Volatility and Investment: The phenomenon where an asset’s price fluctuates over time is called volatility. Owning and reselling this volatile asset is known as an investment. The concept of buying and reselling an asset often causes us to overlook the fact that this process involves a trade-off between low-volatility and high-volatility assets. Cash is less volatile than stocks, and stocks are relatively more volatile. In other words, investing involves exchanging low-volatility assets for high-volatility assets and then switching back to low-volatility assets. Meanwhile, surplus profit is generated by the price differences caused by volatility. What would happen if we traded only highly volatile assets with each other? We would probably hesitate to exchange assets and might refrain from investing. In investing, there must be both low-volatility and high-volatility assets. - Joseph’s “just my thoughts”
A significant part of the business involves a productivity problem, and humanity has addressed this issue through the use of tools. During the era of industrialization , machines served as the primary tools of production , but in the information age , software has largely supplanted hardware. Additionally, smartphones have made both hardware and software more accessible. These digital tools, known as apps, are easy to duplicate and distribute; however, they only become impactful in reality when the hardware, referred to as a computer, is widely distributed. Yet, the reality remains that humanity still doesn’t fully understand the tools at its disposal. As people don’t recognize the true potential of a smartphone, don’t they simply use it only as a phone book, right? - Joseph’s “just my thoughts”