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Aswath Damodaran: Factor Based Investing Is An Extraordinarily Dangerous Game

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Jacob Wolinsky
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ValueWalk's Raul Panganiban interviewed Professor Aswath Damodaran, discussing factor based investing, the three macro phenomena, short selling, doing the valuation game, and his views on investing and preserving wealth. This interview was recorded in May 2018 and was recently transcribed.

Q1 hedge fund letters, conference, scoops etc

Factor Based Investing
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And then I just want to know your views on factor based investing?

Well, factor based investing is just looking at history and seeing historically what kinds of companies, so it’s just a fancy word for what people have always done....

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Jacob Wolinsky is the ex-Founder of Valuewalk.com (founded 2011, sold 2023). He is founder of HedgeFundAlpha (formerly ValueWalk Premium), a hedge fund focused intelligence service for institutional investors. Prior to founding Valuewalk, Jacob covered small caps, worked recruiting members for a large hedge fund community and freelance financial journalism. Jacob lives with his wife and five kids in Passaic Park NJ. - Email: jacob(at)hedgefundalpha.com. For confidential inquires email me for my Signal ID. Other methods of secure communication are also available. FD: Most of my portfolio is in I mostly purchase broad-based ETFs, mutual funds or individual bonds - I do this for performance reasons and to avoid any potential conflict of interest or occasional receipt of insider information. I will disclose if I have a stake in any company, but in general I have few stocks and I avoid any trading especially around topics I am covering.