Quantitative Methods

93 Posts

Aswath Damodaran: The Most Reliable Investment Valuations Balance Numbers and Narratives

Aswath Damodaran: The Most Reliable Investment Valuations Balance Numbers and Narratives

When it comes to valuing stocks, the most reliable valuations come from imaginative number crunchers and disciplined storytellers, says Aswath Damodaran. And too often pure “numbers” people drift off into what he calls “spreadsheet nirvana.” Similarly, investors who focus purely on the narrative of a potential investment run the risk of quickly “veering from reality to fantasy.” Damodaran urged investment managers to bridge the gap between numbers and narratives, insisting that the best valuations are not just “a collection of numbers, but a story connected to numbers.” Read more

9 Comments