Hi all, this clip was taken from the Equity Mates Investing Podcast episode 'Valuation 101 with Aswath Damodaran: Every Number Tells a Story'. RU-vid: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-RUJ-OvRicEM.html Spotify: open.spotify.com/episode/30huxiZKaNgvG86jaTLB3g?si=8MPGf5N1RAC_8hUx5LTmdg Apple: podcasts.apple.com/gb/podcast/expert-aswath-damodaran-valuation-101-every-number/id1212097275?i=1000648812844
I think we are too obsessed about the economy crashing. In the right sense, the economy never crashes. It just undergoes cycles, and almost always recovers. So I really don't care what the predictions are. I just want to grow my portfolio. I read that people are pulling in massive profits despite the downturn. Any tips on how they do it?
I think it's the professionals and those who use their services that are really pulling in the big money right now. There are really advisors that can help you achieve very consistent growth. I have a friend who pulled in more than $194k profit within three months. So you just have to make some research and get one who fits your fin-goal.
The market will always recover. The goal is to find quality stocks with long term potential. It's hard for the average Joe to do this, because it involves following a lot of industry news, following up with earnings, etc. It's easier to invest through an advisor who knows how stuff works, and make rocket returns.
Investing in quality stocks with long-term potential is a good strategy, but it can be challenging for the average person to do this on their own. Keeping up with industry news and earnings can be time-consuming and difficult. That's why it's easier to work with an advisor who can help you make informed decisions and potentially achieve high returns.
I won't pretend to know everything, though. Her name is Amber Angelyn O'malley but I won't say anything more. Most likely, you can find her basic information online; you are welcome to do further study.
Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
'Chrystal Amber Swope' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Additional earnings reports from major tech companies, driven by Nvidia, coupled with trader FOMO, could fuel a resurgence in market buying pressure. I'm considering investing over $300k, but I'm uncertain about risk mitigation strategies.
Nvidia stock is roaring like many did during the 1990s bubble. But this time around, the hype around new chips is happening in a more mature demand environment.
Assisted by an investment advisor, I diversified my portfolio of $550K across various markets. Within a few months, I generated a net profit exceeding $950K through high-dividend-yielding stocks, ETFs, and mutual funds. Pls who is this Advisor that guides you? I’m in dire need of one
De-risk your portfolios, shore up your core holdings, and take some profits while balancing your portfolio allocations. I’d also suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I. We've made over 80% capital growth minus dividends.
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
Been beating myself up a bit that I sold my 53 shares of NVDA at $303 each back in May 2023. Now thinking of liquidating a few other investments to rebuy but afraid to do so. I also currently have 500k in savings making me next to nothing.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, i think it’s best you reach out to a proper fiduciary for guidance
De-risk your portfolios, shore up your core holdings, and take some profits while balancing your portfolio allocations. I’d also suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I. We've made over 80% capital growth minus dividends.
She goes by ‘’Jennifer Leigh Hickman’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
Do you even know who he is?? Aswath Damodaran is the Dean of Valuation, author of many famous books. Some of his books are used as textbooks in management studies
@@dgr8oneme Im completing my Masters in Business Valuation. 50-70% of most references come from Aswath. Speaks volumes about the footprint he's left on corporate finance and valuation 🙌
What is the best way to profit from the current market, meanwhile I'm still undecided about investing $400k in my stock portfolio to get some dvidends and minimize risk
You should hire a CFP to help you diversify your assets to include ETFs/index funds/mutual funds and stocks of companies with consistent cash flows, rather than betting on penny stocks.
The issue is most people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt, no offense. In general, Financial Consultants are ideal reps for investing jobs, and at firsthand encounter, since Jan.2020, amidst covid outbreak, my portfolio has yielded massively Thanks to my FA.
That would be Nicole Desiree Simon. You should look her up, I say. To be honest, I almost didn't think I should, but I'm glad I decided to let someone handle growing my finances.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
I can’t emphasize how valuable and honest his advice is. Very few people want to say this or hear it. But this is the truth. Outperforming the market over 10-20 year period is as rare as someone trying to get excel in a competitive sport with basic training in their backyard. If you so please, put 2/3 of your portfolio in index funds and then practice individual stock/value investing on the rest.
What about times when the market is overweight a few stocks that are overpriced like Nvidia and Microsoft? It is easier to beat the market in that case.
Indeed. I do think each human has some advantage over the market. Because of their profession or interest regular people can see where things are going. But it’s making money in a few stocks and then put it in index at some point.
Investing in Bitcoin @ $100 a month over that time cost averaging and never selling you'd be a millionaire. An S&P index fund might get you 7% a year, while the yearly debasement of currency is close to 15%. I started watching Invest Answers on RU-vid a year ago and heavily invested into Bitcoin, Solana, and Microstrategy. By all means, follow this guy's advice and grind at your job while your cash gets stolen by the money printer.
