Hi all, this clip was taken from the Equity Mates Investing Podcast episode 'Valuation 101 with Aswath Damodaran: Every Number Tells a Story'. UA-cam: ua-cam.com/video/RUJ-OvRicEM/v-deo.html Spotify: open.spotify.com/episode/30huxiZKaNgvG86jaTLB3g?si=8MPGf5N1RAC_8hUx5LTmdg Apple: podcasts.apple.com/gb/podcast/expert-aswath-damodaran-valuation-101-every-number/id1212097275?i=1000648812844
Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
'Chrystal Amber Swope' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I think we are too obsessed about the economy crashing. In the right sense, the economy never crashes. It just undergoes cycles, and almost always recovers. So I really don't care what the predictions are. I just want to grow my portfolio. I read that people are pulling in massive profits despite the downturn. Any tips on how they do it?
I think it's the professionals and those who use their services that are really pulling in the big money right now. There are really advisors that can help you achieve very consistent growth. I have a friend who pulled in more than $194k profit within three months. So you just have to make some research and get one who fits your fin-goal.
The market will always recover. The goal is to find quality stocks with long term potential. It's hard for the average Joe to do this, because it involves following a lot of industry news, following up with earnings, etc. It's easier to invest through an advisor who knows how stuff works, and make rocket returns.
Investing in quality stocks with long-term potential is a good strategy, but it can be challenging for the average person to do this on their own. Keeping up with industry news and earnings can be time-consuming and difficult. That's why it's easier to work with an advisor who can help you make informed decisions and potentially achieve high returns.
I won't pretend to know everything, though. Her name is Amber Angelyn O'malley but I won't say anything more. Most likely, you can find her basic information online; you are welcome to do further study.
Additional earnings reports from major tech companies, driven by Nvidia, coupled with trader FOMO, could fuel a resurgence in market buying pressure. I'm considering investing over $300k, but I'm uncertain about risk mitigation strategies.
Nvidia stock is roaring like many did during the 1990s bubble. But this time around, the hype around new chips is happening in a more mature demand environment.
Assisted by an investment advisor, I diversified my portfolio of $550K across various markets. Within a few months, I generated a net profit exceeding $950K through high-dividend-yielding stocks, ETFs, and mutual funds. Pls who is this Advisor that guides you? I’m in dire need of one
De-risk your portfolios, shore up your core holdings, and take some profits while balancing your portfolio allocations. I’d also suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I. We've made over 80% capital growth minus dividends.
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
We are currently in the jaws of the worst bear markets I have seen, the average stock has been cut in half, and the only way to make money this year has been to either short or to trade long in very short time frames. I'm still at a crossroads deciding if to liquidate my dipping $117k stock portfolio, what’s the best way to take advantage of this bear market?
Focus on two key objectives. First, stay protected by learning when to sell stocks to cut losses and capture profits. Second, prepare to profit when the market turns around.I recommend you seek the guidance a broker or financial advisor.
Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, making informed decisions on when to buy and sell. Perhaps you should consider a similar approach.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her
Been beating myself up a bit that I sold my 53 shares of NVDA at $303 each back in May 2023. Now thinking of liquidating a few other investments to rebuy but afraid to do so. I also currently have 500k in savings making me next to nothing.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, i think it’s best you reach out to a proper fiduciary for guidance
De-risk your portfolios, shore up your core holdings, and take some profits while balancing your portfolio allocations. I’d also suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I. We've made over 80% capital growth minus dividends.
She goes by ‘’Jennifer Leigh Hickman’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
What is the best way to profit from the current market, meanwhile I'm still undecided about investing $400k in my stock portfolio to get some dvidends and minimize risk
You should hire a CFP to help you diversify your assets to include ETFs/index funds/mutual funds and stocks of companies with consistent cash flows, rather than betting on penny stocks.
The issue is most people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt, no offense. In general, Financial Consultants are ideal reps for investing jobs, and at firsthand encounter, since Jan.2020, amidst covid outbreak, my portfolio has yielded massively Thanks to my FA.
That would be Nicole Desiree Simon. You should look her up, I say. To be honest, I almost didn't think I should, but I'm glad I decided to let someone handle growing my finances.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Dutch East India company did better, supposedly the most successful company ever, their former HQ in Jakarta doesn’t really give one that impression though.
Do you even know who he is?? Aswath Damodaran is the Dean of Valuation, author of many famous books. Some of his books are used as textbooks in management studies
@@dgr8oneme Im completing my Masters in Business Valuation. 50-70% of most references come from Aswath. Speaks volumes about the footprint he's left on corporate finance and valuation 🙌
I can’t emphasize how valuable and honest his advice is. Very few people want to say this or hear it. But this is the truth. Outperforming the market over 10-20 year period is as rare as someone trying to get excel in a competitive sport with basic training in their backyard. If you so please, put 2/3 of your portfolio in index funds and then practice individual stock/value investing on the rest.
