This week, we and Michael Maubousen, Head of Consistency Research, Morgan Stanley Investment Management Counterpoint global And co-author of the recently revised and updated book”Anticipated investment: read stock prices for better returns, revise and update. ”Mauboussin joined Morgan Stanley in 2020 and has more than three years of experience. He has served as the head of global financial strategy at Credit Suisse and chief investment strategist at Legg Mason Capital Management. He is also an adjunct professor of finance at Columbia Business School and the School of Finance Chairman of the Board of Directors. Santa Fe Institute.
We discussed why he and his co-author, the famous Kellogg M&A professor Alfred Rappaport (Alfred Rappaport) thought it was time to update the book. Over the past 20 years, many things have changed. Some of the indicators discussed when this book was first published explained why “when investors talk about expectations, they usually talk about wrong expectations.” Multiples are not valuations, but broader Shorthand for the valuation process. They are full of many assumptions about how the world works, and they are actually a circular argument.
Mauboussin explained how the rise of intangible assets—including patents, software, processes, copyrights, algorithms, logistics, etc.—has not been properly considered in traditional CPA analysis. If the calculation is correct, the company’s profits have almost doubled. Using a company like Amazon, you will find that their profits are not only much higher than before, but their investments are also much higher. A more appropriate measurement of intangible assets transforms seemingly expensive stocks into fast-growing companies whose costs may be lower than they first appeared.
We also discussed why impaired horse racing can provide value guidance (e.g., Steven Crist talks about value investing and horse betting And Chapter 3 Value star).
You can stream and download our complete conversation, including podcast add-ons iTunes, Spotify, Suturing device, Google, Bloomberg, and Acast. All early podcasts on your favorite podcast host are available Found here.
Be sure to check our Master of Business Next week with Richard Nisbet Professor of Social Psychology and Co-Director of the Culture and Cognition Project at the University of Michigan, focusing on culture and reasoning and basic cognitive processes. Malcolm Gladwell called him “the most influential thinker in my life.” He is the author of numerous studies and books, and recently, “Thinking: Memoir. “
Works by Michael J. Mauboussin
Anticipated investment: read stock prices for better returns, revise and update Authors: Michael J. Mauboussin and Alfred Rappaport
The formula for success: unlocking skills and luck in business, sports, and investment Author: Michael J. Mauboussin
Michael J. Mauboussin’s favorite book
Scientist: EO Wilson: A Life in Nature Richard Rhodes
Gene Lottery: Why DNA is important for social equality By Catherine Paige Harden
Consistency: the unity of knowledge By EO Wilson
Reason: what is it, why it seems scarce, why it matters By Steven Pinker
Kennedy: Manhood in the American Century, 1917-1556 Author: Frederick Logwal
Books mentioned by Barry