Interview: Michael Mauboussin

Michael Mauboussin - a prominent figure in the investment community combines the intellectual rigour of an academic with the real world insights of a practitioner.


Michael Mauboussin

Michael Mauboussin
Managing Director and Head of Global Financial Strategies at Credit Suisse

Having started as an equity analyst with a brokerage firm in 1992, Mauboussin later moved into sell side strategy before moving to the buyside as chief investment strategist and then returning to work as head of global financial strategies for Credit Suisse where he advises clients on valuation and portfolio positioning, capital markets theory, competitive strategy analysis, and decision making. He is also an adjunct professor of business at the Columbia Business School.

Although Mauboussin adheres to the core value investing philosophy of Ben Graham (notably the concept of Mr Market and margin of safety) he also overlays this with more modern understanding of psychology and behavioural finance. In a nutshell Mauboussin’s approach is about finding gaps between fundamentals and market expectations. He’s also a keen believer in probability weighting of valuation scenarios. The future cash flows of an enterprise can be affected by many factors so investors need to look at a range of potential outcomes, in particular to ensure their margin of safety is still covered in the cautious scenario.

We spoke with Michael Mauboussin just before his Aberdeen Road lecture in June 2016 to learn more about his approach to modern value investing.

Read full transcript (.pdf)

 

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