5 from 5i: A conversation with the Valuations God, Aswath Damodaran

Chris White May 10, 2019

Market View

President Trump slapped higher tariffs, from 10% to 25%, on $200 billion worth of Chinese goods. The stocks fell today, extending this week’s sell-off, after President Trump said there’s “absolutely no need to rush” on a trade agreement with China. S&P500 is down nearly 3% since the beginning of the week. Gold and oil prices inched up this week. The Canadian dollar was 74.69 cents. U.S. S&P500 was down 2.8% this week and TSX ended the week down 1.1%.

Expectedly, almost all the subgroups were down this week. Consumer discretionary slipped the most by 5.4%, followed by materials that was down by 3.2%, healthcare down by 3.1%, and technology fell 2.8%. Enbridge beat quarterly profit estimated, benefitting from transporting more oil and gas across its pipelines. It earned 81 cents per share on an adjusted basis, compared to estimates of 72 cents. Nutrien missed profit estimates for the second straight quarter as the agriculture supply chain was disrupted due to flooding across the US and drought in Australia. TMX Group reported a better than estimates driven by strength at its derivatives trading and global solutions business. Kinder Morgan Canada said it would continue as a stand-alone entity, after concluding its strategic review that considered options including a sale. Canadian Natural Resources posted quarter profit beating estimates, helped by higher prices for its crude. Canadian Tire reported a drop in profit of 1.7% due to higher interest expense and lease liabilities. Sun Life Financial missed analysts’ estimates for quarterly earnings. It posted a profit of $1.20 per share, versus estimates of $1.21. Magna International lowered its 2019 profit forecast expecting higher costs on certain programs and lower earnings from a joint venture in China. WestJet Airlines flew more passengers to the US and other overseas destinations helping it beat quarterly profit estimates. The most heavily traded shares by volume were Crescent Point Energy, Bombardier and Aurora Cannabis.

5 from 5i

Here are five reads we found interesting last week:

-A conversation with the valuations god, Aswath Damodaran

-Power of compounding

-An opportunity in emerging market equities

-Can you time the market?

-Some insights from the 2019 Berkshire Hathaway annual meeting


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1 comment


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May 12, 2019
I certainly enjoyed the first article. It is nice to see a professor wax eloquent about how important momentum is to trading and investment strategies. Momentum players often don’t get the same respect as the value players, but as he says, even the value players need to see a shift in momentum for value to surface.