Unlocking the Secrets of Valuation in This Masterclass w/ Aswath Damodaran (TIP577)

[@WeStudyBillionaires]

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[@manflynil9751]

Here's a man who meditates on his and others' thought processes. He is obviously very clear and wise in his approach and accountable for himself and to himself.

[@herokorai8346]

Aswath is a generous giver (of knowledge) and rationale person. He is like Buffet and Munger in those attributes yet different in investing views.

[@alverzenongkhlaw5688]

Sir Aswath you make india proud...Thank you so much for teaching us even though we're still trying to understand all these confusing terms.

[@WeStudyBillionaires]

Glad you enjoyed the episode!

[@77magicbus]

Another great interview Clay. This guy is at the top of the class when it comes to investing. Great questions and answers as well. Appreciate Aswath's honesty and transparency when it comes to answering the questions. Thanks.

[@WeStudyBillionaires]

Glad you enjoyed it!

[@王晓康-y6g]

I must listen to Aswath’s public speech, interview and class like this

[@wannaknowbad]

Thank you! Aswath is amazing!

[@WeStudyBillionaires]

Our pleasure!

[@vigneshchinna1974]

59:05 I just love this part And my respect for this guy went through the roof

[@WeStudyBillionaires]

Glad you enjoyed the episode! ♥

[@ShaunDeAfonsecaTeles]

Love Aswath Damodaran, honest no BS approach 🙌 🙌

[@WeStudyBillionaires]

Glad you enjoyed the video!

[@larrygerry985]

Problem us retail have is that we have no patience.

[@rakeshtanwar2954]

Great thought of wisdom... ❤

[@CP-wo4ou]

Loved it. Thanks Clay and Prof. Aswath!!! Very informative and thought provoking.

[@WeStudyBillionaires]

Glad you enjoyed it!

[@karlroth7082]

Choose a growth stock. Watch it go through an up and down cycle… it’s trading range of price is key. Then understand how that company is effected by the current market.

[@briancrowley1287]

The greatest academic since Graham

[@WeStudyBillionaires]

Grateful for your comment, Brian!🙏

[@ljragsandfeathers]

So true ❤

[@brianbirnbaum9760]

This is a fantastic interview. Had to add that Aswath understands the basics of market psychology. It’s somewhat different than how I see the market but I see some of the advantages now.

[@WeStudyBillionaires]

Glad you found it valuable!

[@aithashiva7329]

Sir your greatest ever after kautilya written the book arthashastra(economic s)after 2500 years

[@probalghosh8448]

as usual he is brilliant .... amazing interview

[@WeStudyBillionaires]

Thank you so much!

[@alchemist1387]

A gem 💎 of an interview. Thanks!

[@WeStudyBillionaires]

Thank you so much for watching!

[@throwawayanon]

Any recommendations on books related to statistics Aswath talks about towards the end?

[@PRAVEENMARUTHURMANA]

thanks for another wonderful video 🙌

[@WeStudyBillionaires]

Our pleasure!

[@mutatismutandis7944]

Thanks!

[@WeStudyBillionaires]

Thank you so much for the support! 🙏

[@brianbirnbaum9760]

Listening again and have more thoughts. Still in the first few minutes. While I agree that every generation naturally feels at the avant garde, market multiples and valuation metrics have changed drastically. Intangible assets have been a big factor in that change. So I do think that it is a little different. A 20PE looks more like a 10PE for asset-lite companies.

[@Ksteve419]

Great interview

[@WeStudyBillionaires]

So happy to hear that!

[@davidm1436]

Great interview as always with professor Damodaran. Usually he's not solemn and serious as in this interview. Maybe he was not in a great mood.

[@WeStudyBillionaires]

Thanks for watching! 🌟

[@andrespenaranda]

Higher likelihood of getting through the whole episode if you guys add time stamps/divisions.

[@EMan-cu5zo]

Seems like a great man.

[@googi2003]

Ashwath is hella smart

[@pedroabreu1754]

Amazing talk

[@WeStudyBillionaires]

Glad to hear that! ♥

[@mariussavatier4155]

Um, in the very abstract two-period model, p = E[e*u_1'/u_0']; therefore, depending on the utility function, the distribution of income in future states can influence the stochastic discount factor. In other words, it is the volatility (or other moments) of equities that theoretically creates the risk premium. So, if volatility increases while the expected return remains the same, the discount factor should increase and the price decrease. So I don't understand his point! Of course the discount rate should increase with uncertainty.

[@ishanmartins1539]

Prof.. what about the circle of competence. If I don't understand it, How will I know the right price???

[@angelbertsombrio]

Amazing interview👏👏👏

[@WeStudyBillionaires]

Thank you so much!

[@bobjohnson1737]

nothing against clay but he's clearly not well versed enough to conduct this interview. Which is fine, most people aren't. We're not getting anything we haven't been able to get from other interviews AD has done. It would be nice for this famous podcast to really take a route that other pods haven't taken. Good job interviewing a legend nonetheless!

[@bigmoo9470]

It’s quite clear that there’s a huge mismatch in knowledge between the interviewer and guest, but that’s not surprising given how sharp and experienced the professor is

[@CW-nk2vd]

Dr. Damodaran, What is your opinion of the value of investing in Disney? And what is your opinion of Netflix? Do you consider Netflix to be overvalued or undervalued or worthy of investing consideration?

[@pedroabreu1754]

As my opinion is worth, disney has a problem in my opinion for example, Mickey and Minnie are now 50 years old, so the rigths of this cartoons are now free, everyone can use them ... thats a big thing. For netflix i think at the moment is a little overvalued but with i think a big upside in the next 5 years (40%), if recession comes people will be more at home and may consider that to a cinema ticket or something

[@Paul_seekingthetruth4U]

I sold my entire position in Nvidia at $350. Regret that now. Lol It was overvalued at $350, impossible for sane people to purchase at $1,120.

[@jimjackson4256]

I don’t think this guy has ever said anything stupid or self serving which is rare .

[@WeStudyBillionaires]

Thank you so much for watching!

[@ReggieBabyGoGoGo]

👍👍👍

[@hiphopcafe1056]

I wonder how much Tesla he bought at 180?

[@GymForLifeHD]

meta was easeast profit ever took the bottom and sell in 9 months with 200%+

[@alexc5228]

How does aswath not mention that Alibaba is an ADR with a VIE structure which essentially means you own nothing. You are not a shareholder of alibaba and don't have rights to the profits therefore the value is 0. No DCF needed since you aren't entitled to any future cashflows or claim of a stake to the company. Disappointing.

[@aliasone9827]

If hes so good at valuing stocks, why hes not a billionaire.

[@davidm1436]

First: how do you know how much money he has? Second: you don't become billionaire by investing only but you need also a very high cash flow to invest in the first place, unless you take very high risks with your bets and you get very lucky. Such a cash flow you can get only if you are an entepreneur or earn a seven figures salary.

[@brianbirnbaum9760]

Circa 54:00 Aswath is dead wrong. If you read Terry Smith’s most recent book (INVESTING FOR GROWTH), he shows how many of the highest quality companies could have been bought for MORE THAN 4x THE PREVAILING MARKET MULTIPLE and you still would have broken even. This is where Aswath has somehow not been able to evolve in the way that Buffett investing disciples have. They understand that buying a high quality company at 25x is VASTLY better than a bad company at 8x. Furthermore, Smith points out the inherent dangers of investing in a bad company. While you’re waiting for the mean to revert, the company is destroying value. So if it takes five years for the mean to revert, the company may have already devolved down to the point where fair value is at or even beneath where you bought. This is incredibly important because this is just wrong wrong wrong.

[@larms1000]

I think Aswath will agree with you. You're using a pricing multiple to make a point for a guy who buys companies based on a valuation methodology. E.g., the last valuation he did on Telsa, it had a high multiple for those who uses multiples. Same can be said about his value for Nvidia. Also, your point about destroying value is part of his valuation model (i.e., the ROIC). It might be best to first understand how he value companies, and what his story is about those companies. Stories are what essentially drives his valuations.

[@valdricvidal2371]

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