Fair value

I give is preparing to investment company named for Fair-valuecapital, to remind you, no matter be or do investment, want to seek a Fair price, don't even think of to take petty advantages. Remember that mans case say that word, if you want to get something special, the best way is to let you deserve it. Before learning valuations, clearly remembered the fair value of a definition: voluntary, not from any of the stress apples-is, that all information in related transactions after price. This definition was that I remember profoundly, because it I understand people of a free meaning: social value maximization foundation is a person value maximization, and a thing only buyers how valuable is your most personal clear, if not let personal freedom to express and freedom to voluntary voluntarily choose, there must be no talk about value maximization. Of course this is infrastructures. Questions that need to be discussed in, voluntary trade means apples-is will profit, but this is just how the how to distribute the fair? Buyers have consumer surplus, is using value (usevalue) must be greater than the changing value (exchange value), sellers have producer surplus, change the value (exchangevalue) must be greater than the costs (cost). Here is not actually happened to cost cost, but an opportunity cost. In fact, a voluntary trade is equivalent to a distribution of interests, the distribution of the object is the buyer with value and the cost of the sellers of the difference. How cent? I like the Talmud "controversial clothes principle" : two people for a dress, a person with all of its requirements, another request to have the half, the first for three quarters, the second for a quarter. Reason is that there are two personal requirements half, only one half were asked, then the other half is not controversial, we put the controversial one person half, not to give the dispute another person. If the sellers and the buyers, the opportunity cost of the most use value are clear, if I said above and follow the principles, fair price nature is easy to draw. But the problem is, the opportunity cost of sellers only sellers most clear, the most use value of the buyers are only the most clear buyer, so, let all known and fully digest trading all relevant information is very important.buy sunglasses I hope that all of the transaction can in line with "the tower zehnder, in principle, don't even think of each other to cheaper. Want to know, can divide of the interests of the two head, that is, the value and the buyer with the cost of the sellers not constant, it may be possible to both ends to the interests of the greater the growing points. I have a lot of such experiences, when focusing on points, short-term perhaps to take advantage, is ultimately suffer, but focus on big "using value", then must be joyful harvest. If I am in Shanghai have buying and selling two house experience, very will tell. In early 2007, I think can live in Shanghai, he decided to buy a house, because if you're at a local live for a long time, have their own house is "using value" very high. For this reason, though prices are expected to fall, I didn't listen to go up to still drop, at the market bought a can see century park view of three rooms. The results, and two months when we transfer, the house rose by 30%, but I want to, even though I have risen 30% price bought, nor too disappointed, because "the using value" is high enough. In early 2009, after the child is born to the explosion at home, I want to change a set of four room, was at that time in the yanlord have two choices, one is small four room, one was a senior room, the latter good many also your many, but we want to, are choosing. The result, there is a small four room trading opportunities appear: if immediately sign, can be below the market price 10% of the price of the trade. Big deal! I will save (choice. The result, the house when the flower temperature control system and general, that summer and very hot air conditioning can't, open air conditioning and too cold, less than a year old child so sick, necessary, change rented a room that is big 4 I think at that time to buy the house. And at the same time, to the small four room sold (although the three month 40%), again want to buy a set of four room, but the price has been rise didn't want to do, to now, that set of senior house price is was doubled. And I, when a "big cheap", and the result is a big loss, so far in Shanghai or rent to live. These experience make me understand, trading is distribution, fair, or even eat some kui person doesn't matter. The important thing is, you must buy what you want, then put it "using value" maximization. Live and do business, making investment can apply this principle. Used in life, is buying things must oneself want. Don't like female 姟 son buy clothes, good clothes don't think you do not want to buy, but because discount cheap is whether you want to buy a lot of, the result is all in the wardrobe, a year also't wear a, with the basic value is zero. Applied to do enterprise, is to learn to buy the gree purchasing principle: quality is the first,Discount sunglasses price said, because even if cost a little higher, gree can create the best in quality, consumers "using value" the biggest products. The Times also to learn the beauty, considered cost-effective, but don't light figure cheap. Used in making investments, which is in focus on the company isn't is good company, long-term have the ability to create value, and not very particular about valuations. Maotai since 5 years so far up 60 times, valuations have actually the most doubled, the rest of the 30 times earnings growth is.

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