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Quote by Michael Mauboussin

“At the core of an analytical edge is an ability to systematically distinguish between fundamentals and expectations. Fundamentals are a well thought out distribution of outcomes, and expectations are what's priced into an asset. A power metaphor is the [pari-mutuel] racetrack. The fundamentals are how fast a given horse will run and the expectations are the odds on the tote board. As any serious handicapper knows, you make money only by finding a mispricing between the performance of the horse and the odds. There are no 'good' or 'bad' horses, just correctly or incorrectly priced ones.”

Quote by Michael Mauboussin

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Michael Mauboussin
Michael Mauboussin

Michael Mauboussin is a renowned investment strategist, author, and educator born in 1964. He serves as an adjunct professor at Columbia Business School and previously held senior positions at major financial institutions including Merrill Lynch and Credit Suisse. With over 30 years of experience on Wall Street, Mauboussin is recognized as a pioneer in applying complexity theory and behavioral economics to investment practice. He has authored several bestselling books, including The Success Equation, which was named one of the best business books of the year by the Financial Times. Mauboussin is celebrated for his ability to translate complex academic theories into practical investment strategies. more

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