The world needs more people like Aswath, break free from bureaucratic jargon and see things from a clearer and simpler perspective. Hands down, one of the best lectures I've watched in my life!
Successful people don't become that way overnight. What most people see at a glance-wealth, a great career, purpose is the result of hard work and hustle over time. I pray that anyone who reads this will be successful in life..
Sir what do you think ? Can a marketing guy be good at valuation, securities analysis or put it simply can he be good at picking businesses based on marketing skills
@@Devon.Hayashida yeah he is the co-founder of Paypal and Merged with Elon Musk's X.com. He even Invested in the early days of Facebook. He has a book called "Zero to One" all about start-ups.
Im not from the states but honestly there would not a single individual who could hold a candle next to this man..his ideas are complex,he is able to connect with everyone on a level which is so phenomenal ..people in Finance i envy lol esp those folk at NYU Stern ...Sir Damodran please teach us more.
That's why the value of good teachers will always be relevant even in this age of AI -ChatGPT etc. I am from Mechanical engineering background but found this whole session so engaging, interesting & informative.
His valuation on Twitter was spot on. The stock price peaked at $69 a month after its IPO and never reached that price ever again. It fell to $14 in 2016 and now it's been hovering around $28.
MBA student here, I learned a crap-ton more about the meaning behind accounting terms by this video than I did in my undergrad and masters. "Stockholder's Equity is everything from the first IPO" is not something a typical Accountant would tell you.
Whoa !! i didn't blink my eye during this 1-hour video. Such a magnificent speaker. that's how the best of the best look. And about the substance of his talk, the way he said it, you would end up believing him.
15:00 Numbers people vs. Story people 15:40 *The end game is to have numbers people with imagination, and story people with discipline. That's the way to think about valuation.* Stories are actually much more effective at selling businesses than numbers are, and it's been true for as long as human beings have been on the earth. So if you tell a story, bring in enough numbers to discipline yourself, because if you don't have the numbers it's very easy to veer away into fantasy land. *A good valuation should tell a story - behind the numbers, what is the story you're telling about a company?* 29:30 So much of what you pay for in a valuation business is a banker feeding numbers into a [program or software] and then spending 25 days making it look like he did a lot of other stuff, and then charging you millions of dollars - something he has no business charging you for. To valuate businesses like 3M, you don't need an appraiser, you don't need a banker. Anybody should be able to valuate those companies. 33:30 *Investing is a game of odds* 35:05 Young startups are difficult to valuate, but still you should make your best estimate instead of giving up (like most founders do). 42:50 "I've never felt the urge to explain what some other person pays [for a public company]. Much of what you see passing for valuation out there is really *pricing."* 44:20 Most realtors simply price based on the relative prices of other properties or units on the marketplace. (pricing vs. sophisticated valuation) 50:30 *Markets are fickle. Today they like users, tomorrow they might not.*They used to like website visitors for a long time, but you can't pay dividends with that. At some point they are going to ask for substance. 51:30 *Investing, VC is a game where luck is a dominant paradigm. If you're lucky you can do horribly sloppy things and be incredibly rich. If you're lucky all else can be forgiven.* There's no such thing as smart money - there's stupid money and less stupid money, but there is no smart money (i.e. hedge funds, perform less than S&P 500 index fund). 54:20 *You learn valuation by doing.* If you really want to learn valuation, here's what you do - value a company. The first time you do it, it will be like pulling teeth. Then value a second company, as different from the first as you can. 54:50 *When we get big differences in value, it's not because the numbers are different, it's because we have different narratives. The right question you've got to ask is, "What is the right narrative for my company?" This is about telling a story, and delivering the kind of decisions that back up that story.* 59:40 If you've got an acquisition proposition, it's going to work only if you're willing to walk away from the table; even if its the best target that you've ever found, but the price is too high. *If you're not willing to walk away from the table, you're going to overpay again and again.* 1:00:40 Investing [properly] takes time. If you don't have time for that work it's better to invest in an index fund or some other spread; it's best to spread your bets. 1:01:00 *Don't overreach. You don't get rich by investing, you get rich by doing what you're doing, and investing is about preserving what you made elsewhere and growing it.* It's when you get greedy about trying to make that killing off of your investment that you tend to overreach.
he is by far one of the best teachers I have ever seen. One of my dreams would be to have the chance, money and time to do one of his course in presence at NY. Unfortunately I don't, however he is so generous by sharing so much information of superb quality and detailed. from spain, thank you so much!
