The most important aspect of investing is managing risk. However, in most cases, risk management is interpreted and assessed in relation to past patterns. When asset prices fall, the perceived risk appears significant. That doesn’t imply there weren’t risks; investors simply didn’t recognize the risks that originally existed. The level of risk is almost identical whether the price of an asset goes up or down, but when prices decline, they tend to drop further because fear prevents us from purchasing more assets, leading us to retreat. It’s not that the risk has escalated. It is unwise to link risk with past patterns. There have been numerous exceptions in the world, and many beings on this planet have disappeared because they could not adapt. Did dinosaurs not become extinct on Earth? Exceptions are exceptions because they are unpredictable. - Joseph’s “just my thoughts”
Every business has competitors, and succeeding in business means achieving victory over the competition. Winning the competition implies creating a monopoly. One of the most traditional methods of monopolizing the market is offering rebates to buyers, often referred to as a ‘bribe,’ which is illegal. The reason monopolies are so harmful is that they infringe on customers’ choices and benefits, as opposed to merely allowing one company to dominate the market. Facebook acquired Instagram and the messaging app WhatsApp to eliminate its competitors. Although Facebook is primarily a social media platform, why would it consider WhatsApp a competitor? Because WhatsApp provides group chat services to clients, and if it expands, it could easily transition into a social media platform. - Joseph’s “just my thoughts”