Expectations Investing

An investing approach that focuses on reading what expectations are already embedded in a stock price, rather than simply analyzing whether a company is good. The key question is not “is this a great company?” but “what does the market already expect, and am I seeing something different?” Related to the Non-Consensus framework. Approach famously articulated by Alfred Rappaport and Michael Mauboussin. Referenced in When Younger and More Self-assured… (tweet) and How to Analytically Assess an… (tweet).

Where this appears

• How to Analytically Assess an… (tweet)
• When Younger and More Self-assured… (tweet)