[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"$fTkz7Z8zZIcHjGSeLDW8f0t_ht1jo4JOZDwO-q-DVXMg":3,"$fxLWh_rHOZtY3UOSUrOhEk_sfMAu7XY5TYKTE7O_kjXY":16},{"author":4,"tags":11},{"author_id":5,"author_name":6,"author_name_first_letter":7,"article_count":8,"bio":9,"short_bio":9,"bio_jsonld":9,"slug":10,"image_url":9},87098,"Aswath Damodaran","A",11,null,"aswath-damodaran",[12],{"tag_id":13,"tag_name":14,"tag_count":15},5846,"investment",6,{"quotes":17,"pagination":96},[18,25,32,38,44,50,60,69,78,87],{"id":19,"quote_text":20,"author_id":5,"source_id":15,"has_image":21,"author":22,"source":23,"quote_tag":24,"commentary":9},2869602,"Avoid companies that are cavalier about issuing new options to managers.",false,{"id":5,"author_name":6,"slug":10,"author_name_first_letter":7,"article_count":8,"image_url":9},{},[],{"id":26,"quote_text":27,"author_id":5,"source_id":15,"has_image":21,"author":28,"source":29,"quote_tag":30,"commentary":31},2869590,"Success in investing comes not from being right but from being wrong less often than everyone else.",{"id":5,"author_name":6,"slug":10,"author_name_first_letter":7,"article_count":8,"image_url":9},{},[],"**The Backstory**\nThis quote is attributed to Aswath Damodaran, a renowned finance professor and expert in valuation. While I couldn't pinpoint an exact source for this quote, it resonates with his extensive writings on investing and financial markets. During the 1990s and early 2000s, Damodaran was actively engaging with investors, writing books, and developing financial models that would later become industry standards.\n\n**The Hidden Insight**\nThe counter-intuitive truth here is that success in investing isn't about having a superior understanding of market trends or being consistently right; rather, it's about minimizing mistakes relative to others. This philosophy challenges the conventional wisdom that investing success stems from making smart bets and predicting market movements accurately.\n\n**How to Use This**\nIn today's fast-paced markets where information asymmetry is a significant challenge, adopting this mindset means focusing on discipline over intuition. A modern professional or creative can apply this by prioritizing thorough research and analysis over impulsive decisions, thereby reducing the likelihood of costly mistakes and improving their overall investment outcomes.",{"id":33,"quote_text":34,"author_id":5,"source_id":15,"has_image":21,"author":35,"source":36,"quote_tag":37,"commentary":9},2869577,"The intrinsic value of an asset is determined by the cash flows you expect that asset to generate over its life and how uncertain you feel about these cash flows.",{"id":5,"author_name":6,"slug":10,"author_name_first_letter":7,"article_count":8,"image_url":9},{},[],{"id":39,"quote_text":40,"author_id":5,"source_id":15,"has_image":21,"author":41,"source":42,"quote_tag":43,"commentary":9},2869568,"In the intrinsic valuation chapter, we observed that the value of a firm is a function of three variables – its capacity to generate cash flows, its expected growth in these cash flows, and the uncertainty associated with these cash flows.",{"id":5,"author_name":6,"slug":10,"author_name_first_letter":7,"article_count":8,"image_url":9},{},[],{"id":45,"quote_text":46,"author_id":5,"source_id":15,"has_image":21,"author":47,"source":48,"quote_tag":49,"commentary":9},2869563,"Einstein was right about relativity, but even he would have had a difficult time applying relative valuation in today’s stock markets.",{"id":5,"author_name":6,"slug":10,"author_name_first_letter":7,"article_count":8,"image_url":9},{},[],{"id":51,"quote_text":52,"author_id":5,"source_id":53,"has_image":21,"author":54,"source":55,"quote_tag":56,"commentary":9},642870,"Do not be afraid to make mistakes.",2,{"id":5,"author_name":6,"slug":10,"author_name_first_letter":7,"article_count":8,"image_url":9},{},[57],{"id":58,"tag":59},3299862,{"id":13,"tag_name":14},{"id":61,"quote_text":62,"author_id":5,"source_id":53,"has_image":21,"author":63,"source":64,"quote_tag":65,"commentary":9},642844,"Growth firms get more of their value from investments that they expect to make in the future and less from investments already made.",{"id":5,"author_name":6,"slug":10,"author_name_first_letter":7,"article_count":8,"image_url":9},{},[66],{"id":67,"tag":68},3299781,{"id":13,"tag_name":14},{"id":70,"quote_text":71,"author_id":5,"source_id":53,"has_image":21,"author":72,"source":73,"quote_tag":74,"commentary":9},642832,"Avoid companies that are cavalier about issuing new options to managers",{"id":5,"author_name":6,"slug":10,"author_name_first_letter":7,"article_count":8,"image_url":9},{},[75],{"id":76,"tag":77},3299751,{"id":13,"tag_name":14},{"id":79,"quote_text":80,"author_id":5,"source_id":53,"has_image":21,"author":81,"source":82,"quote_tag":83,"commentary":9},642831,"A firm can have value only if it ultimately delivers earnings.",{"id":5,"author_name":6,"slug":10,"author_name_first_letter":7,"article_count":8,"image_url":9},{},[84],{"id":85,"tag":86},3299750,{"id":13,"tag_name":14},{"id":88,"quote_text":89,"author_id":5,"source_id":53,"has_image":21,"author":90,"source":91,"quote_tag":92,"commentary":9},642830,"Einstein was right about relativity, but even he would have had a difficult time applying relative valuation in today's stock markets.",{"id":5,"author_name":6,"slug":10,"author_name_first_letter":7,"article_count":8,"image_url":9},{},[93],{"id":94,"tag":95},3299749,{"id":13,"tag_name":14},{"currentPage":97,"totalPages":53,"totalItems":8,"itemsPerPage":98},1,10]