"The balance sheet has this very unpleasant requirement, it has to balance." I have been watching Mr. Damodaran's videos for the past year, and this is definitely my favorite one!
I appreciate the clear and direct language. "And let's be completely clear about this. Goodwill is the most useless asset known to man. And here's why..." Unequivocating. Unambiguous. Willing to break with Warren Buffet's Coca-Cola brand example which is decreasingly valuable. Thank you.
Valuation seems to be such a time-consuming and complex exercise that is part science and mostly subjective estimation that by the time you're done valuing multiple companies in a market (sector/industry), it'll be too late to invest because too much time would have passed while you were busy making these valuation and the facts would've changed all over again. My fav keynotes: >You can't pay intetest on debt with ideas. >A strategic deal is a really stupid deal. >China is a meaningless buzzword... 😂😂😂 >Anything that doesn't affect cashflows doesn't affect the value. >There is no smart money in hedge funds. >traders can't tolerate the EMH.
Amazing Sir. Have never posted comments or any videos up over here in TH-cam but today i have to...i just wish professors mentors like you stayed in INDIA and enlighten us soo that we can also think differently towards things..
His is also a Master-Class in what makes an extraordinary teacher - a true passion, almost fiendish for knowing the truth about some one obscure thing! He could teach anything - the fire's in the belly! Loved every bit of it though finance bores me to death!
This is guy genuinely passionate even after ~38 yrs and that too while addressing such a small audience size. And he is entertaining bcoz he uaes logic & passion judiciously. Definitely a great teacher.
First 3 minutes, and I already like him. I think he should talk about how he taught valuation under the head of security analysis for 22 years and no one figured it. That’s clever.
A finance student from Pakistan here. Aswath Damodaran has chosen a noble profession of teaching, and has gained respect among scholars of Finance with his sheer hard work, clarity and exactitude. Hats off Sir!
How To Value A Company: 1. What's the cash flow from existing assets? 2. What's the value that you'll be creating in future growth? 3. How risky are these cash flows? 4. When will your business mature?
Aswath Damodaran is the David GOLDfield of the University of TH-cam!!! Thank you for sharing your profound knowledge and explaining it with succinct and eye-opening simplicity and wisdom
Prof. Damodaran provided a very clear and fundamental explanation of how Financial Statements and Valuation of a company are integrated. Never seen this clarity brought forth before with simple looking logical diagrams which are so difficult to bring it on paper. Thank you Google for Uploading this special lecture and BIG thank you to Prof. Damodaran.
It< makes sense, BTC and crypto is off helping to regulate, rather than pretend it won't ever happen. The big institutions getting in is the catalyst that will launch us into the stratosphere. Most people don't like change but after the change is made they grow used to it and it becomes a non issue usually because their fears never materialize. The projects that initiated the process of regulation have not been ruined, they got involved in setting guidelines and helping the regulators understand the crypto space. I’d get involved more knowing that I have made over 12 btc from day-trade with Axel William Crypto in few weeks.
No one, NO ONE, can argue Axel William at least currently, the best out there, even when Bitcoin is looking bearish with the market sentiment swinging low. But they kept us grounded with their real analysis, just the facts in the charts.
A lot has changed and that's on everything but the truth is that i don't even care much about bullish or bearish market because Axel William got me covered, I am comfortably earning monthly
Simple yet beautiful and super useful talk on valuation! It is mind numbing how he breaks myths with simple logic and basis proven business rules. Cash flow, margin and logical estimations around growth and risk - my takeaway!
