When I see a new video from Aswath, I drop everything and click. Unwilling to walk away from Sunk cost, good money chase bad money, emotional attached to a poor odds =typical behaviors of a bad gambler. Let's see how it will turn out for Softbank
As of investments in India, I don't think OYO is doing well. Their business is tumultuous right now more than ever before. Hotel owners are closing deals midway (literally boycotting). My friends working there say they're not feeling good about the company.
The part about 'arrogant money vs. humble money' is really thought provoking. There's the reason why Buffett trades at premium to his investment value, and Carl Icahn does not!
Thank you professor. Eye opening and educational as always. Amazing how fundamentals can keep you grounded and lack of them makes folk fly away...then fall.
thanks prof. for elaborate / deep analyzing this kind of asset.. hopefully retail investors not always the ones who get abused all the time .. we hope more content like this (facts & analysis). what about the upcoming airbnb ipo?? looks cool...
When you have too low interest rates, too much QE and too much liquidity, you get investors chasing dreams rather than cashflows and bubbles all over the place. Ray Dalio has been talking about this lately.
Dear Professor, Thank you for the candid reminder on the concept of Sunk Cost and the need to discard our egos in making investment decisions. While reading, a question came to mind, interestingly, it has almost no relationship with the topic. My question: is there an ideal number of shares a company must have in issue vis-a-vis it's authorised share capital? It will be great to read your response. Thank you.
You raise money by issuing shares as per your need. Some companies do smaller issue the first time and latter if they require more money to be raised then they do secondary listing which i think is the case with Alibaba. Equity is same as Debt in the sense that they both are used to raise capital albeit with different cost. You don't take more debt than you require, same way you issue the shares enough as per your requirement.
Aswath, so unless this happened you say the value was on the way to zero. What would have happened to the "value" if it IPO'ed, still on its way to zero? Should be a case study in drumping crap to the public bagholders?
If your implied equity valuation, before any adjustments for the risk of failure, is negative and then you also apply a discount for the risk of failure, you do realize that you are double counting, right? Moreover, C Corp (or llc) limited liability makes that extra adjustment totally redundant and easily resolved with a minor model tweak.
I do have a good mike, but I shot this video, sitting at an airport in Jakarta and with my computer mike, while waiting for a flight. I will do better when I get home.
lol i literally wait for new videos to be put out. These are some of the best informational videos on finance out there
I jump with joy when you upload a video... Every new video is a peek into the world of finance and valuation... The closest I can get to this stuff
A suggestion: please increase the volume of audio.
This video is very chill compared to Aramco, which has minor trouble with loud volume. I don't claim to know which is better.
When I see a new video from Aswath, I drop everything and click.
Unwilling to walk away from Sunk cost, good money chase bad money, emotional attached to a poor odds =typical behaviors of a bad gambler.
Let's see how it will turn out for Softbank
As of investments in India, I don't think OYO is doing well. Their business is tumultuous right now more than ever before. Hotel owners are closing deals midway (literally boycotting). My friends working there say they're not feeling good about the company.
The part about 'arrogant money vs. humble money' is really thought provoking.
There's the reason why Buffett trades at premium to his investment value, and Carl Icahn does not!
Yes “V” shaped, but inverted.
Lol
Thank you, professor. Arrogant money has had a good run lately - hopefully this is one area where we will see a reversion to the mean.
Thank you professor. Eye opening and educational as always. Amazing how fundamentals can keep you grounded and lack of them makes folk fly away...then fall.
thanks prof. for elaborate / deep analyzing this kind of asset.. hopefully retail investors not always the ones who get abused all the time .. we hope more content like this (facts & analysis).
what about the upcoming airbnb ipo?? looks cool...
This case is simply fascinating. A true monument to our times. A cherry on the cake.
Thank you Professor, hope you get better soon!
"Markets are always ready to teach a lesson." Great line.
Lucky investor vs unlucky investor - perfectly said!
It the price is low when u look at revenue multiples but doesn’t aramco have higher margins than everyone one else
Another excellent lecture! Thanks a lot
When you have too low interest rates, too much QE and too much liquidity, you get investors chasing dreams rather than cashflows and bubbles all over the place. Ray Dalio has been talking about this lately.
Excellent analysis Ashwath, do you think Adam Neuman will be able to payback the $500 million loan back to Softbank with interest if any?
Thanks for your sharing valuable work !! Appreciate you sir !!
Dear Professor,
Thank you for the candid reminder on the concept of Sunk Cost and the need to discard our egos in making investment decisions.
While reading, a question came to mind, interestingly, it has almost no relationship with the topic.
My question: is there an ideal number of shares a company must have in issue vis-a-vis it's authorised share capital?
It will be great to read your response.
Thank you.
You raise money by issuing shares as per your need. Some companies do smaller issue the first time and latter if they require more money to be raised then they do secondary listing which i think is the case with Alibaba.
Equity is same as Debt in the sense that they both are used to raise capital albeit with different cost. You don't take more debt than you require, same way you issue the shares enough as per your requirement.
Another great post. Thank you!
Aswath, so unless this happened you say the value was on the way to zero. What would have happened to the "value" if it IPO'ed, still on its way to zero? Should be a case study in drumping crap to the public bagholders?
Man, I love this guy. Such an inspiration to think.
There are more companies similar to wework in softbanks portfolio....guess this is just the start!
If your implied equity valuation, before any adjustments for the risk of failure, is negative and then you also apply a discount for the risk of failure, you do realize that you are double counting, right? Moreover, C Corp (or llc) limited liability makes that extra adjustment totally redundant and easily resolved with a minor model tweak.
Please get a good mic Sir.
I do have a good mike, but I shot this video, sitting at an airport in Jakarta and with my computer mike, while waiting for a flight. I will do better when I get home.
Wework is a money pit and will be for the foreseeable future.
Arrogance of the founder is an understatement... Its basically a brute criminal mind without shame and scruples
I’m a fan of yours!
Every time he speaks he points out how useless the people at CNBC are with their talk about smart money, technical analysis, relative PEs, etc.
May be at 25% of perceived book value, I can put my few cents.
possible laundry
"stay the heck away from we work fees" 😂 😂
Sir can you make a video on Aramco valuation? It would be great.
Sir, why don't you do value analysis of Indian companies ?
He's used Tata in his classroom exercises if you watch his valuation classes, also available on his RUclips channel. Might be from a few years back
@@chiquita683 Thanks ,but i was hoping on regular basis.