Stock investment is categorized into short-term and long-term strategies. As with all investments, the success of an asset is determined at the time of purchase, not when you sell it. Short-term investing involves buying stocks at low prices, while long-term investing focuses on buying based on the overall price trend. These two approaches embody different investment philosophies. The first factor to consider when developing an investment strategy is time—the duration of the investment. Valuation and investment methods vary depending on the length of the investment horizon. - Joseph’s “just my thoughts”
In 2002, Nobel Prize-winning economist Daniel Kahneman conducted an experiment called the “Dictator Game”. It was 1986. One of the two subjects was given $20 to share with the other. The first condition was that the recipient could exercise his veto power if he did not like the distribution ratio, and then, the ruler ensured that the giver did not have the money. The second condition eliminated the veto. In the first condition, most people who gave money were divided in half. In the second condition, however, the giver had about 70% and shared only 30%. Most people think of fairness to vested interests between 50% and 70%. But, in some cases, even though the recipient had a veto, the giver had 90% and wanted to share only 10%. At that time, it was beneficial for the recipient to receive at least 10%, but by exercising the veto power, the giver did not have the money either. This is the moment of conflict between justice and rationality. People do not make decisions based on reason alon...