On today’s episode, Clay is joined by Aswath Damodaran who is widely referred to as the dean of valuation.

Aswath Damodaran is a professor at NYU of corporate finance and valuation and has taught thousands of students how to value companies and pick stocks. He has written numerous books on valuation and has also made all of his university courses available online for free. Aswath is one of the clearest teachers of finance and investing in the industry.

IN THIS EPISODE, YOU’LL LEARN:

00:00 - Intro.

01:42 - Whether recent technological advances should lead us to think about investing. differently than in years past.

03:23 - The role intangible assets play into valuation.

07:08 - How he determines which companies he wants to dive in and research.

14:40 - How Aswath thinks about setting an appropriate discount rate in valuation.

20:49 - His thoughts on whether investors should deem the US treasury rate as the risk free rate available to investors.

24:10 - The future expected return of the S&P 500 implied by the market as of August 2023.

27:29 - How Aswath thinks about the risks of investing in China.

30:02 - Aswath’s updated views on the valuation of Nvidia & Meta.

33:21 - The potential dangers of a buy and hold approach.

47:31 - How to think about using adjusted EBITDA in stock analysis.

49:44 - How Aswath thinks of the macro.

57:16 - Why Aswath recommends a strong understanding of statistics to invest well.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Check out our newly released TIP Mastermind Community.
Check out our recent episode RWH005: Meet the Master w/ Aswath Damodaran, or watch the video.
Check out Aswath’s Website.
Check out Aswath’s YouTube Channel.
Follow Clay on Twitter.
Follow Aswath on Twitter.
Tune into our previous episode covering The Future of AI w/ Bob Muglia or watch the video.

NEW TO THE SHOW?

Check out our We Study Billionaires Starter Packs.
Browse through all our episodes (complete with transcripts) here.
Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
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.

P.S The Investor’s Podcast Network is excited to launch a subreddit devoted to our fans in discussing financial markets, stock picks, questions for our hosts, and much more! Join our subreddit r/TheInvestorsPodcast today!

SPONSORS

Invest in Bitcoin with confidence on River. It's the most secure way to buy Bitcoin with 100% full reserve custody and zero fees on recurring orders.
Reach the world’s largest audience with Linkedin, the place to B2B. Plus, enjoy a $100 credit on your next ad campaign!
Invest in some of the top private, pre-IPO companies in the world with Fundrise.
Choose Toyota for your next vehicle - SUVs that are known for their reliability and longevity, making them a great investment. Plus, Toyotas now have more advanced technology than ever before, maximizing that investment with a comfortable and connected drive.
Be confident that you’ll be small businessing at your best with support designed to help you reach your goals. Book an appointment with a TD Small Business Specialist today.
Start, run, and grow your business without the struggle. Be in control of every sales channel with Shopify. Sign up for a $1 per month trial period today.
Send, spend, and receive money around the world easily with Wise.
Experience real language learning for real conversations with Babbel. Get 55% off your Babbel subscription today.
Learn how Principal Financial can help you find the right benefits and retirement plan for your team today.
Beat FOMO and move faster than the market with AlphaSense.
Apply for the Employee Retention Credit easily, no matter how busy you are, with Innovation Refunds.
Get a customized solution for all of your KPIs in one efficient system with one source of truth. Download NetSuite’s popular KPI Checklist, designed to give you consistently excellent performance for free.
Support our free podcast by supporting our sponsors.

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!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

TIP577: Valuation Masterclass w/ Aswath Damodaran

We Study Billionaires - The Investor’s Podcast Network