Joseph's "Just My Thoughts"

Since air is an essential element for survival, its value is infinitely high; however, because it can be obtained anywhere, its price is effectively zero. Nevertheless, pure 100% oxygen is rare and can have a price. The distinction between value and price is important, but many people don’t understand how they differ. Exclusivity of supply is necessary to assign a price to something’s value. Exclusivity means only you can supply it, and people can only buy from you. Time also makes exclusivity. That is the message that you cannot buy it without now. Universality creates value, and scarcity creates price, thereby placing a value on that value. But these two contradict each other. Wealth is always built on contradictions. That’s why business and investment can be so challenging. - Joseph’s “just my thoughts”

We usually measure ‘ value ’ in terms of ‘ price .’ Value is an abstract concept , and price is a number expressed in terms of value. Value is an economic concept , and price is an accounting concept . The problem is that the price in terms of value is not always the same as the price. Of course, the same value differs depending on the situation and also varies according to the values and beliefs of the person who recognizes it. This deviation is detrimental to some and beneficial to others. Facts are unscientific phenomena that circumstances create. Therefore, insight into the situation is a valuable ability in any case in this world. - Joseph’s “just my thoughts”

Wealth is the state of accumulating added value. Most of us consider money a tool for accumulating value, but there are many other forms in this world. However, all other values are typically expressed as ‘price,’ which is a value compared to goods in terms of money. Therefore, a preconceived notion exists that most means of accumulating value are strictly monetary in nature. Nevertheless, various tools for accumulating value are available, such as jewelry , luxury goods , bonds , and real estate . The value of goods produced by labor is referred to as ‘price.’ Labor can only be directed toward production when the price level is slightly higher than the value of money. Hence, it is normal for prices of goods to continue rising. If they rise excessively, it leads to inflation ; on the other hand, if they fall below their value, it results in deflation . There is a problem between the gaps. - Joseph’s “just my thoughts”

To realize added value , production activities must occur. In other words, added value arises from production activities. Production involves bringing into existence things that did not previously exist in the world. This can be accomplished by combining existing items to create new ones or by processing raw materials into new products . Production includes physical manufacturing , knowledge generation , and service creation . Wealth represents the accumulation of added value. Consequently, to become wealthy, one must be productive . However, value is determined through relative comparison. A product can only be exchanged if it can be priced, and added value can only be actualized by exchanging this product. This process is referred to as commerce . In other words, it is known as a transaction . Through trade , humanity distributes this added value. - Joseph’s “just my thoughts”

A price starts with a ‘declaration,’ is maintained by people giving credit to it, and fluctuates with the laws of supply and demand . The starting point of the price is not determined by people’s recognition, but by my own insistence. In other words, if you cannot assert yourself, you cannot start a business, and even if you sell your labor, you cannot receive a proper salary. Value formation is not a matter of good or bad abilities, but rather about being assertive. If you are not good at asserting your own price , even if you have excellent abilities and skills, then you have to live by the values set by others. - Joseph’s “just my thoughts”

The price of a stock reflects the current valuation of a company based on its anticipated future performance. If the future looks uncertain, the current price is likely to fall; if it appears promising, it will rise. In other words, the company’s outlook on the future is mirrored in the current stock price. Investing in stocks essentially means buying and selling future values while trading at present prices. However, the reason I can’t buy the stock now is that I’m afraid its price will drop in the future. Conversely, if I cannot sell the stock when the price decreases, I struggle to do so because the loss caused by the expectation that the stock might increase, or by the missed timing for the sale, is too significant; this can overwhelm me with fear. Thus, stock prices are most readily influenced by the weight of ‘fear rather than desire.’ Even though the current stock price reflects future value, it often happens that this future value is not trusted. When we say that time is money ...

