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”
It's a simple calculation. No matter how unstable the economy, residential real estate prices are unlikely to increase tenfold in a decade. But it's quite possible for the stock of Apple, Amazon, or Google to increase tenfold in that time. That's because they're organizations that continue to create value-added. It's very easy to make better investment judgments and decisions, but our instinct to seek stability can lead us astray. - Joseph’s “just my thoughts”