Ep. 214: Michael Mauboussin | Beating Expectations: The Impact of Loyalty on Corporate Valuations
Customer Confidential: Untold Stories of Earned Growth
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The Importance of Customer Loyalty
Expectations investing is a match made in heaven for expectations investing because it really fits hand in glove and thinking about whether stocks are correctly valued or not. One of the things that we did was some analysis of companies that were known loyalty leaders, what we would call enduring loyalty leaders as of 10 or now I guess it's 12 years ago, 15 years ago. American Express and Discover back in 2008 were leading their industry by a fair margin in terms of net promoter score; they outperformed on total shareholder return. A company that I don't know that much about, Texas Roadhouse in fast casual quick service restaurants,. T-Mobile, five times the rest of wireless telecom.
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