Strategies for Successful Investing
| Nov 09, 2021 | Michael Benigno
In a recent Gabelli School Centennial Speaker Series webinar sponsored by the CFA Society New York, the Gabelli Center for Global Security Analysis, and the Museum of American Finance, Michael Mauboussin, co-author of Expectations Investing: Reading Stock Prices for Better Returns, discussed how traditional investors determined if a stock was favorable and offered a common-sense alternative to identifying gaps between price and value.
Mauboussin, the head of Consilient Research at Counterpoint Global, Morgan Stanley Investment Management, said that people sometimes jump on trends for fear of missing out on a potential return, but cautioned investors to practice restraint. When asked about the GameStop scandal, he concluded that it was an example of market inefficiency.
“I always encourage people to try to maintain discipline in these kinds of environments,” he said. “It’s one thing to see an inefficiency, it’s another thing to be able to take advantage of it, and sometimes the cost of taking advantage of things is prohibitively high.”
Mauboussin and co-author Alfred Rappaport recently revised Expectations Investing: Reading Stock Prices for Better Returns to reflect changes in the stock market over the last two decades, such as the new wave of environmental, social, and governance (ESG) trading and the role it will play in the future.