Dr. Aswath Damodaran Talks Valuation, Market Uncertainty, and Bitcoin

Dr. Damodaran's channel: / aswathdamodaranonvalua...
Dr. Damodaran's Website: pages.stern.nyu.edu/~adamodar/
Dr. Damodaran's blog: aswathdamodaran.blogspot.com/
This video is available as a podcast at www.theplainbagel.com and on Apple Podcasts (search "The Plain Podcast")!
00:00 - Introduction
02:36 - Why Aswath Teaches
06:27 - Valuation vs Pricing
16:36 - What Swath Looks For in a Company
19:11 - Common Analysis Mistakes
23:46 - The Changing Valuation Environment
32:02 - Aswath's Views on Crypto
42:49 - Closing Tips
I had the chance to sit down with the "Dean of Valuation" himself, Dr. Damodaran of NYU Stern, who offered is views on valuation, the current market environment, and bitcoin.
If you'd like to support the channel, you can do so at / theplainbagel :)
DISCLAIMER:
This channel is for education purposes only and does not constitute financial advice - Richard is not responsible for investment actions taken by viewers. Please seek out a registered advisor if you require assistance (while Richard is a registered portfolio manager at WDS Investment Management, he does not provide advice through The Plain Bagel, which is not affiliated with his employer).

[@cnhtol1586]

His KZbin channel has free finance courses, people will charge you thousands of dollars for 10% of what he is giving free on KZbin. True legend. I learnt a lot about corporate finance from him.

[@dolevmazker736]

me too, his work really helped me

[@MrSupernova111]

Not only that but the quality of his lectures exceeds that of just about any paid course.

[@frankyohance4625]

His course is excellent

[@kurtilein3]

Patrick Boyle has a complete university-level course about "Applied Portfolio Management" on his channel for free. He does teach on advanced finance topics at university. He did run a successful hedge fund which made profit year after year and start to finish, which is rare. He closed it down knowing that his strategies can only work in a certain volume range, and continues running his strategies with his own money. He won numerous awards. Coffezilla is an excellent youtuber and content producer in the financial area, Boyle is a beast when it comes to credentials in the financial industry.

[@AJ-iu6nw]

Is this one of those "Contact Mr. Wilson" for my "financial" education type comments? because we won't contact him.

[@benjjjaamiinn]

Aswath's channel is one of my favorites to plagiar- adapt from! Only second to The Plain Bagel!

[@ThePlainBagel]

Oh my God it's Benjamin

[@tommy7613]

Benjamin, you know degenerates aren't allowed on this channel. Jkjk but when's the next video coming out?

[@francescoghizzo]

@@ThePlainBagel Damodaran, Plain Bagel, Patrick Boyle and Sven Carlin are the best finance channels on KZbin. But only Benjamin teaches you how to leverage like Bill Hwang!

[@Aditya19012]

Huge respect to Professor Damodaran for giving us the experience of learning from the best for free..He's doing an amazing work for people like me who want to make it big in the world of finance

[@ErikLivelyScottsdale]

In 2012 I worked for a software company selling business valuation software for accountants. I didn't know anything about business valuation. In searching the internet I found Dr. Damordaran's MBA valuation classes. Over the next 3 months at night and on weekends I basically took the entire class for free. It was amazing. I was helping our programmers find bugs and issues in the software and I knew more than the people that were using the software yo help actual clients. He's a great teacher and it's awesome what he's contributed to learning through his free online content. You can get 50k of learning for free.

[@hadleyjolley3375]

As to Universities: I've never heard of a school that was upset about a professor providing public education in their field. If MOOCs have taught us anything it is that though knowledge may be free, grading and one-on-one experiences cost money.

[@Jos_Louis]

Damnnnn Richard, you're moving on up if you're securing some high profile guests like Prof. Damodaran on your podcast/KZbin videos! Congrats on the amazing opportunity and thank you for sharing. This was a great discussion!

[@fail_fast]

Dude, I can't believe you got Damodaran in for an interview. Value Legend over here Seems like you're on an interview spree rn - can we please get Roaring Kitty next? 😸

[@kuenmao]

"Created by the paranoid for the paranoid". That's such a great way to summarize the beliefs behind bitcoin, and speaks so well to the problems of adoption.

[@James-vj5hz]

I like having a paranoia allocation in a portfolio. Without it, you can't really claim to have diversification. As an internationalist, I value having the ability to move my personally owned value anywhere in the world. I can't do that with my TFSA or RRSP if the government of Canada becomes hostile in any way. Bitcoin isn't an investment, like a cash flowing business. It's just a bearer asset that is digital.

