Most investment books try to assess the attractiveness of a stock price by estimating the value of the company. Expectations Investing provides a powerful and insightful alternative to identifying gaps between price and value.
Michael J. Mauboussin and Alfred Rappaport suggest that an investor start with a known quantity, the stock price, and ask what it implies for future financial results. After showing how to read expectations, Mauboussin and Rappaport provide a guide to rigorous strategic and financial analysis to help investors assess the likelihood of revisions to these expectations. Their framework traces value creation from the triggers that shape a company's performance to the impact on the value drivers. This allows a practitioner of expectations investing to determine whether a stock is an attractive buy or sell candidate.
Investors who read this book will be able to evaluate stocks of companies in any sector or geography more effectively than those who use the standard approaches of most investors. Managers can use the book's principles to devise, adjust, and communicate their company's strategy in light of shareholder expectations.
This revised and updated edition reflects the many changes in accounting and the business landscape since the book was first published and provides a wealth of new examples and case studies.
Michael J. Mauboussin is head of Consilient Research at Counterpoint Global, Morgan Stanley Investment Management. He is an adjunct professor of finance at Columbia Business School. His books include More Than You Know: Finding Financial Wisdom in Unconventional Places (Columbia, updated and expanded edition, 2007); Think Twice: Harnessing the Power of Counterintuition (2009); and The Success Equation: Untangling Skill and Luck in Business, Sports, and Investing (2012).
Alfred Rappaport is the Leonard Spacek Professor Emeritus at Northwestern University's Kellogg School of Management. He is the author of Creating Shareholder Value (revised edition, 1997) and Saving Capitalism from Short-Termism: How to Build Long-Term Value and Take Back Our Financial Future (2011). Rappaport has been a guest columnist for the Wall Street Journal, the New York Times, the Financial Times, Fortune, and BusinessWeek.
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#investing #books have long spoken of it glowingly but happy to note @AswathDamodaran-IMHO among top three #valuation experts in world-went out of his way, in recent lecture to his valuation course, to recommend "Expectations Investing" by @mjmauboussin & A. Rappaport. (1/2) https://t.co/YNZDNa5ioA
Welcoming masterminds to discuss books to think, invest, and live better. Concept: @Investbythebook Produced: @Redeye_ Hosts: @edisonpalmgren & @NiklasSavas
Thrilled to launch our latest episode with our hero @mjmauboussin! This is a masterclass where Michael breaks down his book Expectations Investing, intangibles, competitive dynamics, Shiller P/E, and much more. Apple: https://podcasts.apple.com/us/podcast/10-michael-mauboussin-expectations-investing/id1577368197?i=1000543510542 Spotify: https://open.spotify.com/episode/04NJG9IyAkC9039XVzDdP3?si=2b5821d6216640f8 https://t.co/dvZcmomgra
This book is a special one. It's a classic that ... has been revised for modern time[s]. If you have been in the investmentverse, Michael Mauboussin and Alfred Rappaport don't need an introduction. They are both pillars in investment research. Mr. Mauboussin is known for his top-notch research and knowledge. Al Rappaport is professor emeritus at Kellogg School of Management and one of the most respected experts on markets. Most financial textbooks share three things in common: massive, boring and expensive. Not this one. Expectations Investing is 272 pages of wisdom.
-- "Brian Langis blog"A revised and updated Expectations Investing by Michael Mauboussin and Al Rappaport was released in 2021 by Columbia University Press and it's the best investing book I've ever read! Period.
-- "The Motley Fool"A must-read if you are pondering the best way to value certain start-up and technology companies.
-- "Enterprising Investor"A 'top personal finance book' selection. Investors will be able to evaluate companies' stocks more effectively after reading this book and gain useful insights from the examples and case studies too.
-- "Top Best in Singapore"