What about times when the market is overweight a few stocks that are overpriced like Nvidia and Microsoft? It is easier to beat the market in that case.
Indeed. I do think each human has some advantage over the market. Because of their profession or interest regular people can see where things are going. But it’s making money in a few stocks and then put it in index at some point.
Investing in Bitcoin @ $100 a month over that time cost averaging and never selling you'd be a millionaire. An S&P index fund might get you 7% a year, while the yearly debasement of currency is close to 15%. I started watching Invest Answers on UA-cam a year ago and heavily invested into Bitcoin, Solana, and Microstrategy. By all means, follow this guy's advice and grind at your job while your cash gets stolen by the money printer.
Amazing wisdom and insights. I have never heard the argument for active vs. passive investing explained better. And totally agree that active investing at the end of the day has to be something you genuinely enjoy doing, regardless of payoff.
In 2024,don't set new year financial goals without consulting a financial adviser.there expertise ensure a solid plan for success.Building wealth involves developing good habits like regular putting money away in intervals for solid investments.
Thanks for the advice! I'm new to financial planning and wasn't sure where to start.Any tips on finding a reliable financial adviser or resource to guide beginners?
I agree, based on personal experience working with an investment advisor, I currently have $650k in a well diversified portfolio, that has experienced exponential growth. It is not about having money to invest in stocks,but also you need to be knowledgeable, persistent,and have strong hands to back it up.
The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?
This is still a window-shopping market. But there are a lot of intriguing stocks to watch from a variety of sectors. You don’t have to act on every forecast, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
I agree, having a brokerage advisor for investing is genius! Amidst the financial crisis in 2008, I was really having investing nightmare prior touching base with a advisor. In a nutshell, i've accrued over $2m with the help of my advisor from an initial $350k investment.
Gertrude Margaret Quinto, is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
great and informative video. Recently, I've been pondering retirement. I've also want to put $800K into the stock market but i need an approach that will align with my risk tolerance and financial goals to secure our future
Opting for an inves-tment advisr is currently the optimal approach for navigating the market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 85% since 2022
Monicamary Strigle’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
You cannot beat the s&p 500 if you have vast amounts of money. But with small amounts of money you can beat the market. Most retail investors don’t have that kind of money to influence the prices. If you have only 10K or 500k take chances and chose your destiny.
Great interview. I will say Buffett argues professional investors should concentrate. You can find videos of him arguing he would put 75% of his net worth in one stock. Munger had put %120 of his net worth in some ideas.
The one thing that isn't exactly correct, is that the process is not the answer. It's ethics. Higher meaning and motivation. You have to be willing to make your money from ethical sources. That means you have to accept that unethical sources and dumb luck may make more, and be OK with it. That's better than enjoying the process, it's a higher meaning. Though both can coincide, but they don't have to.
For example, I'm happy to end up with half the wealth of my neighbor because I know the REASON why I am accepting of that outcome. It's because I am not willing to make my money from dumb luck, or theft with extra steps. If I cannot trace the source of my wealth to ethical sources, I don't want the fucking money.
And, as it turns out, when you do that on a long-enough time horizon, the first principles of investing like that nets billions of dollars in net worth.
This is gold. But 90% of new investors who view this will still have to learn the hard way. I did. You hear all the predictions and bragging online, you see the market moving, and you fear that you're going to be left behind if you don't "get in there and DO something!"
Predicting market timing and movement is extremely difficult in reality, It requires the investor to be right twice : That's why individuals engage service of experts who provide proper strategies to navigate the market
in my case Fergus Waylen has assisted me in doing that effectively, I'm not an expert so I lack experience in investment strategies, I work and my consultant handles the rest....
What impresses me most about Fergus Waylen is how well he explains basic concept of winning before actually letting you use his trade signals. This goes a long way to ensure winning trades.
His technical analysis is excellent and hid interpretation/projections of the market is so accurate I sometimes ask myself if he is human haha. Point is, Waylen is the perfect trader to follow for advise and daily signals.
Great advice!!! Value investing, preserve wealth and the index fund is perfect plan for most! I love investing and the process. 20-30 stocks is my index fund so to say, maybe get lucky with one!
