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Finance Professor Damodaran at NYU is often referred to as the Dean of Valuation. We will be discussing his latest posts on COVID 19 and investing. http://aswathdamodaran.blogspot.com/ Has traditional value investing lost its mojo? Recently Damodaran called value investing a lazy approach that worked well in another century. Just look at the subpar returns of many value investors this past decade. According to Damodaran traditional value investing involves convincing oneself that you are right and the rest of the world is wrong. “I think book value has completely lost its meaning. Value investing is not just buying low P/E and price-to-book stocks. I describe valuation as a craft. The Covid-19 crisis has humbled me further. There is so much to learn,” he said. In investing humility is required. We will be discussing his blog posts from: June 4th,2020 A Do-It -Yourself S&P 500 Valuation May 13th, 2020 A Crisis Test - Value vs Growth, Active vs Passive, Small Cap vs Large! April 24th, 2020 Mayhem with Multiples April 8th, 2020 The Price of Risk March 31st, 2020 Back to Basics March 23rd, 2020 Investing in a Post-virus Economy March 21st, 2020 Debt Delusions and Reality Profitability, Returns and the value of Growth March 16, 2020 Pricing or Value? Trading or Investing? *********INFORMATION ON HOW TO ATTEND******************** In order to attend you will need to download a free Zoom app at https://zoom.us/download . Please check your email on the same day before this meeting and you will find a password in which you can access this meeting on the Zoom link on the right hand side of this page.
Applied Value Investing: The Practical Application of Benjamin Graham and Warren Buffett's Valuation Principles to Acquisitions, Catastrophe Pricing and Business Execution "This thought-provoking work takes value investing to the next level.-- Seth A. Klarman, President, Baupost Group, L.L.C.,Lead Editor of Graham and DoddsSecurity Analysis, 6th Ed. "Applied Value Investing is the most important business book of our time." --Dr. John J. Sviokla, Vice Chairman, Diamond Management & TechnologyConsultants, and former Associate Professor, Harvard Business School "A must-read for all Graham and Dodd followers, and valuation practitioners."--Patrick Terrion, Principal, Founders Capital Management, and author of The Company You Keep "Applied Value Investing takes the same time-proven approach Graham introduced with David Dodd in their 1934 masterpiece, Security Analysis, and extends it in a variety of unique and practical ways including mergers and acquisitions, alternative investments,and financial strategy. https://www.amazon.ca/Applied-Value-Investing-Application-Acquisitions/dp/0071628185
Narrative Economics: How Ideas Go Viral and Influence Economic Events by Robert Schiller From Nobel Prize winning economist and New York Times bestselling author Robert Shiller, a new way to think about how popular stories help drive economic events In a world in which internet troll farms attempt to influence foreign elections, can we afford to ignore the power of viral stories to affect economies? In this groundbreaking book, Nobel Prizeâ€"winning economist and New York Times bestselling author Robert Shiller offers a new way to think about the economy and economic change. Using a rich array of historical examples and data, Shiller argues that studying popular stories that affect individual and collective economic behaviorâ€"what he calls "narrative economics"â€"has the potential to vastly improve our ability to predict, prepare for, and lessen the damage of financial crises, recessions, depressions, and other major economic events. Spread through the public in the form of popular stories, ideas can go viral and move marketsâ€"whether it's the belief that tech stocks can only go up, that housing prices never fall, or that some firms are too big to fail. Whether true or false, stories like theseâ€"transmitted by word of mouth, by the news media, and increasingly by social mediaâ€"drive the economy by driving our decisions about how and where to invest, how much to spend and save, and more. But despite the obvious importance of such stories, most economists have paid little attention to them. Narrative Economics sets out to change that by laying the foundation for a way of understanding how stories help propel economic events that have had led to war, mass unemployment, and increased inequality. The stories people tellâ€"about economic confidence or panic, housing booms, the American dream, or Bitcoin affect economic outcomes. Narrative Economics explains how we can begin to take these stories seriously. The result may be Robert Shiller's most important book to date. Many economists argue that the US housing market and economy are still on solid foundations, but ignore Shiller’s warnings at your peril. He rarely gets it wrong. "---Tom Rees, The Telegraph "The book is . . . good fun to read. It is full of amusing and apposite quotations, and interesting detail."---Charles Goodhart, Central Banking Journal "Provocative . . . . Especially timely in the current social media-obsessed era, because narratives―both real and false―can spread globally with just a few swipes, affecting not just economic activity, but ultimately the balance of geopolitical power."