CSFB's Michael Mauboussin talks to Jeff Cossette about a technique corporate managers can use to 'read' what the market believes about their company's future performance and reconsider their approach to investor relations
Q: What's wrong with the way companies currently value stocks?A: Companies typically impose their own world view, and determine if it is different from the market's price. While these tools are a proxy for reality, they don't reflect how the market really works - and that's why most active investors fail to beat indices.Rather than try to independently forecast the parameters that establish a company's value, 'expectations investing' starts with the stock price. Then, using the market's basic
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