Pricing Power : The phenomenon where the value of money falls below the price of goods is called inflation , and it is said we are currently in an era of inflation. However, it’s not that simple. Inflation is realistically characterized by prices not rising all at once during an inflationary period but rather increasing rapidly for some items and slowly for others over several years. This phenomenon is known as the ‘ Cantillon Effect .’ In other words, inflation is neither uniform nor regular. Conversely, when prices fall below the value of money, it is referred to as deflation . To survive deflation, companies must innovate, often by reducing costs and expenses. During inflation, rising costs must be passed on to other economic agents through increased prices, a concept known as Pricing Power. Since companies cannot pass on all the rising costs, many go bankrupt during periods of inflation. - Joseph’s “just my thoughts”
Storytelling : Life revolves around storytelling. Both business and investment depend on it. Every story has a context that should be clear through common sense and logic. Stock prices mirror the story behind trading volume . If you learn to understand these stories, it gives you a benefit in stock trading . The restaurant industry is about storytelling related to service, while sales on Internet shopping sites tell a story about product distribution. Good storytelling can grab people’s attention, entice them, and evoke their emotions . Novels and dramas offer many valuable lessons on how to build wealth , as storytelling is a powerful way to connect with the world. Humans learn and understand through storytelling. - Joseph’s “just my thoughts”