The way i would think about it is, your return is the expectations of point a and the expectations at point b. What happens in terms of financial performance between a and b can inform b. But really what you want to do is put yourself into the mind's head is, what will the world believe and why, at some point in the future? So it's really revisions and expectationsin te sense is a trivial statement, but in other ways, it's actually very profound, right? Like words are found to think.
Michael Mauboussin is an adjunct professor of finance at the Columbia Business School and the Head of Consilient Research at Counterpoint Global, Morgan Stanley Investment Management. Bill Mann interviewed Mauboussin in front of a live audience about a range of investing topics, including:
- The approach of "expectations investing" and how to apply it
- Why a company's base case for growth is so important
- Peloton’s faulty growth predictions
- Businesses with real option value
Companies mentioned: SBUX, PTON, AMZN, GOOG, GOOGL, WMT, TGT
Host: Bill Mann
Guest: Michael Mauboussin
Producer: Ricky Mulvey
Engineers: Tim Sparks
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