GM67: Successful Investing in a Disrupted World ft. Aswath Damodaran
Top Traders Unplugged
Niels Kaastrup-Larsen
4.8 • 670 Ratings
🗓️ 7 August 2024
⏱️ 65 minutes
🧾️ Download transcript
Summary
Aswath Damodaran, Professor of Finance at NYU Stern and a leading expert on valuation and corporate finance joins Alan Dunne in this episode for a fascinating and thought-provoking discussion on current markets and investing in general. They explore why Aswath believes we have witnessed the death of old-school value investing and how structural shifts in the economy have fundamentally altered the investing landscape. The discussion delves into the valuation of Nvidia and the Mag 7, questioning whether the hype around AI is justified. Aswath outlines his approach for long-term valuation, explains how he estimates the equity risk premium, and discusses what the current equity risk premium suggests for long-term equity market returns. They also cover the importance of bond yields for valuation, the shortcomings of P/E as a valuation measure, and whether assets without cash flows, like gold and crypto, can be valued. The episode wraps up with Aswath’s advice for becoming a better investor and preparing for an AI-driven future.
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Episode TimeStamps:
02:18 - Introduction to Aswath Damodaran
03:30 - Nvidia - bullish or bearish?
04:47 - How AI will impact the economy
10:48 - How to make better valuations in AI and technology stocks
14:36 - How to distinguish AI stocks from each other
17:58 - A sticky...
Transcript
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| 0:00.0 | That's really your biggest potential differential advantage over the AI machines that are going to be coming that will replicate a Warren Buffett mindset. |
| 0:17.7 | There is a bot out there with your name on it. |
| 0:20.5 | That's coming for you. And your job is to |
| 0:22.8 | find things to do that your bot can't do. Think of that as your 10-year mission, is you'll about |
| 0:31.1 | a decade to play this out because if all you do is mechanical stuff, a bot will do it much better |
| 0:36.4 | than you can. |
| 0:42.6 | Imagine spending an hour with the world's greatest traders. |
| 0:47.1 | Imagine learning from their experiences, their successes, and their failures. |
| 0:49.1 | Imagine no more. |
| 0:55.5 | Welcome to Top Traders Unplugged, the place where you can learn from the best hedge fund managers in the world, |
| 1:00.0 | so you can take your manager, due diligence, or investment career to the next level. |
| 1:04.0 | Before we begin today's conversation, remember to keep two things in mind. |
| 1:07.8 | All the discussion we'll have about investment performance is about the past, |
| 1:12.6 | and past performance does not guarantee or even infer anything about future performance. Also understand that there's a significant risk of financial loss with all investment strategies, |
| 1:17.6 | and you need to request and understand the specific risks from the investment manager about their product before you make investment decisions. |
| 1:24.6 | Here's your host, veteran hedge fund manager, Niels Kostrup Larson. |
| 1:35.0 | Welcome and welcome back to another conversation in our series of episodes that focuses on markets and investing from a global macro perspective. |
| 1:43.1 | This is a series that I not only find incredibly interesting as well as intellectually challenging, |
| 1:49.1 | but also very important given where we are in the global economy and the geopolitical cycle. |
| 1:56.3 | We want to dig deep into the minds of some of the most prominent experts to help us better |
| 2:00.4 | understand what this new global macro-driven world may look like. dig deep into the minds of some of the most prominent experts to help us better understand |
| 2:01.0 | what this new global macro-driven world may look like. We want to explore their perspectives |
... |
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