I used his textbook for my last class in grad school (Advanced financial management). The greatest thing about him is that his textbook is free online ! That's how I know legends 😊
For a moment, I thought he was going to lecture on how hard it was to integrate into a school environment where not many people looked like him, but then I realized this video is from a time when these talks focused on things with substance.
I tottaly agree with Aswath about the narrative: it sets the investors expectations. We're always looking for the most appropriated narrative to sell your businesses and ouservels.
This video is a gift to humanity. It makes me to realise how insane things work around us. The key things to take home from this video is 1) Concept of Financial B.S 2) Valuation Vs Pricing 3) Valuing growth companies particularly in online user based business. 4) Move your lazy ass and start doing valuation rather than reading A true expert is the one who exhibit higher level common sense.
43:23 "How many of you own a house or an apartment?" Not a single person raise their hand in a room full of people with 6 figure salaries. Bay area housing prices are really out of hand.
Awesome lecture from a guru in valuation, simple to understand and in plain terms. No jargon and confusion to make something look more complex than what it actually is. Thanks
I am more of a "feeling" person than, "number" person. Have never been interested in accounting, let alone speaking about valuation. However, the way how he speaks about it, he is so clear, simple, interesting. Makes you just want to learn what he says.
Great video and some nice tips! This is a scary time for new investors but the best thing you can do is not to make decisions based on emotions. This could actually be a good time to buy more of your high conviction stocks or crypto on a discount. Wealth is created during bear markets, not bull markets. If your portfolio is really effecting your mental health then delete the app and go for a walk. Let the market do its thing and have a long time horizon. I buy and just trade long term more than ever, I have made over 16` btc from day trading with Stacy Huth in few weeks this is one of the best medium to backup your assets incase it goes bearish.
My growing love for crypto caused me to explore until I came across Mrs. Stacy (although I'm trying to avoid sensationalism) hse is by far the best. No hype for hype's sake, but a great inspiration to trade Crypto.
38:14 Don't get carried away in negative direction by "I made it up". He said he is making assumption about how online marketing business would fit in overall marketing business in over a decade. Later he explains, that print media advertising is going down fast which would create vacancy for online advertising to fill up.
I really liked this! I will check out the tools on your site. I need to do an excel driven project but I just did not get it. With this I can see why and your insight has been super awesome. Thanks
I love DCF. It gives me Rate of Return based on an assumed percentage. Take the diff with the investment and I test various scenarios. It’s a great tool for valuation.
Excellent lecture. Makes me rethink wasting my time with horrible professors. Love the use of "he who must not be named." I'm stealing it, along with Aswath's many tips!
+CheeseMan1391 The phrase "he who must not be named" is NOT a new expression. You've just never heard it before until now. Professor Aswath did not create this expression.
Here I am on 1st April 2021. Microsoft wants to acquire Discord with 100M customers. And they offer 10B USD for it. 100M * 100 = 10 B. Nice. Exactly as he said.
Should qualify that there is no systematic way to get rich.. on average. There is always a spread and some people make money, some people lose money, but on average they never beat a market basket like S&P 500. However, individuals may be rewarded for the homework done and take advantage of market inefficiencies. If you have a way to consistently identify under or overvalued companies and are consistently right, you will be rewarded with outsized returns until the market catches on and neutralizes your advantage. This happens when other people observe your outsized returns and learn/reverse engineer your secret sauce. The market has no tolerance for preferential treatment and is efficient at normalization, just not perfectly efficient hence opportunity. One might say the market as a collective is paying you to identify it’s inefficiencies then it proceeds to eliminate that inefficiency as if it were a living thing
The world needs more people like Aswath, break free from bureaucratic jargon and see things from a clearer and simpler perspective. Hands down, one of the best lectures I've watched in my life!