[@wachtwoord5796]

What is paranoid and what is being aware and diligent wrt a legitimate risk is always going to be subjective. And after such a risk materializes (or not) everyone suddenly will treat it as if whatever the outcome was was a given a priori. It is possible to value Bitcoin. Not by cash flow, and not very exact because there are so many large unknowns that will heavily impact thar but it's highly likely to be undervalued by several orders of magnitude. At the same time it's more heavily undervalued relative to the "other cryptos" (very few of them are cryptocurrencies and 99.99% are just outright scam but I have to summarize it somehow) than it is relative to fiat currencies. So people buying/owning eg Ethereum over Bitcoin is much more insane to me then people choosing not to buy/own either. At least the latter is a logically consistent take.

[@erikdeca]

Just because you're paranoid does not mean that the WEF and the top 0.1% are not out to make sure you become and remain poor.

[@fadedflage]

It isnt paranoia when they really are after you

[@dobariyanaitikdineshbhai6832]

@@James-vj5hz It is more likely that you'll lose your money in crypto than the Canadian government would go hostile especially run after a person.

[@ellemarr7234]

As someone who misses university learning, I will be forever grateful for brilliant guests sharing their knowledge with us. Big up 😊

[@juljk8397]

He’s wrong about BTC, I encourage you to look at my other comment

[@ellemarr7234]

@@juljk8397 ok thank you random, anonymous person. We shall take your advice and not this fool’s. As if 👋

[@juljk8397]

@@ellemarr7234 look for my comment and then DYOR. You shouldnt always listen to influencers online lol

[@ErikLivelyScottsdale]

Dr. Damodaran literally wrote the book on valuation. He is who presidents and CEO's listen to.

[@samuelbarnes9243]

@@juljk8397 Even if he's wrong about Crypto/BTC (and I actually disagree with about half of his thoughts on Crypto/BTC), he's an incredibly smart man with a lot of knowledge and experience in the world of investing. It pays to listen to him and learn from him even if you may not agree with everything he says. I believe in forming your own opinion in life but doing so under the guidance of smart people that are experts in their field. I am a crypto made millionaire and a large proponent of the space and yet I can confidently say that Dr. Aswath is one of the main teachers that have shaped my thoughts and opinions on investing and helped lead me towards success.

[@AlexFlavell]

The collaboration I never knew I needed!!!

[@vonb2792]

i dont know who is more excited seeing this interview... Richard or me ! I discovered Dr.Aswath thanks to the pandemic and been learning since

[@mbeeck]

What a fantastic conversation. Congrats for bringing good questions to the table!

[@chrissavory1858]

Loved your channel for a long time but this might be my single favourite video. I could listen to Aswath speak forever. Great job with the topics and questions.

[@danielmerinsky467]

The legend of finance himself. I use prof. Damodaran's data that he publishes for free at my work literally everyday.

[@MenwithHill]

So great to see you with Aswath. He's such a knowledgeable man, way above all but a few on this website.

[@1Route69]

I’m gonna just say it: this is GOLD! Thank you. Both.

[@TheStringBreaker]

*Impressive and respectable that you had Aswath Damodaran on!*

[@JStack]

This is not a troll/bot comment. Damodaran’s tips for evaluating a stock and “telling a story,” about it opened my eyes to better analysis. There is no free money glitch, but akin to understanding the math of poker, it gives you a higher level of information to work with than you had prior.

[@ipwnatcallofduty99]

I’ve been waiting for him to release a new video on his KZbin. Now he’s on here!

[@nanazinhaamaral]

Could not believe this interview! Well done getting the mr. Myagi, the yoda, the absolute master from where all of ou financial models are based on. I bow to both of you MVPs

[@nrpbrown]

This is an amazing interview, thank you. I'm going to go to his channel right now, this guy's something else.

[@geekytraveler5899]

Haven't watched it yet, but I'm already in for the video. You've got the legendary person on the interview Prof Damodaran's was my first book in Corp finances about 10 years ago and my deepest respect to this man. Looking forward for content here. PS: I'm a software dev guy, but when I was working for wall st - I believed in knowing more about the domain.

[@Z.November]

He has a very calming voice.

[@paragkar8885]

Prof Damodram I have tremendous respect for the work that you are doing. Thank you from the bottom of my heart.

