Pivot BONUS EPISODE! Live from Pivot MIA: The Life Cycle of a Company with Prof. Aswath Damodaran
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Mar 3, 2022 Professor Aswath Damodoran explores the intriguing parallels between a company's life cycle and human development. He discusses the unpredictability of businesses and critiques traditional valuation models. The importance of storytelling in assessing young companies is emphasized, alongside the need for adaptive leadership styles at different stages. Geopolitical tensions are also explored, especially regarding military aid to Ukraine. Additionally, major tech firms face unique challenges that require innovative strategies amid shifting market dynamics.
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Late Nights
- Aswath Damodaran describes observing younger people starting their night out late.
- This reminded him of his own age and how he'd feel the next day if he did the same.
Company Life Cycle
- Companies, like humans, go through a life cycle, from startup to decline.
- Understanding a company's life cycle stage helps explain its actions and predict future behavior.
Tesla: A Corporate Teenager
- Aswath Damodaran bought Tesla in 2019, acknowledging its undervaluation and "corporate teenager" status.
- He accepted the company's irrational actions, like Elon Musk's tweets and Bitcoin purchase, as part of the deal.