Dutch East India company did better, supposedly the most successful company ever, their former HQ in Jakarta doesn’t really give one that impression though.
great and informative video. Recently, I've been pondering retirement. I've also want to put $800K into the stock market but i need an approach that will align with my risk tolerance and financial goals to secure our future
Opting for an inves-tment advisr is currently the optimal approach for navigating the market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 85% since 2022
Monicamary Strigle’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?
This is still a window-shopping market. But there are a lot of intriguing stocks to watch from a variety of sectors. You don’t have to act on every forecast, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
I agree, having a brokerage advisor for investing is genius! Amidst the financial crisis in 2008, I was really having investing nightmare prior touching base with a advisor. In a nutshell, i've accrued over $2m with the help of my advisor from an initial $350k investment.
Gertrude Margaret Quinto, is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Amazing wisdom and insights. I have never heard the argument for active vs. passive investing explained better. And totally agree that active investing at the end of the day has to be something you genuinely enjoy doing, regardless of payoff.
Great interview. I will say Buffett argues professional investors should concentrate. You can find videos of him arguing he would put 75% of his net worth in one stock. Munger had put %120 of his net worth in some ideas.
In 2024,don't set new year financial goals without consulting a financial adviser.there expertise ensure a solid plan for success.Building wealth involves developing good habits like regular putting money away in intervals for solid investments.
Thanks for the advice! I'm new to financial planning and wasn't sure where to start.Any tips on finding a reliable financial adviser or resource to guide beginners?
I agree, based on personal experience working with an investment advisor, I currently have $650k in a well diversified portfolio, that has experienced exponential growth. It is not about having money to invest in stocks,but also you need to be knowledgeable, persistent,and have strong hands to back it up.
im up 15% this year but it has been very painful. Majority of my stocks are down, only one of my stocks was a homerun and went up 200% this year. I would rather be up half as much with majority of my stocks performing better overall. He is right that you can do everything right and still be wrong, there are too many variables outside your control
You cannot beat the s&p 500 if you have vast amounts of money. But with small amounts of money you can beat the market. Most retail investors don’t have that kind of money to influence the prices. If you have only 10K or 500k take chances and chose your destiny.
Predicting market timing and movement is extremely difficult in reality, It requires the investor to be right twice : That's why individuals engage service of experts who provide proper strategies to navigate the market
in my case Fergus Waylen has assisted me in doing that effectively, I'm not an expert so I lack experience in investment strategies, I work and my consultant handles the rest....
What impresses me most about Fergus Waylen is how well he explains basic concept of winning before actually letting you use his trade signals. This goes a long way to ensure winning trades.
His technical analysis is excellent and hid interpretation/projections of the market is so accurate I sometimes ask myself if he is human haha. Point is, Waylen is the perfect trader to follow for advise and daily signals.
This is gold. But 90% of new investors who view this will still have to learn the hard way. I did. You hear all the predictions and bragging online, you see the market moving, and you fear that you're going to be left behind if you don't "get in there and DO something!"
The one thing that isn't exactly correct, is that the process is not the answer. It's ethics. Higher meaning and motivation. You have to be willing to make your money from ethical sources. That means you have to accept that unethical sources and dumb luck may make more, and be OK with it. That's better than enjoying the process, it's a higher meaning. Though both can coincide, but they don't have to.
For example, I'm happy to end up with half the wealth of my neighbor because I know the REASON why I am accepting of that outcome. It's because I am not willing to make my money from dumb luck, or theft with extra steps. If I cannot trace the source of my wealth to ethical sources, I don't want the fucking money.
And, as it turns out, when you do that on a long-enough time horizon, the first principles of investing like that nets billions of dollars in net worth.
He starts by saying don’t invest in individual stocos, don’t value companies and only invest in index funds. Then later he proceeds to talking about how he picked individual stocks in the right time.
Consider Warren Buffet and Jack Bogle’s advice to just buy a broad market index fund (i.e. SPY or VTI). Consider adding to it regularly, reinvesting the dividends and ignore market fluctuations by keeping enough in short term bond or money market instruments, (treasuries or otherwise), to provide the confidence to ride out Bear markets and avoid panic selling. Picking stocks or mutual funds or trying to time the market are fools’ errands perpetuated by Wall Street for the interests of Wall Street. Find and listen to videos where Buffet talks about this and read Bogle’s books. You’ll be glad you did.
The more efficient markets become, the more difficult become correct price predictions. That's it. Outperforming the S&P 500 or NDX by a wide margin is not impossible, but superdifficult. Most private investors will, of course, fail.
Great advice!!! Value investing, preserve wealth and the index fund is perfect plan for most! I love investing and the process. 20-30 stocks is my index fund so to say, maybe get lucky with one!
A few per cent of private investors with small amounts of capital and long business experience can crush the market returns. The trouble is, everyone thinks they're in that few per cent, but they don't know the effort it takes to get there. And it's that majority that the small minority profit from.
Dean of valuation = Did he make any wealth by investing or he makes money by talking about valuation. I would rather like to hear from someone who makes valuation to wealth creation possible.
