The Value of Investments
“A fool knows the price of everything, but the value of nothing.” - Oscar Wilde
Nowadays, while searching for a job, I find myself wondering about the price and value of things. I don’t want to be the fool and cynic in the above quote. The price of something has, sometimes, nothing to do with its value. While trying to understand complex issues like how investments work, I have been able to understand how the value of a security differs from its cost. We invest in things that have value but oftentimes we get stuck on the advertised price.
Looking at the hospitality industry, and realizing what a good night’s sleep means, I have come to realize the value of a chain hotel like the Hilton or Marriott. Paying for sleep is something I treasure because without it I can most definitely not function and so, the more quality sleep the better. Recently staying at a hostel and at places where there are shared spaces, I came to the realization of how much it costs to sleep, but most importantly it’s value.
Understanding how securities and investments work is quite difficult because there are factors we must take into account when purchasing a share. When investing on the shares of a company, we are often attracted by a low price, but the value of the investment lies in the ulterior if not behind the scenes events, like how the company operates, its mission and its going concern. Sometimes, the price of a share does not reflect the value of the company and thus we disregard the share but it should not be this way.
In his book “The Intelligent Investor,” Warren Buffet goes into detail as to how attractive it is to buy based on price but how much more wholesome it is to buy based on the back scenes of the investment. It is easy to be attracted to a pretty picture that in reality does not reflect the full spectrum of the investment and so, there are many more details into finding what works for us. Buying into the same shares without having a healthy mix is a set up for failure, and I have been there.
Most recently, attempting to create wealth for my family and myself, I found out the hard way there is more to investing than picking the right product, being able to maintain the level of wealth we desire is important and necessary, so it takes another load of expertise to know how to maintain the value of our pension funds, short and long term investments and any other products like Roth and traditional IRAs.
Going back to the hospitality industry, there is a reason why a night’s sleep is costly in any place around the world. While the world continues to turn and change, we are recharging our engines for a new day and sometimes, more often than not, it pays off to have the luxury of a clean and warm bed in a safe space.
Witnessing poverty in New York City is very hard because this is a big metropolis which should include everyone in the mix of services and comforts it offers. But in reality, the picture is grim for some, and I have to include myself here: as I have learned the value of sleep but I do not often agree with the price. Finding out that disruptions to our lives are costly is kind of like looking at an investment in the market. We can find a product which matches the price and value of what suits us and in the end have a pleasant experience of work and life. While this is not always the case in New York, and everyday is not the same, I have to present problems to a city that breathes money and wealth but which is highly unequally distributed. Sometimes, sleep is the only thing we have and that can be taken from us as well. It’s a bad investment to engage with places where we are not valued and our shares of rest and peace are stolen.
Making a commitment to the value of my project, I recommend people value sleep just as an investment in health, humanity and dignity. Having a place to rest is not a luxury but a right and in New York City, a place that demands a lot from people, these are legal grounds that are oftentimes overlooked. When we learn the value of things and services, we learn to demand the right products for our benefit and those of our families but not until we stop looking at people as indecent or disposable, will we be able to overcome difficult problems in society, like homelessness.