I have 23 individuals based on a certain search criteria using a screener which comes up with under 200 companies from small cap up. Search those companies 10 yr annual return for longevity and 3 yr for current relevance. If they beat the market on avg I run a DCF on them. If undervalued by at least 30% I buy them. The 3 yr return of the 23 companies from 2021-2023 was 44% CAGR incl the down year in 2022.
im up 15% this year but it has been very painful. Majority of my stocks are down, only one of my stocks was a homerun and went up 200% this year. I would rather be up half as much with majority of my stocks performing better overall. He is right that you can do everything right and still be wrong, there are too many variables outside your control
He starts by saying don’t invest in individual stocos, don’t value companies and only invest in index funds. Then later he proceeds to talking about how he picked individual stocks in the right time.
Consider Warren Buffet and Jack Bogle’s advice to just buy a broad market index fund (i.e. SPY or VTI). Consider adding to it regularly, reinvesting the dividends and ignore market fluctuations by keeping enough in short term bond or money market instruments, (treasuries or otherwise), to provide the confidence to ride out Bear markets and avoid panic selling. Picking stocks or mutual funds or trying to time the market are fools’ errands perpetuated by Wall Street for the interests of Wall Street. Find and listen to videos where Buffet talks about this and read Bogle’s books. You’ll be glad you did.
A few per cent of private investors with small amounts of capital and long business experience can crush the market returns. The trouble is, everyone thinks they're in that few per cent, but they don't know the effort it takes to get there. And it's that majority that the small minority profit from.
The more efficient markets become, the more difficult become correct price predictions. That's it. Outperforming the S&P 500 or NDX by a wide margin is not impossible, but superdifficult. Most private investors will, of course, fail.
Dean of valuation = Did he make any wealth by investing or he makes money by talking about valuation. I would rather like to hear from someone who makes valuation to wealth creation possible.
I worship Him. If you really want to be provocative then cursing with another religious figure, especially mohammed will be much more shocking and increase your street cred.
People in the finance space are always telling you what's impossible.....for them. Some nice glasses, terminology and a polo shirt and they think they can determine other peoples limitations. I'm currently a active day trader and I'm actually amazed at what people will say is impossible or complicated. Some things are neither of these things with time. It's not a get rich quick scheme by far, but I still laugh at people that say you can't beat the market...in all their expertology. For most people, it won't be worth it though abs they will lose for years in even attempting.
Whats the point of investing if inflation will always match it? In the last 5 years all stocks doubled but inflation also doubled and tripled, so our investments are worthless. Also what's the point if you're gonna spend the money after taking it back?
"Even after all these years if i will have broken even, i'm ok with it because i enjoyed the ride" No wonder businessmen don't bother with Academics lmao
I bought Bitcoin for no reason. Made a ton of money. Now I am looking for a place to put that money long term. Right now getting a little over 5% in bonds.
Trading and individual stocks should be considered a hobby. Otherwise, just buy an index fund if you like high-risk wealth growth. You wont be rich but probably happy with thr results.
You can absolutely beat the market today. It takes a little more knowledge of technology and some key fundamental components, but you can start now even in this crazy market and times and build wealth.
I never understood the obsession with trying to “beat the market”. If 10% returns aren’t good enough for you, the amount of luck and effort it will take to make 11 or 12 percent isn’t going to make you that much more fulfilled in life
How about 127% in first year and about 50% every single year after for 10 years. Market was doing max 30%. Now open compound interest calculator or excel and put some initial capital let say $60k Now do it separately for 7% each year increase Can you see any difference? Your first tear is your most important year, followed by second tear and so on. Last tear of your life you can even stop trading as there is no difference
Greg say, "Nice guys finish last. If it was someone of marriage quality, I can understand. But to move heaven and earth for dem shits? Nah nicca. Let's keep it movin'."
Value investing has returned about 1/3rd of the return of growth. People are emotional. Things get over hyped in both directions. Value investing is not it.
The only objection with Damodaran's statement is comparing yourself to your neighbors. That's going to be disappointing for at least half of the population by design. The road to happiness is to free yourself from external validation.
For most people is okay what he said. I am totally okay to hold 4-10 very high quality companies on the long term. I am currently holding 3 stocks but those companies have more than 300 businesses and they are decentralised, have high quality management and so on. I think that buying 500 low quality or mediocre companies just based on market cap not based on performance and quality is bullshit to me. But I can understand that it is good for most people. My opinion is that concentrated investing is the best way to build wealth if you know what you are doing. Just as the best investors in the world have proved time to time. Actually if you are holding 15 high quality businesses you have less risk than hold the s&p. Of course if you want to do absolutely nothing you should do indexing.
@@arjunsharma6946 I bet you read the first book about etfs and indexes and you stopped there and I bet you don't know the power of compounding: a tiny difference in yield gives you a lot of gain in the long term. So 9% percent is not as good as 20% or 25% or 35%. There are a lot of investors (small also) who have an average track record of 20%+ percent. There isn't any magic. Value investing works. People overcomplicate it and view stocks as chart lines, prices and logos, not businesses. If you don't know the difference than do indexing not bad, and you will have more money for sure after 2-3 decades. Fun fact: even Dr. Aswath doing the opposite, he is buying and holding individual businesses.
