Business debates who benefits most from time. When borrowing money, the debtor gains the benefit of time until the repayment date. Since the period before repayment favors the debtor, the debtor compensates the creditor with interest. However, as the repayment date approaches, time shifts to favor the creditor. After the due date, the debtor loses the benefit of time, known as ‘acceleration of debt,’ and must repay both the principal and interest. Time benefits debtors but poses risks to creditors. Therefore, lending money without interest results in a loss. All of this illustrates the power of time. Time is money, and money derives its value from time. The most important factors for CEOs to focus on are time and, next, opportunity cost. - Joseph’s “just my thoughts”
Investing in stocks isn ’ t only about buying and selling shares on the public stock market. One way to invest in stocks is by improving a company’s performance and helping it grow. In fact, this is a more fundamental approach to stock investing. In other words, both trading stocks and managing the company are ways to invest. Buying and selling a company ’ s stock involves trading its shares because stocks indicate that profits will be shared and signify ownership. When a company is well-managed and performs strongly, its stock price rises. The company’s value is reflected in its stock price, making effective management a crucial part of investing in stocks. It doesn’t matter if the investor is inside or outside the company—managers need to understand the core of what they are doing. - Joseph’s “just my thoughts”