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”
Humans understand the notion of “expectation time.” It’s crucial to confront the issue that is tacitly accepted. This tacit acceptance becomes problematic regardless of whether the “expectation time” is brief or lengthy. For instance, if a meal takes five hours, something must be amiss. Conversely, if a haircut lasts just one minute, people might suspect dishonesty. Effective communication hinges on precise expression, but it is equally essential to manage expectation time appropriately. - Joseph’s “just my thoughts”