The Value of Stories in Business | Aswath Damodaran | Talks at Google

The world of investing/finance is divided into two camps. In one, you have the number-crunchers, who believe that the only things that matter are the numbers and that imagination/creativity are dangerous distractions. In the other, you have the storytellers, who build on the stories they tell about companies and how these stories will bring untold wealth. Each side believes it has a monopoly on the truth and looks with contempt at the other. Prof. Damodaran contends that stories matter, but only if they are connected with numbers. And numbers are empty, unless they are connected with narratives. In this talk, he looks at the process by which one might build narratives, check them against reality and convert them into valuations. Uber and Ferrari examples are used to illustrate the process.
Slides for the talk: goo.gl/zKVaQL
Check out the book on Google Play: goo.gl/tnGlDe
This talk was moderated by Saurabh Madaan.

Пікірлер: 269

  • @presley492
    @presley492 Жыл бұрын

    The most important thing that should be on everyone mind currently should be to invest in different sources of income that doesn't depend on the government. Especially with the current economic crisis around the word. This is still a good time to invest in various stocks, Gold, silver and digital currencies.

  • @candideharrison5568

    @candideharrison5568

    Жыл бұрын

    That's so true. but if i may ask, do you trade all by yourself?

  • @presley492

    @presley492

    Жыл бұрын

    I have been investing in stocks for over 10 years now and I have made a lot of money. My portfolio has grown exponentially and I can't thank stocks & TERESA JENSEN WHITE enough for such an amazing way to make money!

  • @susannabruemmer3683

    @susannabruemmer3683

    Жыл бұрын

    Is she on youtube, please how do I find her?

  • @presley492

    @presley492

    Жыл бұрын

    *TERESA JENSEN WHITE,* that's her official page name you can do a web search to get in touch with her

  • @susannabruemmer3683

    @susannabruemmer3683

    Жыл бұрын

    Wow! I just looked up this person out of curiosity and I'm super impressed with her qualifications. Thanks for sharing.

  • @saurebh8109
    @saurebh81094 жыл бұрын

    *This man is Underappreciated.*

  • @flytoy77

    @flytoy77

    3 жыл бұрын

    But the waves he is creating, gonna change the world by some hands

  • @stephenobelisomeday

    @stephenobelisomeday

    2 жыл бұрын

    You can say that again

  • @salvationinabottle5722

    @salvationinabottle5722

    8 ай бұрын

    And again

  • @euming
    @euming3 жыл бұрын

    Damodaran is a brilliant eloquent speaker. This talk was a joy to watch. It was like watching a stand-up comedy show plus a gripping documentary all at the same time!

  • @dragaashenoak5338

    @dragaashenoak5338

    2 жыл бұрын

    0

  • @Milindriify
    @Milindriify7 жыл бұрын

    I wish a teacher like YOU. I can feel your Investing's passion. Thanks you for all the knowledge you share for free! Nobel Prize!!!

  • @BMJC99
    @BMJC993 жыл бұрын

    His lecture is so interesting that I have to make sure I understand every word, so I searched Bambi's mothers death, now i regret it

  • @aks957
    @aks9574 жыл бұрын

    Great Prof. Great content. What is most impressive is with hardly any audience ( almost empty) a World Renowned Prof has the same passion and energy as if it were his MBA class at Stern with 300 students.

  • @Aman13579

    @Aman13579

    Жыл бұрын

    I made a similar comment on the other google talk by him :)

  • @InJunoWeTrust
    @InJunoWeTrust2 жыл бұрын

    Can't believe I am just discovering this guy now. He is wonderful and kept me engaged right at the start.

  • @JR-ly6bx
    @JR-ly6bx7 жыл бұрын

    love his passion for valuation and his profession, with his accomplishments and his name he should be a managing director of some PE or VC firms collecting millions

  • @Amoney1827

    @Amoney1827

    6 жыл бұрын

    You are out of your mind if you think he doesn't make millions already

  • @notebookled

    @notebookled

    4 жыл бұрын

    I think he would be a very bad investor and he also said that about himself. Pricing is not valuation, he mentioned that in his last google talk and he's absolutely right.

  • @Trenacetate43

    @Trenacetate43

    3 жыл бұрын

    @@Amoney1827 How you know if he already made millions? not every academics is going to be a good professional, a lot of good professors fail miserably in professional world, most of those that can succeed don't even care about money. Professors make around 150-400 k a year, not more than that. Last time I checked his linkedin, he never worked for the finance industry. He started teaching at NYU after he got his PhD and had been doing that ever since.

