Uploaded March 2026 | Updated September 2026, 1 week ago
An investment philosophy is a coherent set of beliefs about how markets work (and sometimes don't work) that underpins your investment strategies and choices, and it is a critical ingredient for successful investing in the long term. Many investors (including quite a few professional and institutional investors) lack core philosophies, and consequently end up chasing last year's winners or falling for investment scams. Others try to imitate successful investors, believing that imitation will lead to similar success in markets, but are often disappointed. There is no one "best" investment philosophy for all investors, but there is one that is right for you that fits your beliefs about markets and your personality. I have a book and a (free) online class on the process that you go through to find this philosophy, and I have updated both, with the third edition of the book available on March 31, 2026, at booksellers, and the new version of the class online (on both my webpage and as a YouTube playlist).
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/blog/InvPhil.pdf
Blog post: aswathdamodaran.blogspot.com/2026/03/finding-your-investing-lodestar-in.html
Book links:
Webpage for book: https://pages.stern.nyu.edu/~adamodar/New_Home_Page/invphil3edbook.htm
Booksellers: Amazon: bit.ly/40UqMyL
Barnes and Noble: barnesandnoble.com/w/investment-philosophies-aswath-damodaran/1122867680 (25% off until March 26, 2026)
Class links:
My webpage: https://pages.stern.nyu.edu/~adamodar/New_Home_Page/webcastinvphil2025.htm
YouTube Playlist: youtu.be/jBl8FXPc9tY?si=eF0WfFZDwVpz6K1I
An investment philosophy is a coherent set of beliefs about how markets work (and sometimes don't work) that underpins your investment strategies and choices, and it is a critical ingredient for successful investing in the long term. Many investors (including quite a few professional and institutional investors) lack core philosophies, and consequently end up chasing last year's winners or falling for investment scams. Others try to imitate successful investors, believing that imitation will lead to similar success in markets, but are often disappointed. There is no one "best" investment philosophy for all investors, but there is one that is right for you that fits your beliefs about markets and your personality. I have a book and a (free) online class on the process that you go through to find this philosophy, and I have updated both, with the third edition of the book available on March 31, 2026, at booksellers, and the new version of the class online (on both my webpage and as a YouTube playlist).
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/blog/InvPhil.pdf
Blog post: aswathdamodaran.blogspot.com/2026/03/finding-your-investing-lodestar-in.html
Book links:
Webpage for book: https://pages.stern.nyu.edu/~adamodar/New_Home_Page/invphil3edbook.htm
Booksellers: Amazon: bit.ly/40UqMyL
Barnes and Noble: barnesandnoble.com/w/investment-philosophies-aswath-damodaran/1122867680 (25% off until March 26, 2026)
Class links:
My webpage: https://pages.stern.nyu.edu/~adamodar/New_Home_Page/webcastinvphil2025.htm
YouTube Playlist: youtu.be/jBl8FXPc9tY?si=eF0WfFZDwVpz6K1I