Could not agree more... watching it for pure entartinment purposes.
جج
agreed
Amen
Ok lol l
Successful people don't become that way overnight. What most people see at a glance-wealth, a great career, purpose is the result of hard work and hustle over time. I pray that anyone who reads this will be successful in life..
You are right ma
Most people don't invest due to ignorance.
@Martin Mayer Who's your expert
Amen ❤
What? How on earth i'm being recommended this by Google after 5 years! I should have watched this 5 years ago. OMG, he is so genius.
This guy is a badass. He makes a typically boring topic fascinating.
Boring what? This is the shit
curious, intelligent, and articulate.
Those are the key traits that makes able to do it.
he came in to speak during one of my training sessions for my first job... i fell asleep in the front row
Apparently his students are still sleeping till this day. Doesn't sound fascinating.
@@gwho u
After an MBA in Finance, and 13 yrs in the Industry - Best Learning Experience. Thank you for putting it up on the web...
Teringventje introductionary?? Where did YOU work?
Does indian venture capital firm follow this concept properly while doing valuation,what do u think?
you cannot imagine the feeling I have for google ai for suggesting this to me in MARCH OF 2023!!! 🤦♂
Sir what do you think ?
Can a marketing guy be good at valuation, securities analysis or put it simply can he be good at picking businesses based on marketing skills
😊
"What sets price? Supply and demand, mood and momentum.
What sets value? Cash flows, growth and risk"
Geniously simple explanations
Future cashflows per thiel
@@aloevera7422 hello friend! What is a per thiel mesure?
@@sergioviana84 I think he meant Peter Theil, as in a quote by Peter Theil -- great investor to look up if you haven't already
@@Devon.Hayashida yeah he is the co-founder of Paypal and Merged with Elon Musk's X.com. He even Invested in the early days of Facebook. He has a book called "Zero to One" all about start-ups.
This is what a god-tier teacher looks and sounds like. absolutely phenomenal. A true treasure of a human being
Interesting, At the age of 78, I am learning, thank you
Learning is a life long process. Everyday I learn ☺️☺️
Wowwww...sir u inspired and encouraged me learn proudly. Actually we learn everyday until the grave.
P
At age of 79 (1 year since your comment) you still open to learning... is Commendable trait 👍
I celebrated my 80th birthday on the 30th of September and still learning ✌️
Im not from the states but honestly there would not a single individual who could hold a candle next to this man..his ideas are complex,he is able to connect with everyone on a level which is so phenomenal ..people in Finance i envy lol esp those folk at NYU Stern ...Sir Damodran please teach us more.
That's why the value of good teachers will always be relevant even in this age of AI -ChatGPT etc. I am from Mechanical engineering background but found this whole session so engaging, interesting & informative.
His valuation on Twitter was spot on. The stock price peaked at $69 a month after its IPO and never reached that price ever again. It fell to $14 in 2016 and now it's been hovering around $28.
It was $77 a year ago.
@@sherryflavour3791 Aaaaand its back down
Now it's delisted and named as X
This guy literally summed up my entire degree in 1 hour what a great teacher🙏🏼🙏🏼🙏🏼
Yep! Hope you didn’t take a loan to get the degree 😂
What degree is that?
MBA = Maa behen ak
I absolutely love this gentleman. I have been in private equity for over 15 years and this is exactly what I tell interns.
MBA student here, I learned a crap-ton more about the meaning behind accounting terms by this video than I did in my undergrad and masters.
"Stockholder's Equity is everything from the first IPO" is not something a typical Accountant would tell you.
Whoa !! i didn't blink my eye during this 1-hour video. Such a magnificent speaker. that's how the best of the best look. And about the substance of his talk, the way he said it, you would end up believing him.
