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”
What is the difference between an owner who believes that the company should never close in any situation and an owner who believes that our company can shut its doors at any time? Certainly, there are many differences. Fear stems from something that has yet to occur. The awareness sense to which work has yet to happen is a crucial perspective because it profoundly affects business philosophy. The crisis is tied to the range of fear. - Joseph’s “just my thoughts”