MI249: Stock Valuation Masterclass w/ Aswath Damodaran

The Intrinsic Value Podcast - The Investor’s Podcast Network

The Investor's Podcast Network

Education, Investing, Business

4.6 • 592 Ratings

🗓️ 17 January 2023

⏱️ 62 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

IN THIS EPISODE, YOU’LL LEARN: 00:00 - Intro 03:53 - The importance of having an investment philosophy and how to figure out what your investment philosophy is. The difference between having an investment philosophy and strategy. 03:53 - An example of what a growth investor’s investment philosophy may be, such as the famous growth investor Peter Lynch. 08:22 - Why Aswath believes it’s better to be a generalist than a specialist in one area of investing. 15:00 - What are value drivers and how to apply them in our valuation process? 15:00 - The 5 basic variables we need to value any business. 24:27 - How to convert these value drivers into a DCF or intrinsic value model. 26:23 - The most common mistakes investors make when valuing a company and how to avoid these. 26:23 - Aswath’s test on how to figure out if your growth rate is reasonable. 29:23 - How to figure out what discount rate we should use? 36:11 - Why Aswath doesn’t believe in a “hold forever mentality” of stocks in a value investing approach. 37:24 - How often we should revisit our valuations for companies? 56:53 - How do companies get on Aswath’s radar? And much, much more! *Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members. Check out Aswath's Website. Check out Aswath’s YouTube Channel. Related Episode: Listen to MI226: Investing in Small Cap Stocks w/ Rayna Lesser Hannaway, or watch the video. Related Episode: Listen to RWH005: Meet the Master w/ Aswath Damodaran, or watch the video. NEW TO THE SHOW? Check out our Millennial Investing Starter Packs. Browse through all our episodes (complete with transcripts) here. Try Kyle’s favorite tool for picking stock winners and managing our portfolios: TIP Finance. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Fiscal.AI Connect with Aswath: LinkedIn | Twitter Connect With Rebecca: Twitter | Instagram HELP US OUT! Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

Click on a timestamp to play from that location

0:00.0	You're listening to TIP.
0:02.7	What worked for Buffett in the 60s and the 70s might not work for you today.
0:06.9	Now, so when you look at the most successful investors,
0:09.2	remember their success is a product of what they brought to the table,
0:12.4	which were substantial, the times they were in, and the markets they were with.
0:16.3	And if you take one of those three out,
0:18.5	you can try to replicate everything they do and have nothing
0:21.3	to show for it.
0:25.6	On today's episode, I'm joined by Aswath Demodran.
0:29.8	Aswath is a professor at NYU who has taught thousands of students how to value companies
0:35.0	in pick stocks.
0:36.4	He has also written numerous books on valuation
0:38.6	and has made all of his university courses and stock picks available online for free, which is an
0:44.5	incredible resource for investors who are wanting to learn more about valuation and see his
0:49.0	thought process behind his stock picks. During this episode, Aswath covers a number of great topics. We dive into
0:57.0	both the art and science behind valuation. And before we get into all of that, he spent some
1:02.1	time talking about the importance of having an investment philosophy, how that differs from
1:07.0	having an investment strategy, and how to figure out what your investment philosophy is.
1:11.9	Then we dive into the Aswath-Dimodorin way of valuing companies.
1:15.9	He shares the five inputs that investors need to value any business and talks about the most
1:21.2	common mistakes investors make when valuing companies.
1:24.6	And he shares a quick test on how to check if the growth rate you're using
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from The Investor's Podcast Network, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of The Investor's Podcast Network and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.