Emotional Management And The Value Investor – Weekend Meditations

Emotional Management And The Value Investor - Weekend Meditations by Balint Anton Francisc

Aswath Damodaran, Professor of Finance at the Stern School of Business at NYU, talks in great detail about the biases of company valuation in one of his lectures stating famously: ‘You tell me who pays you to do a valuation and how much you get paid and I’ll tell you almost all of the time what direction your bias is.’ Investment professionals are subject to market’s manipulative forces all the time: news about different events cause chemical reactions that impact our psychological structure (feelings) which are so strong that we tend to act on them. For example, we have all seen the blood shed of capital...