Book · 2021 · Business & Economics
Expectations Investing
Reading Stock Prices for Better Returns
Why people recommend it
Expectations Investing by Michael J. Mauboussin and Alfred Rappaport is an analytical finance book that examines the core expectations built into stock market prices and the underlying psychology driving investor behavior. On ChooseFI in July 2003, Brian Feroldi recommended Michael Mauboussin's analytical text to listeners looking for a resource that clearly explains how stock prices reflect market expectations and the psychological factors influencing those valuations. Earlier, on Acquired in October 2021, Michael Mauboussin himself discussed the origins of expectations investing, explaining how he and co-author Al Rappaport originally developed the framework with a primary focus aimed at corporate executives and chief executive officers before adapting it for broader investment applications. Both conversations underscored the unique perspective the book offers, moving beyond traditional valuation methods to focus heavily on the expectations already priced into equities. The podcast segments illustrate why financial professionals and educators continue to reference the work as a crucial tool for understanding market dynamics, helping both corporate leaders and everyday investors decipher the complex signals sent by stock market prices and make more informed, rational decisions based on expectations rather than historical metrics alone.
Who recommended it
- Brian Feroldi Recommended
- Michael Mauboussin Discussed
Brian Feroldi — 1 mention
“And then there's another book out there by Michael mobison it's it's a little bit more analytical but it's called expectations in investing and that gets into the expectations that are built into stock prices and kind of the psychology around that”
Michael Mauboussin — 1 mention
“so that was the birth of expectations investing that former one was sort of aimed at executives at ceos”