Damodaran Explains Narrative Breaks, Shifts, And Changes
One of the difficulties of investing in companies like Twitter Inc (NYSE:TWTR) or Groupon Inc (NASDAQ:GRPN) is that the market price isn’t justified by profits – you either believe the story or you don’t, and invest accordingly. That’s not to say investing on a strong narrative is always a bad idea, anyone who believed Elon Musk’s narrative on Tesla Motors Inc (NASDAQ:TSLA) a couple years ago has been amply rewarded, but you risk having the story change suddenly (almost always for the worse). But even for more pedestrian stocks, NYU Stern School of Business professor Aswath Damodaran has argued that...
This content is exclusively for paying members of Hedge Fund Alpha
Gain Exclusive Access to the Insider Strategies and Letters to Shareholders from the Top Hedge Funds and Maximize Your Portfolio Growth with Hedge Fund Alpha Get Started Now with a FREE 7-Day Trial🔻If you are a current Hedge Fund Alpha member and are having an account error please clear cache and cookies. If that does not work, email [email protected] or click Chat. |
