PRO Talks: Valuation expert Damodaran on why underperforming value investors are ‘lazy’

Valuation expert Aswath Damodaran shares his views on investing and analyzing companies in an exclusive interview for CNBC PRO with Mike Santoli. 


On value investors and their recent underperformance: "Many of the old time value investors I talk to stopped reading after they read Security Analysis in the 1950s," Damodaran said. "A lot of value investing has become lazy. It's running screens. Screens based on what's worked in the past. Trust in mean reversion and those old screens. Unfortunately everybody can run those screens today in milliseconds."

On why you don't have to be perfect in valuing companies: "You don't have to be right to make money. You just have to be less wrong than everybody else. As long as you think about that it takes a load off your shoulders because you don't have to be right," he said.

Damodaran is professor of finance at the New York University Stern School of Business. He is widely regarded as the foremost expert in valuing companies and is often referred to as Wall Street's "dean of valuation."

He also discusses:

  • Amazon's valuation story.
  • Uber's next move.
  • Digital currencies replacing gold.
  • Tesla and Elon Musk.

The interview is exclusively for CNBC PRO subscribers.