It has always been my issue with wealth or envy of wealth, I am not yet sure. But one thing is for sure I have no attachment with it, I am born or experienced it like this. But with time and limited exposure to corporate wealth in Nepal, I came to appreciate wealth creation and preservation. How do we create wealth and preserve has always occupied my mind rather than what wealth is. However, utilities can never be measured directly rather it will be translated via price mechanism. When there will be limited and dependent buyer and sellers like in barter transactions or within boundaries of a small village etc. However, when there are independent buyer and seller, more than utilities it will be more of price discovery game. Limits of prices may be set by their inherent utility for assets to consume immediately or future utilities for assets to be utilized for future consumption or production of future consumption.
How do we discover these prices? I rarely do buying practice and never sold anything so far. However, with luck and blessing of Goddess, few friends were pro in bargaining or say at buying using correct or fair or bargain of their favor. They go door to door and discover prices. I thought for long time that these prices are inherent in their cost of production on seller side and purchasing power on buyer side. Which is in fact tried by both buyer and seller (when they could get information about ) on seller and buyer to bargain. However, that will or may lead to equilibrium prices however such is a dream of a short night, because everyone has different needs or sometimes (so called utility) and accordingly they value those things to be bought. Sellers may too have pressure to sell however in their part they have utility pressure of something else they have to bought by proceeds of things they will sell, just the selling products they have 0 utility in them other than selling. So, it can be fairly said, only way to discover price is to go door-to-door and try to test limits of sellers which is true cost+profit on their part.
Now what about stocks, they seem to satisfy only investment needs. That is basically postponing current consumption with making one leg in current time (i.e. securing chances to sell and ensuring liquidity need when needed and unlike cash which can fulfill only liquidity need and can't hedge against inflation and deferral of consumption). However, investment too is selling goods and services to someone else in future and their return(profit distribution) to investors. rest.........door-to-door seller and these stock sellers are alike.........
I write these words or grammatically not so beautiful sentences to clear my head and is not any kind of claim on accuracy of their validity in real world.
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