Unless you are self-sufficient, you must trade your products for those of others to survive. An exchange economy was established for the efficient survival of humanity. Economic activity leads to wealth accumulation , so for wealth to exist, there must be a counterparty . This means you cannot thrive on your own. However, having many counterparties also means that some of them could compete with your business. Exchange becomes straightforward only through the establishment of a price, which acts as an indicator of competition . Trading at a high price could generate significant wealth, but competition can hinder success. In other words, I survive because of others, while my survival is also threatened by them. Business inherently involves competition. This is why any business plan must include a strategy that considers competition. - Joseph’s “just my thoughts”

In an exchange economy , where goods or services are well-made and exchanged for one another’s needs in the market, rather than through barter , ‘ price ’ holds significant importance. The key to business success lies in understanding the prime cost and establishing a ‘price’ based on that cost. If sales surge when a product that typically does not sell well is offered at a very low price, there must be a reason for the low price, as well as an explanation for why it does not sell at a higher price. The price results from the interaction of producers, consumers, and all other market variables . To identify the causes of problems in your business, you must first examine the price adequacy of the product or service you are selling. Price is not merely a number. - Joseph’s “just my thoughts”

In a market economy , ‘ price ’ is determined by supply and demand . Producers supply and consumers demand, and the compromise between them is price. However, the price determined by supply and demand is not always beneficial to both producers and consumers. The price formed in the market is distorted by various factors, and the imbalance that occurs at these times results in a loss for some and a benefit for others. Wealth transfer occurs when there is an imbalance in the price of a good or service. Price imbalance necessitates an understanding of the essence of the market that forms between supply and demand, and it is a fundamental virtue for entrepreneurs to develop an ability to recognize bubbles and undervaluation of value . - Joseph’s “just my thoughts”

Trust must be created and maintained. Building and maintaining trust always comes at a cost. Even if the cost is not monetary, it must be paid in the form of labor or some other means instead of money. Cafe owners face the uncertainty of not knowing when their customers will arrive. Knowing exactly when customers are coming, the cafe owner will avoid turning on the cafe lights and machines unnecessarily when there are no customers. The owners only need to prepare for when customers arrive. However, due to this uncertainty, the owner must keep the lights and machines on. If the cafe owner turns off the lights and machines to save money and a customer visits the cafe, that customer may not return. An unprepared appearance undermines the trust between the cafe and the customer. Regardless of type or kind, there is always a cost to building and maintaining trust. Which part am I paying the cost for now? Or am I not paying for it? - Joseph’s “just my thoughts”

The physical value of a book is a measurable cost of paper, printing, and labor charges , but estimating the value of the book’s contents is difficult. Most intangible values are similarly challenging to assess. We purchase the intangible value of a book at its physical price. When revenues are generated, the added value produced can be realized. These revenues arise solely from sales, which are based on price, not value. In essence, there is always an imbalance between price and value , and this imbalance determines whether one is wealthy or poor. Management is the act that shifts this imbalance in my favor. - Joseph’s “just my thoughts”

Value and price are different. Value results from relative comparison, and the numerical expression of this result is price; however, value and price do not always align . If the price-to-value ratio is positive, the seller makes a profit while the buyer incurs a loss. Conversely, if it is negative, the seller faces a loss, and the buyer gains a profit. Transactions occur at price, not at value . Handling the ground differs from selling without knowing that gold is buried and purchasing with that knowledge while keeping it hidden. The disparity between value and price creates a divide between wealth and poverty . - Joseph’s “just my thoughts”

All added values must be expressed in terms of ‘Price’ to create a ‘transaction’, and only when a transaction is concluded is the added value realized. Even if you possess added value but no transactions occur, the value cannot be realized in a self-transaction; it merely exists as intrinsic value. Wealth is formed only when the added value is realized and accumulated, making a ‘transaction’ essential. This implies that the formation of wealth requires a “party to deal with (counterparty).” This is known as a ‘customer’; some of them purchase your value, while others may be your competitors or disruptors who could diminish your added value or hinder its realization. Therefore, it is crucial to understand precisely what kind of person or company is acquiring your value-added. Not all deals are beneficial to you. If you cannot make this judgment, you are merely doing what is often termed “something good” for others, rather than for yourself. - Joseph’s “just my thoughts”

