Every asset generating cash flow has an intrinsic value that can be estimated.

Aswath Damodaran's framework for is not a single set of rules, but a guide to finding a personal approach based on core beliefs about how markets work. Damodaran, often called the "Dean of Valuation," argues that there is no "best" philosophy, only the one that best fits an individual's psychology, risk tolerance, and time horizon. 1. Definition and Core Principles

Minimize self-inflicted damage by spreading bets (diversification), acting rarely (low turnover), and staying away from personal weaknesses. 2. The Development Framework

An investment philosophy is a coherent way of thinking about markets and why they make mistakes. It is broader than a strategy (e.g., "buying low PE stocks" is a strategy, not a philosophy).

Form a point of view on how markets work and where they are likely to break down.

Markets are generally efficient but fail during periods of extreme uncertainty or change.

Damodaran categorizes approaches based on their view of the "gap" between price and value:

Master the basics of risk measurement and valuation.