Most economic concerns are at the core of the conflict between the price of goods and the value of money. An increase in interest rates means a higher cost for borrowing money. This also causes the value of money to rise. Investors want to own an asset that will appreciate in value. They consider whether to buy a good or a currency. Investing in stocks means buying a company, while bonds are buying fiat currency. Most investors see these two concepts as corresponding concepts, not assets of the same nature. The proposition that money buys goods represents a very significant aspect of investing. If you want to invest well, you should get a hint from this proposition. Money appeared because of the convenience of exchanging goods, but in the world of investment, it always results in a confrontation between goods and money. - Joseph’s “just my thoughts”
Warren Buffett’s assets were once estimated at $82 billion. 90% of these assets have been earned by Warren Buffett since he turned 65. The way to make money over time without labor is through finance; it’s an interest. One of the most economically effective methods is ‘compounding.’ This involves deriving interest from the principal and then earning interest again on the total of the interest and principal, continually repeating this process, making compounding the most efficient money-making method discovered by humanity. The same applies to stock investments; to achieve this compounding effect, you need to earn at least a 4% annual return. However, this is only valid for long-term investments like those of Warren Buffett. - Joseph’s “just my thoughts”