Bitcoin beats the market nearly every year, Bitcoin is demonetising gold and is coming for the s&p next. Passive investing has rendered valuations redundant and all stocks are denominated in fiat
@@Art-is-craftall value is subjective. Bitcoins value = the value of the network to its users and the price is a function of supply and demand. The market has determined it as the best performing asset in 9 of the last 11 years, and with the halving coming soon I don’t see that changing
@@Art-is-craft read some Ludwig Von Mises for subjectivity of value and start with the bitcoin white paper and the bitcoin standard if you want to understand bitcoin. I
“I wouldn’t buy any of the Mag 7 stocks at today’s prices” What an absurd statement. You could have said the same about any of them years ago! Good companies, continue to grow. This is pathetic advice from a so called “expert”. Look at Microsoft’s price 5 years ago. Was that the highest price?
Hi all, this clip was taken from the Equity Mates Investing Podcast episode 'Valuation 101 with Aswath Damodaran: Every Number Tells a Story'.
UA-cam: ua-cam.com/video/RUJ-OvRicEM/v-deo.html
Spotify: open.spotify.com/episode/30huxiZKaNgvG86jaTLB3g?si=8MPGf5N1RAC_8hUx5LTmdg
Apple: podcasts.apple.com/gb/podcast/expert-aswath-damodaran-valuation-101-every-number/id1212097275?i=1000648812844
Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
'Chrystal Amber Swope' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you for this Pointer. It was to find her handler, She seems very proficient and flexible. I booked a call session with her.
I think we are too obsessed about the economy crashing. In the right sense, the economy never crashes. It just undergoes cycles, and almost always recovers. So I really don't care what the predictions are. I just want to grow my portfolio. I read that people are pulling in massive profits despite the downturn. Any tips on how they do it?
I think it's the professionals and those who use their services that are really pulling in the big money right now. There are really advisors that can help you achieve very consistent growth. I have a friend who pulled in more than $194k profit within three months. So you just have to make some research and get one who fits your fin-goal.
The market will always recover. The goal is to find quality stocks with long term potential. It's hard for the average Joe to do this, because it involves following a lot of industry news, following up with earnings, etc. It's easier to invest through an advisor who knows how stuff works, and make rocket returns.
Investing in quality stocks with long-term potential is a good strategy, but it can be challenging for the average person to do this on their own. Keeping up with industry news and earnings can be time-consuming and difficult. That's why it's easier to work with an advisor who can help you make informed decisions and potentially achieve high returns.
I won't pretend to know everything, though. Her name is Amber Angelyn O'malley but I won't say anything more. Most likely, you can find her basic information online; you are welcome to do further study.
Thanks a lot for this recommendation. I just looked her website up, and I have sent her an email. I hope she gets back to me soon.
The young guys allowed the dean to talk and did not interrupt him. This was great listening to
Additional earnings reports from major tech companies, driven by Nvidia, coupled with trader FOMO, could fuel a resurgence in market buying pressure. I'm considering investing over $300k, but I'm uncertain about risk mitigation strategies.
Nvidia stock is roaring like many did during the 1990s bubble. But this time around, the hype around new chips is happening in a more mature demand environment.
Assisted by an investment advisor, I diversified my portfolio of $550K across various markets. Within a few months, I generated a net profit exceeding $950K through high-dividend-yielding stocks, ETFs, and mutual funds.
Pls who is this Advisor that guides you? I’m in dire need of one
De-risk your portfolios, shore up your core holdings, and take some profits while balancing your portfolio allocations. I’d also suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I. We've made over 80% capital growth minus dividends.
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
*Vivian Louise Dehoff* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
We are currently in the jaws of the worst bear markets I have seen, the average stock has been cut in half, and the only way to make money this year has been to either short or to trade long in very short time frames. I'm still at a crossroads deciding if to liquidate my dipping $117k stock portfolio, what’s the best way to take advantage of this bear market?
Focus on two key objectives. First, stay protected by learning when to sell stocks to cut losses and capture profits. Second, prepare to profit when the market turns around.I recommend you seek the guidance a broker or financial advisor.
Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, making informed decisions on when to buy and sell. Perhaps you should consider a similar approach.
Please who’s this Financial advisor that guides you?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her
Been beating myself up a bit that I sold my 53 shares of NVDA at $303 each back in May 2023. Now thinking of liquidating a few other investments to rebuy but afraid to do so. I also currently have 500k in savings making me next to nothing.
