Price & Value and life-changing decisions

This article belongs to two factors named: Price and value as well as its impact on the lives of every person such as rich and poor, happiness, etc. The article is based on the personal views of the author, always receives criticism and positive contributions.

First of all, this topic is universal in all areas of life, and of course it is suitable for the financial field.

Price: That's what you can see, for example, the $ 1,000 iPhone, the $ 15,000 vegetable bundle, the $ 8 billion plot of land, or the $ 2.5 billion car. For life we ​​have a "price" of people visually as: Handsome, 3 university degrees, 2 town houses, etc. Things that can be converted into material values ​​in general can be considered to be broad pricing.

Value: Unlike prices, values ​​are difficult to determine and fluctuate. Value changes will cause prices to change. If everyone sees price, then the number of people who see value or predict the ratio between value and price, the trend of value is very small, which is why the rich are always a minority of society. . We summarize in 2 words: "Vision".

Small example: The moment the land costed 300 million on the piece, everyone knew the price at the time. But the number of people who know the value and evolution of the value to buy it is unlikely that 1,000 people will get one, until that land is worth 20 billion, it is just a regretful story.

  1. When price
  2. Price> Value: Bubble

  3. Price = Value: Right price

  4. Large or unknown value (like BTC or BDS at this time): Venture capital

$ 1k iPhone is not necessarily expensive but Samsung $ 300 may be too expensive (an iFan said)

Thus determining value is vital in every person's life, it is not just money but covers all areas of life:

Valuing a future spouse must be based on current prices, estimated values ​​and future potential. Mispricing is a stalemate life is normal. Choosing the right person to accompany you for life is certainly nothing more valuable

Determining the value of a newly listed company, or a long-listed company, will help you make a better decision than PTKT and is enough to change your life.

Finding the value of an item, an agricultural product, a piece of land, or less than a phone can be a great help to your personal finances.

As mentioned above, everyone sees the price, but its value belongs to the vision accompanied by luck or time. Have you ever tried to think for yourself: What will become valuable in the future specifically (for example BTC, BDS - illustrations), then when you have money, invest in those things. If you make the right decision, your life will turn over.

We will follow the journey of finding: "Value".

Personally, I have been searching for something that can be considered to be eternal for thousands of years.

The ratio of wages to the average worker / basic living needs by social ground is the permanent value that does not change. No matter how much society develops. The illustration is easy to understand:

500 years ago, an ordinary worker must work most of his life to have money for living and basic living. Even though it has grown a lot today, even in Europe or the United States, an ordinary worker still has to spend most of his life to fundamentally, though that standard has been raised.

All other material values ​​almost fluctuate according to market rules or political periods and cycles. The constant volatility of the world makes all the wrong valuation of value very expensive, but right, we do not need to discuss further.

Many of you probably hear the words: “People spawn but not spawn, so the land only increases but never decreases. There is a decrease and then it also increases ”. Theoretically this statement is not wrong, but it is not entirely true.

Experiencing several thousand years of history, perhaps we have many times the land: Kinh Thanh, Kinh Do now called the capital is free, anyone takes it. And of course it is still the same now, as long as tanks run on the streets every day, bombs like 72 days and nights you will see if the land price will decrease immediately. Accept that war is a rule, it's just a matter of time, and so you know if the rule they say is right or wrong. After the economy flourishes again, BDS will return to the throne, this is the rule that has remained the same for thousands of years.

Following macro developments will help you make a more alert decision, and is definitely a very important basis for your investment decision, for example:

  1. Observing the developments and predicting the new oil price will make a decision to invest in rubber plantation or not.

  2. Observing and predicting an economic crisis, economic growth will help you make a decision whether to invest in gold or ck, etc. Assuming the economy is strong, your long-term gold investment is even worse than saving your VND. Or the economy is about to start crashing back into CK, where is your home?

  3. Even the purchase of BTC for long-term should listen to the world economy, assuming a few weeks of red fire like CK in the early days of the year, the BTC is also difficult to network.