  • @FinanceAcademy7799

    @FinanceAcademy7799

    3 жыл бұрын

    He is a billionaire. We just need to wait for the market to correct itself.

  • @wnuoyi1118

    @wnuoyi1118

    3 жыл бұрын

    You don’t have the right to say what this amazing guru “should” be doing. Who do you think you are? I think you should widen your vision

  • @jorgipogi
    @jorgipogi7 жыл бұрын

    He saw the light. I remember watching his podcast and it was all about numbers and no context. Now, he is there.

  • @paolobernardi6835
    @paolobernardi68352 ай бұрын

    As someone who has picked businesses apart for 30 years and still tries to understand and value them, I find his lectures absolutely great. I don’t always agree with everything he says. But the point is to always read and listen critically to everything. And change your mind if facts tell you that you are not right. He is a true teacher. 👏

  • @dinanyandoro5795
    @dinanyandoro57953 жыл бұрын

    Great storyteller and that comes through in his presentation. Stories shape us because they inform us of the value of things within us and around us. Admirable teacher and something to aspire to in myself : the art of story telling

  • @MihirrPanchaal
    @MihirrPanchaal7 жыл бұрын

    Of course I loved your talk about valuation, but the thing that will stay with me is your message about faith in your own convictions.

  • @NihalRanjan
    @NihalRanjan3 жыл бұрын

    Professor Damodharan dissect valuation in terms that can be understood by anyone. Thanks for enlightening world and me

  • @djepifanio8901
    @djepifanio89013 жыл бұрын

    Hi Mr. Damodaran. As Brazilian and also passionate about valuation, let me congrats you on the brilliant lecture. I hope you come to Brazil soon to share your thoughts with us.

  • @Being_Unidirectional
    @Being_Unidirectional Жыл бұрын

    This man is a gem... He made me watch such a boring unheard subject for the while 1.5 hour with such zeal & enthusiasm to teach

  • @JapaneseStockInvestor
    @JapaneseStockInvestor6 жыл бұрын

    Thanks Aswath Damodaran. You are great.

  • @prateeksaini4812
    @prateeksaini4812 Жыл бұрын

    I love the energy and the examples used by the prof. We grew up using your books and now learning from you on youtube channel is a blessing. Thanks for sharing this information.

  • @AIwithOksana
    @AIwithOksana2 жыл бұрын

    This is the best valuation explanation I’ve ever heard

  • @elainajohn8654
    @elainajohn86543 жыл бұрын

    GREAT talk. This gave me more new information and ideas to consider than 10 talks on value investing would have.

  • @TheNavinsamuel
    @TheNavinsamuel6 ай бұрын

    One of the most amazing lectures given at Google, among the many. Prof Aswath is simply brilliant!

  • @CJinsoo
    @CJinsoo3 жыл бұрын

    what an insightful and apparently transparent and kind teacher and investor. his thoughtfulness and insights are hard to match.

  • @C_R_O_M________
    @C_R_O_M________5 жыл бұрын

    The lesson with Valeant is that immorality ALWAYS ends up bankrupt (and that’s where I fundamentally disagree with the professor - and I agree with Buffet when he said “looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if you don’t have the first, the other two will kill you.” This goes for investing and management/owners. Therefore primarily look for descent/driven people to invest into. A way to know this is to look back at conference call transcripts and see whether these people have actually did what they said they will do or do they always find excuses to cover their mistakes/inadequacy or even deceit.

  • @tcharles8172
    @tcharles81723 жыл бұрын

    I enjoyed your presentation! Thank you for sharing passion. You are an inspiration!!!

  • @ItzGanked
    @ItzGanked5 жыл бұрын

    Great content from Damodaran par usual, I know valuing and pricing are different, but look at NFLX now I think it is overvalued, but modeling these things is so difficult. Maybe this discipline will find more value in more difficult times, people are ignorant in late cycle booms. Time to put blinders on and make money

  • @jonweber8778
    @jonweber8778 Жыл бұрын

    Remarkable....as smart as this professor is, distills and validates the requirement of imagination, fun, satire etc.., to leverage the mortar in the brick....be great if all managers would take a page from his unique perspective....a number is an endpoint, the inputs are the dark energy yet so much "coaching" at management/leadership levels centers on the sophomoric fossilization of the end....wow...has changed my education path relative to how I think, speakers I am gravitated towards....awesome

  • @sundaradiseshan7277
    @sundaradiseshan72772 жыл бұрын

    Ashwath has added substance to the world of Valuation by making it Number Crunching with Narrative support.

