Value of Quantity: A phenomenon where the quality of a system changes once the amount of a single element surpasses a certain threshold. For example, if a restaurant that can normally serve up to 50 guests per day consistently has 100 customers daily, the capacity limit expands, and the quality of service improves. Of course, if they respond poorly, the service quality can decrease, but the outcome depends on the restaurant’s internal capabilities. Success or failure hinges on how we manage the excess amount beyond our capacity. Stock prices also depend on trading volume. Stocks tend to change their behavior only when a specific trading volume is reached. The good news is that stock prices can spike abruptly, but if the volume isn’t high enough, they can quickly fall. A person who reads 100 books has a different literacy level than someone who has read 10,000. - Joseph’s “just my thoughts”
There are two main ways humans can generate income: sales power and volatility . Added value is continuously created through production, which involves actions to generate this added value . By adding new layers of value to basic ones, additional value is created—for example, making bread from wheat flour. The ability to persuade someone to buy this added value is known as sales power. Therefore, VAT is a tax paid by the final consumer. When sales power is strong, a significant amount of added value remains, leading to wealth accumulation . The second method is volatility. We can buy and sell assets that create either fundamental or added value. The former includes items like gold or commodities , while the latter refers to companies and assets such as stocks . Volatility occurs because prices fluctuate based on the sales power of producers, creating added value, and the balance between supply and demand for assets. Warren Buffett has avoided investing in gold because it cannot ge...