Damadoran on the Dilemma of Disruption

At the 2019 CFA Institute Equity Research and Valuation Conference, NYU finance professor Aswath Damadoran spoke about disruption and the challenge associated with valuing disruptors. “As human beings, we don’t like to deal with uncertainty,” he said, adding that we typically respond with either prayer, denial, heuristics, herding behavior, or by outsourcing to experts. For investment professionals, however, Damadoran argues that the “disruption dilemma” goes much deeper because it brings uncertainty into “every number that… Read More