Softbank's WeWork Rescue: Savior Economics or Sunk Cost Problem?

[@vikhilboyalla4263]

lol i literally wait for new videos to be put out. These are some of the best informational videos on finance out there

[@seeker4430]

I jump with joy when you upload a video... Every new video is a peek into the world of finance and valuation... The closest I can get to this stuff

[@GymIsJoe]

When I see a new video from Aswath, I drop everything and click. Unwilling to walk away from Sunk cost, good money chase bad money, emotional attached to a poor odds =typical behaviors of a bad gambler. Let's see how it will turn out for Softbank

[@seeker4430]

A suggestion: please increase the volume of audio.

[@bobbyshen7826]

This video is very chill compared to Aramco, which has minor trouble with loud volume. I don't claim to know which is better.

[@bmiloev]

Thank you, professor. Arrogant money has had a good run lately - hopefully this is one area where we will see a reversion to the mean.

[@CASaurabhDwivedi]

The part about 'arrogant money vs. humble money' is really thought provoking. There's the reason why Buffett trades at premium to his investment value, and Carl Icahn does not!

[@ankurmukherjee7789]

As of investments in India, I don't think OYO is doing well. Their business is tumultuous right now more than ever before. Hotel owners are closing deals midway (literally boycotting). My friends working there say they're not feeling good about the company.

[@antonomaseapophasis5142]

Yes “V” shaped, but inverted.

[@reykii]

Lol

[@alekc6998]

Thank you professor. Eye opening and educational as always. Amazing how fundamentals can keep you grounded and lack of them makes folk fly away...then fall.

[@positiveenergy7147]

thanks prof. for elaborate / deep analyzing this kind of asset.. hopefully retail investors not always the ones who get abused all the time .. we hope more content like this (facts & analysis). what about the upcoming airbnb ipo?? looks cool...

[@cycliscs]

"Markets are always ready to teach a lesson." Great line.

[@SinisaStojanovic]

Thank you Professor, hope you get better soon!

[@Sventasis]

This case is simply fascinating. A true monument to our times. A cherry on the cake.

[@azeezlawal7015]

Dear Professor, Thank you for the candid reminder on the concept of Sunk Cost and the need to discard our egos in making investment decisions. While reading, a question came to mind, interestingly, it has almost no relationship with the topic. My question: is there an ideal number of shares a company must have in issue vis-a-vis it's authorised share capital? It will be great to read your response. Thank you.

[@charvakpatel962]

You raise money by issuing shares as per your need. Some companies do smaller issue the first time and latter if they require more money to be raised then they do secondary listing which i think is the case with Alibaba. Equity is same as Debt in the sense that they both are used to raise capital albeit with different cost. You don't take more debt than you require, same way you issue the shares enough as per your requirement.

[@karanjoon7654]

Excellent analysis Ashwath, do you think Adam Neuman will be able to payback the $500 million loan back to Softbank with interest if any?

[@bobsmith2886]

When you have too low interest rates, too much QE and too much liquidity, you get investors chasing dreams rather than cashflows and bubbles all over the place. Ray Dalio has been talking about this lately.

[@nileshgada]

Thanks for your sharing valuable work !! Appreciate you sir !!

[@Blazetoamaze]

Another excellent lecture! Thanks a lot

[@dm17nc17]

Aswath, so unless this happened you say the value was on the way to zero. What would have happened to the "value" if it IPO'ed, still on its way to zero? Should be a case study in drumping crap to the public bagholders?

[@bogdar2019]

Man, I love this guy. Such an inspiration to think.

[@pelumiobasa3104]

It the price is low when u look at revenue multiples but doesn’t aramco have higher margins than everyone one else

[@wm6549]

Another great post. Thank you!

[@jmachadok]

Lucky investor vs unlucky investor - perfectly said!

[@KHK360]

There are more companies similar to wework in softbanks portfolio....guess this is just the start!

[@lawjef]

If your implied equity valuation, before any adjustments for the risk of failure, is negative and then you also apply a discount for the risk of failure, you do realize that you are double counting, right? Moreover, C Corp (or llc) limited liability makes that extra adjustment totally redundant and easily resolved with a minor model tweak.

[@alexh.4842]

I’m a fan of yours!

[@shahjaffar8108]

Please get a good mic Sir.

[@AswathDamodaranonValuation]

I do have a good mike, but I shot this video, sitting at an airport in Jakarta and with my computer mike, while waiting for a flight. I will do better when I get home.

[@wm6549]

Every time he speaks he points out how useless the people at CNBC are with their talk about smart money, technical analysis, relative PEs, etc.

[@marufio]

Wework is a money pit and will be for the foreseeable future.

[@seeker4430]

Arrogance of the founder is an understatement... Its basically a brute criminal mind without shame and scruples

[@aasishkumar1538]

Sir, why don't you do value analysis of Indian companies ?

[@chiquita683]

He's used Tata in his classroom exercises if you watch his valuation classes, also available on his KZbin channel. Might be from a few years back

[@aasishkumar1538]

@@chiquita683 Thanks ,but i was hoping on regular basis.

[@naziakhan5238]

Sir can you make a video on Aramco valuation? It would be great.

[@giridhart]

May be at 25% of perceived book value, I can put my few cents.

[@frankfacts6207]

possible laundry

[@prashanthparthasarathy9603]

"stay the heck away from we work fees" 😂 😂