Alfred Rappaport

A Guide for Managers and Investors

Creating Shareholder Value

Peter L. Bernstein

Michael J. Mauboussin

Expectations Investing is well worth picking up. -Financial Executive Expectations Investing offers a fundamentally new alternative for identifying value-price gaps, built around a deceptively simple and obvious tool: a company's stock price. The authors walk readers step-by-step through their breakthrough method, revealing how portfolio managers, security analysts, investment advisors, and individual investors can more accurately evaluate established and "new economy" stocks alike-and translate shareholder value from theory to reality. AUTHORBIO: Alfred Rappaport directs Shareholder Value Research for L.E.K. Consulting and is a Professor Emeritus at Northwestern's Kellogg School. Michael J. Mauboussin is Credit Suisse First Boston's Chief U.S. Investment Strategist and an adjunct professor at Columbia University.

Reading Stock Prices for Better Returns

Expectations Investing

Michael Mauboussin

"Expectations investing is a stock-selection process that uses the market's own pricing model, the discounted cash flow model, with an important twist. Rather than forecast cash flows, expectations investing starts by reading the expectations implied by a company's stock price. This work builds on chapter 7 in coauthor Al Rappaport's seminal book, Creating Shareholder Value, called "Stock Market Signals to Management." That chapter told executives that they needed to be able to read the expectations built into the stock price of their company in order to understand how to generate superior stock price performance. Expectations Investing tailors that message to investors. The book is unique because rather than calculating a value for a business, as most investment books and textbooks suggest, expectations investing provides the tools to understand the expectations embedded in share price and to judge whether those expectations are reasonable. Gaps between fundamentals and expectations create opportunities to buy or sell a stock. This revised and updated edition will contain new frameworks, data, and case studies that reflect how these ideas still apply in today's investing world, which has changed greatly since the first edition's publication in 2001"--

Reading Stock Prices for Better Returns, Revised and Updated

"Now is the time to redirect your focus from short-term gain to long-term growthAlfred Rappaport, who first introduced the principles and practical application of "shareholder value" in his groundbreaking 1986 classic Creating Shareholder Value, reiterated the basic message in his 2006 Harvard Business Review article: Focusing on Wall Street quarterly earnings expectations rather than on creating long-term value is an invitation to disaster. Rappaport shows how deeply flawed short-term performance incentives for corporate and investment managers were an essential cause of the recent global financial crisis. In Saving Capitalism from Short-Termism, Rappaport examines the causes and consequences of "short-termism" and offers specific recommendations for how publicly traded companies and the investment management community can overcome it. Whether you're a corporate manager, money manager, public policymaker, business-school student, or simply concerned about your financial future, Saving Capitalism from Short-Termism provides valuable insights and practical ideas to change the course of your organization --and contribute to a healthier economy that benefits all"--

how to build long-term value and take back our financial future

Saving capitalism from short-termism

Come riprendere il controllo della finanza e tornare a creare valore a lungo termine

Salvare il capitalismo. Come riprendere il controllo della finanza e tornare a creare valore a lungo termine

Lawrence Revsine

The Issues, the Objectives and Some New Proposals

Corporate Financial Reporting

The ultimate test of corporate strategy, the only reliable measure, is whether it creates economic value for shareholders. Now, in this substantially revised and updated edition of his 1986 business classic, Creating Shareholder Value, Alfred Rappaport provides managers and investors with the practical tools needed to generate superior returns. After a decade of downsizings frequently blamed on shareholder value decision making, this book presents a new and indepth assessment of the rationale for shareholder value. Further, Rappaport presents provocative new insights on shareholder value applications to: (1) business planning, (2) performance evaluation, (3) executive compensation, (4) mergers and acquisitions, (5) interpreting stock market signals, and (6) organizational implementation. Readers will be particularly interested in Rappaport's answers to three management performance evaluation questions: (1) What is the most appropriate measure of performance? (2) What is the most appropriate target level of performance? and (3) How should rewards be linked to performance? The recent acquisition of Duracell International by Gillette is analyzed in detail, enabling the reader to understand the critical information needed when assessing the risks and rewards of a merger from both sides of the negotiating table. The shareholder value approach presented here has been widely embraced by publicly traded as well as privately held companies worldwide. Brilliant and incisive, this is the one book that should be required reading for managers and investors who want to stay on the cutting edge of success in a highly competitive global economy.

A Guide For Managers And Investors

John C. Bogle

Conquering the obession with short-term profits is critical to the future of business, society, and capitalism itself—Alfred Rappaport presents a game plan every business leader should read “As Rappaport keeps on speaking out for the realities surrounding investment and speculation, our society will profit as it builds on his keen insights.” John C. Bogle, founder of The Vanguard Group (from the Foreword) About the Book: Alfred Rappaport, who first introduced the principles and practical application of "shareholder value" in his groundbreaking 1986 classic Creating Shareholder Value, reiterated the basic message in his 2006 Harvard Business Review article: Focusing on Wall Street quarterly earnings expectations rather than on creating long-term value is an invitation to disaster. Rappaport shows how deeply flawed short-term performance incentives for corporate and investment managers were an essential cause of the recent global financial crisis. In Saving Capitalism from Short-Termism, Rappaport examines the causes and consequences of “short-termism” and offers specific recommendations for how publicly traded companies and the investment management community can overcome it. Whether you're a corporate manager, money manager, public policymaker, business-school student, or simply concerned about your financial future, Saving Capitalism from Short-Termism provides valuable insights and practical ideas to change the course of your organization —and contribute to a healthier economy that benefits all.

Alfred Rappaport

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