Summary of Michael Mauboussin's More Than You Know

Please note: This is a companion version & not the original book. Sample Book Insights: #1 The essays in this part of the book reveal the importance of investment philosophy. A good investment philosophy is like a good diet: it only works if it is sensible over the long haul and you stick with it. #2 The goal of an investment process is to identify gaps between a company’s stock price and its expected value. The expected value is the weighted-average value for a distribution of possible outcomes. #3 The only certainty is that there is no certainty. We must act despite uncertainty, and we must base our decisions on imperfect or incomplete information. But we must still make decisions based on an intelligent appraisal of available information. #4 The process of making a decision should be judged not only on the outcome, but also on how it was made. A good process is one that carefully considers price against expected value. Investors can improve their process through quality feedback and ongoing learning.