The concept of “going concern” in accounting emphasizes that a business must persist into the future to retain its value. This principle signifies that present value already incorporates expectations of future value; thus, a business facing uncertainty about its future will inevitably diminish in present value. It highlights the interconnectedness of present and future values, suggesting that they cannot be regarded in isolation. All stocks traded on the stock market are priced based on their anticipated future value. In essence, we trade on a future that has yet to materialize. Consequently, determining how far into the future to evaluate is a critical factor in making investment decisions. Since individuals have varying skills and perspectives on forecasting the future, selecting an investment strategy must align with one’s attitude toward time. - Joseph’s “just my thoughts”
There are two key meanings in the world: abstract meaning and conceptual meaning. Abstract meaning relates to values and philosophy, while conceptual meaning pertains to methodology. A successful businessman effectively understands abstract meaning in a conceptual context. Some businessmen struggle to grasp abstract meaning, whereas others have difficulty with conceptual meaning. It is essential to enhance understanding by collaborating with external experts, regardless of whether it involves developing internal organizations. Businessmen should excel at creating both abstract and conceptual representations. - Joseph’s “just my thoughts”