  • @alexi2460
    @alexi24603 жыл бұрын

    He's brilliant and fun, what else can one ask for

  • @24Elliottwaves
    @24Elliottwaves3 жыл бұрын

    Yes, the story and numbers must be combined in a timely fashion to profit in the financial markets. I am glad that @Aswath is banging on it throughout this amazing tutorial. The funny thing is that people often spend like ten minutes to watch a valuable free tutorial like this one instead of watching it in full.

  • @pasticcinideliziosi1259

    @pasticcinideliziosi1259

    2 жыл бұрын

    you can see that like 9/10 of people just skipped to the parts where it spoke about specific companies, and only 1/10 watched it in full. So sad that all these people are losing such an opportunity to learn these things

  • @osamaa.h.altameemi5592
    @osamaa.h.altameemi55923 жыл бұрын

    This is pure gold.

  • @ankitkalavagunta8951
    @ankitkalavagunta89514 жыл бұрын

    The best talk on investing ever! Loved his sense of humor and his passion for the field is incredibly contagious.

  • @elainajohn8654

    @elainajohn8654

    3 жыл бұрын

    love his passion for valuation and his profession, with his accomplishments and his name he should be a managing director of some PE or VC firms collecting millions

  • @nikhilkalasala9128
    @nikhilkalasala91286 жыл бұрын

    Damodaran..... Valued like a pro

  • @codyzanderson
    @codyzanderson4 жыл бұрын

    "valuation is the bridge between stories and numbers"

  • @shankerpai5052

    @shankerpai5052

    3 жыл бұрын

    What happens if you break a bridge or story or numbers ? Destruction ..construction

  • @MihirrPanchaal
    @MihirrPanchaal7 жыл бұрын

    Venerable Mr. Damodaran. Thank you for this talk.

  • @jimmyfortef3674
    @jimmyfortef36745 жыл бұрын

    Great lecture, would love to be in his class

  • @beautydoctorcardiff
    @beautydoctorcardiff4 жыл бұрын

    Amazing, love every minute thanks for the share

  • @MrPranab2011
    @MrPranab20112 жыл бұрын

    I am glued thru the whole video.. Thankz a lot for video.. This art is missing in corporate guys and in universities.. They have more mechanical approach, doesn't cover the underlying

  • @Mztbtc
    @Mztbtc3 жыл бұрын

    So glad this is available

  • @dheerajmaske1194
    @dheerajmaske11942 жыл бұрын

    you have became a good story teller from number cruncher that's how you have given the speech.

  • @Aman13579
    @Aman13579 Жыл бұрын

    His sense of humor is great as well. One does not feel a generational gap while hearing to him.

  • @paradevparadev5371
    @paradevparadev5371 Жыл бұрын

    He is great teacher, i was seeing all his videos, wonderful free knowledge

  • @roberts7608
    @roberts76088 ай бұрын

    This is one of the video i would like to watch it again and again

  • @arunsreenivasan4746
    @arunsreenivasan47462 жыл бұрын

    It is just amazing the way he distinguishes a good business and bad business. 🙏

  • @parthadlakha1641
    @parthadlakha16412 жыл бұрын

    moderator did a good job as well and what to say about damodaran, just a legend

  • @afrianespratama2677
    @afrianespratama26774 жыл бұрын

    so fascinating!

  • @wm6549
    @wm65496 жыл бұрын

    Great talk. I especially liked the Q&A session at the end.

  • @brianfollendorf168
    @brianfollendorf1683 жыл бұрын

    This was amazingly informative and I loved every second of this. Thank you!

  • @l.s.754
    @l.s.7544 жыл бұрын

    Aswath is brilliant thinker.

  • @davidlebese644
    @davidlebese644 Жыл бұрын

    The passion is on the other level. Wow!

  • @yusufsamad9764
    @yusufsamad97643 жыл бұрын

    Fantastic video with some very deep stuff on why investing is fun

  • @infavorofdemocracy5770
    @infavorofdemocracy57703 жыл бұрын

    So eloquent...

