I prefer to think that I beat up banking practices, not bankers. Banks hire really smart, good people and find ways to waste all that talent. Such a waste!
Professor，I've followed your blog and this youtube account for over 3 years and your valuation books for over 8 years when I first went to the US for further education. Now I came back to China and still keep the habit of coming here now and then to gain something from your insights. I am considering adding some of your contents to my wechat(Chinese version of FB) and weibo accout(Chinese verison of twitter) to pass on your views and knowledge to my colleagues and my own "followers". The main reason is that your views and insights about financial markets and valuation really inspire me to keep on working in this industry and helped me a lot. So I hope that more people could see these wonderful materials. If I quote these materials, do you have any other request and consideration about your IP rights? Thank you very much.
You are welcome to use and adapt my videos, if you think that they will be helpful. I don’t think anything that I say is deep or profound enough that I would tag it as intellectual property. After all, I don’t own these ideas. They are in the public domain.
How are these ideas used in China? Are you working in the banking industry? I'm trying to get into international finance in Tokyo, I speak japanese, and I'm currently learning Mandarin as well to give me opportunities to work with Chinese companies in the future. But China's financial industry seems incredibly complex: state owned vs private enterprises, shadow banking, special economic zones, and dare I say widespread corruption.
@@nickfleming3719 Most of your impressions are correct, for now. China's economy is most driven by indirect financing through loans offered by state-owned banks. But we are just at a very critical juncture to largely increase direct financing especially for SMEs, mostly via IPO and other capital market instruments. In short, with the slowing growth rate and mounting debt problems. Policy makers 'seems' to confirm the market mechanism in financial industry. But my interest in Professor's contents here is just for the valuation ideas and insights.
Ahh, my dream career is being bashed! I love the idea of being able to associate with all these world changing CEOs and helping to bring capital into companies that can use it to create and add more value to the world. It's a noble profession. Investment bankers are supposed to be guiding and focusing economic energy into the most efficient places to help drive the growth of prosperity of nations and the advancement of mankind. They obviously need to step their game up, I hope I can do my part in contributing to that.
As an entrepreneur, these videos are incredibly valuable. You say, "how can that be? what does valuing stocks have to do with managing a business?" Good point - you may be right. However, consider the fact that Dr. D deals in real value instead of price and then one begins to see the value of studying value in order to increase value.
Wonderful informative video Prof. Lot of lessons to be learnt by new employees joining in Investment banking firms, big4's. Yes True SEC, SEBI could do little only on protection
To be honest, I don’t even know what a Patreon account is, but I have always discovered that knowledge (or at least what I perceive as knowledge) is the only thing in life that I gain more of, by giving. So, pass it on! That’s thanks enough!
Central banks have created an IPO bubble as part of their *Everything Bubble* created by low interest rates, ZIRP, NIRP and QE (we are in QE 4 right now)
Hi please talk about uber and what u think of the earrings, I know you bought it at 30, so will u be adding more to your positions since its below that. Thanks for great content
Great content. Isn’t there value in the syndicate which offer price testing pre-ipo? ‘We’ was a disaster, but it could have been even worse with a direct listing. The private investors were able to salvage back some value and if current negotiations are true, Softbank could increase their stake significantly by valuing We at 8B; which may still be a bad idea.
Why would it have been worse? At worst, it would have had the same unraveling, as what caused the unraveling was people looking at the prospectus and the business model and saying no way. The company would probably still have pulled out of the direct listing. The plus is that WeWork would have saved itself millions in investment banking fees. As I see it, there is absolutely nothing that investment banks did in this process that added value. They did not give WeWork good pricing advice, they did not talk Adam Neumann out of his horrifically bad corporate governance structure and they did not serve their public investors well. So, what exactly were they getting paid to do?
Hi Mr. Damodaran! What a coincedence! I was thinking about writing my thesis on the direct listing and how it is going to affect Investment Banking business. Would you recommend me to do so? And what literature can you suggest for diving into this topic (ECM, IPO, Direct listing, etc.)?
15:29 - Since we're beating up bankers, let's keep going...
Straight up 🔥🔥
I prefer to think that I beat up banking practices, not bankers. Banks hire really smart, good people and find ways to waste all that talent. Such a waste!
@@AswathDamodaranonValuation Fair point. What do you think of sell-side analysts?
Too much selling, too little analysis, for the most part, but there are always exceptions.
மிக சிறந்த செயல் வழி விளக்கம்... நன்றி
Professor，I've followed your blog and this youtube account for over 3 years and your valuation books for over 8 years when I first went to the US for further education. Now I came back to China and still keep the habit of coming here now and then to gain something from your insights. I am considering adding some of your contents to my wechat(Chinese version of FB) and weibo accout(Chinese verison of twitter) to pass on your views and knowledge to my colleagues and my own "followers". The main reason is that your views and insights about financial markets and valuation really inspire me to keep on working in this industry and helped me a lot. So I hope that more people could see these wonderful materials. If I quote these materials, do you have any other request and consideration about your IP rights? Thank you very much.
