“When investors talk about expectations, they usually talk about false expectations.”
-Michael Maubousen

One of my favorite MiB guests is Michael Maubousen; His current job is the head of consistency research at Morgan Stanley Investment Management Counterpoint global.

He recently updated and rewrote the book he co-authored with Alfred Rappaport,”Expected investment: Read stock prices to get better returns. “This is the best excuse for him to return to the studio to discuss the changes that have taken place over the past 20 years.

He explained why people confuse valuation multiples and many assumptions about stock prices are often uncensored. He explained why so many metrics like P/E, P/S, P/B, etc. are often circular arguments.

We also spent some time discussing the impact of the rise of intangible assets: patents, software, processes, copyrights, algorithms, logistics.

Discuss on the podcast:

Clear classification: cash flow statement adjustments to improve insight (PDF) (Morgan Stanley)

Steven Crist talks about value investing and horse betting

Chapter 3 Value star

The impact of intangible assets on the basic interest rate (PDF) (Morgan Stanley)

Lifetime earnings: Can IPO prices predict future earnings?

A The Idea Multiplier: The acceleration of innovation is coming (pioneer)

List of his favorite books here; The record of our conversation is Available here.

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. “