Accountability

“An account without accountability is just a number games, in which it serves other than none, entertainment purpose for you.”

Often, individual investors fall into the prey of their predators in Wall Street. While the parties who manage the company account with “Creative Accounting” should be blamed for the fraud, the investors should not be left from the responsibility for the fraud. In the world of hoping for short term quick profit from the stock market, there is only one way to fulfill the hope: by cooking the book. Thus, the parties found hundred ways to inflate the reported earnings of the company to fulfill the consensus estimate and thus jerking up the stock price. The manipulated price would not long last. Sooner or later, the factor that determines the price of the stock lays no other places but in its ability to create a value to the society. People tend to forget about this reality and hope for unrealistic continuous earnings growth.

In nature, there is a cycle: the day would be last with night; the last of winter would be followed by spring. So, in business. Businesses rise and fall, only businesses that create values could last longer than ordinary businesses. The success of the businesses would not bear fruit in quarters, but in years. Hoping for quick result would only bring disappointment to the investors and the hope is just merely a utopian hope, the hope that does not exist in the reality.