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

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Published 2017-05-11
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.

All Comments (21)
  • @presley492
    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.
  • @aks957
    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.
  • @Milindriify
    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!!!
  • @euming
    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!
  • @BMJC99
    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
  • @InJunoWeTrust
    Can't believe I am just discovering this guy now. He is wonderful and kept me engaged right at the start.
  • @AIwithOksana
    This is the best valuation explanation I’ve ever heard
  • @JR-ly6bx
    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
  • 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
  • @djepifanio8901
    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.
  • 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. 👏
  • @24Elliottwaves
    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.
  • @NihalRanjan
    Professor Damodharan dissect valuation in terms that can be understood by anyone. Thanks for enlightening world and me
  • @MihirrPanchaal
    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.
  • @jorgipogi
    He saw the light. I remember watching his podcast and it was all about numbers and no context. Now, he is there.
  • 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
  • The best talk on investing ever! Loved his sense of humor and his passion for the field is incredibly contagious.
  • @C_R_O_M________
    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.
  • Ashwath has added substance to the world of Valuation by making it Number Crunching with Narrative support.