Book cover of Expectations Investing: Reading Stock Prices for Better Returns

Book description

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…

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Why read it?

1 author picked Expectations Investing as one of their favorite books. Why do they recommend it?

Again, this is the kind of book that demonstrates practically how to forecast financial performance of a company and then value it.

It goes a step further and, as the title proclaims, the authors try to reverse engineer a price of a stock and match investors’ expectations with specific assumptions of the model.Ā One of these assumptions is the growth period. This contrasts with the conventional practice of discounting a fixed growth period of five or ten years.

The book provides Excel models, backed up by the proper math, that are very helpful in deconstructing a share price to model…

From Michael's list on financial modelling and valuation.

If you love Expectations Investing...

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The Rosewood Penny by J.S. Fields,

2023 Queer Indie Award Nominee!

The dragons of Yuro have been hunted to extinction.

On a small, isolated island, in a reclusive forest, lives bandit leader Marani and her brother Jacks. With their outlaw band they rob from the rich to feed themselves, raiding carriages and dodging the occasional vindictive…

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