Prof G Markets The Corporate Lifecycle + The Market’s Fallen Heroes — ft. Aswath Damodaran
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Aug 22, 2024 
Aswath Damodaran, a Professor of Finance at NYU Stern and author of "The Corporate Life Cycle," dives into the aging process of companies. He discusses how growth for its own sake can be detrimental, exemplified through Intel's current challenges. Damodaran explores revitalization strategies for Starbucks and Lululemon while cautioning that geographic diversification may not mitigate risk. Additionally, he sheds light on the corporate struggles of giants like Meta and offers insights into the shifts in the competitive landscape.
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Corporate Lifecycle
- Companies, like humans, age and fight aging, often wasting resources resisting the process.
- Investors should understand this cycle to make informed decisions as companies change.
Identifying Lifecycle Stage
- Don't just rely on a company's age, examine its operating metrics.
- Analyze revenue growth and margins to determine a company's stage in the lifecycle.
Growth Obsession
- Businesses tend to glorify growth and empire-building, leading to an obsession with youth.
- This can cause companies to overreach and make poor decisions as they mature.
