Session 16: Valuing young companies - A Wrap

[@r.a.p.h4481]

*Timestamps* The Dark Side of Valuation I. The challenge with young companies...[page 297] 0:45 Amazon in January 2000 [page 299] 2:50 Lesson 1: Don’t sweat the small stuff 10:21 Lesson 2: Work backwards and keep it simple… 32:27 Lesson 3: Scaling up is hard to do & failure is common 36:24 Lesson 4: Don’t forget to pay for growth... 43:05 Lesson 5: The dilution is taken care off... 44:26 Lesson 6: If you are worried about failure, incorporate into value 48:44 A 2019 Update: Sector Comparison 52:14 Lesson 7: There are always scenarios where the market price can be justified… 55:46 Lesson 8: You will be wrong 100% of the time and it really is not your fault… 1:00:48 Assessing my 2000 forecasts, in 2014

[@JayTeguh]

These timestamps are very helpful. Much appreciated!

[@STRpros]

I feel so empowered after learning from your free educational videos. You are our Khan Academy lol. Thank you so much for all that you do 🙏

[@rishabhnair3789]

Shall spend 2 months after graduation, before work - watching these videos one by one.

[@flamingjob2]

thank you so much MR aswath for your wisdom!

[@DiegoFabbro]

All lessons are really precious, but this is a gem! Thx Professor!

[@SinisaStojanovic]

Thank you, Professor 🙏

[@nicoisasquealer]

Wow, thank you so much for education sir! Bless you

[@flamingjob2]

lOl professior the story about the amazon giving out vaccines is lovely. thank you so much for your wisdom

[@imba69420]

Aswath is in love with Amazon :D

[@ShubhamSinghYoutube]

Amazon's new tagline should be : Setting new benchmarks across all sectors.

[@jasonvoreseeas6578]

Professor aren't you double counting in your amazon valuation? If you pick the number for amazon to be 41billion assuming that in (2000) top ten retailers amazon will be 5th or 6th on the list and that number looks like 41billion wouldn't this same number after 10 or 20 year be 100 billion or more due to inflation ? So if I discount the terminal value number (41 billion) Shouldn't I take the number as 100 billion and then discount back rather than 41 billion

[@austin4you262]

Amazon phone was a failure

[@Nick_fb]

Why are you talking down to people you don't know? It's 300% harder watching this when I'm being chided for no reason.

[@Rajan-yz6bq]

So you bought amazon 4 times sold it 4x. I guarantee you that if you held it to now and just added on dips you would have been better off. Buy and hold works unless the company is just Ridiculous valued or a bubble

[@Rajan-yz6bq]

@@Teronix100 You either make money or you dont, most of this is theory. #1- Valuation relies so heavily on projections of future earnings. As an outsider how the hell can you " value" something when you cant even predict the cashflows. The proof is in the pudding all his projections were so off. By no means am I saying valuation isnt important, but what is more important is company strategy rather than guessing numbers for future years. For 99.99% of retail investors, looking at P/E ratio is enough, all this stuff is extra. And alot of it can be attributed to common sense. If a stock goes from $100 to $1000 in a year.. yah you should probably sell it because its in bubble territory. Ive worked on "wallstreet" if you are trying to do the same type of stuff they are doing, like for example, trying to evaluate earnings, look at valuations on a super deep level.. your gonna lose they have 100x the man power the average person has... the average retail investor needs to buy and hold and focus on common sense and invest in what they can understand. We have certain advantages over wall street but this valuation , predicting cash flows is not one of them. Ya sure if you wanna go work for someone there go learn it lol