I don’t promote stocks or seek out investors: Aswath Damodaran warns against scammers

Valuations expert and NYU finance professor Aswath Damodaran on Thursday issued a strong public clarification on social media platform X, distancing himself from any investment promotion or affiliation with financial entities, amid concerns over online impersonation and misinformation.

“I am a teacher, first and foremost. I don’t promote stocks, seek out investors or have ties with investment entities,” Damodaran posted on X. “I also don’t have an Instagram account or post on Facebook. In short, if you read anything that claims otherwise, it is a scam. If you have no idea what I am talking about, good! If you do, please report the scammers! Thank you!”

I am a teacher, first and foremost. I don’t promote stocks, seek out investors or have ties with investment entities. I also don’t have an Instagram account or post on Facebook. In short, if you read anything that claims otherwise, it is a scam. If you have no idea what I am…

— Aswath Damodaran (@AswathDamodaran) July 16, 2025

Warning amid rising profile

The post comes at a time when Damodaran’s high-profile commentary, ranging from his valuation takes on individual companies to macro views on alternative investments, has gained renewed traction among retail and institutional investors alike. His warning serves as a reminder of the blurred lines between public intellectuals and financial influencers in the age of social media.

Damodaran has consistently emphasized his role as an educator, not an investment adviser. Over the years, he has pushed back against efforts to ascribe to him a promotional agenda, reiterating that his insights are intended for learning and critical thinking, not for stock tips or portfolio advice.

Longstanding voice of caution

Just last month, in a June 18 blog post, Damodaran laid out a four-point framework urging skepticism toward the growing retail push into alternative assets like private equity, hedge funds, and collectibles. “Even savvy institutional investors... are questioning whether private equity, hedge funds and venture capital have become too big and are too costly to be value-adding,” he wrote, warning that promises of high returns and diversification often fail to deliver.

He flagged the complexity, opacity, and high fees associated with such vehicles, arguing that these drag on returns and often mask risks that become painfully visible during market stress.

Valuation over hype

While Damodaran has occasionally revealed his own investment actions, such as placing limit orders for companies like BYD, Mercado Libre, and Palantir in early April, he has done so within the context of his broader valuation philosophy, not as calls to action.

“The crisis is young, and the order is good until canceled,” he noted in a blog post this April, referencing his methodical approach during a market downturn. At the time, he likened reckless dip-buying to “the art of catching a falling knife,” arguing that careful valuation—not momentum or hype—should drive investment decisions.

Thursday’s post on X reinforces that stance, as Damodaran once again draws a clear boundary between education and solicitation. His message is a caution to the public, and a signal that his work remains grounded in independence.

“If you read anything that claims otherwise, it is a scam,” he warned. “If you do, please report the scammers!”

Also read | Aswath Damodaran explains 3 reasons why Moody’s ratings downgrade of the U.S. didn’t impact market

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)