The Intrinsic Value Podcast - The Investor’s Podcast Network MI249: Stock Valuation Masterclass w/ Aswath Damodaran
Develop a Personal Philosophy
- Understand your strengths, weaknesses, and emotional triggers.
- Create an investment philosophy matching your psychology, not someone else's.
Context Matters
- Strategies of successful investors are context-dependent.
- Replicating their actions without adapting to current market conditions will likely fail.
Be a Generalist
- Specialists often develop tunnel vision, limiting their success.
- A generalist approach, understanding broader market trends, offers an advantage.
IN THIS EPISODE, YOU’LL LEARN:
00:00 - Intro
03:53 - The importance of having an investment philosophy and how to figure out what your investment philosophy is.
The difference between having an investment philosophy and strategy.
03:53 - An example of what a growth investor’s investment philosophy may be, such as the famous growth investor Peter Lynch.
08:22 - Why Aswath believes it’s better to be a generalist than a specialist in one area of investing.
15:00 - What are value drivers and how to apply them in our valuation process?
15:00 - The 5 basic variables we need to value any business.
24:27 - How to convert these value drivers into a DCF or intrinsic value model.
26:23 - The most common mistakes investors make when valuing a company and how to avoid these.
26:23 - Aswath’s test on how to figure out if your growth rate is reasonable.
29:23 - How to figure out what discount rate we should use?
36:11 - Why Aswath doesn’t believe in a “hold forever mentality” of stocks in a value investing approach.
37:24 - How often we should revisit our valuations for companies?
56:53 - How do companies get on Aswath’s radar?
And much, much more!
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
- Check out Aswath's Website.
- Check out Aswath’s YouTube Channel.
- Related Episode: Listen to MI226: Investing in Small Cap Stocks w/ Rayna Lesser Hannaway, or watch the video.
- Related Episode: Listen to RWH005: Meet the Master w/ Aswath Damodaran, or watch the video.
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