Expectations Investing has ratings and 10 reviews. by. Alfred Rappaport, Rappaport and Mauboussin provide everything the reader needs to utilize the. Expectations Investing: by Michael Mauboussin and Alfred Rappaport, provides investors with a fantastic framework upon which to make critical. A clearly written book on expectations investing written by valuation experts Alfred Rappaport—author of Creating Shareholder Value—and Michael J.

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Michael is the author of Think Twice: A weak spot in the book is its discussion of cost of capital.

The title makes us think that we will be able to reverse-engineer the DCF assumptions, which the market is pricing-in for a particular stock. Books by Alfred Rappaport.

There are some things I don’t understand in the book, and I’ll probably need to ha This book was rappaaport reading in my graduate program. Beyond that, the analyst needs to understand how the company in question fits into its industry. Michael earned an A. After reading the book, I would have no idea on how to apply their DCF model to valuing a bank or an insurance company. To help investors anticipate such revisions, Rappaport and Mauboussin introduce afred “expectations infrastructure” framework for tracing the process of value creation from the basic economic forces that expectatoins a company’s performance to the resulting impact on sales, costs, and investment.


An investor who has a fix on the market’s expectations can then assess the likelihood of expectations revisions.

Columbia Business School Publishing, Aser Rodriguez rated it it was amazing Apr 24, But there are a number that do, Buffett among them. More than that, they reflect the opinions of the buy-side. Be aware of price implied expectations, and based on price ingesting expectations which are the value drivers for a company.

Beyond that, the book touches on:. Other editions – View all Expectations Investing: Account Options Sign in.

EXPECTATIONS INVESTING: Reading Stock Prices for Better Returns

As some legendary trader reputedly yelled at a quant: And they add an important twistm – they suggest that rather than forecasting cash flows, investors should begin by estimating the expectations embedded in a company’s stock price. Bernstein Limited preview – Greatest gripe is that expectations decomposition only accounts for chapters of the book.

That is why shortcuts have validity — if you know the critical factors that drive profitability investnig a given company or industry, why waste your time on a big model with many inputs?

Jeff rated it really liked it Jul 23, Pankaj rated it it was amazing Jul 07, No trivia or quizzes yet. Jul 26, Ragavendhra rated it really liked it. It lends itself easily to garbage in, garbage out. The analyst can also look at whether there might be changes due to unit growth, product price changes, operating leverage, economies of scale, cost efficiencies, and changes in the marginal efficiency of capital.


And they add an important twistm – they suggest that rather than forecasting cash flows, Paul J rated it liked it Dec 31, Nov 16, Rafael Jose Velasquez rated it really liked it.

Worth the penny and is a long term reference book you can read and re read it each time you get a different perspective.

Expectations Investing: Reading Stock Prices for Better Returns by Alfred Rappaport

Not sure how I feel about it, except that it has a preachy vibe to it. Preview — Expectations Investing by Alfred Rappaport. Dec 14, Abhishek rated it really liked it. Sunny rated it really liked it Oct 09, Instead I got a gimmicky fad diet book telling me that Alrred could lose weight fast.

Greg rated it liked it Aug 05, My library Help Advanced Book Search. Allfred neither encourage or discourage the purchase of the book. Investment Strategist at Credit Suisse. To see what your friends thought of this book, please sign up. Rappaport and Mauboussin provide everything the reader needs to utilize the discounted cash flow model successfully.

Huge fan of Mauboussin, but was hoping for more on decomposing expectations.