Mauboussin: Outliers Are A Combination Of Great Skill, Great luck

In his keynote address at the 17^th Annual Credit Suisse Asian Investment Conference, “The Success Equation – Untangling Skill and Luck In Business, Sports and Investing,” Michael Mauboussin presented startling information that showed how luck is playing an increasingly important role in complementing skills for the achievement of success.

The paradox of skills

“In an activity where both skills and luck contribute to the outcome, it is often the case that when skills improve, luck becomes more important.”

Baseball player Ted Williams was the last player in major league baseball to hit over .400, something...