Investing basics2001, rev. 2021
Expectations Investing
Michael J. Mauboussin and Alfred Rappaport
Teaches how to read the expectations already embedded in a stock price and judge what a company must deliver for the investment to work.
Core ideas
Idea 1
Understand the business before the ticker.
Idea 2
Separate market price from economic value.
Idea 3
Test the thesis against evidence.
Idea 4
Build a process before committing capital.