Excess Returns The 100 Year Thinkers | Chris Mayer and Robert Hagstrom on the Dangers of Abstraction
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Dec 15, 2025 
Join Robert Hagstrom, a value investing guru and author, alongside Chris Mayer, a long-term stock selection expert, as they dive into how Wall Street's labels mislead investors. They explore the pitfalls of simplistic market models and advocate for clearer language and better mental frameworks. Discover the power of general semantics in investing, the importance of patience in yielding returns, and why focusing on business fundamentals trumps daily market noise. Learn to navigate the complexities of investing with interdisciplinary insights!
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Words Conceal More Than They Explain
- Wall Street language is full of abstractions that hide underlying reality.
- General semantics trains you to unpack labels and focus on what terms actually refer to.
Ask What People Mean
- Avoid accepting simple either-or frames; probe for alternatives.
- Ask 'what do you mean?' and clarify terms before acting on financial labels.
AAA Ratings Failed Real Due Diligence
- Chris recounts banks buying AAA‑rated securities and suffering big losses in the financial crisis.
- He contrasts treasury departments trusting ratings with lending underwriters doing deep due diligence.
