Liquidation Value: All valuations consider present and future values. Value is generated over time. It begins in the present and extends into the future. This ongoing value is referred to as continuing value. Countries, corporations, households, and individuals set current values based on the belief that the present state will persist. What happens if it does not continue? It loses its future value. This state is known as the liquidation value. For example, this occurs if you quit your business. Almost all investments involve buying and selling assets based on their future worth. If you buy at a price lower than the liquidation value, you make a significant profit. If you buy at the liquidation value, you pay a fair price. If you pay more, you risk overpaying or buying a bubble. Value depends on time. Continuing a process is key to valuation. - Joseph’s “just my thoughts”
Success always has two faces. One is achievement and the other is complacency. There's a term in business administration called the " Competence Trap". It refers to the belief that if people cling to and repeat past successes, they will continue to be successful in the future. Xerox, which invented the world's first personal computer; Chrysler, which missed the SUV market because of the success of the minivan; and Kodak, which invented the world's first digital camera but failed to aggressively market it for fear of losing its main business, film. Humility is not an etiquette, but a shared destiny essential to success. - Joseph’s “just my thoughts”