NASA
negative feedback
Nelson, Richard R.
network theory
neuroscience
Newton, Isaac
New York Times
niches
Nicklaus, Jack
Niederhoffer, Victor
nonlinearity
nonstationarity
opportunities, limited
options
outperforming stocks percentage of probability of
outsourcing
overproduction and pruning
ox weight problem
Pandolfini, Bruce
pari-mutuel betting
pattern seeking
payoff
Pearson, Puggy
per capita GDP growth
Peters, Ellen
pharmaceutical industry
Philosophical Essay on Probabilities, A (Laplace)
Pollock, Jackson Number
Poor Charlie’s Almanack (Kaufman)
poor-thinking problem
portfolios: concentration construction fat tails and performance frequency of evaluation large cap leveraged performance vs. percentage of outperforming stocks
portfolio turnover costs loss aversion stress and
positive feedback
power laws company-size distribution and fractals and investor understanding of Zipf’s law
predictability, loss of
prediction
price changes, press reports and
price-earnings ratios (P/Es) bounded parameters growth and returns nonstationarity of reversion to mean tangible vs. intangible capital tax rates and
prices: expected value and S-curve phenomenon
prioritizing
priority rules
probabilistic fields See also gambling; handicapping; investment philosophy
probability expected value and extreme-return days frequency-based loss aversion and outperforming stocks propensity-based two-by-two matrix uncertainty and risk weighing
probability dominance
problem solving, collective mechanisms for
process clockspeed
Procter & Gamble
product clockspeed
propensities
proportionality
prospect theory
psychology of investing compliance with requests deductive and inductive processes hindsight bias individual and collective decisions market, effect on stress tendencies of human behavior Tupperware parties See also investment philosophy
Purcell, Ed
“Pyramid of Numbers,”
rationality
Raup, David
Raynor, Michael E.
reciprocity
recombination
reductionism
reflexivity
requests, compliance with
return on investment CFROI distribution of equity-risk premium growth and reversion to cost of capital total returns to shareholder (TRS)
risk equity-risk premium explanation for
risk-reward relationship
rival and nonrival goods
Rogers, Jim
Roll, Richard
Roman alphabet
Romer, Paul
roulette
Rubin, Robert
Ruefli, Timothy W.
rules: adaptive simple
Russo, Jay
Ruth, Babe
St. Petersburg Paradox
Samuelson, Paul
S&P
S&P Index Committee
sand-pile metaphor
Santa Fe Institute (SFI)
Sapolsky, Robert M.
scarcity
Schoemaker, Paul
science: insect studies links between hard and social
scouting report
S-curve phenomenon
sector representation
Seeley, Thomas D.
self-organized criticality power laws and
Seuss, Dr.
Shefrin, Hersh
Shleifer, Andrei
short-term focus
Siegel, Jeremy
Simpson, Lou
simulation
situations, evaluation of
six degrees of separation
skill
skin-conductance-response machine
Sklansky, David
slime mold
Slovic, Paul
snowball effect
social sciences
Social Security
social systems, power laws and
social validation
software
Sornette, Didier
Soros, George
space shuttle catastrophe
species distribution
speculation
Stalin, Josef
stall point
Steinhardt, Michael
stock market: as complex adaptive system; crash of 1987, investor diversity and outperforming stocks parallels with insect colonies
Stocks for the Long Run (Siegel)
strategic options
strategy. See competitive strategy
streaks of success luck and skill and
stress long-term focus required loss of control and predictability physical responses to
Strogatz, Steven
Sull, Don
Sundahl, David
Sunder, Shyam
Surowiecki, James
survivorship bias
sustained recovery
system 1 and 2 thinking
systems
Taleb, Nassim Nicholas.
target prices
tax rates
Technology Review
technology stocks
television industry
Thaler, Richard H.
theory: attribute-based approach; building, steps of; falsifiability
Thorp, Ed
time horizons
timing rules
tipping point
total return to shareholders (TRS)
tracking error
transaction costs
traveling-salesman problem
Treynor, Jack
Tupperware parties
Tversky, Amos
Twain, Mark
two-by-two matrix
Ulysses
uncertainty classifications expectations and
U.S. Steel
utility
Utterback, James
valuation, investor evolution and
value-at-risk (VaR) models
value investors
value traps, downturns
volatility
“Vox Populi” (Galton)
Waldrop, Mitchell
Watts, Duncan
weak signals
wealth, isolated components vs. total
Welch, Ivo
Welch, Jack
Wermers, Russ
wheel of fortune experiment
Why Stock Markets Crash (Sornette)
Wiggins, Robert R.
wild-hair alternative
Wilson, Edward O., v
winner’s curse
Winters, Sidney
Wisdom of the Hive, The (Seeley)
Wolfram, Stephen
Wolpert, Lewis
Woods, Tiger
Wright, Orville
Zajonc, Robert B.
zebras
Zeikel, Arthur
Zipf, George K.
Zipf’s law
Columbia University Press
Publishers Since 1893
New York Chichester, West Sussex
Copyright © 2008, 2006 Michael J. Mauboussin
All rights reserved
Library of Congress Cataloging-in-Publication Data
Mauboussin, Michael J., 1964-
More than you know : finding financial wisdom in unconventional places / Michael J. Mauboussin.—Updated and expanded ed. p. cm.
Includes index.
eISBN : 978-0-231-51347-0
1. Investments. 2. Investments—Psychological
aspects. 3. Finance, Personal. I. Title.
HG4521.M365 2008
332.6—dc22 2
007030512
Columbia University Press books are printed on permanent and durable acid-free paper.
c
More Than You Know Page 31