[@g.t.c7647]

Nice job on getting Dr. Damodaran!

[@edwinbrace4681]

This is a GEM of a channel !

[@NeMatiosaitis]

One of the best interviews.

[@zackrodriguez6653]

Happy to see a fellow Damodaran-head, big upvote

[@minma02262]

Really enjoyed this interview. Thank you for making this happen.

[@kirthanshaker1951]

A complete genius in his field. Thank you for Educating, Sir.

[@riadirige7804]

this is a great interview! i learned so much from you and your guest!

[@AJ-iu6nw]

wow. you got the prof. Congrats Richard

[@ihordyba2717]

Thanks a lot for this conversation!

[@ThanhCongTC]

Great podcast, Richard!

[@arsalanheydari4426]

thank you Richard for inviting the professor.

[@francescoghizzo]

Prof. Damodaran's classes were my first introduction to finance! One of the best finance channels on KZbin hosting one of the best finance professors in the world 😊

[@juljk8397]

He got bitcoin wrong though, you can even read my comment on this vid

[@onlymanoj]

Eye opening. Thanks for posting this.

[@jjh7611]

It’s well said and I’ve been preaching the same idea in many different concepts in life. People are different. There isn’t one golden rule for every person out there. This goes for trading, dieting pretty much anything

[@kevinmoore9655]

Richard, another great episode. I originally found you through your interview with Patrick Boyle, now another great find with this interview. And thanks to Dr. Damodaran for giving us his time an great insights.

[@gn3997]

Awesome content and even a better guest!

[@marinabaskakova2333]

Thank you for this interview!

[@kikolatulipe]

Huge guest ! One of the best in the industry !

[@mayankpant64]

Excellent Video ! very informational for any beginner investor looking to study about valuations.

[@nwgverified]

Good job getting on someone who knows what he's talking about

[@skyaudi7416]

That was a great guest and a good interview.

[@Carefreeblues]

Gosh this guy brings me back to my uni finance courses.

[@spikenova7295]

Amazing collab!

[@Mrfoo2002]

Incredible interview

[@ajrobbins368]

Excellent interview, thanks.

[@marqkamamerg9019]

Ive learned a lot. Thank you very much

[@neuvocastezero1838]

Wow, great interview, keep up the good work.

[@Studeb]

This guy is great, he said exactly the sentence I have said many times but seen nobody else say: "All crypto in the world was at the peak valued the same as the biggest company in the world", really not that much in the grand scheme of things.

[@Drift0x]

So I think you have to choose: staying out of the game while it's still early, take your slice (let's say 5% of your whole portfolio) now at very low price, or waiting when it will be too late and see another train running 200 mph speed when you could take it when it was at the station with the doors opened?

[@Ravi-xf8dw]

@@Drift0x the problem is what if he invest through their party apps and they go bankrupt like celcius

[@kennysmith1925]

What a guest. The man the legend

[@TheUnlistedOne]

Love the video! Aswath is awesome!

[@SmarandaC]

Oh this was awesome 👌

[@justcommenting4981]

Excellent video. Amazing guest. Really superb.

[@anthonykuanda1762]

Great video. Alot of insight for investing 👍

[@BaldInvestor]

Great, interesting and wise conversation. Thank you very much.

[@Kraktur]

Thanks a lot, great reference

[@andrewcameron4277]

Thank you for your content

[@HeartoftheMatter]

Awesome interview. Thanks!

[@gorandamchevski]

THANK YOU

[@thomas6502]

Excellent guest and discussion. Thank you both!

[@taneishar1994]

This was a great interview. I am so glad I listened to it period thank you and the good doctor for allowing us into your conversation

[@ramyazoury4789]

Great interview !

[@dvoiceotruth]

I had this intrinsic feeling which he clarified with the example in the beginning.

[@Akixkisu]

Lovely guest and interesting talk :)

[@Flying_Scorpion]

I really liked what he had to say about crypto, especially bringing back to mind that it was originally sold as a new form of currency, but it's severely lacking in reliability and stability, too much so to be used effectively as a currency. Then pointing out that the real reason people buy it, is because they think they can sell it later for a profit. That was great to hear him put into words.

[@shaivahnparsons3244]

We are in the era where you can get MBA level courses for free online from anywhere in the world from professors like Dr Damodaran. Its breaking down barriers to entry and preventing elitists that can afford to go to prestigious business schools from gatekeeping their professions.

