Explaining Why ‘Buy Low, Sell High’ in Investment Contributes to Society

After solving my mental problems, I am now focusing on increasing my material abundance. Investment is one part of it. Today, I will explain why “buy low, sell high” in investment contributes to society.

A way to feel happy and honored by our activities

Sometimes, we want to create more material wealth. Even if we like frugality and don’t need so many luxurious things, a certain amount of affluence increases our freedom. That allows us to migrate to more countryside and live quietly.

However, we sometimes hesitate to create wealth due to feeling guilty. Highly empathic people tend to avoid causing trouble for others as much as possible. In addition, they want to contribute to society or make others happy. That is why we want to avoid activities that make us feel guilty if we have such high empathy.

In other words, we can feel happy and honored by our activities if we know how they contribute to people and society. That often makes us motivated and accelerates our progress.

In investing, there are many negative opinions. For example, people say, “Investors are getting wealth without creating any value because they are just buying and selling.” “I cannot allow myself to earn so easily.” or “Taking more profits is just taking it from weak people.”

However, those ideas are all false. Investment contributes a lot to people and society.

Today, I will explain why. This knowledge might allow us to create more material wealth through investment.

Why investment contribute to society

In my words, investment is the activity of a time-based delivery service. This concept gives us the value of investing.

Let’s imagine a parcel delivery service. They take the package and deliver it to another location. They never create material wealth because they are just carrying goods from one place to another.

However, we know their worth and contribution to society because it is valuable. Workers in service industries, such as logistics, reception, or restaurant waiters, create no material wealth, but we know it is necessary for the economy. It is pointless to say, “Logistics companies are getting wealth without creating any value because they are just carrying.”

Investments are the same. Investment is a time-based delivery service. We preserve something from one time to another.

Some things change in value over time. For example, oranges are cheaper in the winter but expensive in the summer because many oranges fruit in the winter. If we can preserve them until summer, that will be a valuable activity, even if we are just moving something from one time to another. Preserving is one of the skills.

The value of ‘buy cheap, sell high’

Investments in the financial market are the same. For example, gold and silver tend to soar before and after a market collapse.

We can buy them when they are cheap and sell them when they are expensive. A low price means many people are abundant with it and don’t want it anymore. Buyers are not in trouble, but sellers are. We can contribute to sellers by purchasing it at a low price.

On the other hand, a high price means many people lack it and want it. Buyers are in trouble, but sellers are not. We can contribute to buyers by selling it.

Most people cannot wait. In other words, waiting for the long term is one of our precious skills. In addition, the concept of the cycle tells us when to deal. Those two are the keys to successful investment.

Although we are not creating material products, the activity is valuable. People with empathy and logical sense are ideal because they can find the cycle and wait.

The three laws of price and value

Let me explain in more detail.

In my opinion, there are three laws of price and value, as follows:

  1. If two products have the same quality, the cheaper one contributes to people and society.
  2. Prices should be stable rather than fluctuate widely.
  3. The core values in a society tend to give us more profit.

Those laws tell us why investment contributes to society.

Efficiency allows lower prices

First, if two products have the same quality, the cheaper one contributes to people and society because that makes our society more efficient. People in major industries compete to make products at as low a price as possible while keeping their businesses going.

The competition or creativity of companies, such as spending less energy or creating something valuable with fewer materials, makes things efficient.

That makes people abundant in the long term. The cheaper something major in society is, the more it contributes to social abundance.

Why price stability is important

Second, price stability is fundamental for stable social improvement because people can plan. If prices fluctuate widely and unexpectedly, it is hard to plan and manage. That prevents industries from making new capital investments.

Our investment contributes to stabilizing prices. “By low, sell high” is a typical example. It prevents prices from being too low or too high because we buy low and sell high. Our profits are the rewards of stabilizing prices.

Society needs people who can stabilize prices, especially in a turbulent era.

Accessing core values in society

Finally, the core values in a society tend to give us more profit because they impact society.

The financial market is one of the most fundamental systems in society because it supports almost all major industries. The financial market will continue to exist, even if many companies go bankrupt or if the government collapses. The financial market is indispensable to our economic lives.

The more the activity influences society, the greater the reward. Few people can invest in the super-long term, in my opinion. Only people with empathy and logical sense can do it.

That is why I am in the financial market now. I can contribute to people and society while living a secluded life. I can use my empathy and logical sense. In addition, I can increase my wealth if I invest appropriately.

People with high empathy and logical sense are ideal for investment. Of course, we have to learn many things, such as the system of the economy, the market, and history. However, we need to learn something anyway, no matter what market we are in.

If you are interested in it, learning about the financial market might be fun.

Conclusion

That is why our investment contributes to people and society.

This knowledge might allow us to feel happy and honored by our activities.

Thank you for reading this article. I hope to see you in the next one.

Postscript

Perhaps the stock market prices (Dow Jones: US30, S&P500, NASDAQ) are peaking now or are about to come in weeks, in my logic, although I often make mistakes and don’t know if my logic is correct. Gold and silver temporal peaks would follow around four months later.