Damodaran on Valuation: Security Analysis for Investment and Corporate Finance (Wiley Finance)

Perceptions may be all that matter when the asset is a painting or a sculpture, but we do not and should not buy most assets for aesthetic or emotional reasons; we buy financial assets for the cash flows we expect to receive from them.

Asset prices cannot be justified by merely using the argument that there will be other investors around who will pay a higher price in the future.

A postulate of sound investing is that an investor does not pay more for an asset than it is worth.