Steve Forbes recently sat down with Michael Mauboussin to discuss his perspective on the investment world. Mauboussin discusses the pitfalls of using mutual funds, investor psychology and his approach to investing.
Mauboussin explains the “Paradox of Skills” in which he explains why very competitive environments result in an increased preponderance of luck. In other words, luck plays an incredibly important role in the markets because the talent levels have become increasingly high over time. This is essentially a rehashed efficient market hypothesis – not something I necessarily agree with, but Mauboussin’s thoughts are always enjoyable and worth giving a listen. The full interview is attached:
* See more from Mauboussin here.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.