The Value of Stories in Business | Aswath Damodaran

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The Value of Stories in Business | Aswath Damodaran | Talks at Google

Рет қаралды 524,588

Күн бұрын

The world of investing/finance is divided into two camps. In one, you have the number-crunchers, who believe that the only things that matter are the numbers and that imagination/creativity are dangerous distractions. In the other, you have the storytellers, who build on the stories they tell about companies and how these stories will bring untold wealth. Each side believes it has a monopoly on the truth and looks with contempt at the other. Prof. Damodaran contends that stories matter, but only if they are connected with numbers. And numbers are empty, unless they are connected with narratives. In this talk, he looks at the process by which one might build narratives, check them against reality and convert them into valuations. Uber and Ferrari examples are used to illustrate the process.
Slides for the talk: goo.gl/zKVaQL
Check out the book on Google Play: goo.gl/tnGlDe
This talk was moderated by Saurabh Madaan.

Пікірлер: 272

@presley492 Жыл бұрын

The most important thing that should be on everyone mind currently should be to invest in different sources of income that doesn't depend on the government. Especially with the current economic crisis around the word. This is still a good time to invest in various stocks, Gold, silver and digital currencies.

@candideharrison5568 Жыл бұрын

That's so true. but if i may ask, do you trade all by yourself?

@presley492 Жыл бұрын

I have been investing in stocks for over 10 years now and I have made a lot of money. My portfolio has grown exponentially and I can't thank stocks & TERESA JENSEN WHITE enough for such an amazing way to make money!

@susannabruemmer3683 Жыл бұрын

Is she on youtube, please how do I find her?

@presley492 Жыл бұрын

*TERESA JENSEN WHITE,* that's her official page name you can do a web search to get in touch with her

@susannabruemmer3683 Жыл бұрын

Wow! I just looked up this person out of curiosity and I'm super impressed with her qualifications. Thanks for sharing.

@saurebh8109 4 жыл бұрын

*This man is Underappreciated.*

@flytoy77 3 жыл бұрын

But the waves he is creating, gonna change the world by some hands

@stephenobelisomeday 2 жыл бұрын

You can say that again

@salvationinabottle5722 Жыл бұрын

And again

@euming 3 жыл бұрын

Damodaran is a brilliant eloquent speaker. This talk was a joy to watch. It was like watching a stand-up comedy show plus a gripping documentary all at the same time!

@dragaashenoak5338 2 жыл бұрын

@aks957 4 жыл бұрын

Great Prof. Great content. What is most impressive is with hardly any audience ( almost empty) a World Renowned Prof has the same passion and energy as if it were his MBA class at Stern with 300 students.

@LNJP13579 Жыл бұрын

I made a similar comment on the other google talk by him :)

@Milindriify 7 жыл бұрын

I wish a teacher like YOU. I can feel your Investing's passion. Thanks you for all the knowledge you share for free! Nobel Prize!!!

@BMJC99 3 жыл бұрын

His lecture is so interesting that I have to make sure I understand every word, so I searched Bambi's mothers death, now i regret it

@ibrahimnadeem1064 3 ай бұрын

We are same bro❤

@InJunoWeTrust 2 жыл бұрын

Can't believe I am just discovering this guy now. He is wonderful and kept me engaged right at the start.

@JR-ly6bx 7 жыл бұрын

love his passion for valuation and his profession, with his accomplishments and his name he should be a managing director of some PE or VC firms collecting millions

@Amoney1827 6 жыл бұрын

You are out of your mind if you think he doesn't make millions already

@notebookled 4 жыл бұрын

I think he would be a very bad investor and he also said that about himself. Pricing is not valuation, he mentioned that in his last google talk and he's absolutely right.

@Trenacetate43 4 жыл бұрын

@@Amoney1827 How you know if he already made millions? not every academics is going to be a good professional, a lot of good professors fail miserably in professional world, most of those that can succeed don't even care about money. Professors make around 150-400 k a year, not more than that. Last time I checked his linkedin, he never worked for the finance industry. He started teaching at NYU after he got his PhD and had been doing that ever since.

@FinanceAcademy7799 4 жыл бұрын

He is a billionaire. We just need to wait for the market to correct itself.

@wnuoyi1118 4 жыл бұрын

You don’t have the right to say what this amazing guru “should” be doing. Who do you think you are? I think you should widen your vision

@24Elliottwaves 3 жыл бұрын

Yes, the story and numbers must be combined in a timely fashion to profit in the financial markets. I am glad that @Aswath is banging on it throughout this amazing tutorial. The funny thing is that people often spend like ten minutes to watch a valuable free tutorial like this one instead of watching it in full.

