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Showing posts with the label principles

Just my thoughts #0790

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”

Just my thoughts #0494

One of the principles prevailing in the natural world is that the stronger prey upon the weaker. The strong eat the weak. Thus, people seek strength. However, the statement that the stronger prey upon the weaker is partly correct and partly incorrect. The principle that survival of the fittest prevails in this world suggests that those who adapt survive. “ Adaptation ” is the strongest thing in the world. - Joseph’s “just my thoughts”

Just my thoughts #0492

The basis of any investment is time considerations. The same applies to stock investing . Which stocks to buy depends on whether you are holding short-term or long-term positions . The most significant mistake beginners make in stock investing is buying and selling stocks without following fundamental investment principles . When choosing stocks, they select them based on long-term potential, and when they sell, they do so based on short-term trading because they cannot overcome their impatience and fear that the stock price will decline. Such individuals should refrain from investing in stocks. Even after losing money, they remain unaware of the reasons for their losses, becoming individuals who harm themselves and others. - Joseph’s “just my thoughts”