CNBC PRO Talks

Attention Investors: Don't behave like traders

Aswath Damodaran, NYU professor at the Stern School of Business and a foremost expert on corporate valuation, joined CNBC Pro for an exclusive interview to demonstrate his approach to investing.

Among the many highlights during the conversation with CNBC's Mike Santoli, Damodaran explained the difference between trading and investing:

"If you're focusing on the pricing process, I call you a trader and I don't attach any negative connotation to that. I don't think of traders as being shallow people and investors as being deep people. There's nothing wrong with trading. ... My problem is with people who play the pricing game, but talk the value game. Many portfolio managers act like investors, but they behave like traders, and that to me is a problem."

Damodaran shared specific tips on how to value a company as well as his thoughts about Apple, a stock he correctly sold last summer before the shares plummeted.

You can watch the full video below, but you must be a CNBC Pro subscriber.