The Illusion of Smart Money - Webinar with Aswath Damodaran

What are the myths and illusions people generally have about investing and investors? What characteristics should be connected to a good investor? During this webinar, Aswath Damodaran, a professor at Stern School of Business, focuses on these questions and shares his views and advice on the topic. Key Points: • In investment mythology, there are smart investors and stupid investors. However, we shouldn’t assume so for various reasons. For example, it is hard to separate luck from skill and it might be easy to make money on paper but much more difficult to convert these returns into actual returns in practice. • In passive investing, you allocate your wealth across asset classes, and you invest in index funds or exchange-traded funds (ETFs) to cover the spectrum of choices. In active investing, you try to time markets or pick individual assets that you believe offer the potential for higher returns. • Even though active investors claim they outperform, evidence shows it is the other way around. • Instead of being stupid and smart, we should talk about humility and arrogance. And humble is the characteristic we should look for in an investor. Questions to consider: • What is your investment philosophy? • What investment strategy suits you better? Bio: Aswath Damodaran is the Kerschner Family Chair Professor of Finance at the Stern School of Business at New York University. He teaches corporate finance and valuation courses in the MBA program. He received his MBA and Ph.D. from the University of California at Los Angeles. His research interests lie in valuation, portfolio management, and applied corporate finance. He has published in the Journal of Financial and Quantitative Analysis, the Journal of Finance, the Journal of Financial Economics, and the Review of Financial Studies. He has also written four books on valuation (Damodaran on Valuation, Investment Valuation, The Dark Side of Valuation, The Little Book of Valuation), and two on corporate finance (Corporate Finance: Theory and Practice, Applied Corporate Finance: A User’s Manual). ============================= Table of Contents: ============================= 00:00 Welcome by Aslak de Silva 01:35 The Illusion of Smart Money 33:21 Q&A #nbforum #nordicbusinessforum #nbf