Prologue
A rosy vision of the future fuels the rise in asset prices.
The desire to purchase assets, even at exorbitant prices, leads to a surge in borrowing.
Investors who acquire assets at prices exceeding their intrinsic value believe in the existence of a "greater fool" who will pay an even higher price in the future.
Disregarding fundamental values, these investors become swept up in the mechanics of the "greater fool theory," focusing solely on the potential for further price increases.
However, when the "greater fool" fails to appear, asset prices plummet, and the bubble bursts.
In the end, the absence of a "greater fool" leaves the market with a lasting lesson?the paramount importance of intrinsic value.
Building portfolios based on intrinsic value is the safest path to resist the allure of bubbles and achieve sustainable outcomes.
By delving into the living history of economic and humanistic inquiries, one gains a deeper understanding of the essence of wealth and embarks on the "Roadmap to Wealth."
This roadmap is not about short-term windfalls but about achieving enduring prosperity through humanistic reflection and economic insight.
By establishing a sound investment approach, we empower ourselves to lead lives that align with our true aspirations.
