Investing in stocks isn ’ t only about buying and selling shares on the public stock market. One way to invest in stocks is by improving a company’s performance and helping it grow. In fact, this is a more fundamental approach to stock investing. In other words, both trading stocks and managing the company are ways to invest. Buying and selling a company ’ s stock involves trading its shares because stocks indicate that profits will be shared and signify ownership. When a company is well-managed and performs strongly, its stock price rises. The company’s value is reflected in its stock price, making effective management a crucial part of investing in stocks. It doesn’t matter if the investor is inside or outside the company—managers need to understand the core of what they are doing. - Joseph’s “just my thoughts”
To obtain the information we seek, we invest time and effort in searching. During this process, there is a cost known as “information search cost.” If the search costs exceed the value of the information we wish to obtain, it is deemed inefficient; people generally aim to avoid inefficiency. For instance, if a billionaire spends considerable effort searching for a car for less than 90,000 USD, then the billionaire will just buy because it is inefficient. Cost-effectiveness in the economic world judgment is a crucial factor to get dominion world we’re living in. - Joseph’s “just my thoughts”