I recently listened to someone who described how a wealthy billionaire was able to purchase a tech company without selling any stocks in another company he owned. Because the stocks in his other company was worth billions of dollars, investors and banks decided it was worth it to loan him the money to purchase the tech company for even more billions. The billionaire was able to purchase the tech company without having to sell any stocks or put in any money of his own. It was all because the banks an investors determined his worth from the stocks in his original company.
The crazy part is that the billionaire is worth only what his stock in his company is worth. But, that’s not really cash money. It’s a number associated with the company stock. That number could go up but just as easily, that number could go down. And, if the number goes down, then the banks and investors could ask him to pay them what he owes in loans and investments. At that point, he would need to sell his stock for money and give that money to those he owes.
Comments to this video stated that this is how a line of equity loan works with homes. You are borrowing against the value of the home minus what is already owed. So, the difference is how much you can take out to borrow. The theory is that if you default on your loans, the bank can still sell your home and recoup all it was owed because the home’s worth is more than the loans taken against it.
The point in both of these examples is that the worth of the stocks and the worth of homes are a number placed upon them, but do not equal actual money. An exchange has to occur for the money to materialize. A sale has to happen in order for any to receive a payment. So, their worth is based on a figure placed upon it.
But, what if that company is unethical? What if termites are found in the home? The value decreases but maybe not before the sale is complete. So, the company makes money before it takes a loss. The buyer of the home purchases a pest-infested home that may cost thousands to remodel.
What if the company is on the verge of a new hit product. What if the property the home sits on goes up in value do to interest in that area? Then the company’s stock and the home become worth even more.
The key to both of these examples is that the real value of the company and home isn’t known until they are bought and sold. The new owner discovers their true worth after getting to. know the company and the home. They either inherit a dud or a goldmine. Or the value could just remain the same.
How do we determine our value? Is it based on a false number that someone or a number of someones have placed upon it. Are there hazards that we carry with us that could make us appear less valued to others. Are we more valuable than others could even imagine? Or, is what you see what you get?
The only person who can really answer that question is you. You determine your value based on how much you love yourself. Some of us, myself included, have a lot of negative self-talk and belittle ourselves, even when we don’t realize we do it. Some of us are braggarts and and love to embellish our worth. Some of us know who we are and that’s what we portray.
But, don’t ever let someone else determine how valuable you are. Humans tend to underestimate their worth. And when we do, the world believes it too. But, if we know our value and worth and are confident in what we can do and humble to learn what we don’t, we leave ourselves open to amazing possibilities.
You are highly valued and worthy. Remember that!
