加密飞龙
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Non-profitable net assets can sometimes be a burden. For example, building a hotel in a deserted area, costing 100 million, and now losing 5 million each year. The reset cost is still 100 million, and now wanting to sell for 50 million, who would want it here? So I coined the term 'effective net assets'. In other words, net assets that cannot generate cash flow actually have no value (and may sometimes even have negative value).
The so-called 'effective net assets' is actually the original meaning of 'capital'; only assets that can generate cash flow are called 'capital', otherwise they are called 'production materials' or 'inventory'.
Even 'cash', if it cannot generate 'cash flow', is considered 'inventory'. Considering inflation, depreciation is needed, and impairment is required, which is the reason for the 'low-value trap'.
Be very cautious of companies with a market value lower than their cash; be as careful as you would be when investing in other companies! At first glance, companies with a market value lower than their cash are often worth looking into, but in most cases, they may not be a bargain.
——Duan Yongping $BTC
$BNB
#美国加征关税 #山寨季何时到来？
The so-called 'effective net assets' is actually the original meaning of 'capital'; only assets that can generate cash flow are called 'capital', otherwise they are called 'production materials' or 'inventory'.
Even 'cash', if it cannot generate 'cash flow', is considered 'inventory'. Considering inflation, depreciation is needed, and impairment is required, which is the reason for the 'low-value trap'.
Be very cautious of companies with a market value lower than their cash; be as careful as you would be when investing in other companies! At first glance, companies with a market value lower than their cash are often worth looking into, but in most cases, they may not be a bargain.
——Duan Yongping $BTC
$BNB
#美国加征关税 #山寨季何时到来？
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