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Just my thoughts #0601

‘Luxury’ has a moral original sin because it is impractical and creates a sense of incongruity between the relatively rich and the poor. Thus, it is true that ‘luxury’ also carries a negative image. However, the rich do purchase luxuries regularly, with a few practical exceptions. This is because luxury items not only incur less depreciation, but their resale value often exceeds the purchase price over time. Think of luxury handbags or jewelry. To preserve or increase wealth, you must have an eye for luxury. This doesn’t mean you should live in luxury; rather, it highlights the challenge of maintaining your accumulated wealth unless you change your habits and attitude toward acquiring assets. - Joseph’s “just my thoughts”

Just my thoughts #0542

You should buy stocks when they are cheap and sell them when they are high to make a profit. However, is this principle only applicable to stocks? All assets should be purchased when they are inexpensive and sold when they are at a high value to create and maintain wealth. Stock prices are easier to fall than to rise. Temptation leads to fear, and fear leads to temptation. People want to buy something that is becoming expensive (or has its price inflated) and sell it quickly because they fear the price will drop. Of course, if the fear is too intense, it becomes challenging to act, so you may refrain from selling even though you know the price will decline further. If this is instinct, then buying and selling stocks should be reversed. Stock prices are more complicated to rise but easier to fall. The rise in price occurs because the performance value must act as the energy for the stock. Therefore, stocks should be viewed as good to buy rather than good to sell. A stock’s fate is ...

Just my thoughts #0067

Offline retailers are going to be ruined. People assume the cause might be Internet commerce. But if you analyze the data, it doesn't make sense. In the U.S., online sales have grown more than 30-fold over the past two decades, but Internet shopping accounts for only 11% of total consumer sales. According to U.S. government statistics, Americans spend most of their income on SERVICES, NOT GOODS. This means they purchase a car rental service instead of possessing a car, a cloud service instead of having computer software and hard drives, and a fresh food delivery service every morning instead of buying the ingredients for food. It also means that people avoid buying manufactured or harvested goods, but want to buy the servitization goods in the categories of manufacturing and agriculture. This phenomenon is called " Servitization of Manufacturing". - Joseph’s “just my thoughts”