15:00 Numbers people vs. Story people
15:40 *The end game is to have numbers people with imagination, and story people with discipline. That's the way to think about valuation.* Stories are actually much more effective at selling businesses than numbers are, and it's been true for as long as human beings have been on the earth. So if you tell a story, bring in enough numbers to discipline yourself, because if you don't have the numbers it's very easy to veer away into fantasy land. *A good valuation should tell a story - behind the numbers, what is the story you're telling about a company?*
29:30 So much of what you pay for in a valuation business is a banker feeding numbers into a [program or software] and then spending 25 days making it look like he did a lot of other stuff, and then charging you millions of dollars - something he has no business charging you for. To valuate businesses like 3M, you don't need an appraiser, you don't need a banker. Anybody should be able to valuate those companies.
33:30 *Investing is a game of odds*
35:05 Young startups are difficult to valuate, but still you should make your best estimate instead of giving up (like most founders do).
42:50 "I've never felt the urge to explain what some other person pays [for a public company]. Much of what you see passing for valuation out there is really *pricing."*
44:20 Most realtors simply price based on the relative prices of other properties or units on the marketplace. (pricing vs. sophisticated valuation)
50:30 *Markets are fickle. Today they like users, tomorrow they might not.*They used to like website visitors for a long time, but you can't pay dividends with that. At some point they are going to ask for substance.
51:30 *Investing, VC is a game where luck is a dominant paradigm. If you're lucky you can do horribly sloppy things and be incredibly rich. If you're lucky all else can be forgiven.* There's no such thing as smart money - there's stupid money and less stupid money, but there is no smart money (i.e. hedge funds, perform less than S&P 500 index fund).
54:20 *You learn valuation by doing.* If you really want to learn valuation, here's what you do - value a company. The first time you do it, it will be like pulling teeth. Then value a second company, as different from the first as you can.
54:50 *When we get big differences in value, it's not because the numbers are different, it's because we have different narratives. The right question you've got to ask is, "What is the right narrative for my company?" This is about telling a story, and delivering the kind of decisions that back up that story.*
59:40 If you've got an acquisition proposition, it's going to work only if you're willing to walk away from the table; even if its the best target that you've ever found, but the price is too high. *If you're not willing to walk away from the table, you're going to overpay again and again.*
1:00:40 Investing [properly] takes time. If you don't have time for that work it's better to invest in an index fund or some other spread; it's best to spread your bets.
1:01:00 *Don't overreach. You don't get rich by investing, you get rich by doing what you're doing, and investing is about preserving what you made elsewhere and growing it.* It's when you get greedy about trying to make that killing off of your investment that you tend to overreach.
Thank you for writing this out.
@@MeiMei-dl4fp Sure, these notes are for myself, BTW - but happy to hear others are getting use out of them :)
When Warren passes away, at least we got Aswath.
What's his investing track record? CAGR?
We have todd combs too
the most sane talk ever heard about valuation, and it was gold all throughout.
he is by far one of the best teachers I have ever seen. One of my dreams would be to have the chance, money and time to do one of his course in presence at NY. Unfortunately I don't, however he is so generous by sharing so much information of superb quality and detailed. from spain, thank you so much!
This is incredible....the quality of learning on TH-cam is amazing.
"The balance sheet has this very unpleasant requirement, it has to balance." I have been watching Mr. Damodaran's videos for the past year, and this is definitely my favorite one!
YES TO BALANCE SHEET JUST TO MAKE IT BALANCE .. NO ACCOUNTABILITY OF MONEY THAT IS SIPHONED OR MISUSED .
I appreciate the clear and direct language. "And let's be completely clear about this. Goodwill is the most useless asset known to man. And here's why..." Unequivocating. Unambiguous. Willing to break with Warren Buffet's Coca-Cola brand example which is decreasingly valuable. Thank you.
MOST USELESS OR USEFUL ? I AM CONFUSED .
Amazing. I have been in the tech industry and have seen it all. His explanations gave me goosebumps. Spot on. Aswath is now on my wall of heroes.
One of the best hours I have ever spent sitting on a train! Excellent teacher, entertaining and engaging, keep up the great work Aswath!
