Liquidation Value: All valuations consider present and future values. Value is generated over time. It begins in the present and extends into the future. This ongoing value is referred to as continuing value. Countries, corporations, households, and individuals set current values based on the belief that the present state will persist. What happens if it does not continue? It loses its future value. This state is known as the liquidation value. For example, this occurs if you quit your business. Almost all investments involve buying and selling assets based on their future worth. If you buy at a price lower than the liquidation value, you make a significant profit. If you buy at the liquidation value, you pay a fair price. If you pay more, you risk overpaying or buying a bubble. Value depends on time. Continuing a process is key to valuation. - Joseph’s “just my thoughts”
It took 3,000 years from the appearance of smallpox in the world to the development of a vaccine. It took 13 years for AIDS , 5 years for Ebola , and just 4 months for COVID-19 . 7 days after the COVID-19 outbreak was reported to the WHO , all viral DNA sequences had been identified. The rapid development of an mRNA vaccine in such a short timeframe has never been achieved in human history. This demonstrates how remarkable progress in biology and biotechnology has become. Similarly, the pace of wealth creation and economic growth has accelerated. It is a recent phenomenon in the long history of human life that we now measure time in seconds. We need to understand what kind of world we are living in right now. - Joseph’s “just my thoughts”