The Value Perspective

The Value Perspective with Aswath Damodaran

March 22, 2021

Professor Aswath Damodaran joins us for this episode on The Value Perspective. The author of a dozen books and considered the preeminent Valuation Guru by many, Aswath is a professor at the NYU's Stern School of Business teaching corporate finance and valuation. Juan and Aswath discuss valuation's impact on historical events, how valuation is one of the most powerful tools in investment and how to keep a level head in the face of inflated valuations. 

EPISODE MINUTES: 

01:11 Intro: who is Aswath?

08:43 Is there a check list that analysts can use to sound check a valuation? 

11:59 Valuation's biggest enemy is the human; recognising preconceptions and bias

15:15 The role of a devil's advocate when discussing valuation

17:23 What is 'good' data management when it comes to valuing a business? 

23:05 Finding risks in the footnotes

25:58 There are still resistors to valuation - are we doomed to repeat history? 

30:51 The power of words and company description in valuation

37:18 How do you think about valuations in the context of value investing? 

43:07 Monte Carlo simulations - yea or nay? 

44:46 A time when bad process produced an unwanted outcome

49:27 Book recommendation: The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness by Morgan Housel and The Success Equation: Untangling Skill and Luck in Business, Sports and Investing by Michael Mauboussin

NEW EPISODES:

You can subscribe via Podbean or use this feed URL (https://tvpschroders.podbean.com/feed.xml) in Apple Podcasts and other podcast players.

GET IN TOUCH:

send us a tweet: @TheValueTeam 

Important information. This podcast is for investment professionals only.

This information is not an offer, solicitation or recommendation to buy or sell any financial instrument or to adopt any investment strategy.

Any data has been sourced by us and is provided without any warranties of any kind. It should be independently verified before further publication or use. Third party data is owned or licenced by the data provider and may not be reproduced, extracted or used for any other purpose without the data provider’s consent. Neither we, nor the data provider, will have any liability in connection with the third party data.

Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions. Any references to securities, sectors, regions and/or countries are for illustrative purposes only. The views and opinions contained herein are those of individual to whom they are attributed, and may not necessarily represent views expressed or reflected in other communications, strategies or funds.

The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall.

Past Performance is not a guide to future performance and may not be repeated.

The forecasts included should not be relied upon, are not guaranteed and are provided only as at the date of issue. Our forecasts are based on our own assumptions which may change.