This is one of the best finance-related videos I have ever seen
With zero knowledge of business and finance, you got me interested in the topic. Thank you, I certainly learned from the talk.
Valuation seems to be such a time-consuming and complex exercise that is part science and mostly subjective estimation that by the time you're done valuing multiple companies in a market (sector/industry), it'll be too late to invest because too much time would have passed while you were busy making these valuation and the facts would've changed all over again.
My fav keynotes:
>You can't pay intetest on debt with ideas.
>A strategic deal is a really stupid deal.
>China is a meaningless buzzword... 😂😂😂
>Anything that doesn't affect cashflows doesn't affect the value.
>There is no smart money in hedge funds.
>traders can't tolerate the EMH.
Amazing Sir. Have never posted comments or any videos up over here in TH-cam but today i have to...i just wish professors mentors like you stayed in INDIA and enlighten us soo that we can also think differently towards things..
This was one of the best lectures i've ever heard related to stocks, everyone who invests should give them a listen. Thanks Google!
His is also a Master-Class in what makes an extraordinary teacher - a true passion, almost fiendish for knowing the truth about some one obscure thing! He could teach anything - the fire's in the belly! Loved every bit of it though finance bores me to death!
This is guy genuinely passionate even after ~38 yrs and that too while addressing such a small audience size. And he is entertaining bcoz he uaes logic & passion judiciously. Definitely a great teacher.
First 3 minutes, and I already like him. I think he should talk about how he taught valuation under the head of security analysis for 22 years and no one figured it. That’s clever.
There are lots of books on investing strategy but a prescriptive methodology to valuation unique. This is excellent. Thank you!
A finance student from Pakistan here. Aswath Damodaran has chosen a noble profession of teaching, and has gained respect among scholars of Finance with his sheer hard work, clarity and exactitude. Hats off Sir!
How is Pakistan stock market doing ?
You PPL must be into Chinese equities
What is the need of valuation for Pakistan ?
This is simply god like. I can keep listening to him for hours
He’s the only finance teacher who makes sense to me as an English major and it’s because Aswath also writes.
60 minutes, well spent! :)
💯
@Gabriel Caruso i
best 60 min investment!
Ha ha true
How To Value A Company:
1. What's the cash flow from existing assets?
2. What's the value that you'll be creating in future growth?
3. How risky are these cash flows?
4. When will your business mature?
This guy has a really badass classy Bond villain vibe. He doesn't want to take over the world, he just wants to valuate it correctly
Very nice talk; I want to go to NYU Stern mostly to attend your class.
Aswath Damodaran is the David GOLDfield of the University of TH-cam!!! Thank you for sharing your profound knowledge and explaining it with succinct and eye-opening simplicity and wisdom
Great lecture, was looking for valuation excel tutorial but happened to click on this video, not exactly what I was looking for but somehow helpful
Did you eventually find a tutorial that helped?
he is a great teacher
We need more people like him in this world.
Prof. Damodaran provided a very clear and fundamental explanation of how Financial Statements and Valuation of a company are integrated. Never seen this clarity brought forth before with simple looking logical diagrams which are so difficult to bring it on paper. Thank you Google for Uploading this special lecture and BIG thank you to Prof. Damodaran.
Knowledge of years delivered in 60 minutes. A great video.
It< makes sense, BTC and crypto is off helping to regulate, rather than pretend it won't ever happen. The big institutions getting in is the catalyst that will launch us into the stratosphere. Most people don't like change but after the change is made they grow used to it and it becomes a non issue usually because their fears never materialize. The projects that initiated the process of regulation have not been ruined, they got involved in setting guidelines and helping the regulators understand the crypto space. I’d get involved more knowing that I have made over 12 btc from day-trade with Axel William Crypto in few weeks.
