Liquidation Value: All valuations consider present and future values. Value is generated over time. It begins in the present and extends into the future. This ongoing value is referred to as continuing value. Countries, corporations, households, and individuals set current values based on the belief that the present state will persist. What happens if it does not continue? It loses its future value. This state is known as the liquidation value. For example, this occurs if you quit your business. Almost all investments involve buying and selling assets based on their future worth. If you buy at a price lower than the liquidation value, you make a significant profit. If you buy at the liquidation value, you pay a fair price. If you pay more, you risk overpaying or buying a bubble. Value depends on time. Continuing a process is key to valuation. - Joseph’s “just my thoughts”
Diving into the water without an oxygen tank is called ‘ free-diving .’ It is a form of apnea diving in which divers must hold their breath for an extended period while diving deep into the water with just one breath of oxygen. The difficulty in holding the diver’s breath during this time is not due to a lack of oxygen but rather an increase in carbon dioxide concentration. In other words, if you keep your heart rate low and your metabolism slow, you produce less carbon dioxide, which allows you to dive for a longer duration. The only way to maintain a low heart rate is to remain as calm as possible. Maintaining calmness has numerous benefits in life. - Joseph’s “just my thoughts”