Download Memo as PDF Is it still the year of not good enough? We concluded our year-end 2020 investor memo by saying that 2021 will be “the year of not good enough.” This does not mean we are expecting an economic downturn. What it does mean is that the current expectations built into stock prices will

Think of a company’s stock market capitalization as the present value of investor expected future cash flows. There are two ways this number can rise or fall. The first is related to the numerator, expected cash flows. For instance, expected cash flows can change when news arrives that affects investor expectations regarding the outlook for

By Bradford Cornell, Rob Arnott, Lillian Wu Tweet 0 Share 0 Download PDF If a capitalist had been present at Kitty Hawk back in the early 1900s, he should’ve shot down Orville Wright; he would have saved his progeny money.