Everyone needs a Margin of Safety in their portfolios and just remember, It's time in the market versus timing the market.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, i think it’s best you reach out to a proper fiduciary for guidance
De-risk your portfolios, shore up your core holdings, and take some profits while balancing your portfolio allocations. I’d also suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I. We've made over 80% capital growth minus dividends.
this is all new to me, where do I find a fiduciary, can you recommend any?
She goes by ‘’Jennifer Leigh Hickman’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
There’s a reason that this guy is called “The Dean of Valuation”. He’s incredible
Dean of valuation, peasant of performance. Enjoy sitting on the sidelines
What is the best way to profit from the current market, meanwhile I'm still undecided about investing $400k in my stock portfolio to get some dvidends and minimize risk
You should hire a CFP to help you diversify your assets to include ETFs/index funds/mutual funds and stocks of companies with consistent cash flows, rather than betting on penny stocks.
The issue is most people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt, no offense. In general, Financial Consultants are ideal reps for investing jobs, and at firsthand encounter, since Jan.2020, amidst covid outbreak, my portfolio has yielded massively Thanks to my FA.
That's impressive!, I could really use the expertise of this advisors, Who’s the person guiding you.
That would be Nicole Desiree Simon. You should look her up, I say. To be honest, I almost didn't think I should, but I'm glad I decided to let someone handle growing my finances.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Only East India Company managed to deliver 18% over 120+ years 😂
Wonder why 😂
Dutch East India company did better, supposedly the most successful company ever, their former HQ in Jakarta doesn’t really give one that impression though.
Now it's gone 😂
Best advice. I’m surprised. The guest is a very honest and wise person
He is literally the value investing legend. 😊
Do you even know who he is?? Aswath Damodaran is the Dean of Valuation, author of many famous books. Some of his books are used as textbooks in management studies
Hoping this was a sarcastic comment 😂😂
@@dgr8oneme Im completing my Masters in Business Valuation. 50-70% of most references come from Aswath. Speaks volumes about the footprint he's left on corporate finance and valuation 🙌
@@dgr8oneme Damn I didn't know him. But he sounds very knowledgeable. Glad I found him
Please everyone, just dollar cost average into low-cost index funds and channel your energy into more noble endeavors
Thank you. 🙏
VTSAX, baby
Such great wisdom ! Excellent
I can’t emphasize how valuable and honest his advice is. Very few people want to say this or hear it. But this is the truth. Outperforming the market over 10-20 year period is as rare as someone trying to get excel in a competitive sport with basic training in their backyard.
If you so please, put 2/3 of your portfolio in index funds and then practice individual stock/value investing on the rest.
What about times when the market is overweight a few stocks that are overpriced like Nvidia and Microsoft? It is easier to beat the market in that case.
Indeed. I do think each human has some advantage over the market. Because of their profession or interest regular people can see where things are going. But it’s making money in a few stocks and then put it in index at some point.
@@eminhawahow would it be easier ?
Investing in Bitcoin @ $100 a month over that time cost averaging and never selling you'd be a millionaire. An S&P index fund might get you 7% a year, while the yearly debasement of currency is close to 15%. I started watching Invest Answers on UA-cam a year ago and heavily invested into Bitcoin, Solana, and Microstrategy. By all means, follow this guy's advice and grind at your job while your cash gets stolen by the money printer.
Because the market has less upside potential. You would have to be comfortable waiting in cash though till prices reach fair value@@GaminHasard
Amazing wisdom and insights. I have never heard the argument for active vs. passive investing explained better. And totally agree that active investing at the end of the day has to be something you genuinely enjoy doing, regardless of payoff.
This guest is excelent! Very much with his feet on the ground.
How amazing it’s profesor Damodaran
This is the EXACT video I needed.
Been so distracted at work. Especially during this crypto bull market.
Respectful interview who gets the best out of the guest. Refreshing to see.
This interview in itself is a reward. Thank you.
Great advice !!
Justin Verlander is a great interviewer.
Wonderful interview
Banger video!!
In 2024,don't set new year financial goals without consulting a financial adviser.there expertise ensure a solid plan for success.Building wealth involves developing good habits like regular putting money away in intervals for solid investments.
Thanks for the advice! I'm new to financial planning and wasn't sure where to start.Any tips on finding a reliable financial adviser or resource to guide beginners?
I agree, based on personal experience working with an investment advisor, I currently have $650k in a well diversified portfolio, that has experienced exponential growth. It is not about having money to invest in stocks,but also you need to be knowledgeable, persistent,and have strong hands to back it up.
Marie Ann Treloar
She has been my counselor and coach.
Research her name on gogle and you will find the necessary information and also her web page to make a contact and schedule an appointment with her.
The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?
