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”
Knowing and doing are two very different things. Zhuge Liang, an incomparable genius who was a Chinese prime minister of the Three Kingdoms, knew the deep secret of nature. However, he suffered a great defeat in the most important battle because he wrongly appointed Ma Su as his subordinate general, even though he knew him well and had received a warning about his appointment from the late king. Personnel management is the most difficult thing in the world, and to manage it well is the key to success. - Joseph's "just my thoughts"