Stocks represent trades that signify the future value of the present. The current price of a stock conveys insights about the company’s future. In essence, it involves the buying and selling of future potential. However, stock prices also reflect past performance. When a company announces its performance, it often includes disclosures about stock purchases and sales by major shareholders or executives. This practice has historical roots, but the public disclosure of such information now affects the stock’s current price. Time influences present value, whether it pertains to the past or the future. Ultimately, time is the most critical variable in asset valuation. - Joseph’s “just my thoughts”
The concept of “seed money” is crucial in business and investment; it is a notion that cannot be overemphasized. This “seed money” is termed “capital money” in accounting. If a person who is 50% profitable loses 40% simultaneously and continuously finds himself in this situation, will he become wealthy? No! Due to the 40% loss, the seed money will gradually diminish; as investments are repeated, profits will decline, leading to financial hardship. In any business or investment, it is essential to know how to preserve your seed money, and when you face losses, you must act decisively, understanding how to swiftly extricate yourself from the situation. - Joseph’s “just my thoughts”