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”
People often say that as one gets older, time passes more quickly , while in youth, time seems to move more slowly . The reason individuals feel that time goes by more slowly when they are young is likely due to a decline in memory . As children, people have limited experience, so everything feels new, and they tend to remember new things well. Having less experience translates to fewer memories. Because there are so many new memories, children perceive time as passing slowly. However, as people age, experience accumulates, and they typically become better at predicting situations, making it easier to cope, resulting in fewer surprises. Since these experiences are not exceptional, they tend to forget them, and when reflecting on the past, there’s little to recall, creating the sensation that time flies. Among the aspects of aging, what is scarier than the decline of the senses is the deterioration of expectations . If the flavor of food becomes predictable based on accumulated experie...