Their idea is that when you've got this nice return that's well above your your

cost of capital. You actually attract competition and there is this finite

time in which that edge dissipates and you're driven to eventual returns that

almost equal your cost of capital.

I'm Ricky Mulvey and that's Motley Fool Senior Analyst, Osset Charma. On today's

show, Osset takes the expectations investing framework to four companies. We go

from General Motors all the way to Nvidia. In between we've also got a uniquely

positioned railroad company and a fast growing payment processor that's

recently taken a hit. Osset gave us an introduction to expectations investing

on Thursday's show so I'd recommend starting there if you haven't but this

show will still make sense if you have not had a chance to listen to Thursday's

episode yet.

Let's get into the case studies and I think a good place to start is General

Motors. Osset, if I told you a story about an electric car maker that now has

fully self-driving cars on the road they are licensed to give rides in multiple

cities across the United States. You might guess that its stock price would be

better than flat over the past five years. Investors have basically received

nothing in terms of price appreciation and basically a 1% dividend for you to

wait. What do you think is the story that the market is telling about General

Motors right now? It seems very disconnected to me. I think the market is making

some assumptions about General Motors cash flows that could be reasonable.

Again, we'll take this from an expectations investing framework or point of

...