Most Candid Aswath Damodaran Interview! India's Next Decade: Growth, Risks & The AI Revolution | Ep30 The India Opportunity ft Shrishti Sahu
Professor of Finance shares profound investing and life lessons
Hello everyone, welcome to The India Opportunity Show where you get a front-row seat to people building India’s future. We talk about unlocking the potential of the country with founders, investors, creators, and successful leaders from different fields to bring you real-life stories and behind-the-scenes of what it takes to be at the forefront of building the India Story.
The 30th episode of The India Opportunity Show is out now! You can watch it on YouTube or listen to it on Spotify or Apple Podcasts.
Today, we’re joined by a true pioneer in the world of finance—a man whose insights into valuation have shaped the way we understand and approach investing across the globe. Professor Aswath Damodaran, often called the ‘Dean of Valuation,’ has built a reputation not just as a scholar but as a practical guide for investors, CEOs, and market enthusiasts. With decades of experience at NYU’s Stern School of Business, he has truly demystified the art and science of valuation with his work that bridges rigours data with real world insights whether he's evaluating fast-scaling tech startups, assessing risks in the AI-driven future, or challenging conventional approaches to ESG. His practical, data-driven approach to understanding markets has reshaped the way people invest and make decisions across sectors.
Takeaways
Swiggy's valuation is tied to India's economic growth.
Quick commerce leverages urban logistics challenges in India.
Intangibles must translate into cash flows for valuation.
Comparative pricing does not equate to true valuation.
India's market faces significant infrastructure challenges.
The legal system in India is slow and creaky.
Incremental changes can lead to substantial improvements.
China is already a world power, impacting global dynamics.
Big tech breakups may not benefit consumers as expected.
Consumer attachment to platforms complicates the narrative. People often complain about privacy while oversharing on social media.
The concentration of tech companies in the US raises questions about local innovation.
Indian investors are not less sophisticated; they are influenced by market trends.
The Indian market has rewarded gambling-like behavior in investing.
Investing should focus on preserving and growing wealth, not just getting rich quickly.
New tech companies often rely on existing technologies rather than true innovation.
Understanding the core business is crucial when evaluating tech stocks.
The winner-takes-all model is driven by network effects and economies of scale.
Corporate venture capital has different motives compared to traditional VC.
Healthcare is a promising sector for investment in India as disposable income rises. We need more Renaissance people who can connect different disciplines.
AI disruption will affect all levels of employment, not just low-skilled jobs.
Investing pain is a necessary teacher for understanding risk.
Teaching is a source of joy and purpose in life.
Living in the present allows for incremental growth over time.
Parenting should involve a light touch, allowing children to make their own choices.
Regret can hinder future actions and should be managed carefully.
Idle moments can lead to significant creative insights.
Spending time with family brings immense joy and fulfillment.
Kindness is often unnoticed but is a vital part of human interaction.
Chapters
00:00 Introduction and Overview of Swiggy's IPO
05:54 Valuing Intangibles in Consumer Tech
12:06 Challenges in the Indian Market
17:59 Incremental Changes for Government Policy
23:54 The Big Tech Breakup Debate
36:48 Privacy and Responsibility in the Digital Age
42:52 Evaluating New Age Tech Stocks
50:51 Winner Takes All: Market Dynamics
57:31 Investing at the Right Price
01:03:42 Future of Healthcare in India
01:12:33 The Renaissance Mindset: Connecting Stories and Numbers
01:18:09 Learning Through Pain: The Reality of Investing
01:25:26 Life Construction: Embracing the Present
01:34:40 The Power of an Idle Mind: Creativity in Stillness
01:42:24 Goals and Gratitude: A Year Ahead
Follow Aswath here: Linkedin
Follow Shrishti here: LinkedIn Twitter
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Disclaimer: The content presented in this podcast is for informational purposes only and should not be considered financial advice. Viewers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions.