Welcome to the 2022 Alpha Summit event series on-demand!
Alpha Summit delivers a dynamic agenda of speakers sharing their valuable insights on impactful topics with five critical themes: Opportunities and Responsibilities with Sustainable Investing, Excelling in a Post-Pandemic World, Harnessing the Benefits of Innovation and Technology, The Future of Capital Markets Today, and Advancements for the Investment Management Professional. Explore our video gallery to help you think beyond the horizon.
Dreams and Delusions: Valuing and Pricing Young Businesses | Alpha Summit GLOBAL 2022
The allure of young companies leads entrepreneurs, venture capitalists, and other investors to act based on delusional assumptions about future growth. Such participants believe fundamentals don’t matter for these disruptive or innovative new companies because intrinsic value and business value cannot be estimated, discounted cash flow valuations are obsolete and cannot be applied to 21st century companies, and the promise of “big” markets will pay off. Combined with overconfidence, these errors lead to collective overpricing, but wise investors can use fundamentally sound methods to exploit these delusions and make money.