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Just my thoughts #0703

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”

Just my thoughts #0687

The Industrial Revolution and advances in science and technology have caused an unprecedented rise in the production of industrial goods. When products made to meet demand cannot be sold, they remain in inventory. If inventory isn’t managed properly, the ability to fulfill purchase requests quickly declines, which harms both producers and consumers. Depreciation is an accounting method that accounts for the decrease in value over time and includes these losses in production costs. So far, the global economy has experienced repeating cycles of booms and recessions. One of the main triggers is inventory. Inventory is a crucial factor that can lead to business failure, but effective inventory management can help promote greater business success. - Joseph’s “just my thoughts”

Just my thoughts #0608

Warby Parker , an eyewear brand renowned for its direct-to-consumer (D2C) business model , and Allbirds , an eco-friendly shoe brand that went public on NASDAQ in 2021, exemplify innovation in connecting manufacturers directly with consumers without intermediaries. This model promotes a positive image by endorsing an eco-friendly business approach. However, the disclosure of the companies’ financial statements revealed that both had accumulated losses greater than anticipated. While it would have been ideal for manufacturers to supply products directly to consumers, the burden of inventory increased along with rising administrative and marketing costs. Distributors in the middle shared profits, but they also shouldered the financial burden. Choosing eco-friendly options often incurs higher costs due to the search for alternatives, which can lead to accumulating losses. Pollution negatively impacts both consumers and suppliers, and business deficits further inflict additional damage t...