This is still a window-shopping market. But there are a lot of intriguing stocks to watch from a variety of sectors. You don’t have to act on every forecast, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
I agree, having a brokerage advisor for investing is genius! Amidst the financial crisis in 2008, I was really having investing nightmare prior touching base with a advisor. In a nutshell, i've accrued over $2m with the help of my advisor from an initial $350k investment.
*@sloanmarriott5* That does make a lot of sense, unlike us, you seem to have the Market figured out. Who is this consultant?
Gertrude Margaret Quinto, is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
Love you. You talk so well
This is one of thr most genuine advices about investing ever!
Loving this bite sized content ❤
I will remember this along the way of my investing journey. Now i’ll put money for the last time, last time no more. Maybe.
great and informative video. Recently, I've been pondering retirement. I've also want to put $800K into the stock market but i need an approach that will align with my risk tolerance and financial goals to secure our future
While the stock market is promising, expert guidance is essential for effective portfolio management
Opting for an inves-tment advisr is currently the optimal approach for navigating the market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 85% since 2022
Who is the coach that provides guidance fr you? I urgently require assistance; my stck prtfolio is stagnating
Monicamary Strigle’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thanks for the advice. The search for your coach was simple. I investigated her well before using her services.
This video deserves more views.
What a beautiful video
words of wisdom, i enjoyed it.
You cannot beat the s&p 500 if you have vast amounts of money.
But with small amounts of money you can beat the market. Most retail investors don’t have that kind of money to influence the prices. If you have only 10K or 500k take chances and chose your destiny.
Great interview. I will say Buffett argues professional investors should concentrate. You can find videos of him arguing he would put 75% of his net worth in one stock. Munger had put %120 of his net worth in some ideas.
Wow love this guy
Holy shit, someone who actually knows what the FUCK they are talking about. This is correct. This is how it's done. Generate value, then invest.
The one thing that isn't exactly correct, is that the process is not the answer. It's ethics. Higher meaning and motivation. You have to be willing to make your money from ethical sources. That means you have to accept that unethical sources and dumb luck may make more, and be OK with it. That's better than enjoying the process, it's a higher meaning. Though both can coincide, but they don't have to.
For example, I'm happy to end up with half the wealth of my neighbor because I know the REASON why I am accepting of that outcome. It's because I am not willing to make my money from dumb luck, or theft with extra steps. If I cannot trace the source of my wealth to ethical sources, I don't want the fucking money.
And, as it turns out, when you do that on a long-enough time horizon, the first principles of investing like that nets billions of dollars in net worth.
Wise advice
This is gold. But 90% of new investors who view this will still have to learn the hard way. I did. You hear all the predictions and bragging online, you see the market moving, and you fear that you're going to be left behind if you don't "get in there and DO something!"
You do not invest in the market you invest in companies or schemes.
Impeccable
Predicting market timing and movement is extremely difficult in reality, It requires the investor to be right twice : That's why individuals engage service of experts who provide proper strategies to navigate the market
in my case Fergus Waylen has assisted me in doing that effectively, I'm not an expert so I lack experience in investment strategies, I work and my consultant handles the rest....
I am surprised that this name is being mentioned here, I stumbled upon some of his clients testimonies on CNBC news last week..
What impresses me most about Fergus Waylen is how well he explains basic concept of winning before actually letting you use his trade signals. This goes a long way to ensure winning trades.
His technical analysis is excellent and hid interpretation/projections of the market is so accurate I sometimes ask myself if he is human haha. Point is, Waylen is the perfect trader to follow for advise and daily signals.
His stop calls have saved me from potential losses more times than I can count. Waylen's risk management strategies are truly effective
Golden words
insightful
Great advice!!! Value investing, preserve wealth and the index fund is perfect plan for most! I love investing and the process. 20-30 stocks is my index fund so to say, maybe get lucky with one!
excellent
Wise man
Wow. So refreshing to hear the simple answer to investing. Nobody EVER give the simple easy answer. So nice 👍
I have 23 individuals based on a certain search criteria using a screener which comes up with under 200 companies from small cap up. Search those companies 10 yr annual return for longevity and 3 yr for current relevance. If they beat the market on avg I run a DCF on them. If undervalued by at least 30% I buy them. The 3 yr return of the 23 companies from 2021-2023 was 44% CAGR incl the down year in 2022.
im up 15% this year but it has been very painful. Majority of my stocks are down, only one of my stocks was a homerun and went up 200% this year. I would rather be up half as much with majority of my stocks performing better overall. He is right that you can do everything right and still be wrong, there are too many variables outside your control
I'm up 60%
You are talking yourself into holding an S&P500 ETF. It does exactly what you are looking for.
Hold Bitcoin it will outperform most things with much less risk
@@FreeRsGuides bitcoin is a fucking scam clown
@@FreeRsGuidesFew understand this
He starts by saying don’t invest in individual stocos, don’t value companies and only invest in index funds. Then later he proceeds to talking about how he picked individual stocks in the right time.
