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Wealth Management

Since one cannot have profits as the sole goal, therefore a new generally accepted concept of creation of wealth come into force. It says that every business should focus on maximizing wealth and value of shares of the company by providing quality goods and playing a socially responsible role in the society.

Thus as asset is valued on the basis of benefits it produces and not on the basis of its cost. E.g. a pen - it can cost around rs-5 only but can become handy in producing some of the best selling books and stories.

Similarly one can judge the value of course of action on the basis of the benefits that action will produce.

One can measure benefits in the terms of the cash flows that can be produced in the future by that action or asset

Conclusion - Any action or asset that was taken based on the decision that works on the concept of wealth creation and which produces a stream of future benefits exceeding its costs should be accepted taking their uncertainty into consideration.

 


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