Aswath Damodaran on Investing in Uncertainty

• How authorities and investing person go intertwined.

• Damodaran's presumption connected "Magnificent Seven" valuations.

• The relation of taxes successful deciding whether to bargain oregon merchantability stocks.

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A afloat transcript is below.

Ever consciousness similar you missed the vessel successful buying the astir palmy stocks? Then you’ll privation to perceive this.

On uncommon occasions, our adept squad of analysts issues a “Double Down” stock recommendation for companies that they deliberation are astir to pop. If you’re disquieted you’ve already missed your accidental to invest, present is the champion clip to bargain earlier it’s excessively late. And the numbers talk for themselves:

• Nvidia: if you invested $1,000 erstwhile we doubled down successful 2009, you’d person $290,963!*

• Apple: if you invested $1,000 erstwhile we doubled down successful 2008, you’d person $38,324!*

• Netflix: if you invested $1,000 erstwhile we doubled down successful 2004, you’d person $526,499!*

Right now, we’re issuing “Double Down” alerts for 3 unthinkable companies, disposable erstwhile you join Stock Advisor, and determination whitethorn not beryllium different accidental similar this anytime soon.

See the 3 stocks »

*Stock Advisor returns arsenic of April 14, 2025

This video was recorded connected April 12, 2025

Aswath Damodaran: I talked astir this yesterday successful people I gave my students a question. I said, let's accidental you worth a institution and you consciousness 100% definite astir the value, and the worth is higher than the price. Would you beryllium consenting to instrumentality each of your wealth and bargain the stock? After all, you're 100% convinced astir the value, it is undervalued. What I privation them to deliberation astir is adjacent though you're 100% definite astir the value, there's different dynamic present that you don't control, which is to marque money, the terms has to determination to value.

Ricky Mulvey: I'm Ricky Mulvey, and that's Aswath Damodaran. He teaches firm concern and valuation astatine the Stern School of Business astatine New York University. He's written respective books connected equity valuation, and he's 1 of the astir respected minds successful the space. My workfellow Matt Argersinger interviewed Damodaran for our Market Playbook Summit, an lawsuit wherever Motley Fool members archetypal caught this conversation. They sermon wherefore the US is inactive a harmless haven for investors compared to immoderate different parts of the world, however Elon Musk's engagement with the Trump medication changes Tesla's valuation, and wherefore the emergence of passive investing isn't stopping anytime soon. It's a large conversation, and I deliberation you'll find worth successful it.