Uploaded March 2025 | Updated September 2026, 1 week ago
In this class, we continued our discussion of stories, and how critical it is to keep the feedback loop open, so that you can make your stories better. I also talked about runaway stories and the big market delusion, and if you are interested, here are my posts on the topics:
Runaway stories: aswathdamodaran.blogspot.com/2015/11/runaway-stories-and-fairy-tale-endings.html
Big Market Delusions: aswathdamodaran.blogspot.com/2019/12/the-market-is-huge-revisiting-big.html
We also talked about how story breaks, shifts and changes. Since I talked about dealing with new earnings reports, I thought you may find these two posts of interest in how narratives shift, and with them, values:
Reacting to Earnings Reports: aswathdamodaran.blogspot.com/2014/08/reacting-to-earnings-reports-lets-get.html
Narrative Resets: aswathdamodaran.blogspot.com/2015/08/narrative-resets-revisiting-tech-trio.html
Toward the end of the class, we valued a mature, dividend paying company in ConEd and a mature growth company in 3M, before and after a market crisis.
Start of the class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/storytest.pdf
Slides: nyu.box.com/s/yjiv2pl81dg3o9qiunv1gm8532asurdz
No post-class test or solution
In this class, we continued our discussion of stories, and how critical it is to keep the feedback loop open, so that you can make your stories better. I also talked about runaway stories and the big market delusion, and if you are interested, here are my posts on the topics:
Runaway stories: aswathdamodaran.blogspot.com/2015/11/runaway-stories-and-fairy-tale-endings.html
Big Market Delusions: aswathdamodaran.blogspot.com/2019/12/the-market-is-huge-revisiting-big.html
We also talked about how story breaks, shifts and changes. Since I talked about dealing with new earnings reports, I thought you may find these two posts of interest in how narratives shift, and with them, values:
Reacting to Earnings Reports: aswathdamodaran.blogspot.com/2014/08/reacting-to-earnings-reports-lets-get.html
Narrative Resets: aswathdamodaran.blogspot.com/2015/08/narrative-resets-revisiting-tech-trio.html
Toward the end of the class, we valued a mature, dividend paying company in ConEd and a mature growth company in 3M, before and after a market crisis.
Start of the class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/storytest.pdf
Slides: nyu.box.com/s/yjiv2pl81dg3o9qiunv1gm8532asurdz
No post-class test or solution
