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Showing posts with the label valuation

Just my thoughts #0670

Joy and resentment are emotions, but they carry energy. That energy greatly influences my life. The lesson adults teach about not making enemies is based on their own experience of that influence. When we go to court, we often see many people there because they harbor resentment, whether in civil or criminal cases. That demonstrates the power and impact of resentment. Ignoring emotions will eventually have consequences. Don’t make enemies; instead, always choose to share joy. - Joseph’s “just my thoughts”

Just my thoughts #0655

Many people in our society invest in bonds. Perhaps you, reading this article, have invested in bonds at least once and are still investing now. Bank deposits are a form of bonds, just not labeled as ‘bonds.’ When you deposit your money in a bank, the money isn’t considered bank money. Interest is paid because the money isn’t withdrawn immediately. When you withdraw your deposited money, the bank must return the principal plus interest. This is essentially a bond. However, the only reason this differs from bonds as an investment asset is that these bank deposits are not traded on the market. If bank deposits were traded publicly, the interest rate would be evaluated in comparison with other deposits, even if the principal remains unchanged. Valuation reflects opportunity cost. This is the transaction value of bonds. When goods or assets are traded in the market, their value is re-evaluated. The core of value is comparison, and the tool for valuation is opportunity cost. That’s why CEOs...

Just my thoughts #0370

The value and nature of stocks depend on how much money a company can potentially make for me in the future. In other words, it’s not the present value, but the future value that matters. It’s crucial to be able to provide profits consistently over time. In accounting, this concept is referred to as “going concern.” When you evaluate what you’re doing right now (job, business, investment, etc.) in terms of sustaining revenue generation, many conflicts and considerations diminish because your judgment becomes clearer. - Joseph’s “just my thoughts”