Aswath Damodaran: Globalization Backlash
April 1, 2025
In his recent article, NYU professor Aswath Damodaran shares his thoughts on how politics, globalization, and disruption has changed the investing landscape.
Michael Mauboussin: These fundamentals drive our returns
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By Borsgade
- - Published
As part of Morgan Stanley Investment Management, Michael Mauboussin has published an article that explores the concept of “Total Shareholder Returns”. In Danish, it can best be described as the total return we as investors expect to get from the increase in value of a given share price plus any dividends paid during the period.
Mouboussin analyzes which sources drive total returns and which do not. Among the most significant are revenue growth, EBIT margin and reinvestment rate.
I forbindelse med artiklen har de lavet en tjekliste til vurdere potentialet for vores forventede afkast, som kan varmt anbefales (se rapportens s. 20).
We can break down TSR into drivers, including net income growth, change in shares outstanding, P/E multiple change, and the benefit of reinvesting dividends. We examine each of these drivers and link them to underlying economic principles. […]
We explain TSR [Total Shareholder Returns] through drivers including EPS growth and changes in the P/E multiple. We have noted the severe limitations of EPS and multiples to explain value. To compensate, we seek to link these concepts to underlying fundamental drivers. Doing so gives investors and executives a framework to understand the past and to anticipate the future.
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Disclaimer of liability
The above has been prepared by Børsgade ApS for information purposes and cannot be regarded as a solicitation or recommendation to buy or sell any security. Nor can the information etc. be regarded as recommendations or advice of a legal, accounting or tax nature. Børsgade cannot be held liable for losses caused by customers’/users’ actions – or lack thereof – based on the information in the above. We have made every effort to ensure that the information in the above is complete and accurate, but cannot guarantee this and accept no liability for errors or omissions.
Readers are advised that investing may involve a risk of loss that cannot be determined in advance, and that past performance and price development cannot be used as a reliable indicator of future performance and price development. For further information please contact info@borsgade.dk
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