regularly appears in the Wall Street Journal, Financial Times, New York Times, and other publications. Since 1993, Michael has been an adjunct professor of finance at Columbia Business School and is also the chairman emeritus of the board of trustees at the Santa Fe Institute.

In our conversation, we delve into the dynamics of markets, discuss all sorts of increasing returns, and explore topics such as Charles Darwin, policymaking, AI and Web3, and the Santa Fe Institute. I hope you enjoy our discussion.

Find me on X at @⁠ProfSchrepel⁠⁠⁠⁠. Also, be sure to subscribe to the Scaling Theory podcast.

References:

Michael J. Mauboussin & Dan Callahan, "Increasing Returns: Identifying Forms of Increasing Returns and What Drives Them" (2024) https://perma.cc/Y3DN-LNMY
Michael J. Mauboussin & Dan Callahan, "Stock Market Concentration: How Much Is Too Much?" (2024) https://perma.cc/7EEX-ZY9T
Charles Darwin, The Autobiography of Charles Darwin: 1809-1882 https://www.amazon.com/Autobiography-Charles-Darwin-1809-1882/dp/0393310698
David Warsh, Knowledge and the Wealth of Nations: A Story of Economic Discovery (2007) https://www.amazon.com/Knowledge-Wealth-Nations-Economic-Discovery/dp/0393329887
James Bessen, The New Goliaths: How Corporations Use Software to Dominate Industries, Kill Innovation, and Undermine Regulation (2022) https://www.amazon.nl/-/en/James-Bessen/dp/0300255047
Chris Dixon, Read Write Own: Building the Next Era of the Internet (2023) https://readwriteown.com
Anu Bradford, Digital Empires: The Global Battle to Regulate Technology (2023) https://global.oup.com/academic/product/digital-empires-9780197649268
Kenneth J. Arrow, "The Economic Implications of Learning by Doing" (1962) https://www.jstor.org/stable/2295952
J. Doyne Farmer, Making Sense of Chaos (2024) https://www.penguin.co.uk/books/284357/making-sense-of-chaos-by-farmer-j-doyne/9780241201978