It's very difficult to define value. The stock price of AAPL could be seen as its value per share because that's what people are currently willing to pay. But this doesn't capture the entire meaning of value. A more accurate definition might be the actual worth of owning one unit of the company. The tricky part is that we only recognize something as valuable when it translates into gains. When AAPL's price rises, we say owning it was valuable. But if you made a profit while AAPL was trading flat, someone else might've lost money. Was any value truly created, or was it simply moved from one person to another?

People invest their money to generate returns higher than their initial amount. The choice of investment depends heavily on one's risk tolerance and desired returns. If you prefer safety and predictable returns, treasury bonds may be your best option. However, if you believe strongly that Apple's future growth justifies potential risk, buying its stock could make sense. But there's another question worth considering: Where does the money come from? Is it savings from your monthly wages? Or perhaps you're borrowing money, betting that your returns will surpass your interest payments? These considerations are at the heart of finance.

As a side note, banks are central to finance. Banks don't directly create value the way a tech firm creates products or a manufacturer builds machinery. Instead, banks primarily transfer value. They take deposits and lend the capital out to individuals and businesses, hoping these borrowers will create tangible value. But for banks, as long as borrowers repay the interest, it doesn't matter much whether the borrowers truly created value. Finance simply operates by transferring capital. Whether something meaningful results from that capital lies in the hands of those who borrow it.

The dictionary definition of investment is the action or process of investing money for profit or material result. However, I think that definition leaves something important out. Profit typically arises from transactions. You buy AAPL at $180, then sell at $220. You made money, sure, but did you directly contribute to Apple's growth or innovation? Likely not. You merely traded your share with someone else who no longer wanted it, and then again with someone else who did. Apple's primary financial gain from investors occurred when it initially offered its shares to the public (IPO). After that, the company's operations were largely funded by its internal revenue streams.

The moment your investment truly creates a material result is when a company explicitly states how your money contributed to building infrastructure, launching a new product, creating jobs, or improving lives. I genuinely believe this is how capital should flow. Yes, stock trading can be profitable, but trading alone doesn't create tangible outcomes. The stock market is merely a platform for exchanging ownership, and the share's price is largely determined by collective market belief, not necessarily by measurable impact. Companies aren't overly concerned with who specifically owns their shares day-to-day; they care that someone owns them, eliminating the need to repurchase their stock.

Everyday trading activity rarely considers the tangible results of investment. Some investors prioritize discounted cash flow valuations, others chase price momentum, and some speculate based on volatility. Yet none of these strategies inherently ensures the company creates genuine welfare or positive societal outcomes. Ultimately, if we fail to address global challenges such as climate change or international conflicts, our short-term profits will hardly matter.

Therefore, let's strive to be responsible investors. Understand clearly where your money goes and what it accomplishes. Continually ask yourself: Has your capital contributed to creating something valuable, or is it simply changing hands for a quick gain? That's why I urge people to invest in values, not merely in assets.

Best,

Bosung