@pasticcinideliziosi1259 2 жыл бұрын

you can see that like 9/10 of people just skipped to the parts where it spoke about specific companies, and only 1/10 watched it in full. So sad that all these people are losing such an opportunity to learn these things

@paolobernardi6835 5 ай бұрын

As someone who has picked businesses apart for 30 years and still tries to understand and value them, I find his lectures absolutely great. I don’t always agree with everything he says. But the point is to always read and listen critically to everything. And change your mind if facts tell you that you are not right. He is a true teacher. 👏

@MihirrPanchaal 7 жыл бұрын

Of course I loved your talk about valuation, but the thing that will stay with me is your message about faith in your own convictions.

@jorgipogi 7 жыл бұрын

He saw the light. I remember watching his podcast and it was all about numbers and no context. Now, he is there.

@dinanyandoro5795 3 жыл бұрын

Great storyteller and that comes through in his presentation. Stories shape us because they inform us of the value of things within us and around us. Admirable teacher and something to aspire to in myself : the art of story telling

@AIwithOksana 3 жыл бұрын

This is the best valuation explanation I’ve ever heard

@ankitkalavagunta8951 5 жыл бұрын

The best talk on investing ever! Loved his sense of humor and his passion for the field is incredibly contagious.

@elainajohn8654 3 жыл бұрын

love his passion for valuation and his profession, with his accomplishments and his name he should be a managing director of some PE or VC firms collecting millions

@djepifanio8901 3 жыл бұрын

Hi Mr. Damodaran. As Brazilian and also passionate about valuation, let me congrats you on the brilliant lecture. I hope you come to Brazil soon to share your thoughts with us.

@NihalRanjan 3 жыл бұрын

Professor Damodharan dissect valuation in terms that can be understood by anyone. Thanks for enlightening world and me

@C_R_O_M________ 5 жыл бұрын

The lesson with Valeant is that immorality ALWAYS ends up bankrupt (and that’s where I fundamentally disagree with the professor - and I agree with Buffet when he said “looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if you don’t have the first, the other two will kill you.” This goes for investing and management/owners. Therefore primarily look for descent/driven people to invest into. A way to know this is to look back at conference call transcripts and see whether these people have actually did what they said they will do or do they always find excuses to cover their mistakes/inadequacy or even deceit.

@sundaradiseshan7277 3 жыл бұрын

Ashwath has added substance to the world of Valuation by making it Number Crunching with Narrative support.

@codyzanderson 4 жыл бұрын

"valuation is the bridge between stories and numbers"

@shankerpai5052 3 жыл бұрын

What happens if you break a bridge or story or numbers ? Destruction ..construction

@jonweber8778 Жыл бұрын

Remarkable....as smart as this professor is, distills and validates the requirement of imagination, fun, satire etc.., to leverage the mortar in the brick....be great if all managers would take a page from his unique perspective....a number is an endpoint, the inputs are the dark energy yet so much "coaching" at management/leadership levels centers on the sophomoric fossilization of the end....wow...has changed my education path relative to how I think, speakers I am gravitated towards....awesome

@Being_Unidirectional 2 жыл бұрын

This man is a gem... He made me watch such a boring unheard subject for the while 1.5 hour with such zeal & enthusiasm to teach

@CJinsoo 3 жыл бұрын

what an insightful and apparently transparent and kind teacher and investor. his thoughtfulness and insights are hard to match.

@dheerajmaske1194 2 жыл бұрын

you have became a good story teller from number cruncher that's how you have given the speech.

@TheNavinsamuel 10 ай бұрын

One of the most amazing lectures given at Google, among the many. Prof Aswath is simply brilliant!

@alexi2460 3 жыл бұрын

He's brilliant and fun, what else can one ask for

@LNJP13579 Жыл бұрын

His sense of humor is great as well. One does not feel a generational gap while hearing to him.

@osamaa.h.altameemi5592 3 жыл бұрын

This is pure gold.

@parthadlakha1641 2 жыл бұрын

moderator did a good job as well and what to say about damodaran, just a legend

@MrPranab2011 2 жыл бұрын

I am glued thru the whole video.. Thankz a lot for video.. This art is missing in corporate guys and in universities.. They have more mechanical approach, doesn't cover the underlying

@prateeksaini4812 Жыл бұрын

I love the energy and the examples used by the prof. We grew up using your books and now learning from you on youtube channel is a blessing. Thanks for sharing this information.

@thevoxdeus 6 жыл бұрын

GREAT talk. This gave me more new information and ideas to consider than 10 talks on value investing would have.

