Video: Discount Rates, Growth Rates, And 'Skin In The Game'

by: Brian M. Nelson, CFA
Summary

This is the second-to-last video in the "Off the Cuff" video series.

In this episode, President of Investment Research at Valuentum Brian Nelson talks about how to think about discount rates and growth rates in the valuation context.

He also provides a few perspectives on the concept of "skin in the game," and the areas where it might be good and the areas where it might be bad.

The running time for the video is ~12 minutes.

Hi Folks,

This is the 18th episode of a series that I have started called "Off the Cuff," where I get in front of the camera and talk for about 10 minutes in each episode. It's low-tech, I know - but it's "authen-tech." I like that. I'll do my best to incorporate feedback and questions going forward, so stay tuned. We have a number of the videos already filmed. We're now up to 19 content-packed videos!

In this episode, I talk about why it is so important for you to learn the discounted cash flow model and how to think about discount rates and growth rates within it. In short, the discounted cash flow model is a lens by which to understand how the markets themselves work, the nature of interest rates, for example, and how growth fits into the value process. I also provide a few perspectives on the concept of "skin in the game," and the areas where it might be good and the areas where it might be bad. We often get a lot of questions why Valuentum doesn't take a position in the stocks it writes about. It comes down to independence and eliminating as many conflicts of interests as we can.

Give these videos and the discussions time to get warmed up, too. They're not made to be fancy. I don't like bells and whistles. They're made to be conversational. I hope you enjoy this 18th episode and those that follow. Let me know what you think. Don't forget to comment. Thanks!

This video and any content within are for information purposes only and should not be considered a solicitation to buy or sell any security. Valuentum and Brian Nelson are not responsible for any errors or omissions or for results obtained from the use of this video or any content and accept no liability for how readers may choose to utilize the content. Assumptions, opinions, and estimates are based on our judgment as of the date of the article and are subject to change without notice. There is substantial risk of loss associated with investing in any financial instrument. Valuentum Securities is a financial publisher.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.