A selection of studies corporate valuation theory evidence and practice holthausen pdf research papers from some of the best business academics. Get the entire 10-part series on Seth Klarman in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. Michael Mauboussin argues that for dividends to be included as a source in accumulating capital, the investor must reinvest dividends.
Mauboussin talks about the relationship between incentives and behaviour. Michael Mauboussin provides framework on how to differentiate between skill and luck. One of the most difficult things a fund investor has to do. Mauboussin discusses that the primary goal of a corporation is to maximize its long-term shareholder value. See For Yourself: Michael Mauboussin stresses the importance to carefully sort through the source of data and verifying the accuracy of claims. The investing world is no different with many misleading beliefs floating around. Show Me the Money: Michael Mauboussin points out the shortcomings of earnings as a tool for assessing a company’s economic reality.
Mauboussin writes that investors should be aware of the models that analyst use to predict future performance, notably returns on invested capital. Analysts should incorporate the concept of mean reversion in their model, tempering the optimism inherent in their forecasts. Mauboussin argues that the qualities that make investors great are mainly emotional and psychological. The story of the Turtle Traders of Richard Dennis and Bill Eckhardt. Michael Mauboussin refers to the concept of Charlie Munger’s use of different mental models to approach investing.