We Love Animals
Business Entrepreneur

Business lesson through the Jewish “selling-pie” mindset

In a random market, there are two small bakeries, we call them merchant A and merchant B respectively.

Assuming these are the only two small shops selling pies on this market, the price of pies here is not controlled by the price management department and each pie sold for 1$/piece is enough for the seller to pay back. In addition, the number of cakes of the two small bakeries is the same.

Source: Internet

One time, the business of A and B are not going well, so they devise an interesting game:

A buys a cake from B for 1$, in return, B also spends 1$ to buy a cake from A.

Then, A buys a cake from B for 2$, B also buys a cake from A for 2$.

At that time, there is a passer-by on street – C, an hour ago, when C passes two shops, he sees the price of the pie is 10$ each, but now it has increased to 50$ /piece, he is extremely surprised.

Two hours later, C discovers that the price of pies had increased to 100$ each, he is even more surprised.

So C doesn’t hesitate to buy a cake immediately, because, at this time, C acts as an investor and speculator in “baking cakes”, he believes that the price of cakes will increase further. In the stock market, passers-by like C are stock investors, the people who set a stock’s target price are stock appraisers.

Just like that, this creates an effect, attracting people’s attention, more and more people come to buy cakes, the number of people selling cakes is also increasing, the price of cakes also increases rapidly.

Source: Internet

Someone asked: “So that’s mean people who buy pies never lose their capital?”

Of course not so. So when will these bakers get capital loss?

  • Firstly, if the market is under the management of the price management department, they believe that the price of baked goods should be at 1$ each, and set the price of baked goods at this level – there will be management and adjustment.
  • Secondly, it is also possible that more and more people make pies in the market but the price is only 1$ each – there are stocks of the same type
  • Third, or maybe people suddenly realize that this is just a cake – the discovery of value.
  • In the end, or perhaps no one was interested in this buying and selling anymore – everyone got the hang of it.

Source: Internet

However, if one of the above assumptions turns out to be true, then the people who keep the pies are the ones who lose! So who is profitable? It is the people who hold the least wealth or the earliest to sell the pies they have.

This is the long-standing Jewish mindset of “selling pies”: of the two bakers, the one who keeps less pie and owns less property is the one who makes a profit. The final conclusion is: Whoever owns the least assets is the one who earns the most money, the one who benefits the most.

Some people think that people who buy pies at high prices are idiots. However, we can look back at the stock market today, isn’t that the same thing as “asset re-pricing” or “capitalization”?

For example, in businesses with high returns on equity, capital inflows when assets are high in value are actually the same story as “selling the pies” above. In the end, whoever sells the shares first is the one who makes the most money or who benefits the most.

Source: Internet

Therefore, as an investor, we need to have an objective view of the asset re-valuation as well as the investment decision. If you see someone else’s ambiguity, you have to look at it very carefully, because, most likely, you will become “the passer-by holding the high-priced pies”!

Until then, not losing is a blessing, but if you lose, you will lose heavily, not only playing losing stocks but also affecting life, especially for small retail businesses.

That is also the reason why we must learn and cultivate our own investment thinking. There is a saying “The rich get richer the more they work, the poor get even poorer” is precise.

After thousands of years of exile, the Jews have no land, no country of their own, but become the richest people recognized in the world, this comes from the investment mindset, their own business. The secrets to getting rich conveyed through the stories they share with the world are worth learning from.

Famous figures such as oil king John D. Rockefeller, billionaire George Soros, … are all outstanding Jews, they became rich also thanks to the outstanding Jewish mindset.

Related posts

“Bitcoin Will Replace US Dollar,” Says Former Twitter CEO

Larry

900 Startup Employees Suddenly Fired Via… Zoom, Just Before The Holidays

Larry

This is 11 ‘warriors’ who formerly worked at Tesla: Those who prove to be talented will be successful in all areas.

Owen

This is what makes Apple and Tesla grow significantly.

Owen

Trump’s Social Network Attracts $1 Billion From Investors

Larry

Elon Musk: Secrets Behind The Billionaire’s Recruitment

Larry