Smart Money vs Stupid Money. Humble Money vs Arrogant Money. By Aswath Damodaran.

Рет қаралды 13,217

Күн бұрын

In this lecture, NYU Professor Aswath Damodaran questions the myth of Smart Money and Stupid Money, analyses its origins and fallacies, clarifies investment trends (active vs passive investing) and shares his recommendations (Humble Money vs Arrogant Money).
As usual, he is a straight talker.
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Timestamps:
00:00 Intro
00:10 Smart Money
00:25 Stupid Money
01:00 The basis for the myth of smart money: anecdotal evidence
01:47 The basis for the myth of smart money: self promotion
02:10 The basis for the myth of smart money: academia
02:45 George Soros
02:57 The problem with Anecdotal Evidence
03:07 Statistics
04:18 Very selective story telling (ex Warren Buffett)
05:27 Time and space
06:32 My problem with investor track record: real or on paper?
07:15 Drains on Returns
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Note:
- Source: Nordic Business Forum: / nordicbusinessforum
- In the interest of time and clarity, the original video interview has been edited and made shorter
#aswathdamodaran #valueinvesting #investing
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02) Fooled by Randomness. amzn.to/3ki2NaA
03) The Money Code. Become a Millionaire with the Ancient Jewish Code. amzn.to/3CZes4H
04) Just Keep Buying. amzn.to/3kn7Czv
05) Early Retirement Extreme. amzn.to/3CZ698O
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Keep it real and ... Sweat Your Assets!
Alex Baroni

Пікірлер: 26

@luisvillar8320 2 жыл бұрын

Listening to Profesor Damodaran in youtube has been the best investment of my time on the Internet.

@SweatYourAssets 2 жыл бұрын

Hi Luis, I am glad you also appreciate his classes. He is a remarkable professor.

@user-tb1hr8wt2z Жыл бұрын

Wonderful, truthful lesson.This man is amazing.thank you. For you amazing insight

@chandrannatarajan6616 Жыл бұрын

Very true Prof. Humility and the universal acceptance that CHANGE ALONE IS PERMANENT works in all walks of life 🙏. Stay blessed always Prof. 🙏

@ssunkite1 Жыл бұрын

Never forget that smart money is a concept derived from the engineered manipulation of insiders. Smart money does not necessarily means that will use its knowledge in an ethical way. It simply means that will use its knowledge for its advantage. Algos make this concept work at crazy speed using feedback loops programmed into deep learning code.

@theharsh2005 11 ай бұрын

So good. Thank you.

@jimjackson4256 Жыл бұрын

If you don’t bring anything to the table don’t expect to take anything away. I like that one.

@SweatYourAssets Жыл бұрын

Hi Jim, I love the quote you selected. Thank you for sharing it.

@staciarine 11 ай бұрын

Amazing information! Thanks 🙏🏻

@manickramasubramania9000 Жыл бұрын

Wow, what an amazing and insightful video ...this is gold. I started not long ago and very late in the investments scene. Although there are KZfaq videos, websites and abundance of personal finance tips, there are few gems like this on purpose. End of the day, you need to be comfortable in whatever you do and own your decisions/outcomes. Also, cut out all the noise and see through it...put the best foot forward. Thank you Sir! P.S.- I'm so proud that I come from the same place where this gentleman hails from.

@SweatYourAssets Жыл бұрын

Hi Manick, thanks for your comments. All the best in your investment journey.

@sebastianburnaz6760 Жыл бұрын

Very wise thoughts. Thank you!

@SweatYourAssets Жыл бұрын

Professor Damodaran shares timeless pieces of advice.

@davidpowell3347 2 жыл бұрын

"Smart Money" could be said to be that of corporate insiders who know of things that are planned in the executive suite before the things become public and trade upon such knowledge of course that is illegal I am dumb money so just leave much of it in Vanguard and hope the market takes care of itself but my cash in the bank(credit union) for being ready to buy a house on short notice isn't doing very well! Sort of feels like bank robbery.

@SweatYourAssets 2 жыл бұрын

thanks David.

@lindseym6534 2 жыл бұрын

I just love this guy

@SweatYourAssets 2 жыл бұрын

He has is own style and clear passion for teaching. He is truly an admirable professor.

@jjh7611 Жыл бұрын

Very true. History is still history. You gotta respect it of course. But as mr damodaran has said in another video, sometimes the best years of so and so has already passed. And if you were to look at the future, no matter what kind of credentials you have, there’ll still be uncertainty for the next big thing. It’s an illusion you shouldn’t so easily fall for

@SweatYourAssets Жыл бұрын

Thank you JJ H for the comment.

@marinabaskakova2333 Жыл бұрын

But how about the “uncorrelated returns” that HFs are supposed to provide?

@abdirizakmohamud6591 2 жыл бұрын

Thank you sir do you have online courses that I can study 📖 YOU EDUCATION IS WORTH EVERYTHING TO ME 🧠🧠💯💯

@SweatYourAssets 2 жыл бұрын

Thanks Abdirizak Mohamud. This channel is all about financial education, from personal finance to investing. In upcoming videos I will share more tutorials. ►If you like these contents, you can either subscribe to my youtube channel or to my newsletter here: sweatyourassets.biz/extra/newsletter/?et_fb=1&PageSpeed=off ►If you are looking for specific lectures on Corporate Finance & Investing from Aswath Damodaran (the speaker in this specific video), I strongly suggest his personal youtube channel: kzfaq.info/love/LvnJL8htRR1T9cbSccaoVw I wish you all the best during your financial education journey.

@thegamerboneless2864 11 ай бұрын

So what do you recommend for someone who wants to learn to use the market to live, to be able to put there 40-80 hours they use to use working a constructions job, to analysis of assets, and using the market to become financially independent. I never was a computer guy, but I have come to love analyzing statements, and ratios, researching reports. I guess it came with age, but you are making me think twice, your like Howard marks just a little more doom and gloom sprinkled over the top. I like everything you are saying, cause I will find my edge and if what you say is true I should have little competition 😂 😂 joking

@SweatYourAssets 11 ай бұрын

You are already learning by reading and learning by doing. That's great. If you just start, I like to recall Warren Buffett's first 2 rules about investing: rule number 1: never lose money. Rule number 2: remember rule number one! After that, you need to build your investment style, understand your risk profile, and set up a financial plan and lifestyle. Clearly, you need a good cash flow to feed your investment portfolio through your income or other people's money (OTP). It is not enough to live off returns at the beginning. All the best.