Expectations Investing

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.

• ForewordPrefaceAcknowledgments1. The Case for Expectations InvestingPart I. Gathering the Tools2. How the Market Values Stocks3. The Expectations Infrastructure4. Analyzing Competitive StrategyPart II. Implementing the Process5. How to Estimate Price-Implied Expectations6. Identifying Expectations Opportunities7. Buy, Sell, or Hold?8. Beyond Discounted Cash Flow9. Across the Economic LandscapePart III. Reading Corporate Signals and Sources of Opportunities10. Mergers and Acquisitions11. Share Buybacks12. Sources of Expectations OpportunitiesNotesIndex

As I read the new edition of the book, it is clear that Al and Michael are writing a book for the times that we are in, with much more attention paid to disruption, and the value it creates and destroys, and user/subscriber platforms, which can be exploited for gain and thus provide optionality.