I have 23 individuals based on a certain search criteria using a screener which comes up with under 200 companies from small cap up. Search those companies 10 yr annual return for longevity and 3 yr for current relevance. If they beat the market on avg I run a DCF on them. If undervalued by at least 30% I buy them. The 3 yr return of the 23 companies from 2021-2023 was 44% CAGR incl the down year in 2022.
I worship Him. If you really want to be provocative then cursing with another religious figure, especially mohammed will be much more shocking and increase your street cred.
I never understood the obsession with trying to “beat the market”. If 10% returns aren’t good enough for you, the amount of luck and effort it will take to make 11 or 12 percent isn’t going to make you that much more fulfilled in life
How about 127% in first year and about 50% every single year after for 10 years. Market was doing max 30%. Now open compound interest calculator or excel and put some initial capital let say $60k Now do it separately for 7% each year increase Can you see any difference? Your first tear is your most important year, followed by second tear and so on. Last tear of your life you can even stop trading as there is no difference
Trading and individual stocks should be considered a hobby. Otherwise, just buy an index fund if you like high-risk wealth growth. You wont be rich but probably happy with thr results.
You can absolutely beat the market today. It takes a little more knowledge of technology and some key fundamental components, but you can start now even in this crazy market and times and build wealth.
Whats the point of investing if inflation will always match it? In the last 5 years all stocks doubled but inflation also doubled and tripled, so our investments are worthless. Also what's the point if you're gonna spend the money after taking it back?
I bought Bitcoin for no reason. Made a ton of money. Now I am looking for a place to put that money long term. Right now getting a little over 5% in bonds.
"Even after all these years if i will have broken even, i'm ok with it because i enjoyed the ride" No wonder businessmen don't bother with Academics lmao
Value investing has returned about 1/3rd of the return of growth. People are emotional. Things get over hyped in both directions. Value investing is not it.
Greg say, "Nice guys finish last. If it was someone of marriage quality, I can understand. But to move heaven and earth for dem shits? Nah nicca. Let's keep it movin'."
The best way to easily beat the market, year in year out: become a politician! Every single high level politician is a better stock picker then the oracle of omaha himself. Wonder why this is
For most people is okay what he said. I am totally okay to hold 4-10 very high quality companies on the long term. I am currently holding 3 stocks but those companies have more than 300 businesses and they are decentralised, have high quality management and so on. I think that buying 500 low quality or mediocre companies just based on market cap not based on performance and quality is bullshit to me. But I can understand that it is good for most people. My opinion is that concentrated investing is the best way to build wealth if you know what you are doing. Just as the best investors in the world have proved time to time. Actually if you are holding 15 high quality businesses you have less risk than hold the s&p. Of course if you want to do absolutely nothing you should do indexing.
@@arjunsharma6946 I bet you read the first book about etfs and indexes and you stopped there and I bet you don't know the power of compounding: a tiny difference in yield gives you a lot of gain in the long term. So 9% percent is not as good as 20% or 25% or 35%. There are a lot of investors (small also) who have an average track record of 20%+ percent. There isn't any magic. Value investing works. People overcomplicate it and view stocks as chart lines, prices and logos, not businesses. If you don't know the difference than do indexing not bad, and you will have more money for sure after 2-3 decades. Fun fact: even Dr. Aswath doing the opposite, he is buying and holding individual businesses.
The only objection with Damodaran's statement is comparing yourself to your neighbors. That's going to be disappointing for at least half of the population by design. The road to happiness is to free yourself from external validation.
Such a genuine personality!!, Sincerely speaking. I will continue to trade and stick to Elizabeth Ann daily signals and guides as long as it works well for me.
Bitcoin beats the market nearly every year, Bitcoin is demonetising gold and is coming for the s&p next. Passive investing has rendered valuations redundant and all stocks are denominated in fiat
@@Art-is-craftall value is subjective. Bitcoins value = the value of the network to its users and the price is a function of supply and demand. The market has determined it as the best performing asset in 9 of the last 11 years, and with the halving coming soon I don’t see that changing
@@Art-is-craft read some Ludwig Von Mises for subjectivity of value and start with the bitcoin white paper and the bitcoin standard if you want to understand bitcoin. I
“I wouldn’t buy any of the Mag 7 stocks at today’s prices” What an absurd statement. You could have said the same about any of them years ago! Good companies, continue to grow. This is pathetic advice from a so called “expert”. Look at Microsoft’s price 5 years ago. Was that the highest price?
People in the finance space are always telling you what's impossible.....for them. Some nice glasses, terminology and a polo shirt and they think they can determine other peoples limitations. I'm currently a active day trader and I'm actually amazed at what people will say is impossible or complicated. Some things are neither of these things with time. It's not a get rich quick scheme by far, but I still laugh at people that say you can't beat the market...in all their expertology. For most people, it won't be worth it though abs they will lose for years in even attempting.
