The idea of a stock market price is precisely just that—it is something you have to pay for. You pay a price in exchange for something, which in the stock market’s case, a business. Following this line of thought, when you buy something, the intention, naturally, is to consume the product, or to benefit from its intended purpose—from its essence or reason for being. In the context of an investor, when he buys shares of stock, what does he, as a buyer of business, expect?
Or shouldn't we ask first: what is the essence of a business? This is perhaps one of the most important economic questions a capitalist might ask. Here’s my take and this is only my view: the fundamental essence of a business is to consistently create shareholder value by providing products and services to continuously satisfy customer needs and wants. Hence, while the investor is compensated by profits, ultimately, the reason for being of a business is for the benefit of the ever-demanding customer. This purpose and commitment of enduringly accommodating needs and wants of customers binds that long-term quality of a business. As a result, it symbiotically becomes a perpetual repeat business—to put in a self-interested note, or from a candid layman’s view, a money-making machine.
Investire nei Titoli Azionari Americani. Come fare?
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Non c’è trader che non sogni di giocare in borsa investendo in titoli ed
azioni quotati a Wall Street. Anche se negli ultimi anni il mercato ha
visto entra...
5 years ago
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