Valuation: Four Lessons To Take Away - Value Investing Professor Aswath Damodaran

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Mar 08, 2015
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In the talk below Professor Damodaran lays out four simple propositions about valuation.

1 - Valuation is not an extension of accounting because valuation does not deal with historical events, it is about predicting the future.

2 - Valuation is not just about modelling numbers in spreadsheets, it must include a narrative that binds the numbers together.

3 - Valuing an asset or business is very different than pricing that asset or business.

4 - Luck plays a disproportionate role in whether you make money off of your valuations

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