Stocks represent trades that signify the future value of the present. The current price of a stock conveys insights about the company’s future. In essence, it involves the buying and selling of future potential. However, stock prices also reflect past performance. When a company announces its performance, it often includes disclosures about stock purchases and sales by major shareholders or executives. This practice has historical roots, but the public disclosure of such information now affects the stock’s current price. Time influences present value, whether it pertains to the past or the future. Ultimately, time is the most critical variable in asset valuation. - 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”