@arunsreenivasan4746 2 жыл бұрын

It is just amazing the way he distinguishes a good business and bad business. 🙏

@shankerpai5052 2 жыл бұрын

" Know ...you never know ..( accounting is comfortable ) There is no confirmation mechanism in valuation . " prof aswath damodaran

@tomr6955 3 жыл бұрын

📁 2020 📁 Stories 📁 The Fed 📁 Numbers ⚠️ *This Folder Is Empty*

@paradevparadev5371 2 жыл бұрын

He is great teacher, i was seeing all his videos, wonderful free knowledge

@brianfollendorf168 3 жыл бұрын

This was amazingly informative and I loved every second of this. Thank you!

@tcharles8172 3 жыл бұрын

I enjoyed your presentation! Thank you for sharing passion. You are an inspiration!!!

@amilrahman 3 жыл бұрын

Every word is gold standard !!!!!!

@oah8465 3 жыл бұрын

Apart from the awesome valuation talk, the Gale-Shapley algorithm (mother of all match-making) still rules. Again, fantastic talk professor.

@user-gv7pu2mp7l 3 жыл бұрын

Great Talk! That being said, 36:00 But the 29 year old kid from your class in 2015 who picked NFLX is spot on with the price projection for 2025 is going to be from $120 to $500. His share price projection target reached in less than 5 Years, EOY 2020 was $543.00. It was an IMPOSSIBLE then but now it is PROBABLE. Video streaming giant Netflix had a total net income of over 2.76 billion U.S. dollars in 2020, whilst the company's annual revenue reached 25 billion U.S. dollars.

@Being_Unidirectional 2 жыл бұрын

Few days into him & such priceless insights.... Surely TIME is limited bt Life is not... Should explore bfor anyway get old n RIP😶‍🌫

@shankerpai5052 2 жыл бұрын

"It's got to come from within " prof aswath damidaran

@vkmohanan1597 Жыл бұрын

The VolksWagon Car symbol (vw) is ideal for Prof.Damodaran as "Valuationguru of the World"!

@erwinargoismanto8348 2 жыл бұрын

He is a wise teacher for sure in investment world

@MihirrPanchaal 7 жыл бұрын

Venerable Mr. Damodaran. Thank you for this talk.

@nikhilkalasala9128 7 жыл бұрын

Damodaran..... Valued like a pro

@jimmyfortef3674 6 жыл бұрын

Great lecture, would love to be in his class

@user-rf5df8ki9d 3 жыл бұрын

Pixar book, 1. Creativity Inc, 2. To Pixar and beyond, 3. Pixar Storytelling, rules for effective... I guess it is the third one？ I have one that's worth reading 《STORY: Substance, Structure, Style, and the Principles of Screenwriting》

@brendansmith7842 3 жыл бұрын

35:45 well, netflix is $512 now. Not 600b revenue , but 20b. I guess we could say netflix is very overvalued? So the share price wasnt impossible... but the valuation seems to be way out of whack, they also have 200m subscribers ,not 6b.

@quant-trader-010 Жыл бұрын

This is gold!

@Jay.05 3 жыл бұрын

Funnier than stand up and informative too !!

@JapaneseStockInvestor 7 жыл бұрын

Thanks Aswath Damodaran. You are great.

@roberts7608 Жыл бұрын

This is one of the video i would like to watch it again and again

@wm6549 7 жыл бұрын

Great talk. I especially liked the Q&A session at the end.

@sadanandsahasrabuddhe1946 3 жыл бұрын

1:16 .... Automated invesemt.. start with 5% and never exceed 10% of total portfolio value ... Diversification with automated limit sells ... Awesome

@PriankaEvangelineSLP 3 жыл бұрын

Hi I didn't understand the percentage thing. Does he mean the portion from his portfolio? I'm new to investing. Can u please explain?

@davidlebese644 Жыл бұрын

The passion is on the other level. Wow!

@ItzGanked 6 жыл бұрын

Great content from Damodaran par usual, I know valuing and pricing are different, but look at NFLX now I think it is overvalued, but modeling these things is so difficult. Maybe this discipline will find more value in more difficult times, people are ignorant in late cycle booms. Time to put blinders on and make money

@beautydoctorcardiff 5 жыл бұрын

Amazing, love every minute thanks for the share

@sadanandsahasrabuddhe1946 3 жыл бұрын

1:22 faith .. active investor on death bed at the age of 85 making less than ETF and still OK as he enjoyed the journey of active investment... aswath is osho of finance .. he is talking about flow ...

@NourLababidi 2 жыл бұрын

@1:22:22

@Hsinkuang 3 жыл бұрын

He is very true about luck !

