Investment Valuation - Aswath Damodaran

[sultan]

Hello,

 

Has anyone read this book? If so would you recommend it to someone trying to learn how to value businesses? He has his classes from NYU recorded which make it easier to follow along which is why I am leaning more towards this book than others

 

Thank you

[LC]

I would suggest books from successful practitioners. Buffett (partnership letters), Graham, Klarman, Greenblatt were my favorites. 

[sultan]

I have gone through some of Buffet Essays and some of Berkshires annual reports  and it seems like those focus more on the big picture details regarding a business as opposed actually valuing them.

I guess my main question would be would this book give enough background to look through the numbers and decide whether or not to go through annual reports of a company ?

[spartansaver]

On 11/7/2021 at 7:36 AM, LC said:

I would suggest books from successful practitioners. Buffett (partnership letters), Graham, Klarman, Greenblatt were my favorites. 

I'd reiterate LC. Listen to the practitioners who've made money investing, not the MBA's who get wealthy by managing money.

[ValueArb]

I don't do DCFs on potential investments. I've done DCFs to get a feel for how various growth rates work out into long term valuations, but there are so many moving parts that I wouldn't rely on them. 

 

i've heard Damodaran does a great job at DCFs, and have been meaning to watch one of his youtube videos to get a better understanding of modern DCF thought process.

[snird]

I haven't read the books but I have gone through his valuation course on youtube.

 

I may not use 100% of the tools and ideas he presents, but I most certainly use 100% of the context to think of things.

He taught me many things that would otherwise remained unknowns blackholes that I wouldn't consider when valuing businesses.

 

As per the comments above me - does learning from practitioner better? Probably.

Is it practical? Probably not.

 

Aswath collected, organized, edited, teached - then reteached, and then optimized for teaching, for years.

10 hours spent with Aswath content, that is so dense and optimized, is like 1,000 hours reading investors letters.

I did both - learning from Aswath AND reading thousands of pages of investor letter.