More Than You Know Summary


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Originally published at: https://blog.12min.com/more-than-you-know-summary/

Finding Financial Wisdom in Unconventional Places


Sometimes market guided by its unpredictability has a habit of influencing all parties.

Collection of first-class essays mixed up with first-class examples provide a more detailed explanation on the subject.

Who Should Read "More Than You Know"? And Why?

For this reason, the author outlines several strategies that will entice any reader or person keen to earn some extra money. Managers are the first on the list because they’re among those passionate characters who try to achieve this goal. Generally speaking, they differ from an average expert in any other industry.

Give priority to perceiving the market as it is, and get the best out of it. The most durable tool is being able to look with the eyes of hope, not judgment. We highly recommend “More Than You Know” as an excellent remedy for the societal disease caused by confidence in meaningless theories.

About Michael J. Mauboussin

Michael J. Mauboussin was born on February 19th, 1964.

Despite being a writer, he also heads Global Financial Strategies – advising companies and individual investors on portfolio diversification. Michael also teaches at Columbia University’s Business School.

"More Than You Know Summary"

Investors rarely reveal their investment tactics, since the whole do/or don’t do process relies on secrecy and financial reliability. Likewise, there is no much room for improvement if the decision-making ability is unsatisfactory.

Nowadays, people often face societal pressures – meaning that there is no shortage of issues (economic, legal, personal, etc.) How to behave on the market is a million-dollar question. No one can pull a rabbit out of a hat; the answer commits to research and studies.

The way an ordinary person would interpret a stock information uncovers the mindset of that particular individual. It’s never easy to step-up and utilize some investment philosophy without proper preparations and research.

All aside, if during the process quality gets compromised, and emphasis falls on IQ, the odds of making a good decision decline. The right philosophy falls into the category of hard work, not talent.

Warren Buffett once said – Investing is a matter of adopting the right attitude, not how smart you are. Such behavior is enough to gain a competitive edge and motivation to proceed forward. In fact, there is not starting nor stopping; as a long-lasting series of actions, investors should take the whole stock-purchasing process soberly and diligently.

Above all, comes the vision that desired outcome is overwhelmed by the right attitude and perspective. On the other hand, satisfactory results do not justify an unacceptable process.

Think of it as a football game, if the team plays well, the short-term defeats will not suffocate the long-term progress. Making sound investment comes on top even if the end result doesn’t satisfy the requirements – simple as that.

More Than You Know” is a book consisting of 50 short essays – written mostly for new investors. Michael J. Mauboussin generously shares many useful methods, easily digestible even for those people not familiar with the terminology.

Marked as one of the highly-appreciated writers on investing, he advocates for a multidisciplinary perspective that tries to get the idea of how markets behave. The fluid collection of essays, serves its purpose, not only with the versatility but also with its trustworthiness.

Sadly, even experienced stock-brokers put extra focus on the outcome and deceive the community to make rash and irrational decisions. This book will grant you a new reliable perspective on how to interpret investing.

In reality, people tend to get “hungry” for more, which leads to neglecting long-term benefits. The secret lies in sacrifice – the real long-run tool for prosperity. Not in every case, but surely a large number of them.

As society progresses throughout the ages with the help of technology, “the result” starts to act as a calculator for success. Market security is a term used only by ignorant personalities who don’t grasp the uncertainty of the world.

Differ from the group, and go beyond the status of an average everyday spender. Investing doesn’t essentially mean purchasing stocks or houses. Buying groceries is also a part of the same process, even if that may not be looking like the outcome in this case.

Beating the market refers to offering a better solution to customers’ problems. If you wish to make your entrance on that door, make sure that your commodities have that special ingredient.

The book covers many subjects related to finances given the author’s trust in conducting analyses as the only source for collecting information.

Key Lessons from “More Than You Know”

1. Group of people can solve problems with utmost efficiency 2. The changeable nature of economy 3. Fight against stagnation

Group of people can solve problems with utmost efficiency

Recently conducted research discovers surprising facts – that a group of people without any particular knowledge can resolve issues equally well as individual experts.

Take Ants, for example, they drift around without the guidance of a leader, and yet togetherly they manage to deal with hunger. The same thing goes with people.

The changeable nature of economy

Things change on physical, societal, economical, and any other aspect.

Systems that promote rigidity are omnipresent in every country. Due to massive innovations, people realized that nothing stays the same and flexible attitude is crucial for success.

Fight against stagnation

The ability to manage physical resources brought success to many companies in the past.

These days the intellectual aspect has a little more significance. Ideas and innovations as representatives of this group share an all-encompassing package to combat the traditional mindset.

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“More Than You Know” Quotes

[bctt tweet="We are all so busy talking on the phone, answering e-mails, and going to meetings that we don't have any time left to read, think and play with ideas." username="get12min"]

[bctt tweet=“The companies that outperform the market are 'temporary members of a permanent class.” username=“get12min”]

[bctt tweet=“The central message is that across domains, long streaks typically indicate skill.” username=“get12min”]

[bctt tweet=“Despite the high stakes and considerable resources researchers have committed to understanding markets, there is much we do not grasp.” username=“get12min”]

Our Critical Review

This book is no place for mysterious attitude; a fact-filled masterpiece that clearly defines many aspects of finance.

Arguably the most complex subject with no strongly embedded routs in history. The author underlines the statement that it’s not even too important to understand the market.