Millionaire Freestyle Chess & The Future of Investing

How did America—a country dedicated to the proposition that all men are created equal—become one of the most unequal countries on the planet? Why do the nation’s leaders now spend so much of their time feeding at the trough and getting ever more for themselves? Why has public-mindedness in our leaders given way in so many instances to limitless greed?

Michael Mauboussin

Michael Mauboussin, managing director and head of Global Financial Strategies at Credit Suisse, wrote an report exploring:
[T]he applicability of freestyle chess to the world of investing, where fundamental analysts are “man” and quantitative analysts are “machine.” More pointedly, might there be a way that investors can combine the strengths of fundamental and quantitative analysis while sidestepping the weaknesses?

Millionaire Freestyle Chess

After witnessing the great success of the PRO Chess league:
As the number of spectators swelled to more than 6,000 this past Sunday during the final, the success of the league was even greater than the founders had imagined, according to Grandmaster (GM) Alejandro Ramirez. “The number of viewers showed that chess can compete with any eSport,” said Ramirez.
We are developing the idea of a Millionaire Freestyle Chess Tournament as a vehicle of exploring better investment strategies, in addition to exploring Garry Kasparov’s ideas of using the decision-making process of chess as a model for understanding and improving our decision-making everywhere else and how we have discarded innovation and creativity in exchange for a steady supply of marketable products.

Continue reading

The Success Equation: An Interview with Michael Mauboussin

Michael Mauboussin Head of Global Financial Strategies, Credit Suisse

Michael Mauboussin
Head of Global Financial Strategies, Credit Suisse

We are conducting interviews for our upcoming documentary addressing inequity called I Could Be….
Michael Mauboussin, prior to rejoining Credit Suisse in 2013, was Chief Investment Strategist at Legg Mason Capital Management. He is a former president of the Consumer Analyst Group of New York and was repeatedly named to Institutional Investor’s All-America Research Team and The Wall StreetJournal All-Star survey in the food industry group.
Michael is the author of The Success Equation: Untangling Skill and Luck in Business, Sports, and Investing (Harvard Business Review Press, 2012), Think Twice: Harnessing the Power of Counterintuition (Harvard Business Press, 2009) and More Than You Know: Finding Financial Wisdom in Unconventional Places-Updated and Expanded (New York: Columbia Business School Publishing, 2008). More Than You Know was named one of “The 100 Best Business Books of All Time” by 800-CEO-READ, one of the best business books by BusinessWeek (2006) and best economics book by Strategy+Business (2006). He is also co-author, with Alfred Rappaport, of Expectations Investing: Reading Stock Prices for Better Returns (Harvard Business School Press, 2001).
Mauboussin books
Michael has been an adjunct professor of finance at Columbia Business School since 1993 and is on the faculty of the Heilbrunn Center for Graham and Dodd Investing. In 2009, Michael received the Dean’s Award for Teaching Excellence. BusinessWeek’s Guide to the Best Business Schools (2001) highlighted Michael as one of the school’s “Outstanding Faculty,” a distinction received by only seven professors.
Michael earned an A.B. from Georgetown University. He is also chairman of the board of trustees of the Santa Fe Institute, a leading center for multi-disciplinary research in complex systems theory.
Visit his site at: michaelmauboussin.com/
Freestyle Chess
Q: In your paper “Lessons from Freestyle Chess: Merging Fundamental and Quantitative Analysis,” you “explore the applicability of freestyle chess to the world of investing, where fundamental analysts are ‘man’ and quantitative analysts are ‘machine.’” First, what is freestyle chess?

Continue reading