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”
The basis for judging whether a person’s life can truly change lies in observing how someone continues to engage in meaningful activities every day, regularly and consistently. What matters is that the person does not stop doing a lot of work at once, but instead continues steadily every day, even if the efforts are small. Lao-tzu said, “Nature doesn’t rush. But it has been accomplishing everything.” If you want to be healthy, you can engage in small but consistent exercise each day. If you want to build wealth, you can pursue small production and investment activities daily. If you want to be smart, you can read or study even a small amount each day. Life consists of both simple-interest life and compound-interest life. - Joseph’s “just my thoughts”