Unlocking the Intrinsic Value: 5 Essential Variables for Stock Valuation w/ Aswath Damodaran (MI249)

💰Click here to download your FREE guide to Stop Worrying About Your Finances In 4 Simple Steps: https://www.theinvestorspodcast.com/s... 🔐 Help companies protect customer privacy in the face of endlessly growing data breaches by investing in Atakama today: https://www.theinvestorspodcast.com/y... Rebecca Hotsko chats with @AswathDamodaranonValuation. In this episode, they discuss 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, why Aswath believes it’s better to be a generalist than a specialist in one area of investing, and much, much more! Aswath Damodaran is a professor at NYU of corporate finance and valuation and has taught thousands of students how to value companies and pick stocks. He has written numerous books on valuation and has also made all of his university courses available online for free. Aswath is one of the clearest teachers of finance and investing in the industry and has taught thousands of students how to value companies and pick stocks. IN THIS EPISODE, YOU’LL LEARN: 00:00:00 - Intro 00:02:05 - The importance of having an investment philosophy and how to figure out what your investment philosophy is 00:03:53 - The difference between having an investment philosophy and strategy 00:07:33 - Why Aswath believes it’s better to be a generalist than a specialist in one area of investing 00:10:54 - An example of what a growth investor’s investment philosophy may be, such as famous growth investor Peter Lynch 00:14:00 - What are value drivers and how to apply them in our valuation process 00:14:23 - The 5 basic variables we need to value any business 00:19:42 - How to convert these value drivers into a DCF or intrinsic value model 00:22:04 - The most common mistakes investors make when valuing a company and how to avoid these 00:23:41 - Aswath’s test on how to figure out if your growth rate is reasonable 00:25:20 - How to figure out what discount rate we should use 00:32:18 - Why Aswath doesn’t believe in a “hold forever mentality” of stocks in a value investing approach 00:33:57 - How often we should revisit our valuations for companies 00:50:50 - How do companies get on Aswath’s radar? 🎧 Listen to our episodes here: https://open.spotify.com/show/7dnn22E... 🖊️ Access our free show notes and transcript here: https://www.theinvestorspodcast.com/m... ▶️ RELATED EPISODES: (MI226) Investing in Small Cap Stocks w/ Rayna Lesser Hannaway: https://open.spotify.com/episode/0Kwd... 💡 OTHER RESOURCES Connect with Aswath: Twitter: AswathDamodaran Check out Aswath’s Website: https://pages.stern.nyu.edu/~adamodar/ Seeking Alpha is a crowd-sourced content service for financial markets. Take control of your financial future — Use our link here for a 14-day free trial: https://www.sahg6dtr.com/59QC8Z/R74QP/ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ LISTEN OR WATCH 🎧 OTHER SHOWS FROM OUR NETWORK: 📚 Dive into value investing and learn more about billionaires on We Study Billionaires: https://bit.ly/3dklKWR 🏆 Learn from high-profile guests on how to succeed in markets and life on Richer, Wiser, Happier: https://bit.ly/3p3pcHZ 🏘 Learn the ins and outs of real estate investing on Real Estate 101: https://bit.ly/3JDBXm1 ₿ Get updated on all things Bitcoin on Bitcoin Fundamentals: https://bit.ly/3JEE1di 💰 Learn everything you need to know about investing on The Investor’s Podcast Network: theinvestorspodcastnetwork ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ WHO I AM: I’m Rebecca Hotsko, an investor and entrepreneur 💼 based in Canada; co-founder of a luxury boat ⛵ sharing club in Kelowna, British Columbia. I graduated from the University of Saskatchewan with a bachelor’s degree 🎓 in Economics and completed CFA level I and II. I gained valuable experience working as an analyst for the Bank of Canada 🏦, the federal energy regulator and in investment management. My passion for teaching others how to invest using time-tested strategies backed by empirical data led me to create an investing blog 💻 in 2020. ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ GET IN TOUCH WITH ME 💬: I’d love to hear from you! Send me a tweet 🐦 directly at Twitter: rebecca_hotsko if you’d like to have a quick exchange of thoughts! ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ❗ DISCLAIMER: This show is for entertainment purposes only. Before making any decisions consult a professional. This show is copyrighted by The Investor’s Podcast Network. Written permission must be granted before syndication or rebroadcasting.