Expectations Investing

Patrick O'Shaughnessy, CFA, CEO, O'Shaughnessy Asset Management, and author of Millennial Money: How Young Investors can Build a Fortune:
Expectations Investing was one of the first books that sparked my interest in investing. The core idea is as powerful as any, and the authors explain it in a way that makes it unforgettable. This excellent update to the original classic is must reading for all investors.

Morgan Housel, Partner, The Collaborative Fund, and author of The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness:
One of the few investing books that gave me an 'ah-ha' moment and changed how I think about investing.

Annie Duke, author of Thinking in Bets and How to Decide:
In Expectations Investing, Michael Mauboussin and Al Rappaport build off the simple yet powerful observation that a company’s stock price embeds expectations. They then offer investors a rigorous method to identify gaps between what the price reflects and what is likely to happen. Truly a must have in any investor’s library.

Bill Gurley, General Partner, Benchmark Capital:
Mauboussin and Rappaport’s approach to corporate valuation is as relevant and intelligent today as ever. Understanding expectations, assessing competitive strategy, appreciating optionality, and a laser focus on cash flow will make you a more effective investor in private or public markets.

Howard Marks, cofounder and cochairman, Oaktree Capital Management, and author of The Most Important Thing Illuminated and Mastering the Market Cycle:
In Expectations Investing, Michael Mauboussin and Al Rappaport break down investing into its component parts, explaining what makes for good companies and attractively priced stocks. Which isn’t to say they make it easy. This is second-level thinking: a graduate-level course in intelligent investing.

from the foreword by Aswath Damodaran:
As I read the new edition of the book, it is clear that Al and Michael are writing a book for the times that we are in, with much more attention paid to disruption, and the value it creates and destroys, and user/subscriber platforms, which can be exploited for gain and thus provide optionality.