Joseph's "Just My Thoughts"

Value is created through production and consumption, while added value emerges from exchange. An exchange is, in economic terms, a transaction and, in legal terms, a contract. Wealth is created when value-added accumulates. As a result of the coronavirus, humans are entering a period of quarantine. During this time, goats and deer are running in London's residential yards, and the Himalayan Mountains are invisible due to dust pollution in India. It is undeniable that human activity has had an absolute impact on nature. Your interactions and activities have significantly impacted the world, even if you didn't realize it. If you want to get rich, you have to stay active. You need to interact with the world anyway. - Joseph’s “just my thoughts”

Management is all about maximizing productivity in a limited amount of time. There are limits to what can be achieved regarding time and productivity gains. Let me be clear: increasing efficiency to improve productivity is not a significant factor in building wealth. The best way to build wealth is to choose and implement a higher value-added job. In other words, management is a matter of choice before effort. - Joseph’s “just my thoughts”

A surplus value is generated between the stages of consumption and production. The linking of production to consumption is referred to as "sales," in other words, doing business. The values added result in an increase in assets. Consequently, the refund of value-added tax (VAT) does not signify the return of lost profits, but rather the loss of business revenues. This is an unfavorable outcome. - Joseph’s “just my thoughts”

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”

In wealth, the first is value exchange and the second is added value. "Value exchange" occurs when "need (demand)" comes first. Making and exchanging bread with wheat is a value exchange. The price of bread is higher than the price of wheat grain. The price difference is value added. For value-added to occur, "benefit" must be provided. To provide this "benefit", you have to incur costs and expenses. This is called investment. In other words, the value added is the result of the investment, the surplus is subtracting the costs and expenses from the supply price. You can calculate the value added to make a profit if you first know your investment condition and its amount. "Wealth" only occurs when "value-added" is accumulated. - Joseph’s “just my thoughts”

Wealth is accumulating the added value created through value exchange into assets. Here are three key concepts. 1. Value Exchange 2. Value Added 3. Assets. To be wealthy is to increase assets. For an asset to grow, it must exchange value with others and, as a result, add value comes from. First of all, value exchange. Even geniuses starve unless they exchange value. Value exchange is not an idea, it is an action. You can never create wealth if your thoughts are good but don't act. - 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”

If a New Zealand fisherman catches a seabream in New Zealand, he makes a profit of $9 per kilogram, but if a tourist catches it, $88 goes back to New Zealand. This is because to fish a seabream, the tourist has to spend money on flights, hotels, and all sorts of rentals. The opportunity cost and value-added will change as B2B becomes B2C. - Joseph's "just my thoughts"

"Discount" is the sacrifice of the value-added you have created. Failure to produce Value Added will result in no profit, and there is a greater chance that the net worth will decrease as much as the profit that has been reduced. The problem is the customer. "Discounting from the start" and "selling at a discount" are strictly different for customers. Neither can do it right if the sellers don't know the "cost". Surprisingly, many businessmen do business without knowing the value they add and the cost. - Joseph's "just my thoughts"