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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.

FAQ

When should I read it?

When you need a clearer framework to understand the business before the ticker.

Can I copy it exactly?

No. Test its assumptions against your costs, taxes, legal setting, and risk capacity.

What should I do after reading?

Write three principles, one checklist, and one real decision to test.