# Professor Aswath Damodaran explains why cash-burn companies are not necessarily a bad investment

1 Faculty News August 23, 2016 ![CNBC logo](/sites/default/files/styles/246w/public/assets/images/uat_027305.jpg?itok=Ipx0jiaQ)>

Excerpt from [CNBC](http://www.cnbc.com/2016/08/23/cash-burn-companies-not-always-bad-investments-professor-says.html) -- "'If you avoid companies just because of cash burn, you're taking big segments of the market out of your portfolio,' [Damodaran](http://www.stern.nyu.edu/faculty/bio/aswath-damodaran) said in an interview with CNBC's 'Closing Bell.'"

[Read more](http://www.cnbc.com/2016/08/23/cash-burn-companies-not-always-bad-investments-professor-says.html)