If you earn lots of money, it is not proof you are adding lots of value. Price is not value. Salary is the price of your labour. Capital is the size of your ownership. Dividends are management’s impression of a sustainable payment stream from the business. Rent is for something you have. Nothing to do with your value add. Nothing to do with you. Price is simply a reflection of the balance between supply and demand. If you earn a lot, it means there is an undersupply of the thing you are selling. If you don’t earn much, it means there is an oversupply of what you are selling. Supply doesn’t adjust quickly because of barriers to entry, and barriers to exit. Time to build the Capital. Time to build the necessary skills and knowledge. Time and obstacles to create or overcome the barriers that form the container. Price is not Value. Price is not Value. Price is not Value. You are not your price.
No comments:
Post a Comment