Faculty News

Prof. Aswath Damodaran discusses the risks of investing in Alibaba

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Excerpt from CNBC -- "I'm not getting a piece of a company,' [Damodaran] said. 'I'm getting a piece of a shell that owns a company where a politburo, basically, sets the board of directors. And if you're a trader, you really don't care. I mean, you're going to be out in six months or three months. What do you care that Jack Ma has power for life? The way I see it, traders date companies, investors marry companies. If you marry a company, you've got to be in here for the long term, and it scares the heck of me that I have absolutely no power over how this company will be run, or what can happen in the future.'"

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