All investments should be evaluated based on opportunity cost versus time. Are you investing for the short term or the long term? And which option would be more efficient and profitable if you invested elsewhere instead of this? The idea behind recommending long-term stock investments is that high-quality securities tend to benefit from inflation. Inflation happens when the prices of goods increase faster than the value of money. Wouldn’t a producer only make a good if its price exceeds its monetary value? However, if this gap is too large, the consumer experiences volatility. That’s why the efficiency of using money declines because you need money to buy things. This principle explains why stock prices tend to rise over time if you hold high-quality stocks long enough. Therefore, investing is often referred to as investing in time—because over time, it adds value. - Joseph’s “just my thoughts”
The ‘halo effect’ refers to the error of evaluating a person based solely on one strength. This mistake arises from our human tendency to see only what we want to see and to know only what we wish to know. People often regret choosing a smart but uncommitted individual once they realize they were attracted to that person’s intelligence after bringing them onto the team, ultimately leading to the wrong choice. This is an easy mistake to make, especially when the chosen person’s ability is particularly remarkable. When erroneous human resource decisions occur, businesses can fail. - Joseph’s “just my thoughts”