Thank you for this piece of wisdom...
Sobering
Damodaran is the man
I want to beat the market and I know I'm not entitled to anything but it's one of my passions
Consider Warren Buffet and Jack Bogle’s advice to just buy a broad market index fund (i.e. SPY or VTI). Consider adding to it regularly, reinvesting the dividends and ignore market fluctuations by keeping enough in short term bond or money market instruments, (treasuries or otherwise), to provide the confidence to ride out Bear markets and avoid panic selling. Picking stocks or mutual funds or trying to time the market are fools’ errands perpetuated by Wall Street for the interests of Wall Street. Find and listen to videos where Buffet talks about this and read Bogle’s books. You’ll be glad you did.
That is only to saver investors not enterprising investors.
A few per cent of private investors with small amounts of capital and long business experience can crush the market returns. The trouble is, everyone thinks they're in that few per cent, but they don't know the effort it takes to get there. And it's that majority that the small minority profit from.
True
Beating the market is not complex nor is matching it. Losing seems to be very complicated with lots of over the top strategies and tips.
The more efficient markets become, the more difficult become correct price predictions. That's it. Outperforming the S&P 500 or NDX by a wide margin is not impossible, but superdifficult.
Most private investors will, of course, fail.
Markets are not efficient.
@@Art-is-craft That's why I wrote, "the more efficient markets become". Mostly, they are.
@@janreichenbach265
They are no more efficient than 100 years ago.
tend to disagree, Buffett didn’t get wealthy by accident being at the right time yes no question but he never doubted he would be wealthy not once so.
Dean of valuation = Did he make any wealth by investing or he makes money by talking about valuation. I would rather like to hear from someone who makes valuation to wealth creation possible.
Sweet baby Jesus that was an amazing video!
I worship Him. If you really want to be provocative then cursing with another religious figure, especially mohammed will be much more shocking and increase your street cred.
do you guys challenge or followup on anything he says ? felt like I was listening to a speech than an interview
People in the finance space are always telling you what's impossible.....for them. Some nice glasses, terminology and a polo shirt and they think they can determine other peoples limitations. I'm currently a active day trader and I'm actually amazed at what people will say is impossible or complicated. Some things are neither of these things with time. It's not a get rich quick scheme by far, but I still laugh at people that say you can't beat the market...in all their expertology. For most people, it won't be worth it though abs they will lose for years in even attempting.
This is some of the worst advice I’ve heard and I love it.
R.I.P William Joseph O'Neil
this guy sounds like he knows his thing
the first 60 secs of this video is worth $100k alone
Whats the point of investing if inflation will always match it?
In the last 5 years all stocks doubled but inflation also doubled and tripled, so our investments are worthless.
Also what's the point if you're gonna spend the money after taking it back?
if you dont have it, dont try
"Even after all these years if i will have broken even, i'm ok with it because i enjoyed the ride" No wonder businessmen don't bother with Academics lmao
I bought Bitcoin for no reason. Made a ton of money. Now I am looking for a place to put that money long term. Right now getting a little over 5% in bonds.
Trading and individual stocks should be considered a hobby. Otherwise, just buy an index fund if you like high-risk wealth growth. You wont be rich but probably happy with thr results.
Absolutely not.
You can absolutely beat the market today. It takes a little more knowledge of technology and some key fundamental components, but you can start now even in this crazy market and times and build wealth.
Technology has no bearing.
I never understood the obsession with trying to “beat the market”. If 10% returns aren’t good enough for you, the amount of luck and effort it will take to make 11 or 12 percent isn’t going to make you that much more fulfilled in life
How about 127% in first year and about 50% every single year after for 10 years. Market was doing max 30%. Now open compound interest calculator or excel and put some initial capital let say $60k
Now do it separately for 7% each year increase
Can you see any difference? Your first tear is your most important year, followed by second tear and so on. Last tear of your life you can even stop trading as there is no difference
12% is 20% higher than 10%. Compounding that over two decades makes all the difference.
With the volatility in this market diversifying can put you above some joke like the s&p on the 5 year quite easily
Tesla is on sale now
This was very informative. Thanks
This guys “value investing” would be telling him to short right now. 😂
I prefer Tim Koller, he has less ego , I agree with everything he said except of Warren buffet getting lucky
Academics tend to be somewhat salty looking at Buffett cause they can’t mimic his performance and always attribute his success as just luck.
😂 as a failed 8 year day trader... I agree
Why spend the first half of the video promoting index funds, then 5:30 go right into active investing and market timing
Enjoy what process?
Setting up a subscription to invest x amount into a passive fund each month lmao?