Pls, how do i get him?
yes that's his handle up there, you all can earn from him👆
No one, NO ONE, can argue Axel William at least currently, the best out there, even when Bitcoin is looking bearish with the market sentiment swinging low. But they kept us grounded with their real analysis, just the facts in the charts.
A lot has changed and that's on everything but the truth is that i don't even care much about bullish or bearish market because Axel William got me covered, I am comfortably earning monthly
Axel William really helped me understand bear markets much better... Great content, and loved it.
rare to see such transparency from intellectuals, really enjoyed the talk.
Wow. Lucky people who have been taught by this interesting and knowledgable man!
jeesus all that experience and still looking soo young. How lucky I am to find your lecture today
This man knows all too well how to keep his audience interested. Excellent lecture Sir !
Simple yet beautiful and super useful talk on valuation! It is mind numbing how he breaks myths with simple logic and basis proven business rules. Cash flow, margin and logical estimations around growth and risk - my takeaway!
This video is AMAZING. Learning so much from GoogleTalks. Thank You.
Sir..one day i will attend your class definitely
Hey did you attended any so far?
I used his textbook for my last class in grad school (Advanced financial management). The greatest thing about him is that his textbook is free online ! That's how I know legends 😊
How did you get it?
Excellent !! Damodaran is one of the best authorities on valuation topic👌👍
Love this!!!!! Picked up my notebook after 5 mins. So many gems.
For a moment, I thought he was going to lecture on how hard it was to integrate into a school environment where not many people looked like him, but then I realized this video is from a time when these talks focused on things with substance.
Aswath is both a great professor and a fine human being.
As a medic from a non-finance background that’s venturing into entrepreneurship, this feels like I’ve been bathed for an hour in financial wisdom.
I wish i could have had a teacher like him at the time i was in university.
I Wish the same..Many of his talks are on youtube though..
I am from India I feel so proud that he is Indian American. Dictionary of valuation
I tottaly agree with Aswath about the narrative: it sets the investors expectations. We're always looking for the most appropriated narrative to sell your businesses and ouservels.
ASWATH DAMODARAN ..." rather be transparently wrong ..than be opaquely right "
Im an accounting student, but boy this was an eye opener
Twitter stock : USD 17.76 as of 14 Sept 2016 42:00
@@The_Spaeman GME $53 as of January 2021
@@EM-bi7en this comment 😁
Love this guy, finally someone speaking the truth; Goodwill is bullshit!
This video is a gift to humanity. It makes me to realise how insane things work around us. The key things to take home from this video is
1) Concept of Financial B.S
2) Valuation Vs Pricing
3) Valuing growth companies particularly in online user based business.
4) Move your lazy ass and start doing valuation rather than reading
A true expert is the one who exhibit higher level common sense.
I love reading your articles and listening to your TH-cam videos, and podcasts. Thanks for giving so much wisdom and understanding .
By 21 minutes I was already being mindblown.
You are a God of finance, when you can talk about boring theories of accounting/banking/finance in a cool and very simple way.
43:23 "How many of you own a house or an apartment?" Not a single person raise their hand in a room full of people with 6 figure salaries. Bay area housing prices are really out of hand.
I love the clear explanations and putting the concepts into simple context with examples provided. Thanks for sharing your knowledge!
Such a well-spent hour. Thank you, Google, for making this accessible to everyone.
Awesome lecture from a guru in valuation, simple to understand and in plain terms. No jargon and confusion to make something look more complex than what it actually is. Thanks
Wow! What an awesome professor. Valuation vs pricing... Awesomeness in action....
I am more of a "feeling" person than, "number" person. Have never been interested in accounting, let alone speaking about valuation. However, the way how he speaks about it, he is so clear, simple, interesting. Makes you just want to learn what he says.
Great video and some nice tips! This is a scary time for new investors but the best thing you can do is not to make decisions based on emotions. This could actually be a good time to buy more of your high conviction stocks or crypto on a discount. Wealth is created during bear markets, not bull markets. If your portfolio is really effecting your mental health then delete the app and go for a walk. Let the market do its thing and have a long time horizon. I buy and just trade long term more than ever, I have made over 16` btc from day trading with Stacy Huth in few weeks this is one of the best medium to backup your assets incase it goes bearish.
