Skip to main content

Posts

Showing posts with the label counterparty

Just my thoughts #0679

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”

Just my thoughts #0576

Unless you are self-sufficient, you must trade your products for those of others to survive. An exchange economy was established for the efficient survival of humanity. Economic activity leads to wealth accumulation , so for wealth to exist, there must be a counterparty . This means you cannot thrive on your own. However, having many counterparties also means that some of them could compete with your business. Exchange becomes straightforward only through the establishment of a price, which acts as an indicator of competition . Trading at a high price could generate significant wealth, but competition can hinder success. In other words, I survive because of others, while my survival is also threatened by them. Business inherently involves competition. This is why any business plan must include a strategy that considers competition. - Joseph’s “just my thoughts”

Just my thoughts #0459

All added values must be expressed in terms of ‘Price’ to create a ‘transaction’, and only when a transaction is concluded is the added value realized. Even if you possess added value but no transactions occur, the value cannot be realized in a self-transaction; it merely exists as intrinsic value. Wealth is formed only when the added value is realized and accumulated, making a ‘transaction’ essential. This implies that the formation of wealth requires a “party to deal with (counterparty).” This is known as a ‘customer’; some of them purchase your value, while others may be your competitors or disruptors who could diminish your added value or hinder its realization. Therefore, it is crucial to understand precisely what kind of person or company is acquiring your value-added. Not all deals are beneficial to you. If you cannot make this judgment, you are merely doing what is often termed “something good” for others, rather than for yourself. - Joseph’s “just my thoughts”