Hence, I can understand why some may find the Earn More path a bit daunting and unsettling...
Especially for those who prefer the certainty of a FIXED salary each month.
Those who can stomach bonuses and/or commissions making up more than 50% share of their base salaries, would probably find the Earn More path familiar territory...
Invested wealth is like winnings in a casino. The amount that really matters is what you carry in your pockets when you walk out ;)
Well public companies also like to report earnings based on EBITA. Lose money means lose money. How to feel comfortable even if EBITA is positive? Everyone can invent their own accounting, at the end they will have to live with the real situation on their ground. We will know when we see a smoke grenade.
Yes, everyone and anyone can come up with their own definitions - that's not hard - but trying to convince every else to accept YOUR very own home-made definition - that's the hard part ;)
For public companies (and private ones for the taxman), that's why we have Accounting Standards
You cannot "suka suka" this you count, that you don't count! LOL!
Then again, even if there are officially accepted "new" definitions like EBITA, true blue Value Investors like Warren and Charlie can still choose to ignore them as that's considered putting on lipstick on pig's lips...
CEOs and CFOs will always find new creative ways to look good!
It's the responsibility of shareholders to swallow or say no to the "bait". Wink.
Some on entrepreneurship twitter suka suka call themselves a CEO of a multi-million dollar business because they benchmark themselves to tech companies trading at a PE of 100 at the top of the tech bull
Is hoping lying to ourselves?
ReplyDeleteCW,
DeleteEven a "simple" idea of net worth we have all sorts of "interpretations" and home-made definitions.
I'm not going into the rabbit hole of trying to define what is "hope"!?
Whether one is lying to oneself, one only knows!
What about self justification? Give ownself the excuses for making mistakes. Queuing to read a book on this topic
ReplyDeleteAT_AT,
Delete1. Self-justification - you already got the answer if using dictionary definition.
2. Excuses - this one even clearer than crystal ;)
Then again, like I've commented to CW above, I've noticed quite a few in our community like to own self invent new definitions of "net worth".
Hungry, tired? We own self know best!
Unless we need others to tell us whether we hungry or tired???
.
Hi SMOL,
DeleteWhatever the definition of "net worth", I still like this rejoinder : "Invested wealth is an illusion!"
Mr Market decides at the end of the day what that net worth will be.
mysecretinvestment,
DeleteHence, I can understand why some may find the Earn More path a bit daunting and unsettling...
Especially for those who prefer the certainty of a FIXED salary each month.
Those who can stomach bonuses and/or commissions making up more than 50% share of their base salaries, would probably find the Earn More path familiar territory...
Invested wealth is like winnings in a casino. The amount that really matters is what you carry in your pockets when you walk out ;)
Well public companies also like to report earnings based on EBITA. Lose money means lose money. How to feel comfortable even if EBITA is positive?
ReplyDeleteEveryone can invent their own accounting, at the end they will have to live with the real situation on their ground. We will know when we see a smoke grenade.
AT_AT,
DeleteYes, everyone and anyone can come up with their own definitions - that's not hard - but trying to convince every else to accept YOUR very own home-made definition - that's the hard part ;)
For public companies (and private ones for the taxman), that's why we have Accounting Standards
You cannot "suka suka" this you count, that you don't count! LOL!
Then again, even if there are officially accepted "new" definitions like EBITA, true blue Value Investors like Warren and Charlie can still choose to ignore them as that's considered putting on lipstick on pig's lips...
CEOs and CFOs will always find new creative ways to look good!
It's the responsibility of shareholders to swallow or say no to the "bait". Wink.
Hi SMOL,
ReplyDeleteQuite funny now that you've mentioned it.
Some on entrepreneurship twitter suka suka call themselves a CEO of a multi-million dollar business because they benchmark themselves to tech companies trading at a PE of 100 at the top of the tech bull
LOL
Unintelligent Nerd,
DeleteFake it till we make it!
Then again, it takes one to know one.
I've called myself a nano landowner before too...
Those staying at landed properties will probably snigger at my feeble attempt to join their ranks with just a HDB 3 room flat!?
LOL!
It's like comb-overs trying to conceal your baldness. No one is fooling anyone.