To achieve what humans desire, they must first tackle the tasks they are reluctant to face. If you wish to live simply, you need to organize the chaotic and complex aspects of life. It’s akin to cooking, even when it feels bothersome, to enjoy a delicious meal. Yet, we often prefer to eat only what others have prepared. If you solely seek comfort and immediate gratification, you’ll depend only on luck and chance. Some people aren’t familiar with the concept of earning their due, even when the price is offered, and it can understandably be challenging to compensate the right person. These individuals often act as if they don’t own a car, merely waiting for a bus. It’s better to have a car owner who can drive them wherever and whenever they desire, even if driving involves hard work, rather than simply waiting for a ride. Taking initiative in life is a privilege reserved for those willing to endure inconvenience and who can afford to pay the price. - Joseph’s “just my thoughts”

Until that incident, he felt at ease, but David’s suffering began after he had laid Goliath on the ground. To dream of success, one must pay a fair price. The reason for avoiding payment is that people either don’t know how to pay the price or fear that their own payment will be wasted. Calculate profits and losses later. The costs associated with success must be paid upfront. Gifts are typically given and received on birthdays or Christmas. Can’t we not live in this world solely as gifts? - Joseph’s “just my thoughts”

If you encounter heavy traffic jams during your commute, you should avoid purchasing real estate in that area. This is a clear indication that property prices have already significantly increased. If you cannot look beyond the superficial signs, you’ll always tread the same path as those before you, living a life dictated by others’ choices rather than your own judgment. - Joseph’s “just my thoughts”

The concept of “going concern” in accounting emphasizes that a business must persist into the future to retain its value. This principle signifies that present value already incorporates expectations of future value; thus, a business facing uncertainty about its future will inevitably diminish in present value. It highlights the interconnectedness of present and future values, suggesting that they cannot be regarded in isolation. All stocks traded on the stock market are priced based on their anticipated future value. In essence, we trade on a future that has yet to materialize. Consequently, determining how far into the future to evaluate is a critical factor in making investment decisions. Since individuals have varying skills and perspectives on forecasting the future, selecting an investment strategy must align with one’s attitude toward time. - Joseph’s “just my thoughts”

A newborn baby instinctively sucks its mother’s milk for survival, regardless of whether it learns this behavior. Chewing is also instinctual. The product that aligns with this chewing instinct is “gum.” While it involves chewing, it doesn’t equate to eating. Producing gum is a simple way to generate profit, given its common and low-cost nature. Therefore, the price of gum reflects the cost of chewing, differing from the prices of drinks and food. Since these items are consumed together, they exist in separate markets. The defining factor that separates these markets is “price.” Even if the products are similar, they operate within entirely different markets. - Joseph’s “just my thoughts”

Price and value are different things. Value is relative and subjective, but price makes those numbers tangible and helps us empathize with others. The result of that empathy is a deal, an exchange. Only when value is assetized does wealth arise. The way to assetize values is to price them. In other words, pricing is the process of valuing assets. Determining whether the value assigned to an asset is appropriate is called investment. From an investor’s point of view, investment begins by questioning the objective price of an asset. Consumption is the exchange of goods and services at a price agreed upon by all parties. Consumption and investment are two distinct concepts. - Joseph’s “just my thoughts”

Most individuals are unaware of the balance between “physical work” and “emotional work” in their roles. “Beginners” are those who are compensated solely for physical work, while “mediums” earn for both physical and emotional contributions. “Masters,” on the other hand, receive higher pay for emotional work compared to physical tasks. Without the ability to assign a price to the value of your emotions, you will inevitably remain at a low added value. - Joseph’s “just my thoughts”