This is the third article in a series that shines a light on Michael Mauboussin’s ten attributes of successful investors. Michael Mauboussin is the director of research for BlueMountain Capital Management and used to be the MD and Head of Global Financial Strategies at Credit Suisse. You can refer to Parts 1 and 2 here and here for the first four attributes. 5. Think in terms of probabilities There are no absolutes in investing, and you should always think in terms of probabilities. As investing deals with events in the future, there is a myriad of possibilities as to what can happen. As investors, we need to assign probabilities to scenarios which we feel have a realistic chance of occurrence. There are several ways to come up with probabilities. One method is known as “subjective probabilities” which ties in with a state of knowledge or a belief system. The problem is that markets and businesses constantly change and evolve,...