Learn more about personaldevelopment with this collection
Why happiness is the ultimate goal
The importance of creating value
How to create wealth in the modern era
Judgment Is the Decisive Skill
In an age of infinite leverage, judgment becomes the most important skill
Everything else that you do is actually setting you up to apply your judgment. That's why CEOs get paid more. If you’re steering Google or Apple, and your judgment is 10 percent better than the next person’s, society will literally pay you hundreds of millions of dollars more because you’re steering a $100 billion ship
Judgment is knowing the long-term consequences of your actions. The best way to do that is to study everything, including a lot of philosophy. it makes you more stoic, less emotional. so better decisions
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1.48K reads
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Product and Media Are New Leverage
Product leverage is where the new fortunes are made
The new generation’s fortunes are all made through code or media. Joe Rogan making 50 to 100 million bucks a year from his podcast, Jeff Bezos and Mark Zuckerberg are all code-based leverage.
Add in Capital and you...
308
2.77K reads
Pick a Business Model with Leverage
An ideal business model has network effects, low marginal costs, and scale economies.
Scale economies: the more you produce, the cheaper it gets. This builds up an automatic barrier to entry against competition and getting commoditized.
Technology products especially, and m...
291
2.14K reads
Set an Aspirational Hourly Rate
No one is going to value you more than you value yourself. Set a high personal hourly rate, and stick to it.
Say you value your time at $100 an hour. If you decide to spend an hour driving across town to get something, you’re effectively throwing away $100. if you want to get rich, it has t...
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1.38K reads
Product Leverage is Egalitarian
It’s the nature of code and media output that the same product is accessible to everybody. Status goods are limited to a few people.
The best products tend to be at the center, at the sweet spot, the middle class, rather than being targeted at the upper class.
If you care about eth...
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2.18K reads
Labor and Capital are Old Leverage
The oldest form of leverage is labor, which is people working for you. It is the worst form of leverage that you could possibly use.
You want the minimum amount of labor that allows you to use the other forms of leverage.
Capital is a powerful form of leverage. It can be converted to ...
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3.76K reads
Eg: From Labourer to Entrepreneur
From low to high specific knowledge, accountability, and leverage. Laborers get paid hourly and have low accountability.
General contractors get equity, but they’re also taking accountability and risk.
Property developers pocket the profit by applying capital leverage. More specific k...
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1.58K reads
You should be working on your product and getting product-market fit, and you should be exercising and eating healthy. That’s about it. That’s all you have time for while you’re on this mission.
PAUL GRAHAM
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1.72K reads
Network effects: value grows as the square of the customers
Bob Metcalfe, coined Metcalfe’s Law: the value of a network is proportional to the square of the number of nodes in the network.
If a network of size 10 would have a value of 100, a network of a size 100 would have a value of 10,000. It’s not just 10 times more, it’s 100 times more, because...
276
1.7K reads
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Other curated ideas on this topic:
Money is expensive.
Avoid debt on depreciating assets, and never incur debt in order to assuage your vanity (see rule number one). Debt has become normative, but don’t blithely accept it as a rite of passage into adulthood—debt represents imbalance and, in some sense, often a resignation of control.
If you c...
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