  • @debasishraychawdhuri
    @debasishraychawdhuri5 жыл бұрын

    There should be a love sign for videos.

  • @arungadre5805
    @arungadre58057 жыл бұрын

    great talk

  • @amilrahman
    @amilrahman2 жыл бұрын

    Every word is gold standard !!!!!!

  • @Jay.05
    @Jay.053 жыл бұрын

    Funnier than stand up and informative too !!

  • @ghaffarellis
    @ghaffarellis6 жыл бұрын

    That was fulfilling!

  • @ramyasri6093
    @ramyasri60932 жыл бұрын

    Wonderful talk... And too much knowledge

  • @non5309
    @non53095 жыл бұрын

    Как же интересно он рассказывает!

  • @deepakchapagain1360
    @deepakchapagain13602 жыл бұрын

    Excellent talk for valuation.

  • @pmkshameer
    @pmkshameer4 жыл бұрын

    Great talk!!

  • @jaigurudevkishorekumar
    @jaigurudevkishorekumar2 жыл бұрын

    Essentially logic & emotion.. Numbers & story

  • @NeyVasconcellosJr
    @NeyVasconcellosJr5 жыл бұрын

    Great as always

  • @Being_Unidirectional
    @Being_Unidirectional Жыл бұрын

    Few days into him & such priceless insights.... Surely TIME is limited bt Life is not... Should explore bfor anyway get old n RIP😶‍🌫

  • @oah8465
    @oah84653 жыл бұрын

    Apart from the awesome valuation talk, the Gale-Shapley algorithm (mother of all match-making) still rules. Again, fantastic talk professor.

  • @jimboford9504
    @jimboford95043 жыл бұрын

    Very important talk!

  • @GeraBizuneh
    @GeraBizuneh2 жыл бұрын

    Captivating !!!

  • @ModusTraveller
    @ModusTraveller2 жыл бұрын

    One of most valuable videos about investing :) Thank you :)

  • @rms4621
    @rms46213 жыл бұрын

    Wow so much valuable info thanks google!!

  • @erwinargoismanto8348
    @erwinargoismanto83482 жыл бұрын

    He is a wise teacher for sure in investment world

  • @johnalmeida1483
    @johnalmeida14833 жыл бұрын

    Some great nuggets...Looking at re-investment beyond capex

  • @sudhirnirvana
    @sudhirnirvana Жыл бұрын

    Tight storytelling 🙌🏻 very much enjoyed the lecture

  • @mohammadsaeed3494
    @mohammadsaeed3494 Жыл бұрын

    Very informative & interesting.Thanks !

  • @quant-trader-010
    @quant-trader-010 Жыл бұрын

    This is gold!

  • @alexoswaldoestradasteiger400
    @alexoswaldoestradasteiger4003 жыл бұрын

    I really enjoyed that talk

  • @goulchat1
    @goulchat1 Жыл бұрын

    Excellent lecture!

  • @user-gv7pu2mp7l
    @user-gv7pu2mp7l3 жыл бұрын

    Great Talk! That being said, 36:00 But the 29 year old kid from your class in 2015 who picked NFLX is spot on with the price projection for 2025 is going to be from $120 to $500. His share price projection target reached in less than 5 Years, EOY 2020 was $543.00. It was an IMPOSSIBLE then but now it is PROBABLE. Video streaming giant Netflix had a total net income of over 2.76 billion U.S. dollars in 2020, whilst the company's annual revenue reached 25 billion U.S. dollars.

  • @vkmohanan1597
    @vkmohanan1597 Жыл бұрын

    The VolksWagon Car symbol (vw) is ideal for Prof.Damodaran as "Valuationguru of the World"!

  • @susydyson1750
    @susydyson1750 Жыл бұрын

    Excellent Talk !

  • @rakeshtanwar2954
    @rakeshtanwar29542 ай бұрын

    Amazing.... ❤

  • @masisoganesyan9048
    @masisoganesyan90482 ай бұрын

    Amazing professor

  • @DomAviationChannel
    @DomAviationChannel5 жыл бұрын

    Should be a must watch fof founders and start up teams :-)

  • @elainajohn8654

    @elainajohn8654

    3 жыл бұрын

    The best talk on investing ever! Loved his sense of humor and his passion for the field is incredibly contagious.