The three words "heaven, earth, and peace" forever are pivotal in success. There are completely unpredictable factors, just like you are buying a piece of land in Van Don with X accounts, the US China trade tension is so hot that China pressures and uses war (real weapons). with small countries to relieve internal pressure, then rich and poor just a blink of an eye. Excluding factors such as buying or manipulating planning, your investment in a planned area for long-term vision with strong growth accompanied by political stability is enough to turn you into a middle class.

Correlation between price & value
Correlation between price & value

Even coming here, the decision to ban the motorbike of the Hanoi Transportation Board can completely change the "value" of the house you own. May increase, may decrease, depending on your vision of it.

That is also the reason why I was looking to see: Whether or not a great crisis like the press and experts warned, it is the key factor leading to investment decisions. Assuming there were no crises, the land continued to grow (because credit was not entirely alarming), gold stood still for another 4 years, long-term gold investment or even holding US dollars could become stupid. . For example, in the last 3 years, anyone who predicted and worried too much about the depreciation of the VND and hoarded the dollar has lost a lot compared to the VND users to save. But assuming Vietnam's financial instability, we have to make another decision.

  • A few decades ago my father bought a TV and a motorbike if he bought the land enough to make himself a "young master" now, instead of having to go to work. .

  • A few years ago I bought a car, at that time he also bought the land, whether or not the story is true 25 years later my son will feel like me now?

There are many surprises and interesting things going on in the future. With the rapid development of economy, 10 years has been a terrible makeover. 25 years, of course it will be very unexpected, may also be:

  • Please do not buy a car but buy land or HOLD BTC is the time I spend 5 generations without end.

  • Fortunately, on that day, my father bought a few fields to cultivate pepper (currently super SML), some guys spent billions buying BTC and then went to zero.

In the near future and short-term investment decisions, apart from focusing on real value, we will look together at the signs of the economy: Bank interest, bad debt, employment, BDS / revenue value enter the average, population size and influence from China to make a decision.

Please tell me a little story of value:

Mr. A and B were two siblings. In the 80s, Mr. B went to the South to do business and his face fell open so he always flew home. Mr. A has collected loan money to buy train tickets to help Mr. B build his house (helping efforts). At home there was a piece of land that his father gave Mr. A and Mr. B each half, later Mr. B returned to ask for the land Mr. A did not pay because of:

That day the money for the train was exactly the same as the sale of Mr. B's land, so he passed the value because he thought that Mr. B would not return. Because there were neighbors who sold the land at the time, they knew the price of the land at the time. If you want to get the land, you should pay the old-fashioned money, which is equal to the price of the land.

Mr. B said the following:

On that day, A helped B with the car fare, now B paid A for the car, the old train ride, h paid for the plane ticket.

So you see that both of you have a reference to anchor the price, and the amount of A and B gives a huge difference because over time the value of the land increases too sharply. Is it okay to assume that we refer to gold?

The price of that day was about 1.1 gold trees, currently still much smaller than the value of the land. B pays 1.1 gold trees and interest in each of those years, A disagrees.

Through the example above we see that the value is constantly changing, even gold can not be used as a frame of reference for too long. The price of gold depends very much on the health of the global economy, two different times in certain circumstances, the "value" of gold changes not uniformly with the price of gold. Do not believe you can ask the elderly: A hard workman in the past earned how long 1 gold only compared to the time a hard builder now earn 1 gold.

The fairest values ​​in the above example are as follows:

A helps B the amount X, so according to the value of the working day at that time C, so the number of days B owes A = X / C

B must pay A the amount of: (X / C) * Current working day price. Instant return of the amount of effort that day. If the vessel runs out of drain, then add the interest .

Assuming that A takes 2 years to get X amount, B will have to pay A: 365 * 2 * 350K (this is the salary assuming A's capacity). So this amount is actually the number A helped B and B return, and the land after which B will take.

With the changing of the times, a Japanese TV could be equal to a lifetime of work now, so choose something valuable later. At the very least, it will help you have a better financial situation, and of course, don't forget your emotions and experiences, not just the future. The lesson is a bit long, thank you for reading and understanding ^^

Hoai Phong