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Expectations Investing: Reading Stock Prices for Better Returns

byMichael MauboussinandAlfred Rappaport

Michael Mauboussin and Alfred Rappaport reverse the usual investment process by starting with the expectations embedded in a stock's market price. Instead of estimating a company's value from a single forecast, investors ask what revenue growth, margins, investment, and competitive performance the current price already assumes. They can then judge whether those expectations are plausible and where market beliefs may change. The book combines valuation, strategy, and financial-statement analysis into a disciplined framework. Its approach reduces dependence on point forecasts and focuses attention on the difference between a good company and a stock priced for even better results.

Publisher

Columbia University Press

Publication date

2001

Format

Print edition

Pages

256

ISBN

9780231203043