---Matt Schifrin, Forbes " Shiller has none of the salesman-like bluster of the stock pickers clamouring for attention on business TV news . . . . As it is, he has only 40-odd years of being freakishly right about things. It will have to do. "---David Morris, Financial News "Shiller argues forcefully."---Chris Johns, Irish Times "A magisterial account . . . . In some ways . . . a bigger challenge to the foundations of economics than behavioral economics."---Steve Denning, Forbes "An engaging scholarly study of the stories we tell about economic events―stories that go viral, for better or worse . . . . Of immense value to economists and policymakers working on the behavioral side of the field." (Kirkus Reviews *********INFORMATION FOR ATTENDEES******************** In order to attend you will need to download a free Zoom app at https://zoom.us/download . Please check your email on the same day before this meeting and you will find a password in which you can access this meeting on the Zoom link on the right hand side of this page https://www.amazon.ca/Narrative-Economics-Influence-Economic-Events/dp/0691182299/ref=asc_df_0691182299/?tag=googleshopc0c-20&linkCode=df0&hvadid=335174802933&hvpos=1o1&hvnetw=g&hvrand=15515080614814376022&hvpone=&hvptwo=&hvqmt=&hvdev=t&hvdvcmdl=&hvlocint=&hvlocphy=9000930&hvtargid=pla-699399447999&psc=1
The Dao of Capital: Austrian Investing in a Distorted World by Mark Spitznagel The author of this book runs a Black Swan hedge fund that made a 4,144% return this last quarter (March 31, 2020). Mark Spitznagel also made hefty returns during the market downturns of 2000 and 2008. He is a protege of Nassim Taleb and remains very pessimistic on what the future holds for markets. https://markets.businessinsider.com/news/stocks/black-swan-fund-universa-investments-4000-percent-return-hedging-coronavirus-2020-4-1029076165 As today's preeminent doomsday investor Mark Spitznagel describes his Daoist and roundabout investment approach, “one gains by losing and loses by gaining.” This is Austrian Investing, an archetypal, counterintuitive, and proven approach, gleaned from the 150-year-old Austrian School of economics, that is both timeless and exceedingly timely. In The Dao of Capital, hedge fund manager and tail-hedging pioneer Mark Spitznagel—with one of the top returns on capital of the financial crisis, as well as over a career—takes us on a gripping, circuitous journey from the Chicago trading pits, over the coniferous boreal forests and canonical strategists from Warring States China to Napoleonic Europe to burgeoning industrial America, to the great economic thinkers of late 19th century Austria. We arrive at his central investment methodology of Austrian Investing, where victory comes not from waging the immediate decisive battle, but rather from the roundabout approach of seeking the intermediate positional advantage (what he calls shi), of aiming at the indirect means rather than directly at the ends. The monumental challenge is in seeing time differently, in a whole new intertemporal dimension, one that is so contrary to our wiring. Spitznagel is the first to condense the theories of Ludwig von Mises and his Austrian School of economics into a cohesive and—as Spitznagel has shown—highly effective investment methodology. From identifying the monetary distortions and non-randomness of stock market routs (Spitznagel's bread and butter) to scorned highly-productive assets, in Ron Paul's words from the foreword, Spitznagel “brings Austrian economics from the ivory tower to the investment portfolio.” The Dao of Capital provides a rare and accessible look through the lens of one of today's great investors to discover a profound harmony with the market process—a harmony that is so essential today. "Spitznagel has written an essential new book. Indeed, might be one of the most important books of the year, or any year for that matter." —Forbes This is a beautifully crafted book, one I can recommend to readers of all political/economic persuasions… it is impossible not to be shaped by its carefully presented history and logic." —Seeking Alpha "A fascinating and radical break from the investment dogma of the past several decades" —Fortune "While The Dao of Capital makes for demanding reading, it repays the effort as a heady historical and intellectual feast." —Barron's "A great writer that has a clear and consistent understanding of the market process, the dangers of government intervention, and the benefits of Austrian economics." —Ludwig von Mises Institute "Spitznagel could simply have written that investors need patience and must avoid the temptation of the quick profit; that building a successful strategy, and life, involves a longer-term approach foregoing instant gratification; that establishing a solid foundation while appearing not to create progress puts you in position for much greater success later on. He did not do that. Instead, he takes you on a tour of history and nature that illuminates these long held truths. In the end his message is simple, but by providing the historical underpinnings he brings them to life in a much more vibrant way." —Futures Magazine Among the "12 Books That Every Investor Should Read... deeply informative and will leave an impact on you." —Business Insider