@srimaldemel4381 2 жыл бұрын

We who look for certainty found the reality of uncertainty in valuations and resultant prices

@Er.Sunil.Pedgaonkar Жыл бұрын

Valuation of physical assets should be done only by Registered Engineer-cum-Valuer of concerned discipline -market value matters, depreciation taken into account alongwith market characteristics & environment.This is required while buying, selling, liquidation, bankruptcy,tender floating & alloting,auction,court suits,court orders. Also valuation of Co. must have seal& signature of CA/CPA. Others not allowed

@ramyasri6093 3 жыл бұрын

Wonderful talk... And too much knowledge

@antyest 3 жыл бұрын

Essentially logic & emotion.. Numbers & story

@Mztbtc 3 жыл бұрын

So glad this is available

@rms4621 3 жыл бұрын

Wow so much valuable info thanks google!!

@jimboford9504 3 жыл бұрын

Very important talk!

@deepakchapagain1360 3 жыл бұрын

Excellent talk for valuation.

@GeraBizuneh 3 жыл бұрын

Captivating !!!

@uncleswell 4 жыл бұрын

56:02 The audience is sitting COVID style 3 years in advance.

@Jayzee31519 3 жыл бұрын

Time travelers confirmed

@allywithbooks1612 3 жыл бұрын

Hahaha :)

@l.s.754 4 жыл бұрын

Aswath is brilliant thinker.

@paradevparadev5371 2 жыл бұрын

Pranaam guruji

@yusufsamad9764 3 жыл бұрын

Fantastic video with some very deep stuff on why investing is fun

@jacksonkamungu5387 2 жыл бұрын

Thank you.

@nickvoutsas5144 3 жыл бұрын

It’s so weird your predictions or Tesla’s stock market valuation sounds more true than the actual high stock that Tesla is priced at in 2021. Life is sometimes so unpredictable.

@infavorofdemocracy5770 3 жыл бұрын

So eloquent...

@DomAviationChannel 6 жыл бұрын

Should be a must watch fof founders and start up teams :-)

@elainajohn8654 3 жыл бұрын

The best talk on investing ever! Loved his sense of humor and his passion for the field is incredibly contagious.

@masisoganesyan9048 6 ай бұрын

Amazing professor

@ModusTraveller 2 жыл бұрын

One of most valuable videos about investing :) Thank you :)

@alexoswaldoestradasteiger400 3 жыл бұрын

I really enjoyed that talk

@sudhirnirvana 2 жыл бұрын

Tight storytelling 🙌🏻 very much enjoyed the lecture

@amerc6912 5 жыл бұрын

Doesn’t Uber have a market cap of 70 Billion. I heard him say 6 Billion.

@shankerpai5052 2 жыл бұрын

" don't do active investing " prof aswath damodaran

@SynthD Жыл бұрын

I feel asleep watching clips from The Office. When I woke up, this video was playing. Weird.

@antyest 3 жыл бұрын

Possible, plausible, probable - brilliant

@debasishraychawdhuri 5 жыл бұрын

There should be a love sign for videos.

@semihaksoy8182 4 жыл бұрын

The story is something like PEST and SWOT analysis

@rakeshtanwar2954 6 ай бұрын

Amazing.... ❤

@Elliott_Wave 2 жыл бұрын

Netflix reached $700

@mohammadsaeed3494 Жыл бұрын

Very informative & interesting.Thanks !

@johnalmeida1483 3 жыл бұрын

Some great nuggets...Looking at re-investment beyond capex

@BMJC99 3 жыл бұрын

seems like Netflix's "price" is heading to fairy tale $600......

@shankerpai5052 2 жыл бұрын

" accounting definition is not going to capture ..." Prof aswath

@non5309 6 жыл бұрын

Как же интересно он рассказывает!

@ravindertalwar553 Жыл бұрын

Satyam Shivam Sundaram Satya hi Shiv hai Shiv hi Sundar hai

@ghaffarellis 7 жыл бұрын

That was fulfilling!

@NeyVasconcellosJr 5 жыл бұрын

Great as always

@gr8sparty 3 жыл бұрын

It's funny how markets work.. I see this video today in 2020 and reach the point were Damodaran talks about a kid in his class valuing Netflix at 500$ per share, saying it's impossible because there are around 6.5 billion people in the world and everyone has to be a netflix subscriber to reach that valuation.. I am unaware of the US markets, so I open google and see Netflix at 520$ after a pandemic stricken year.. I really don't know if some technical corporate action like dilution of shares would have taken the prices higher, but I know for sure that even the PhDs and the economists go wrong here... Maybe netflix's worth less and is all bubbled up now, but hey - that student would have sold his shares and made money now