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Showing posts with the label production

Just my thoughts #0300

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”

Just my thoughts #0270

What happens if you have significant debt but also have the ability to issue money? In this case, the debt may become irrelevant. While the government can issue currency, the private sector lacks this capability. So, how does the private sector create money? There are limited methods, including adding value through production, establishing reasons for exchange that involve considerations, or receiving a gift, such as an inheritance. All other methods are illegal. - Joseph’s “just my thoughts”

Just my thoughts #0217

Video creators often face bankruptcy due to “editing.” Profit is essential for revenue generation; profit is realized only when revenue surpasses costs. “Editing” constitutes a significant “cost” to boost sales. There’s a belief that quality editing enhances the likelihood of sales. While this is somewhat true, survival until a sales surge depends primarily on minimizing costs (editing). It’s not filming, but “editing” that often leads video productions to financial failure. Nonetheless, many production companies fail to adequately factor in editing costs into their overall production expenses. The reality is that a substantial amount of money is tied up in “editing.” - Joseph’s “just my thoughts”

Just my thoughts #0211

Now, let’s think about it this way. You have a pig. Your pocket will incur expenses to save the pig. If the pig gives birth to a baby, there are 12 more pigs. The cost of the stock feed increases further, but the total number of pigs increases by 13, and your assets rise. Assets are a means and measure of wealth, although they also increase costs. To achieve wealth, you need to acquire a lot of assets at a low cost. We call the increase in the number of pigs “production” in economic terms. That is, there must be production to obtain assets. Produce anything, whether you create services, compose music, or make a product. Without production, there cannot be wealth. - Joseph’s “just my thoughts”

Just my thoughts #0078

The key concept in creating wealth is the accumulation of assets. "Asset" means all the resources, that can be used for production activities. If assets don't increase, it's not a business. To create value, you have to produce something. The labor, materials, and facilities for production all come from assets. Insufficient assets are borrowed from others, it is called debt. The value added belongs back to the asset. Assets are a source of wealth and a measure of wealth. - Joseph’s “just my thoughts”