Does a trillion-dollar valuation mean a stock is actually worth buying? Aswath Damodaran says not necessarily.The NYU finance professor known on Wall Street as the "dean of valuation" breaks down the real difference between pricing a stock and valuing it, and explains why the AI boom alone doesn't justify trillion-dollar price tags. Plus, he hands out grades on how the market is currently valuing nine of the world's most valuable companies. As always, this is not financial advice.
Chapters:
0:00 Intro
0:36 What to expect in this episode.
0:59 Trillion dollar company list getting long.
1:59 The secret to valuing a business.
3:31 The dangers of taking investing shortcuts.
5:28 Should you invest just because it’s worth a trillion dollars?
7:10 Can you afford not to invest in AI stocks?
13:30 Stock 1 - Nvidia (Grade B)
15:48 Stock 2 - Apple (Grade B+)
18:34 Stock 3,4,5 - Microsoft, Meta, Alphabet (Grade B-)
23:55 Stock 6 - Amazon (Grade B)
26:29 Stock 7 - Tesla (Grade C)
28:21 Stock 8 - SpaceX (Grade Incomplete)
30:36 Stock 9 - Berkshire Hathaway (Grade B)
Our thanks to Aswath Damodaran! Learn more about Aswath here: https://pages.stern.nyu.edu/~adamodar/
This episode is brought to you by Global X Canada, which just launched the Global X Artificial Intelligence Memory Index ETF, ticker DRAM, a new ETF tied to one of the biggest themes in AI: memory and storage. As AI models get bigger, moving and storing all that data is becoming just as important as the chips that process it. Learn more about it here: https://www.globalx.ca/product/dram
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