The process of learning. Listen before you comment.
Greg say I filleting the wrong fish.
I just happen to agree.
Then again they overcompensating for some reason. Don't know the reason.
Simon aka Greg says
"Bet. The shit they gotta do...Never supposed to even cross paths."
Greg say, "Nice guys finish last. If it was someone of marriage quality, I can understand. But to move heaven and earth for dem shits? Nah nicca. Let's keep it movin'."
One more thing - "I'm glad to see the days of Derrick lowering himself are over. In Derrick we trust."
*These are the moments where they dance around what really is the issue and talk about any bullshit that has nothing to do with anything.*
Greg say dem biddies who make sure u notice dem, dem the riff raffs. Ignore them.
Value investing has returned about 1/3rd of the return of growth. People are emotional. Things get over hyped in both directions. Value investing is not it.
He’s the opposite of Munger and Buffett. Lol
Come on bro. What happened the last time I was in the hospital?
They require 10+ yrs of limelight? Let's get with the program here.
I'm trynna figure out who 988 first. Shit hard hard.
U go first.
Invest in Disruption, not no-growth companies like coca-cola..
I'm up 60% this year so far lol...
Anyone can beat the index over a year, over ten.. not so much
Not buying Tesla now?! He must have bought it much cheaper…
Bitcoin returns better than any stock
lol this guy vastly underperforms the s&P.... these guys all talk a good game, until they have to play the game.
guy is crazy the mag 7 is OVER!!!!! since 24!!! is he asleep???
Most hedge funds underperform the S&P index funds. These are Wall Streeters with Quants; so if you expect to beat the market it’s almost a pipe dream.
Quantitive market analysis is nonsense. Those companies are all about driving fees revenue.
The only objection with Damodaran's statement is comparing yourself to your neighbors. That's going to be disappointing for at least half of the population by design. The road to happiness is to free yourself from external validation.
For most people is okay what he said. I am totally okay to hold 4-10 very high quality companies on the long term. I am currently holding 3 stocks but those companies have more than 300 businesses and they are decentralised, have high quality management and so on. I think that buying 500 low quality or mediocre companies just based on market cap not based on performance and quality is bullshit to me. But I can understand that it is good for most people. My opinion is that concentrated investing is the best way to build wealth if you know what you are doing. Just as the best investors in the world have proved time to time. Actually if you are holding 15 high quality businesses you have less risk than hold the s&p. Of course if you want to do absolutely nothing you should do indexing.
Same
I bet you don't know basic statistics. If true then don't do what you are doing
@@arjunsharma6946 ik and actually you are wrong
@@arjunsharma6946 I bet you read the first book about etfs and indexes and you stopped there and I bet you don't know the power of compounding: a tiny difference in yield gives you a lot of gain in the long term. So 9% percent is not as good as 20% or 25% or 35%. There are a lot of investors (small also) who have an average track record of 20%+ percent. There isn't any magic. Value investing works. People overcomplicate it and view stocks as chart lines, prices and logos, not businesses. If you don't know the difference than do indexing not bad, and you will have more money for sure after 2-3 decades.
Fun fact: even Dr. Aswath doing the opposite, he is buying and holding individual businesses.
I want him to adopt me
I'm investing everything I have into royalty companies.
Bitcoin beats the market nearly every year, Bitcoin is demonetising gold and is coming for the s&p next. Passive investing has rendered valuations redundant and all stocks are denominated in fiat
Bitcoin has no value.
@@Art-is-craftall value is subjective. Bitcoins value = the value of the network to its users and the price is a function of supply and demand. The market has determined it as the best performing asset in 9 of the last 11 years, and with the halving coming soon I don’t see that changing
@@JimJamJuicy
Value is not subjective and neither is debt. So what is the value of bitcoin.
@@Art-is-craft read some Ludwig Von Mises for subjectivity of value and start with the bitcoin white paper and the bitcoin standard if you want to understand bitcoin. I
Buy Tesla
I disagree I think 25%/yr is easy
Buffett got 19%.
Hhhhhh 25 open a Hugh fund company
Just do this consistently for 3 years.
@@michaelgrobshteyn7049 well I'm already up 60% YTD so will do
It's nice that you think that. You'll get wise eventually.
Maybe consider ethics when investing. Meta will create a worse future.
Should have just bought bitcoin and not listened to any of these “experts” 😂
“I wouldn’t buy any of the Mag 7 stocks at today’s prices” What an absurd statement. You could have said the same about any of them years ago! Good companies, continue to grow. This is pathetic advice from a so called “expert”. Look at Microsoft’s price 5 years ago. Was that the highest price?
There are other good companies out there. No one needs to buy the most expensive ones to get decent results.
Bitcoin fixes this game