The Success Equation - by Michael J Mauboussin (Hardcover)

About the Book

""Much of what we experience in life results from a combination of skill and luck." -- From the Introduction"
The trick, of course, is figuring out just how many of our successes (and failures) can be attributed to each--and how we can learn to tell the difference "ahead of time."
In most domains of life, skill and luck seem hopelessly entangled. Different levels of skill and varying degrees of good and bad luck are the realities that shape our lives--yet few of us are adept at accurately distinguishing between the two. Imagine what we could accomplish if we were able to tease out these two threads, examine them, and use the resulting knowledge to make better decisions.
In this provocative book, Michael Mauboussin helps to untangle these intricate strands to offer the structure needed to analyze the relative importance of skill and luck. He offers concrete suggestions for making these insights work to your advantage. Once we understand the extent to which skill and luck contribute to our achievements, we can learn to deal with them in making decisions.
"The Success Equation" helps us move toward this goal by:
- Establishing a foundation so we better understand skill and luck, and can pinpoint where each is most relevant
- Helping us develop the analytical tools necessary to understand skill and luck
- Offering concrete suggestions about how to take these findings and put them to work
Showcasing Mauboussin's trademark wit, insight, and analytical genius, "The Success Equation" is a must-read for anyone seeking to make better decisions--in business and in life.

Book Synopsis

"Much of what we experience in life results from a combination of skill and luck." -- From the Introduction

The trick, of course, is figuring out just how many of our successes (and failures) can be attributed to each--and how we can learn to tell the difference ahead of time.

In most domains of life, skill and luck seem hopelessly entangled. Different levels of skill and varying degrees of good and bad luck are the realities that shape our lives--yet few of us are adept at accurately distinguishing between the two. Imagine what we could accomplish if we were able to tease out these two threads, examine them, and use the resulting knowledge to make better decisions.

In this provocative book, Michael Mauboussin helps to untangle these intricate strands to offer the structure needed to analyze the relative importance of skill and luck. He offers concrete suggestions for making these insights work to your advantage. Once we understand the extent to which skill and luck contribute to our achievements, we can learn to deal with them in making decisions.

The Success Equation helps us move toward this goal by:

- Establishing a foundation so we better understand skill and luck, and can pinpoint where each is most relevant
- Helping us develop the analytical tools necessary to understand skill and luck
- Offering concrete suggestions about how to take these findings and put them to work

Showcasing Mauboussin's trademark wit, insight, and analytical genius, The Success Equation is a must-read for anyone seeking to make better decisions--in business and in life.

Review Quotes

"Really enjoyed reading The Success Equation by @mjmauboussin over the last few days. A smart, insightful book. ow.ly/s3KIE" -- As tweeted by Daniel Pink

"... a fascinating book that forced me to reflect on my decision-making processes for investments." -- Tomasz Tunguz, Inc. magazine

"Mauboussin's latest, excellent, book attempts to show how to work out what decides the outcome of a given situation. -- James von Simson, portfolio manager at Thurleigh Investment Managers

"Mauboussin has always been a must-read. His 2013 book is no exception." -- Tadas Viskanta, founder and editor of Abnormal Returns

"The Success Equation makes a valuable contribution to the literature on decision making...thoroughly researched and well written...I highly recommend the book to anyone interested in making better investment choices." -- Financial Analysts Journal

"With this book, Mauboussin takes an important step in making a case for the role of statistical analysis in decision-making in various contexts, ranging from CEO compensation to child rearing to college rankings and even picking the next musical superstars. It is almost as if the number crunchers heralded in Michael Lewis' Moneyball have found their second voice." -- Business World magazine

"Mauboussin excels at explaining his ideas, many of which are based on complex neuroscience in accessible terms, using case studies and examples from investing decisions, college rankings, and hospital procedures." -- Publishers Weekly

"... for investors and business executives wishing to minimise the risk of bad luck, this is a book worth reading." -- Financial Times

"there is a lot of thought-provoking stuff in the book, for sports fans as well as investors." -- The Economist

"For investors who don't mind wading into some technical weeds, though, Mauboussin suggests some concrete tools." -- U.S. News & World Report

"Well written and analytical, this book completely changed how I think about success." -- The Motley Fool (fool.com)

"There are tons of statistics and abstractions, yet there is coherence and precision in Michael J. Mauboussin's new book, The Success Equation. Filled with instances from sports and markets, it's an insightful read." -- Mint (livemint.com)

"It's always hard to get the balance between detail and readability right when writing a popular book about math. But Mauboussin manages it well." -- MoneyWeek

"...the clarity of Mauboussin's writing, and the quality of the examples makes the book a worthy addition to the managerial library." -- strategy+business Magazine

"The Success Equation makes a valuable contribution to the literature on decision making when both luck and skill are involved. It is thoroughly researched and well written. I highly recommend the book to anyone interested in making better investment choices." -- CFA Institute

"an engaging book." -- Choice Magazine

"In The Success Equation, Mauboussin explores the contributions of skill and luck, and discusses how interpreting past results through the 'skill-luck continuum' can help leaders to make better decisions...This can be a useful way to look at business leadership... [He observes that] luck becomes more important and skill less so, as people climb up the hierarchy, which also raises interesting questions about how leaders can continue to grow and enhance their skills... what leaders can do, is to improve the

About the Author

Michael J. Mauboussin is an investment strategist and has been in the financial services industry for more than twenty-five years. He has also taught at the Columbia Graduate School of Business since 1993, and is on the board of trustees at the Santa Fe Institute.

He is the author of two previous books, Think Twice: Harnessing the Power of Counterintuition and More Than You Know: Finding Financial Wisdom in Unconventional Places and is coauthor, with Alfred Rappaport, of Expectations Investing: Reading Stock Prices for Better Returns.