Michael Mauboussin on How to Read Stock Prices (Podcast)

This book, written by Alfred Rappaport, provides practical tools and tests for corporate strategies that create shareholder value. It covers applications in business planning, performance evaluation, executive compensation, mergers and acquisitions, interpreting stock market signals, and organizational implementation. Rappaport emphasizes the importance of focusing on long-term strategies rather than short-term gains and explains key concepts such as corporate value, shareholder value added (SVA), and the role of shareholder value in decision-making. The book includes case studies, such as the acquisition of Duracell International by Gillette, to illustrate the intricate decisions and risks involved in mergers and acquisitions.

In 'Consilience: The Unity of Knowledge', E.O. Wilson advocates for the integration of knowledge from different fields to create a unified theory of understanding. He draws on the concept of consilience, introduced by William Whewell, which means the 'jumping together' of knowledge by linking facts and theories across disciplines. Wilson explores the chemistry of the mind, the genetic bases of culture, and the biological principles underlying works of art. He argues that a unified approach can lead to a deeper understanding of the human condition and the natural world, and he critiques the fragmentation of knowledge into separate disciplines. The book is a call for a new Enlightenment, emphasizing the importance of science and reason in understanding all aspects of human existence.

The book tells the story of the Oakland Athletics' 2002 season, where General Manager Billy Beane and his assistant Paul DePodesta used advanced statistical analysis, known as sabermetrics, to assemble a competitive team despite a limited budget. The approach, pioneered by Bill James, focused on metrics such as on-base percentage and slugging percentage rather than traditional measures like batting average and runs batted in. This data-driven strategy allowed the Athletics to compete with teams having much larger payrolls, like the New York Yankees, and achieve significant success, including a 20-game winning streak and a playoff appearance.

The Premonition by Michael Lewis is a gripping account of the individuals who foresaw the impending COVID-19 pandemic and the failures in the American public health system. The book focuses on characters such as Charity Dean, a public health officer, and the 'Gang of Seven,' a group of doctors and scientists who created their own pandemic plan. It highlights their tireless work, the use of computer models to predict viral spread, and the challenges they faced amidst political pressure, financial constraints, and public criticism. The narrative underscores the courage and dedication of these unsung heroes and the need for more proactive approaches to public health preparedness.

In this book, Daniel Kahneman takes readers on a tour of the mind, explaining how the two systems of thought shape our judgments and decisions. System 1 is fast, automatic, and emotional, while System 2 is slower, effortful, and logical. Kahneman discusses the impact of cognitive biases, the difficulties of predicting future happiness, and the effects of overconfidence on corporate strategies. He offers practical insights into how to guard against mental glitches and how to benefit from slow thinking in both personal and business life. The book also explores the distinction between the 'experiencing self' and the 'remembering self' and their roles in our perception of happiness.

The Undoing Project by Michael Lewis chronicles the intellectual and personal relationship between Daniel Kahneman and Amos Tversky, two Israeli psychologists whose research fundamentally changed our understanding of human decision-making. Their studies, conducted from the late 1960s to the 1980s, exposed systematic errors in human judgment under uncertainty and laid the foundation for behavioral economics. The book delves into their extraordinary lives, including their careers in the Israeli military, and how their personal differences and eventual estrangement affected their work. Lewis's narrative makes complex psychological concepts accessible through engaging storytelling, highlighting the profound impact of Kahneman and Tversky's work on various fields, including economics, medicine, and government regulation.

In 'Pop! : Why Bubbles Are Great for the Economy,' Daniel Gross presents a contrarian view that economic bubbles, despite their risks, play a crucial role in fostering innovation and economic growth. He argues that these bubbles often lay the groundwork for future opportunities and infrastructural development, contributing to the resilience of the U.S. economy. The book explores historical examples of bubbles that have led to lasting positive impacts on the economy.

This biography by Richard Rhodes explores the life and work of E. O. Wilson, one of the most influential biologists of our time. Wilson's contributions to the study of social insects and his controversial theories on sociobiology are highlighted, along with his tireless efforts to promote biodiversity and synthesize science with the humanities. The book provides a comprehensive look at Wilson's career, from his early fascination with ants to his later work on cataloging Earth's species.

In 'Last Ape Standing', Chip Walter delves into the evolutionary journey of humans, exploring how our unique traits, such as premature birth and extended childhood, contributed to our survival. The book also profiles other human species like Neanderthals and Denisovans, offering insights into their coexistence and eventual extinction.

This book provides a detailed account of John F. Kennedy's life from birth to his decision to run for president, contextualizing his experiences within the broader narrative of America's emergence as a superpower during the mid-20th century. It explores his formative years, including World War II and the early Cold War, offering a nuanced portrayal of Kennedy as a serious and independently minded individual. The biography also delves into the significant historical events of the time, such as the debate between isolationists and interventionists, McCarthyism, and the impact of television on politics.