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Yeah. You don't own more or less of anything. Five sticks of gum, a car, 10 shares of $MSFT, a Mewtwo Ultra Rare. You have exactly same assets as before. The b
by paulddraper 11mo ago
Yeah. You don't own more or less of anything. Five sticks of gum, a car, 10 shares of $MSFT, a Mewtwo Ultra Rare.
You have exactly same assets as before. The businesses of which you are a fractional owner have the same fundamentals.
But other people won't trade other assets for yours at the same rate.
- z0r 11mo agoDon't the invested dollars poured into infrastructure that won't yield gains represent a loss of value? Especially if the same investment could have been put to work somewhere more fruitful.
- deleted 11mo ago[deleted]
- paulddraper 11mo agoIt's (1) a loss of expected value (2) misspent resources. You spent $X to buy RAM chips, expecting that you could produce $Y with it. But you didn't. So you (1) failed to realize the expected value $Y, and (2) misallocated $X, which in hindsight you would have used differently. Again, that's all learning that future expectations do not match reality. The decision/action happened earlier, and is separate from the realization. Attributing the material loss to the realization is misplaced.