Good article and I like the concept. How would differentiate, if at all, between the idea of narrative or expectations embedded in a stock? My first thought was expectations could be quantitative in the form of numbers and narrative qualitative, but I still think expectations can be qualitative. Any thoughts? One more question: do you think DBX fits into this framework, going from growth mode to profitability, with a focus on capital allocation?
Consensus expectations are certainly “quantitative” but those numbers tend to imply certain qualitative narratives and trends (expressed in quantitative forecasting) that I try to explicitly understand.
Re: DBX I believe it fits the framework. It’s going to take time for the market to give them credit for “good” capital allocation and get comfortable with the ecosystem they have.
One of your most interesting posts to date!
Good article and I like the concept. How would differentiate, if at all, between the idea of narrative or expectations embedded in a stock? My first thought was expectations could be quantitative in the form of numbers and narrative qualitative, but I still think expectations can be qualitative. Any thoughts? One more question: do you think DBX fits into this framework, going from growth mode to profitability, with a focus on capital allocation?
Consensus expectations are certainly “quantitative” but those numbers tend to imply certain qualitative narratives and trends (expressed in quantitative forecasting) that I try to explicitly understand.
Re: DBX I believe it fits the framework. It’s going to take time for the market to give them credit for “good” capital allocation and get comfortable with the ecosystem they have.
Gotcha. Thanks for responding!