Human beings are depreciating assets

One thing we can avoid is that we age.

Just like assets have depreciation life cycle – e.g. computers are 5 years, we human beings are depreciating as time goes by.

If a person can only do a thing at age of 50 similar to what he or she can do at age of 30,  the “depreciation” would be of significance.

However, one thing is different – we can improve on ourselves.

Buffett’s knowledge and investment skills is probably improving over the years. Thus the “carrying value” is probably increasing for a very long period of time for Buffett, even though depreciation also grows.

Other occupations like lawyers and doctors seem to be benefiting from “aging”.

Sometimes, there are external shocks that we can’t prepare on our own, especially if we continue on a repetitive daily life.

We need to actively access our carrying value from time to time, and be an honest “auditor” for ourselves. Then, we need to come up with plans as a “manager” for ourselves.