  • @user-rf5df8ki9d
    @user-rf5df8ki9d3 жыл бұрын

    Pixar book, 1. Creativity Inc, 2. To Pixar and beyond, 3. Pixar Storytelling, rules for effective... I guess it is the third one? I have one that's worth reading 《STORY: Substance, Structure, Style, and the Principles of Screenwriting》

  • @shankerpai5052
    @shankerpai50522 жыл бұрын

    " Know ...you never know ..( accounting is comfortable ) There is no confirmation mechanism in valuation . " prof aswath damodaran

  • @sundeepsingla2299
    @sundeepsingla22992 жыл бұрын

    Impressed

  • @jacksonkamungu5387
    @jacksonkamungu53872 жыл бұрын

    Thank you.

  • @brendansmith7842
    @brendansmith78423 жыл бұрын

    35:45 well, netflix is $512 now. Not 600b revenue , but 20b. I guess we could say netflix is very overvalued? So the share price wasnt impossible... but the valuation seems to be way out of whack, they also have 200m subscribers ,not 6b.

  • @srimaldemel4381
    @srimaldemel4381 Жыл бұрын

    We who look for certainty found the reality of uncertainty in valuations and resultant prices

  • @paradevparadev5371
    @paradevparadev5371 Жыл бұрын

    Pranaam guruji

  • @shankerpai5052
    @shankerpai50522 жыл бұрын

    "It's got to come from within " prof aswath damidaran

  • @Hsinkuang
    @Hsinkuang3 жыл бұрын

    He is very true about luck !

  • @tomr6955
    @tomr69553 жыл бұрын

    📁 2020 📁 Stories 📁 The Fed 📁 Numbers ⚠️ *This Folder Is Empty*

  • @jaigurudevkishorekumar
    @jaigurudevkishorekumar2 жыл бұрын

    Possible, plausible, probable - brilliant

  • @sadanandsahasrabuddhe1946
    @sadanandsahasrabuddhe19463 жыл бұрын

    1:22 faith .. active investor on death bed at the age of 85 making less than ETF and still OK as he enjoyed the journey of active investment... aswath is osho of finance .. he is talking about flow ...

  • @NourLababidi

    @NourLababidi

    2 жыл бұрын

    @1:22:22

  • @BrunoKoeglerCo
    @BrunoKoeglerCo6 жыл бұрын

    I too took AAPL in 1998, but was too lazy to sell them :)

  • @yashagar4443
    @yashagar4443 Жыл бұрын

    Awesome

  • @nickvoutsas5144
    @nickvoutsas51443 жыл бұрын

    It’s so weird your predictions or Tesla’s stock market valuation sounds more true than the actual high stock that Tesla is priced at in 2021. Life is sometimes so unpredictable.

  • @down2rock
    @down2rock3 жыл бұрын

    I love this man. $$$

  • @jamesdean44775
    @jamesdean447753 жыл бұрын

    4:00 👌

  • @aljacksonartist
    @aljacksonartist2 жыл бұрын

    I think story valuation is how to see a product the way the end buyer sees it. Apple and Nike may be the best at creating an image for their products that appeals to end buyers. While Nike and Puma are essentially the same shoe, buyers 'think' the Nike shoes is better. Michael Jordan uses them, Tiger woods uses them, the shoes are filmed beautiful and perform fabulously on the world's greatest sports stages. Apple does the same. It creates for the buyer an image this is the computer that hitory's greatest innovators would use. Plus the cinematography, brand packaging and hardware design looks far cooler, more modern than any PC or other brand's smartphone. The word is "aspirational." Apple and Nike make buyer "aspire" to be like the people who use these brands. Winners, geniuses and coolness. Intangible assets with immeasurable value. The very reason these two companies soar ahead of their competitors.

  • @Er.Sunil.Pedgaonkar
    @Er.Sunil.Pedgaonkar Жыл бұрын

    Valuation of physical assets should be done only by Registered Engineer-cum-Valuer of concerned discipline -market value matters, depreciation taken into account alongwith market characteristics & environment.This is required while buying, selling, liquidation, bankruptcy,tender floating & alloting,auction,court suits,court orders. Also valuation of Co. must have seal& signature of CA/CPA. Others not allowed

  • @hireshtrivedi9731
    @hireshtrivedi97313 жыл бұрын

    So, ommpa-lumpa valuations, I guess only relying on setting aside money from revenue/capital wouldnt do so, should we factor in another round of investment, dilution of equity? etc I understand its highly speculative, but idk, may be we can avg the numbers in growth young companies in same sector