120: Why Do Companies Die? Value Creation in Public Equity Markets - With Michael Mauboussin, Head of Consilient Research at Counterpoint Global, Morgan Stanley Investment Management.

In his report ‘Birth, Death, and Wealth Creation’, Michael Mauboussin observes and then claims that corporations are surviving longer and winning more. 

This week, we welcome Michael Mauboussin, Head of Consilient Research at Counterpoint Global, Morgan Stanley Investment Management, to discuss the unique patterns of wealth creation in  public equity markets. 

After explaining the similarities between ice hockey and investing, Michael discusses why corporate ‘death rate’ is higher than firms’ ‘birth rates. He describes why firms are increasingly choosing forgo IPOs, opting to stay private for longer. 

He also covers Hendrick Bessembinder’s theory of wealth destruction, the distinction between value investing and value factors, and why investors may want to look beyond the headlines when it comes to tech.

Michael Mauboussin was interviewed by Simon Brewer at the Quality-Growth Investor Conference in London. The next in-person event to be held by the organizers of the conference will be Value Invest New York on December 12. Use this link and enter “MONEYMAZE_VINY” at checkout to enjoy a 40% discount on tickets (worth $600; offer valid until 30th November 2023). 

The Money Maze Podcast is kindly sponsored by Schroders,  Bremont Watches, IFM Investors and LiveTrade.

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