You are welcome to use and adapt my videos, if you think that they will be helpful. I don’t think anything that I say is deep or profound enough that I would tag it as intellectual property. After all, I don’t own these ideas. They are in the public domain.
@@AswathDamodaranonValuation It sounds so nice and thank you again.
How are these ideas used in China? Are you working in the banking industry?
I'm trying to get into international finance in Tokyo, I speak japanese, and I'm currently learning Mandarin as well to give me opportunities to work with Chinese companies in the future. But China's financial industry seems incredibly complex: state owned vs private enterprises, shadow banking, special economic zones, and dare I say widespread corruption.
@@nickfleming3719 Most of your impressions are correct, for now. China's economy is most driven by indirect financing through loans offered by state-owned banks. But we are just at a very critical juncture to largely increase direct financing especially for SMEs, mostly via IPO and other capital market instruments. In short, with the slowing growth rate and mounting debt problems. Policy makers 'seems' to confirm the market mechanism in financial industry. But my interest in Professor's contents here is just for the valuation ideas and insights.
Ahh, my dream career is being bashed!
I love the idea of being able to associate with all these world changing CEOs and helping to bring capital into companies that can use it to create and add more value to the world. It's a noble profession. Investment bankers are supposed to be guiding and focusing economic energy into the most efficient places to help drive the growth of prosperity of nations and the advancement of mankind.
They obviously need to step their game up, I hope I can do my part in contributing to that.
As an entrepreneur, these videos are incredibly valuable. You say, "how can that be? what does valuing stocks have to do with managing a business?" Good point - you may be right. However, consider the fact that Dr. D deals in real value instead of price and then one begins to see the value of studying value in order to increase value.
Great discussion, Aswath. Good timing as well with all the recent disasters. Thanks for covering this.
I wouldn’t think of the price as “guaranteed” as most are on best effort basis these days
AirBnB is going to be a direct listing. For the reasons Damodaran lists here.
Best finance lecturer in the world
Wonderful informative video Prof. Lot of lessons to be learnt by new employees joining in Investment banking firms, big4's. Yes True SEC, SEBI could do little only on protection
Now I get it ...
bankers = buying a put for the owners
underpricing = price of put
Professor, do you have a Patreon account? I feel like a thief being able to get such valuable content for free.
To be honest, I don’t even know what a Patreon account is, but I have always discovered that knowledge (or at least what I perceive as knowledge) is the only thing in life that I gain more of, by giving. So, pass it on! That’s thanks enough!
@@AswathDamodaranonValuation your giving inspires me to give. I will pass it on. Thank you for continuing to do this!
@@AswathDamodaranonValuation What a guy :D
@@AswathDamodaranonValuation You deserve all the respect you get in your field. Thanks again for the invaluable content.
Aswath Damodaran Like always, humble and kind.
Central banks have created an IPO bubble as part of their *Everything Bubble* created by low interest rates, ZIRP, NIRP and QE (we are in QE 4 right now)
shhhhhhh
Thank you Professor, any chance you can take a look at the cannabis sector after its severe beating?
Your videos are much appreciated.
Hi Aswath, I have seen you have various classes in this channel divided in sessions. Which class do you recommend for starting? Thanks in advance ;)
Sir can you please value UBER ... price is all time low ... your valuation will help us a lot ... Thanks
Great post
Hi please talk about uber and what u think of the earrings, I know you bought it at 30, so will u be adding more to your positions since its below that. Thanks for great content
Great content. Isn’t there value in the syndicate which offer price testing pre-ipo? ‘We’ was a disaster, but it could have been even worse with a direct listing. The private investors were able to salvage back some value and if current negotiations are true, Softbank could increase their stake significantly by valuing We at 8B; which may still be a bad idea.
Why would it have been worse? At worst, it would have had the same unraveling, as what caused the unraveling was people looking at the prospectus and the business model and saying no way. The company would probably still have pulled out of the direct listing. The plus is that WeWork would have saved itself millions in investment banking fees. As I see it, there is absolutely nothing that investment banks did in this process that added value. They did not give WeWork good pricing advice, they did not talk Adam Neumann out of his horrifically bad corporate governance structure and they did not serve their public investors well. So, what exactly were they getting paid to do?
Aswath Damodaran how do you square the price guarantee from the banks with the valuations they were promising WeWork?
Hi Mr. Damodaran!
What a coincedence! I was thinking about writing my thesis on the direct listing and how it is going to affect Investment Banking business.
Would you recommend me to do so? And what literature can you suggest for diving into this topic (ECM, IPO, Direct listing, etc.)?
That's actual a really good subject! Is this for undergrad?
@@sherryflavour3791 no, that is for master's degree
Excellent post. Thank you.
Really hope that I get an
opportunity to meet you in person someday, professor.
Morality has to be an issue in IPOs when suddenly private assets are marketed by professionals but accessible by the broader public
The problem is not the system it is the companies that are going public way too late and way to arrogant with broken business models.
Good to learn from u
The worst desaster are biotech IPOs, never invest in a fresh biotech company..
IPOs are generally bad investments...
There are typos at 9:52
Error in slide @ 10 minute mark... 25% are under or over priced???
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