Expectations Investing

by Michael Mauboussin

Book Reviews

  • My top five new books are: Trillions Expectations Investing Flywheels Wires of War Liftoff You have already read Psychology of Money and are reading Hardcore Software as it unfolds. If not, what the heck are you reading? I would rather re-read classics than a crap new book.Link to Tweet
  • 1/ Holiday shopping book tips from Tren. Expectations Investing- Revised Edition Disclosure: Michael Mauboussin is my friend and I would take a bullet for him. https://t.co/MbLhbbGLwALink to Tweet
  • I loved this book when I first read it years ago and the updated version is even better -- congrats @mjmauboussin! https://t.co/0TKXZ5lAkQ https://t.co/QTl1G0lNQxLink to Tweet
  • @nachkari "We can distill valuation into three prime components: future cash flows, a required rate of return, and a period of excess returns (which we call competitive advantage period, or CAP)." What does reverse DCF imply about market expectations for a stock? https://t.co/KbwcrshBAXLink to Tweet
  • One fantastic thing about one day delivery is you can receive the new Michael Mauboussin book quickly if you act now. If you have heard him speak at places like Capital Camp or have read his essays and other books you know. The book drops tomorrow. https://t.co/fCPVajafQJLink to Tweet
  • I'm very fortunate to be able to read several books a year early in galley format and this revised edition of Expectations Investing by Michael Mauboussin drops September 8. It is a gem. https://t.co/qggNx1HuQJ https://t.co/hn3W4gyTLeLink to Tweet
  • @om @bgurley @howardlindzon @pkedrosky @mjmauboussin I don't think about it any differently, but you often are valuing more based on optionality in private firms. I am lucky to have already read the revised version of the Mauboussin/Rappaport book "Expectations Investing" that will be available September 8. https://t.co/vW6AfgTR0tLink to Tweet
  • I use a multiple in evaluating a business exactly never. I do have a tech circle of competence. I watch the cycle and calibrate when doing asset allocation. My cash right now is historically high. My investing approach like Munger's is expected value. https://t.co/TEMDQTaoCo https://t.co/IEKWhgq0PhLink to Tweet
  • If you are an investor and have not read Expectations Investing you only have yourself to blame: https://t.co/YwkGRETliBLink to Tweet

About Book

"Expectations investing is a stock-selection process that uses the market's own pricing model, the discounted cash flow model, with an important twist. Rather than forecast cash flows, expectations investing starts by reading the expectations implied by a company's stock price. This work builds on chapter 7 in coauthor Al Rappaport's seminal book, Creating Shareholder Value, called "Stock Market Signals to Management." That chapter told executives that they needed to be able to read the expectations built into the stock price of their company in order to understand how to generate superior stock price performance. Expectations Investing tailors that message to investors. The book is unique because rather than calculating a value for a business, as most investment books and textbooks suggest, expectations investing provides the tools to understand the expectations embedded in share price and to judge whether those expectations are reasonable. Gaps between fundamentals and expectations create opportunities to buy or sell a stock. This revised and updated edition will contain new frameworks, data, and case studies that reflect how these ideas still apply in today's investing world, which has changed greatly since the first edition's publication in 2001"--