Her Te-le-gr am ( @coin_signal10 )
Thanks for enlightening everyone with your own experience , I have learnt not to panic in what ever way crypto goes up or down
I can’t describe how much your help meant to me. I’ll forever cherish your great acts. thank you so much Stacy Huth .
My growing love for crypto caused me to explore until I came across Mrs. Stacy (although I'm trying to avoid sensationalism) hse is by far the best. No hype for hype's sake, but a great inspiration to trade Crypto.
I'll agree with you because I've used her strategy in the past and was able to raise a total profit of 10.5 BTC in 6 weeks..
47:26 Guess they were right about that $75M+ Uber valuation...
"You don't need to be right on everything, just few things thats within your circle of competence that you feel surest about"
- Warren Baffett
38:14 Don't get carried away in negative direction by "I made it up".
He said he is making assumption about how online marketing business would fit in overall marketing business in over a decade. Later he explains, that print media advertising is going down fast which would create vacancy for online advertising to fill up.
I really liked this! I will check out the tools on your site. I need to do an excel driven project but I just did not get it. With this I can see why and your insight has been super awesome.
Thanks
by far the best professor in Finance.
Congratulations 🎉 Google world 🌎 happy blessings grateful 🙏
This guys was so humble during the talk. Loved it!
I could listen to him all day..
Twitter has moved between $15 - $18 for the past 18 months. Impressive
This is one of the best videos I’ve seen on finance.
The single greatest lecture on finance on the internet.
I needed this talk. Thank you, sir!!
I love DCF. It gives me Rate of Return based on an assumed percentage. Take the diff with the investment and I test various scenarios. It’s a great tool for valuation.
Excellent lecture. Makes me rethink wasting my time with horrible professors. Love the use of "he who must not be named." I'm stealing it, along with Aswath's many tips!
+CheeseMan1391 The phrase "he who must not be named" is NOT a new expression. You've just never heard it before until now. Professor Aswath did not create this expression.
+Tuxster3 I meant in reference to Warren Buffett. I've read and watched all of the Harry Potters :)
CheeseMan1391 Actually, it predates Harry Potter too. ;p
Excellent, entertaining substantive and creative presentation! Many thanks! 🙏😃
Here I am on 1st April 2021. Microsoft wants to acquire Discord with 100M customers. And they offer 10B USD for it. 100M * 100 = 10 B. Nice. Exactly as he said.
I was born when Ashwath did his mba..today we look of same age.
Inspite of Knowing Finance and done DCF's there was so much to learn. Great Lecture Sir.
Thanks Google for sharing.
Brilliant point on valuation vs pricing. Great talk!!
Value is connected to our emotions while the price is we are prepared to pay
+Hussain Fahmy حسين فحمي Or, as Buffet likes to say: Value is what you get. Price is what you pay.
He is a great teacher...really awesome listening to him !!
He can teach a cowherd and an MBA student.
That is what teaching is.
That advice at the end at 1:01:00 - you dont get rich by investing .... - was a gem!
Should qualify that there is no systematic way to get rich.. on average. There is always a spread and some people make money, some people lose money, but on average they never beat a market basket like S&P 500. However, individuals may be rewarded for the homework done and take advantage of market inefficiencies. If you have a way to consistently identify under or overvalued companies and are consistently right, you will be rewarded with outsized returns until the market catches on and neutralizes your advantage. This happens when other people observe your outsized returns and learn/reverse engineer your secret sauce. The market has no tolerance for preferential treatment and is efficient at normalization, just not perfectly efficient hence opportunity. One might say the market as a collective is paying you to identify it’s inefficiencies then it proceeds to eliminate that inefficiency as if it were a living thing