[@heronekkotheanimer7386]

Yep, and that is only after 20 years of Internet as a common thing for people. Soon we may have access to most human knowledge on the tip of our hands and that will be awesome and sad, because I am sure that the mayority of people wont use said benefits.

[@DavidSmith-do6ji]

So much respect for Dr Aswath Damodaran he is an absolute legend, such a smart and kind man to share his knowledge!

[@hideehere]

finally they're getting the eyeballs they deserve

[@Storming32]

Literally saw this guy in a meme this morning and now he's here on Plain Bagel.

[@davidecastello8801]

I'm starting the video and I don't remember the last time I had soo high expectations... what a guest

[@geoffreybomber]

I’m about 2/3 through my first reading of Graham’s Intelligent Investor and this was such a wonderful modern application of those ideas. I’m trying my hardest to not jump on the fire sale going on right now in the market, demonstrating the other side of patience in the market.

[@housinauthority5258]

Time in the market trumps timing the market.

[@sahilchib5842]

Great video Richard ❤

[@MrSupernova111]

Huge fan of Dr. Aswath Damodaran here from back in my college days. He's a legend. Cheers!

[@juljk8397]

I encourage you to think twice about that and look at my comment

[@GT-tj1qg]

Fantastic insights about Bitcoin

[@simonroese2596]

Thankyou very much 😊 ☺️

[@Goforitmanager]

Wow, I always appreciate Dr. Damodaran such a straight shooter and interesting to listen. Made a 48 minute video seem like 10 minutes.

[@MeriadocTook-zu2bm]

THIS IS SUPER COOL!

[@rteddydacius]

Superbe Interview. Clear questions and clear answers. No unnecessary fluff. Straight game.💯

[@Its.melvin]

Oh dang big catch today Mr Bagel.

[@patraprateek]

Thanks!

[@Paulik753]

Aswath is very on point w/ the cryptocurrency section. Awesome.

[@Drift0x]

I appreciate the words of Professor Damoradan and he's deeply inspiring for me, even if I'm not going to sell my bitcoins 'cause I think the world has not yet found the right paradigm to value it. World is changing, we're going to a hyper-digitalized one, so I feel we are still early to accumulate BTC, ETH and a minor part of other cryptocurrency (some of them, they could be used as currency too in the future).

[@whatisheartscont2be645]

Amazing.

[@hiphophead8053]

Now we're talking 😎

[@muffemod]

pricing reflects all available information (to include valuation).

[@PeterChaoDaBomb]

Love your content Richard! Do you think you could get Dr.Mark Meldrum on for one of these episodes??

[@AnkitSharma-dk1bo]

Thanks

[@juanvicencio2390]

I love Damodaran. his classes are amazing, and I aced my job interview cause all the things I learned in his class. I will be forever grateful for his generosity

[@AmrishKelkar]

Re : "even in a room full of bitcoiners, the answer is almost 'never', as to when they last actually used it to buy something". The reason is not entirely because of what the prof states thereafter - that it is too volatile to use as currency. That is partly it, but, in part it is also Greshams law which says that when there's hard money and weak money (fiat) , the rational actor will spend the weak money (fiat) while hoarding the hard money (bitcoin).

[@asishreddy7729]

The comparison between bitcoin and dog poop made me crack up so hard 😂 Dr Damodaran actually made a serious comparison saying dog poop is scarce as well wasn’t even trolling he actually meant it and that made the whole thing 10x funnier

[@syariq7732]

i learned so much from this video. that why im now investing all my life saving in dog poop.

[@vib_di]

Much of Mr. Damodaran's Advises are similar to what Benjamin Grahm has to offer in Intelligent Investor. Those 4 rules:- 1) No less than 10 stocks and no more than 30, 2) Company Should Be Large, Prominent, and conservatively financed. 3) Solid track record of Dividend Payouts, 4) As company has a limit of profit earning, So does you should have a limit of the price to pay for the stock. And the last 50% stock and 50% bond or at least 25% bonds and 75% Stocks.

[@lindleycoetzee8964]

Thanks for the interview. Think you should consider to look at Cardano. Lots more transactions and utilization. Also including voting, decentralized identity and gaming.

[@ryandunn9812]

Great interview but I wish Dr. Damodaran would have turned his camera on.

[@smvinay1206]

Wow.... repressed actor... this is one of the best videos... really loved it...

[@henrryhernandez8913]

This is great. Why you didn't do it before. I remember I wrote a comment a long time ago about this professor. People can learn from his classes.

[@yuribd1995]

This is so legit omg