The price of a stock reflects the current valuation of a company based on its anticipated future performance. If the future looks uncertain, the current price is likely to fall; if it appears promising, it will rise. In other words, the company’s outlook on the future is mirrored in the current stock price. Investing in stocks essentially means buying and selling future values while trading at present prices. However, the reason I can’t buy the stock now is that I’m afraid its price will drop in the future. Conversely, if I cannot sell the stock when the price decreases, I struggle to do so because the loss caused by the expectation that the stock might increase, or by the missed timing for the sale, is too significant; this can overwhelm me with fear. Thus, stock prices are most readily influenced by the weight of ‘fear rather than desire.’ Even though the current stock price reflects future value, it often happens that this future value is not trusted. When we say that time is money,...
In a rapidly evolving technological market, companies thrive not by producing durable, long-lasting products but by continuously innovating new models. If car manufacturers create vehicles so robust that customers drive them for over 30 or 40 years, those companies risk failure. Therefore, product cycles are crucial in manufacturing: if they are too short, trust is lost; if they are too long, bankruptcy follows. Nevertheless, newcomers often aim to make them more robust. - Joseph’s “just my thoughts”