MI249: Stock Valuation Masterclass w/ Aswath Damodaran

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. NEW TO THE SHOW? Check out our Millennial Investing Starter Packs. Browse through all our episodes (complete with transcripts) here. Try Kyle’s favorite tool for picking stock winners and managing our portfolios: TIP Finance. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Airbnb Range Rover Meyka Fundrise NetSuite Connect with Aswath: LinkedIn | Twitter  Connect With Rebecca: Twitter | Instagram HELP US OUT! Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!  Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm