Masters in Business At the Money: Learning Lifecycles of Companies
9 snips
Aug 21, 2024 
Aswath Damodaran, a leading finance professor at NYU Stern, dives into the fascinating concept of corporate life cycles. He compares these stages to human aging, detailing the unique challenges companies face at each phase. Damodaran also discusses the importance of understanding company valuations, particularly for emerging startups versus established firms. He highlights how big names like Google and Facebook adapt their strategies when transitioning from high growth to sustainable rates. This insightful conversation uncovers key lessons for investors navigating market complexities.
AI Snips
Chapters
Transcript
Episode notes
Corporate Life Cycles
- All companies go through a life cycle, just like humans, with distinct stages.
- Each stage presents unique benefits, costs, and requires different skill sets.
Five Stages of Corporate Life Cycles
- The five stages of a corporate life cycle are startup, growth, mature growth, decline, and distress.
- Each stage requires different skills and mindsets from managers.
Facebook vs. Twitter
- Facebook successfully transitioned because it had a monetization model when investors asked.
- Twitter, in contrast, struggled to answer this question and faltered.