Summary
Mauboussin tells the story of a portfolio manager whose winning percentage was poor but whose results were excellent, because his winners were far larger than his losers.
Like Babe Ruth, who struck out often but hit home runs, the payoff comes from magnitude, not frequency.
Source
- Title
- The Babe Ruth Effect: Frequency versus Magnitude
- Author
- Michael J. Mauboussin and Kristen Bartholdson
- Year
- 2002
- Published by
- Credit Suisse First Boston
- Length
- 4 pages
- File
- PDF · 430 KB