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Just my thoughts #0508

The most important aspect of investing is managing risk. However, in most cases, risk management is interpreted and assessed in relation to past patterns. When asset prices fall, the perceived risk appears significant. That doesn’t imply there weren’t risks; investors simply didn’t recognize the risks that originally existed. The level of risk is almost identical whether the price of an asset goes up or down, but when prices decline, they tend to drop further because fear prevents us from purchasing more assets, leading us to retreat. It’s not that the risk has escalated. It is unwise to link risk with past patterns. There have been numerous exceptions in the world, and many beings on this planet have disappeared because they could not adapt. Did dinosaurs not become extinct on Earth? Exceptions are exceptions because they are unpredictable. - Joseph’s “just my thoughts”

Just my thoughts #0501

When you are betrayed and hurt by someone, there are times when you want to hide or be alone in silence. You want to cut yourself off from the world and just live in your own space. You don’t want to harm others, and you don’t want to be hurt either. At this point, temptation arises. The desire to choose a solitary, self-sufficient way of life is stirring. Never choose to be self-sufficient. As time goes by, it becomes more difficult for you, the one who has been hurt, and the likelihood of further injuries increases. Self-sufficiency is not the life we are meant to live today. - Joseph’s “just my thoughts”

Just my thoughts #0500

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”

Just my thoughts #0499

Compared to the era of a self-sufficient barter economy, everyone’s happiness is greater in the exchange economy, where each person divides their labor into what they do best and exchanges what they produce. This is because the division of labor is more efficient than self-sufficiency in productivity and can further reduce production costs. At this point, a means of exchange agreed upon by society is required, which is called money (currency). In other words, in the exchange economy, specialists who excel in one field are more advantageous for survival than ordinary people. An all-round player is more likely to face starvation. Therefore, a generalist is only advantageous for survival when they can organically integrate their diverse abilities in a specific field or situation, while also managing and restricting the scope of their activities and conditions. - Joseph’s “just my thoughts”

Just my thoughts #0498

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”

Just my thoughts #0497

Babies who are only six months old cannot walk. However, with a bit of training, this baby can swim in the water. Just because the baby can’t walk doesn’t mean the baby can’t swim. All humans are born in amniotic fluid in their mother’s womb when they are fetuses. It is normal for a 6-month-old baby to be unable to walk. Yet, the idea that the baby can’t even swim is a prejudice. Our stereotypes stem from taking things for granted. Imagination begins by doubting the obvious. - Joseph’s “just my thoughts”

Just my thoughts #0496

Autonomous vehicles originated from a mechanical engineering perspective, viewed as cars. However, for a car, the automation of the machine itself is not crucial; it can only function effectively by accounting for the road it drives on. The road we are traveling on today has not been constructed overnight; rather, it is the result of interactions with individuals that have led to the development of roads for humans, wagons, and cars. Therefore, for autonomous vehicles to operate fully on the road, both automobile automation and the necessary road infrastructure for autonomous driving must be developed in accordance with this automation. However, roads do not change easily overnight. For autonomous vehicles to truly achieve autonomy, we must reconsider the relationship between cause and effect. When cause and effect are reversed, the problem is never solved. - Joseph’s “just my thoughts”

Just my thoughts #0495

Even though tigers are stronger than rabbits, they are concerned about extinction worldwide, while rabbits do not share that worry. A crucial requirement for human survival is social interaction. Isolating oneself from society poses a serious threat to survival. Thus, all individuals who have disconnected from society are vulnerable. Based on this premise, there is no superior gene in humans; only the expression of genes that are suitable for specific situations is acknowledged. Therefore, the essence of human society is cooperation. In this world, we can only survive by helping one another. - Joseph’s “just my thoughts”