All businesses ultimately converge in real estate and finance. This is an unavoidable fate. Real estate is the smallest unit and foundation of production activities, with a price calculated in real terms. Volatile assets that have a real price and whose prices fluctuate frequently must generate interest or dividends. Rental fees for an office or store are typically sufficient for the business operator to pay the interest on the loan owed by the lessor, the real estate owner, to the bank, akin to the real estate owner holding a particular share of the lessee’s business. Therefore, a lessee capable of paying interest on a property as a rental fee is the strongest candidate to own that property. This fact serves as strong evidence that business is closely linked to real estate. After all, most businesses grow in size and have two asset structures: their basic operating sales and real estate revenue. Without an efficient connection between these two structures, a business will never expand...
We often overlook the financial concept of “opportunity costs” because there is no immediate cash expenditure involved. Typically, we invest more time and effort in purchasing cheaper products. In contrast, wealthy individuals do not have to exert as much effort as those with fewer financial resources. When we factor in opportunity costs, we often find ourselves spending a similar amount of money on the same items, regardless of wealth status. For instance, if Bill Gates picks up a dollar that someone has dropped, he actually detracts from his financial standing due to the opportunity costs associated with the value of his labor. In this regard, he might save more money by choosing to rest instead of working. Ultimately, opportunity costs are the hidden expenses that can keep us in financial distress in the real world. - Joseph’s “just my thoughts”