What You Aim At Determines What You See!
What is the value of Money?
Ask anyone this question and you will get a huge variety of answers. Ultimately it is a tough question with multiple layers to it. Let’s look at a few viewpoints on the matter. Firstly, you could say money’s value equals whatever it is able to purchase. This in turn would mean that money continues to lose value, since its purchasing power lessens each year (inflation). However, on the other hand, certain things get cheaper compared to money, meaning you can buy more of these things (increased supply). So if money's value decreases compared to some things and increases compared to others, how can we understand its value? It is hard to determine money’s value based on what it can buy, because that is ever changing...
The 5 Core Principles of Value Investing
Value Investing, according to Charlie Munger, should just be called investing, because all other forms of investing are speculation or gambling.
1. A stock is a fractional ownership of the company and should
be thought of as owning part of the underlying business.
2. Mr. Market
3. Margin of Safety
4. Circle of Competence
5. “It is much better to buy a wonderful company at a fair price,
than a fair company at a wonderful price”-Charlie Munger
be thought of as owning part of the underlying business.
2. Mr. Market
3. Margin of Safety
4. Circle of Competence
5. “It is much better to buy a wonderful company at a fair price,
than a fair company at a wonderful price”-Charlie Munger
Meet joshua
My name is Joshua Thompson, if you're here it's probably because you're interested in investing.
“Focus on the Finish” is a principle. It is not necessarily a new idea, but often a forgotten one that each generation must re-discover. It is, most simply, the idea of long term thinking paired with delayed gratification. There are many good principles to live by, but it all starts with having a long term mindset.
This is primarily a place for me to write about and discuss investing, economics and related subjects; a way for me to convey my thoughts on investing, with other aspects like faith, family, and personal growth mixed in. I want to share what I know and am still learning about investing, and my perspective of faith, family, and personal growth all affect the way I invest.
I hope this will be beneficial to those who come across it. It would be wonderful if I can help others who are interested to learn something about investing, and inspire them to think long term about their future in every aspect of life.
“Focus on the Finish” is a principle. It is not necessarily a new idea, but often a forgotten one that each generation must re-discover. It is, most simply, the idea of long term thinking paired with delayed gratification. There are many good principles to live by, but it all starts with having a long term mindset.
This is primarily a place for me to write about and discuss investing, economics and related subjects; a way for me to convey my thoughts on investing, with other aspects like faith, family, and personal growth mixed in. I want to share what I know and am still learning about investing, and my perspective of faith, family, and personal growth all affect the way I invest.
I hope this will be beneficial to those who come across it. It would be wonderful if I can help others who are interested to learn something about investing, and inspire them to think long term about their future in every aspect of life.
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ContactJoshua Thompson [email protected] |
