What is money? What does it do? It’s an equal value of exchange from one person to the other. It buys us things we need and want. Money allows us to make plans a reality. It can make someones life great or the lack of it can make ones life miserable. Money can be many things to a person, I’d go as far as to say money can become one’s entire essence and thought of attaining it can become a god. Today, I’d like to talk about money as a tool and the psychological effect it has on my mind as an investor.
I’ve always been fascinated by the inter-workings of things and how things have originated to begin with. I stopped asking myself the question why a long time ago because it only led to more frustration and sleepless nights of research. Instead of the question why, I started asking myself, the question how. How can this make my life better or worse. How does this effect me? How are things made and not why. I find this question is much more effective and leads to better results.
In the first question, one could spend an entire year searching for the reason why but when you look at how it happened the answer is quite simple.
The company issued shares at a certain price and that created a floor. If an investor were to purchase x amount of shares at a certain price for millions of dollars they are doing that for a reason. They see potential and growth. They see a problem being fixed. They see opportunity. They see whatever they see and that’s how they see it not why they see it because they have evidence backing the how. The company sells a machine that can manufacture microchips at a fraction of the cost and doesn’t require MOQ. They sell ink as a recurring revenue.
The question how is much more relevant than the question why.
I could think all day about why the founder decided to create the dragonfly. I could think why this why that. But when I think how did they do it. I am thinking about a fact and that is something worth thinking about. So I threw the question why away and start thinking how.
To be continued…
Definition of why (Entry 2 of 4)
1: the cause, reason, or purpose for which
know why you did it
that is why you did it
2: for which : on account of which
know the reason why you did it
Definition of how (Entry 2 of 3)
1a: the way or manner in which
asked how they could help
the story of how the company was founded
remember how they fought
also : the state or condition in which
reported how the patient was found by the paramedics
told them how he had a situation
— Charles Dickens
2: HOWEVER, AS
a reader can shift his attention how he likes
— William Empson